British aerospace giant BAE Systems has appointed Conservative MP and former UK defence minister Michael Portillo as a non-executive director.

Mr Portillo, the MP for Kensington and Chelsea, joins six other non-executive directors at BAE, including former Formula 1 racing tycoon and Conservative politician Lord Hesketh.

"Michael Portillo will make a significant contribution to the breadth of experience on the board," BAE Chairman Sir Richard Evans said in a statement.

The company did not say how much Mr Portillo would be paid.

Non-executive directors are responsible for ensuring that the company's management acts in the best interest of shareholders.

Defence background

Mr Portillo first became an MP in 1984, and went on to serve as secretary of state for defence in John Major's conservative government before losing his parliamentary seat in the 1997 general election.

He returned to parliament two years later as MP for Kensington and Chelsea, but failed in his bid to succeed William Hague as Conservative leader in 2001.

BAE Systems is one of the world's largest aerospace and defence contractors, with a workforce of more than 100,000 people and annual sales in the region of �13bn ($20.2bn).

It is also a major shareholder in European aircraft manufacturer Airbus, the only serious rival to Boeing of the US.

Travel slump

But BAE has been struggling in the face of the air travel downturn triggered by the 11 September attacks, with profits for 2001 falling to about �70m, two thirds down on the previous year.

The company laid off about 1,700 workers in the UK last year in an effort to cut costs.

BAE shares fell 11 pence to 271p on Wednesday, in a market that was slightly higher overall.

The company's shares were changing hands at about 550p in May 1998.