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DASA BACK ON COURSE OF SUCCESS

by Norbert Burgner

"After a long and painful downhill our business showed a significant stimulation in the past year. In the second half of 1996 the long awaited updraft finally set on." With this statement, Dr. Manfred Bischoff, Managing Director of Dasa, opened the Daimler-Benz subsidiary's balance press conference in February in Munich.

According to the Dasa head, the measures, that were implemented with the rationalization program Dolores to increase Dasa's competitiveness and profitability, showed noticeable effects: "The aerospace company of the Daimler-Benz concern is again on the course to success."

The incoming orders increased by 54 percent in 1996 (DM16,9 billion) as compared to the previous year. The turnover increased from DM11,5 billion in 1995 by 13 percent to DM13 billion in 1996. The number of employees decreased by 1956 to 44936. Concerning the profit, Dr. Bischoff referred to the Daimler-Benz concern numbers which will be published in April. However, he said that it looks like all business areas except that of Defence and Civil Systems have achieved profits.

The largest turnover increase was supposedly achieved in the areas Aerospace Propulsions and Space. In Dasa's Aviation business, which is mainly based on the Airbus activities, the turnover increased by 13 percent to DM six billion.

Only the Defence and Civil Systems businesses showed a decrease in turnover of one percent down to DM2,6 billion due to another budget cut in 1996.

All together, the company was strengthened in the past business year. Dr. Bischoff sees the main reason as the implementation of the competition initiative Dolores. Not in the least because of the constructive cooperation of the employees was it possible to lay off 1600 less employees than originally planned. Dolores also had positive effects on the Airbus business: "The rationalization allowed us to offer attractive prices to our customers. The ability for constructive consensus is an outstanding strength of Germany's economy." Still, Dr. Bischoff points out that the measures are not yet completed.

Bischoff is optimistic that the procurement of the European fighter aircraft, of the German-French attack helicopter and of the European transport helicopter will be politically initiated sometime this year. Still, the Dasa head did not miss the chance to mention that the industry, in the negotiations with the German Defence Minister, had to make concessions all the way to the financial limits. Bischoff sees the definite need to consequently improve the political general set-up.

Facing a massive governmental support for the national aerospace industry in the USA, the European competition will notice this when marketing new products such as large airliners, as well as, in the space and defence business. Bischoff is convinced that the solution to this challenge lies in a bundling of the forces in Europe, at the same time increasing the support for the technological development from the individual nations and from the European Union.

Also, a strong political support of future European formations, such as the restructuring of the Airbus concern, is mandatory. Bischoff still sees the necessity to develop the A3XX to break the 747 monopoly. Since the program comprises a financial tour de force, the question of technological support needs to be clarified here also. Bischoff also pointed out that potential US partners for the European large-airliner program are threatened by their own industry that it would be to their disadvantage in future contracts if they cooperate with the Europeans.

For 1997, Dasa expects a further increase in turnover of approximately six percent to DM14 billion, mainly based on higher Airbus deliveries. Over the next two years, the current production of 130 aircraft per year is to be increased to 207 units. All together, Bischoff is convinced that Germany, with Daimler-Benz Aerospace, has a economically and technologically strong standing leg in the global aerospace market: "We will secure and expand this position."

From page 27 of FLUG REVUE 4/97


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Last updated March 7, 1997