On the Record
GIANCARLO GRASSO, CEO, ALENIA DIFESA

Alenia Difesa Stands Back From Big Mergers to See the Big Picture

As speculation swirls around the future plans of Alenia's defense aerospace assets (Alenia Aerospazio), its avionics and systems group is not rushing to join forces with EADS -- or anyone else. Alenia Difesa is an independent group within the Finmeccanica family and company chief Giancarlo Grasso sees things staying that way.

"Finmeccanica decided some time ago that we (Alenia Aerospazio and Alenia Difesa) are two individual businesses, and we have no obligation to follow them anywhere. This does not mean that we would never have an alliance with EADS, but such ties run the risk of excluding opportunities to work with other platform makers," Grasso told Show News.

Alenia Difesa has always lived an independent existence within Finmeccanica, as Grasso pointed out. "If you take a program like the AMX then we have always worked closely with Alenia, or Aeritalia as it was, with them as the lead. However, if you look at our Eurofighter work, then we are the prime contractor in our own specific area."

Grasso recognizes the need to chart an independent course elsewhere too. One important future project for Alenia Difesa is the future NATO airborne ground surveillance (AGS) requirement, where rival U.S. and European solutions are bidding to win this major contract. Describing Alenia Difesa's role in AGS, Grasso says, "Italy made a big effort to establish SOSTAR, the European solution for AGS. Together with French, German and Dutch input we signed the first SOSTAR agreement here in Paris, two years ago. Spain has joined the team and we are working on an airborne technology demonstrator, SOSTAR-X.

"Now, U.S. companies and the U.S. government are proposing some kind of co-operation on their RTIP radar development. I would much rather have a European solution to a European requirement. If we could be true international partners with the U.S. then things might be OK, but this is unlikely. There are great difficulties in working with the U.S. and the European solution is a more comfortable one."

Alenia Difesa has a product portfolio that extends from advanced cockpit avionics to main battle tanks to torpedoes. Pending projects include a Tornado upgrade for the Italian air force and a joint AMX mid-life upgrade with Brazil. Alenia Difesa is already integrating the JDAM guided weapon on Italian AMXs and the broader MLU will follow.

The company has also enjoyed great success with its Fiar radar family, winning recent deals in Brazil (F-5E upgrade), Czech Republic (L-159 ALCA) and Pakistan (F-7PG)-though the company will not comment on its business activities in China, supplier of the Pakistan air force aircraft. It is heavily involved in systems development for national products like the Aermacchi M346, and international programs including Eurofighter and the NH90.