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Barring yet another last-minute hitch, by the time
the Paris air show arrives, Europe may finally have
formally launched the A400M airlifter.
The A400M will be one of several multinational procurement
efforts that will be a focus of attention. The continuing
fallout from the Iraqi war, in terms of political implications
and weapon system performance, also will represent topics
of considerable interest.
The show takes place against the defense backdrop not
only of the policy schism between the U.S. and two of
its main NATO partners--France and Germany--over Iraq,
but amidst potential tectonic shifts in the strategic
environment as NATO attempts to remake itself, the European
Union struggles toward the starting point for a coherent
military capability, and the U.S. moves toward a policy
of pre-emption.
Obviously, the above have implications for the aerospace
and defense industry. Trying to thrash out just what
some of these implications will turn out to be is guaranteed
to be a source of debate among show attendees.
The Airbus-led A400M program earlier this month was
pushed forward with the conclusion of a messy engine
selection. This left the airlifter to be powered by
the Europrop engine consortium, while U.S. and Canadian
politicians and industrialists fulminated at the perceived
inequities of the process (AW&ST May 12, p. 26).

Airbus activity on the A400M may finally move
beyond high-quality artist's impressions. |
However, just when the pantomime leading up to the
A400M launch appeared to be drawing to a conclusion,
the German parliamentary budget committee seemed to
forget its lines. Final German go-ahead for the A400M
had been hanging on the engine selection.
In the wake of the engine choice, an extraordinary
committee hearing was called to consider--and it was
expected to rubber-stamp--the program May 9. Instead,
the committee chose to defer a decision, at least until
May 21.
Internal German politicking, European industry sources
suggest, was at the root of the latest in a nearly interminable
series of delays. The closer the program draws to production,
however, final numbers are faced with a reality check--as
is the all-too-familiar tradition with European programs.
On the A400M, Germany has cut its requirement, as has
Turkey. Similarly, in recent months, Berlin has reined
in aspirations on the Tiger attack helicopter and the
NH-90 medium-lift military helo.
While the first of the four-nation Eurofighter Typhoons
should be handed over to the participating air forces
at the end of June, the British government is muttering
that it may have to reconsider how many of the type
it eventually purchases.
The A400M program remains paradigmatic of the inherent
vulnerability of Europe's nascent procurement efforts.
The mean pace of the project has been determined by
the slowest, or most onerous, decision-making process
of one or another of its various constituent nations.
Stated production requirements at the outset of a program
are more often driven by industrial rather than military
needs. Subsequent realignment (the "reality check")
inevitably invites delay.
The A400M, touted in many European capitals as giving
substance to a collective political will to address
capability shortfalls, has as often seemed to exemplify
why such gaps exist in the first place. For British
Secretary of State for Defense Geoff Hoon, announcing
in 2001 the U.K. decision to opt for the A400M, it reflected
European allies working "in a way that will be welcomed
by our American allies as a demonstration of Europe's
determination to pull its weight alongside America in
delivering an effective military capability."
While progress, however belated, on the A400M ought
to be a vehicle to ease Washington's exasperation over
Europe's tardy efforts to bolster defense capability,
the continent seems able as ever to snatch elements
of defeat from the jaws of partial victory.
Pratt & Whitney Canada had gone head-to-head with
Europrop--comprising MTU, Rolls-Royce, Snemca Moteurs
and Industria de Turbo Propulsores--in bidding the engine
for the A400M. By Airbus' own admission, Pratt-Canada's
initial bid considerably undercut the Europrop offer,
while being of comparable technical merit.
To then award the 750-engine contract to Europrop,
with the taint of political interference, merely played
into the hands of some in the U.S. who push a "fortress
Europe" argument--this, at a time when relationships
between Washington, Paris and Berlin are already raw.
The engine choice saw even the British Defense Ministry
attempting to square a circle. Viewed by many as a reluctant
participant in the A400M, the ministry has long argued
the need for the program to be run along "commercial
terms."
The A400M, British defense officials argued, should
represent a break with the bad old days of "juste retour."
Work share ought not to be doled out to national contractors
on the basis of how many aircraft a particular nation
was buying. Rather, a commercial sector approach was
to be embraced--exemplified by the choice of Airbus
as the prime contractor--to ensure "best value."
Nevertheless, having argued for a hands-off, commercial
approach, the U.K. along with other participating nations
then provided political muscle to bolster the Europrop
bid. In the case of London, this included the Dept.
of Trade and Industry (DTI) providing research and development
funding to Rolls-Royce for the TP400-D6 engine.
Not only had Europe apparently indulged in a sham competition,
but here it was again providing subsidies to support
its own industry. Well, that may be the view some in
Washington would wish to purvey.
Protectionist impulses, however, are anything but particular
to Europe. About a year ago, EADS found itself jilted
at the last moment over a teaming agreement with Lockheed
Martin for the U.S. Navy's Multimission Maritime Aircraft
(MMA) program. The two were were planning to offer a
version of the Airbus A320 to meet the requirement.
But the deal collapsed at the last minute, with stage
whispers inside the Washington beltway that a bid based
on a non-U.S. platform was effectively a non-starter.
Arguments over the issues of reciprocal market access
and subsidies will inevitably rattle around the exhibition
halls and chalets at this year's show.
Just how close Pratt-Canada came to garnering the A400M
order remains speculative, although industry sources
close to the program have suggested that, had it more
effectively covered its political bases, there might
have been no way back for Europrop.
THE VEXED PROCESS of the engine selection underscores
the need for a coherent approach to procurement among
European partners on big-ticket defense items. It is
plausible that London (DTI perhaps excepted) and Berlin
would have accepted an Airbus decision to opt for the
choice of Pratt-Canada. However, it is far harder to
conjure Paris accepting a North American powerplant,
particularly given the present ill-feeling between elements
of the two governments.
European nations--through arms procurement agency Occar--would
be well served to make abundantly clear at the start
of a major procurement effort the terms of engagement
for industry.
Given the near certainty that any program under the
aegis of Occar would be primed by a European company,
then what would the opportunities be for sub-contractor
work at the first- and second-tier levels? All participating
nations should stick to an agreed approach, either for
competitive or directed procurement.
Even Britain, which for the better part of the last
decade has used competition as its keystone for defense
procurement, has begun to signal a shift in position.
"Competition is a tool to us and not a dogma," Lord
Bach, the U.K.'s minister for defense procurement, asserted
recently. However, some in the upper echelons of the
British aerospace/defense sector had increasingly argued
it was a dogma, and a damaging one, from the industrial
perspective.
The emergence of a Defense Industrial Policy (DIP)
document, and the DTI's increasing input into procurement
decisions, has also tempered the emphasis on competition.
The ministry, however, remains wed to keeping its market
open. As stated in the DIP, "Protectionism is not a
viable way forward, but we recognise that not all governments
approach acquisition with similar openness. We will
continue to press for freer access to overseas markets."
The Storm Shadow cruise missile, represented
as nose art on an RAF Tornado GR4, proved a European
hit during the recent war against Iraq. |
It is a line the U.K. will persevere in touting both
with the U.S. and European partners.
While Europe's frequently byzantine procurement process
can appear an end in itself, it is still geared to producing
defense equipment. And lest one forget, the end product
is capable of at least holding its own in an increasingly
competitive marketplace.
Hurried into operation ahead of its planned in-service
date, the Anglo-French Storm Shadow/Scalp EG land-attack
cruise missile appears to have fulfilled, and exceeded,
expectations on the part of the British Royal Air Force.
Some Storm Shadow 30 missiles were launched from Tornado
GR4 aircraft against Iraqi targets during the recent
war. A further missile is believed to have had a built-in-test-equipment
failure during carriage, with another launch called
off because of extremely heavy surface-to-air missile
and anti-aircraft artillery in the launch box.
Initial battle-damage indications were extremely positive.
One issue that has arisen is--given the accuracy of
the weapon and the nature of the multi-stage warhead--that
of timely and accurate battle-damage assessment. Some
of the high-value targets hit exhibited only a small
puncture hole on the exterior shell of the building.
Since the end of high-intensity operations in Iraq,
British military officials have begun to visit the target
sites. Initial comments from ministry sources suggest
the warhead was effective.
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