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Home | Update | LATEST ISSUE | Gallery | FR Profile | Datafiles | FR 2/98 GOVERNMENTS PUSH EUROPEAN CONSOLIDATION by Wolfdietrich Hoeveler "That would be nice", many of the journalists probably thought when Dr. Norbert Lammert, aerospace coordinator of the German government, presented a joint announcement of the French and British prime ministers and the German chancellor concerning the integration of the European aerospace industry two weeks before Christmas in Bonn. The announcement contained many things that are really a matter of course - if all of this had been really a matter of course in the past. The content of the declaration: All three government heads are stressing their vital interest in a competitive European aerospace industry and, they are giving the restructuring of Europe's industrial aerospace capacities a top priority. They are assessing it to be a valuable first step that Aérospatiale, British Aerospace and Daimler-Benz Aerospace are planning to join their activities. Until 31 March, 1998, the governments are expecting proposals from the industry, explaining how the restructuring of Airbus into a corporation can be achieved. The base line is correct: The European politics are flanking industrial activities on the highest level. British Aerospace and Dasa seem to have progressed to concrete terms concerning this matter. Dick Evans from British Aerospace and Dasa's Dr. Manfred Bischoff seem to know exactly what a "European Aerospace Company" should look like or how shares and decision making procedures could be settled. Some steps, for example in the satellite and missile business, have already been accomplished. Two important points remain: the political general set-up and France. As much as the announcement must be appreciated, the industry will only be able to work out concrete suggestions for the further integration when the bases are comparable, for example the tax and social laws. There is lots of work waiting for politician in these areas. Realizing the speed in which joint political key decisions are made in united Europe, there is not much hope that the industry will be able to present some really useful ideas concerning Airbus by 31 March, 1998. The special case of the French aerospace industry still clouds the shining vision of the private corporations in Germany and Great Britain. There will be an extreme need for changes in France as long as political pressure can be applied to its government (for example from the unions concerning jobs), such directly influencing the French companies' decisions. The decision level in France is wrong. If Aérospatiale is not able to act independently from French politics in the future, the merger does not make sense. Worse, it could even hamper the process. Dasa had that unique experience in the case of Eurocopter. First, the consortium's German part was cleaned up (lay offs), while the French company part maintained its capacities with subsidies and governmental orders. Following a subsequent evaluation of the entire Eurocopter consortium, the German share had to suffer even more. Meanwhile, the helicopter development departments in Germany have shrunk to microscopic size. Sure, Europe can't grow together without sacrifices. But, single source does not mean: one dominant partner has everything and the others get the rest. France's willingness to actively cooperate in the integration of the European aerospace industry will have to be measured on how the government really acts. One thing is for sure: the government owned companies must be privatized before anything happens. Dasa and British Aerospace cannot negotiate with Aérospatiale as long as the real decision makers are sitting behind desks in French ministries. From page 4 of FLUG REVUE 2/98 Home | Update | LATEST ISSUE | Gallery | FR Profile | Datafiles | FR 2/98 Copyright 1998 by Motor-Presse Stuttgart. All rights reserved. Last updated January 9, 1998 FLUG REVUE, Ubierstr. 83, 53173 Bonn, Germany