For Snecma's new chief Bernard Dufour, the state can be both a friend and a foe
Julian Moxon/PARIS
Bernard Dufour is clearly a man, who intends to make his mark, on the French and European aero-engine industry. Since taking over as chairman and chief executive of Snecma in October 1994, his stand against French Government efforts to cut the price of M88 engines, for the Dassault Rafale fighter and his views on the power plant for the European Future Large Aircraft (FLA) military transport, quickly established him on the international scene
Although previously chairman of power-generation equipment builder GEC Alsthom, Dufour is an aviation thoroughbred. As a manager and director, first with Sud-Aviation and, later, Aerospatiale, he has been involved, primarily on production, in many of France's most important aerospace projects such as the Concorde, the Caravelle, the Puma helicopter, and the Airbus Industrie consortium. He became Aerospatiale's executive vice-president in the late 1970s.
His pride in French achievements in aviation is clear. The French aerospace industry has come from "non-existence" in 1945 to leadership of numerous European collaborative programmes. "It is a remarkable record," he says.
With this in mind, Dufour clearly wants to see Snecma make its mark in the development of a new civil engine, and the proposed 190kN (43,000lb) thrust CFMXX turbofan is the vehicle. "After working 25 years with the same CFM core, the time has come to start a new size of engine, which is needed for the Airbus A340 as it grows to 300/310t."
Such an engine will need more than one application, however, and Dufour's recent highly public remarks insisting that the engine of the FLA military transport be a turbofan, and not a turboprop as presently planned, caused considerable consternation. While his desire was clearly to ensure the long-term future of Snecma's civil-engine business, the outburst angered Snecma's government owner, the French defence ministry, and others in the FLA community who felt that a turboprop was the best solution.
He still holds out hope for a turbofan, saying that the FLA is "not yet launched". He also points out that the UK, which has indicated that it might return to the programme, has specified a refueling mission for the transport. "This favours a turbofan," he says.
The future of the relationship with General Electric, Snecma's equal partner in the CFM56 range, is clear. "We always said that the CFM agreement was the basis for the future of our civil-engine business." Snecma has its own core demonstrator, the PAT (Plan d'Actions Technologiques), but Dufour denies that this means the CFMXX will have a Snecma core, effectively reversing the position held by GE in the CFM partnership. "I certainly want part of the core, but I don't expect all of it." The demonstrator has "many new features", however, which will be "...taken into consideration in the CFMXX", he says.
Dufour says that he is "promoting" the idea of R-R, Fiat and MTU joining in the CFMXX. "Nothing should prevent us opening the door to them," he asserts. He adds that GE "understands" that any European military programme "...would require a European content of around 75%".
Dufour met R-R chairman Sir Ralph Robins in November 1994, only a few weeks after he took over at Snecma after the untimely death of Gerard Renon. "We covered mainly the subject of the FLA. He indicated that he had no problem on collaboration," he says.
Dufour, who declares himself an Anglophile, is better placed to talk about co-operation with UK companies than most French business leaders: the merging of GEC's and Alcatel's power-generation activities into the jointly owned GEC Alsthom being the most successful example to date of Anglo/French rationalisation.
That does not, however, stop him being critical of the UK aerospace industry for failing to live up to the promise of European collaborative programmes. "The UK has always been tempted to go it alone," he says, "but not all of their projects were successful. I have great admiration for the UK, and I believe it will be a good thing for them to become more committed to Europe."
Snecma will post losses of around Fr1 billion for 1994 and "...1995 is likely to be no better", says Dufour. He says that the difficulties have arisen for several reasons. "In 1989, there were big civil orders, which boosted us into a major investment programme. Then the market turned and we were a bit caught with regard to our workforce, and the oversized investments." Funding for development of the M88 fighter engine, the low value of the dollar, "...and the fact that we have received no money from the French Government for new programmes for two years", have also contributed to the losses.
The new president is uncompromising about the need for Fr2 billion ($380 million) of state French Government money to recapitalise Snecma. "It is to help with our restructuring, and to prepare for the future." The money is needed to put Snecma on a similarly healthy financial footing to R-R, which Dufour says has achieved a "remarkable" comeback, "...thanks to the very heavy recapitalisation it received from the British Government". The example of R-R should be followed by the French Government, he says. "I feel the engine industry is a strategic one, so I hope our problems will be sorted out in the same way."
Source: Flight International