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Aviation History
2001
2001 - 2076.PDF
PARIS 2001 DEFENCE • r EADS is pushing to increase its military aircraft activities to reduce its dependence on Airbus STEWART PENNEY / MUNICH With 80% of its 2000 sales from the civil sector, a significant element of EADS revenues and profits depend on the company's shareholding in Airbus (59% of total sales) and other commercial aircraft activities. A key EADS aim is to drive up its defence activities to become a much larger element of its business as well as to forge a greater global defence presence in such areas as maintenance and support. EADS defence activities are contained within its Defence and Civil Systems (11% of income) and Military Transport Aircraft (1%) units as well as the Military Aircraft unit within Aeronautics (19%). The former two were loss-making in 2000. Aeronautics also contains ATR, Elbe Flugzeugwerke, Eurocopter, Socata and Sogerma. While the other pieces of Aeronautics are much the same as pre-merger, Military Aircraft has seen significant changes following the merger of France's Aerospa tiale, Spain's Casa and Germany's Daimler- Chrysler Aerospace (Dasa) into EADS. The changes are set to continue with the imminent formation of EMAC, which will amalgamate EADS Military Aircraft with Alenia Aerospazio. EMAC will have the lion's share of the Eurofighter programme while EADS is a part owner, along with Dassault Aviation, of the competing Rafale. Also rolled into the new group will be EADS Germany's Mako advanced trainer/ light attack aircraft, while the Italian part ner will roll in its participation in the light attack Alenia/Embraer AMX and its hold ing in Italian trainer specialist Aermacchi. Alenia hopes to include 100% of Aer macchi in EMAC. The combined entity will also provide a home for the Alenia/Lockheed Martin C-27J, leaving the EADS Casa transports - the Military Transport Aircraft business - outside the new group. Alenia and EADS also have significant military aircraft maintenance and support operations that will provide a core element of EMAC. Dr Rolf Wirtz, director of business devel opment-external affairs for EADS Military Aircraft, says: "It is definitely a strategic goal" to strengthen the defence business. He adds: "Military aircraft is an area, due to the consolidation in Europe, where we need to go forward." The company has not yet "fully exploited the synergies between Casa and Dasa," he says. Having driven consolidation forward within Europe with EADS, he points out, the joint venture with Alenia further devel ops the European aerospace industry. The Panavia Tornado and Eurofighter are seen as models for European co-operation, but the formation of EADS and EMAC have removed many of the hurdles that have faced these organisations, says Wirtz. Previously four companies were demand ing workshare in key technology areas to establish or maintain a competency. Now, he says, there is only one company that needs to maintain its capabilities, and working across national boundaries is sec ond nature within EADS. Workshare dis putes between national governments have typically been triggered by companies, but there is no longer a need to do this as the company will distribute the work inter nally. "There will no longer be a 'slice and dice' of components," says Wirtz. Areas where outsiders believe co-opera tion falls down include the on-going com petitions between Eurofighter and Rafale. Once EMAC is formed, it will control 67% of the former programme and 46% of the latter through EADS France's holding in Dassault. Questions have been repeatedly raised over the cost of offering two similar aircraft in competition. Eurofighter sources also complain about Dassault's attempts to convince Greece to drop a Typhoon orde in favour of the Rafale, which raised tb cost of the four-nation consortium's bid "I don't see an issue," Wirtz says, as botl aircraft are nearing the end of the develop ment phase, and the Rafale is available as navalised version, opening markets no available to the Eurofighter. He adds: " believe an agreement can be reached. Wi have two aircraft to offer and the custome; can select the one they want." Another area of potential overlap j advanced jet trainers/light strike aircraft EADS Military Aircraft continues to worl on the Mako, buoyed by the signing of further development memorandum o: understanding with the United Aral Emirates in March, and agreements with; number of key equipment suppliers. Aleni; continues to offer the AMX with Brazil': Embraer and is a shareholder in Aermacchi producer of the MB339 and developer o: the M346. "This is a grey area," Wirtz says "and we need to sort out the portfolio." Compromises such as using the M34f cockpit development are at work in th< Mako programme. He acknowledges however, "there is no place for aircraft thai are built in small numbers". In many areas, says Wirtz, EMAC boost the new company. Alenia and EADS hav< Technology acquisition The European Technology Acquisition Plan (ETAP) will be the focus on which EADS and other companies develop new capabilities over the next few years. ETAP covers areas of "significant importance for EADS Military Aircraft", says Wirtz. EMAC's four home countries - France, Germany, Italy and Spain - along with Sweden and the UK are due to sign-up to ETAP which initially will create new systems for in-"ser$ce aircraft and those nearing service such as the •<* Eurofighter and Dassault Aviation Rafale. Key areas include advanced avionics, low observability (LO), control systems and unmanned air vehicles. If Europe progresses with an unmanned combat air vehicle (UCAV) it will emerge from the ETAP work. Alenia, BAE Systems, Dassault, EADS and Saab have already created a UCAV working group, which will become more formalised once the ETAP memorandum of understanding is signed. BAE is participating in UCAV studies as part of the UK's Future Offensive Air Capability studies to replace the Panavia Tornado, while Dassault and Saab have company funded UAV/UCAV programmes. Dassault flew the Petit Due demonstrator last year and UAVs and UCAVs are a central element of Saab's NetDefence proposals. Industry sources within Europe express concern about the UK's commitment to ETAP and its policy of alliances with the USA as well as Europe. The sources believe that by splitting its resources, the UK cannot fully contribute to the European programme. The UK's pres ence on programmes such as the Joint Strike Fighter also limits its participation in some key ETAP areas. 60 12-18 JUNE 2001 FLIGHT INTERNATIONAL www.fliqhtinternational.con
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