Julian Moxon and Gilbert Sedbon/PARIS

AIRBUS Military Company has admitted that the European Future Large Aircraft (FLA) faces collapse because of France's decision not to fund development of the programme.

The Airbus Industrie unit, yet to be formally established, reacted angrily to the French Government's confirmation on 13 May that it has no intention of funding FLA development.

The military transport will be "in peril" without the full participation of the French Government and Aerospatiale, Airbus says. France "...will be blamed by the rest of Europe" for its collapse, and for squandering the "...opportunity to reshape the future of European defence procurement".

French defence minister Charles Millon confirmed the FLA decision on 13 May as he outlined plans for cuts of Fr20 billion ($3.8 billion) a year in the Chirac Administration's first multi-year defence budget, covering the period 1996-2002.

Millon promises that the budget will "profoundly change" the way in which France conducts its defence, from introducing new-generation weapons, to moving to all-professional armed forces.

The defence minister's plan calls for the acquisition of 52 "FLA-type" transports by 2015, but also leaves open the option of buying more aircraft with less capability, and provides Fr650 million of initial funding for their purchase.

"We favour the construction of a new transport aircraft," insists Millon, "but only with a guaranteed European requirement which uses civil-military synergies. We are asking Airbus to take control of development and for the European governments to order it."

Airbus says that "...all of the conditions requested by the French Government have been met", including the affordability of the FLA compared to aircraft offered by US competitors. It says that Aerospatiale's offer to provide 50% of the funding for France's share of the programme "...fully complies with the requests of the minister". Other FLA partner nations, notably Germany, have yet to declare their intentions.

If the programme goes ahead, they will have little choice but to follow the French/UK lead and demand that the programme is funded by industry and run on a purely commercial basis.

The defence bill has pegged spending at Fr185 million a year to 2002, and for the first time attempts to introduce multi-year procurement, although defence sources admit that this will not happen overnight. These, and other changes, "will make France's defence less costly and more efficient", says Millon.

Aside from the Airbus outburst, reaction to the budget from French industry has been muted, with some relief that other major international programmes have survived - albeit with production delays and significant reductions in procurement.

The Government remains vague about its commitment to the Tiger attack helicopter and NH90 transport helicopter programmes, saying only that it will order 25 battlefield-support Tigers and 11 NH90s between 2000 and 2002.

This guarantees the production future of the two aircraft, but the French failure to commit to all of the originally agreed procurement quantities (215 Tigers and 220 NH90s) leaves open the wider question of programme share with Germany (on the Tiger and NH90) and Italy and the Netherlands (partners in the NH90 alone).

Sources now believe that the eventual Tiger procurement will be limited to just 120 machines, with no more than 90 NH90s.

The total number of combat aircraft will be reduced to 300 Dassault Rafales from today's mixed fleet of 405 aircraft by the year 2015.

Delivery of the first squadron of 12 French navy Rafales has slipped by a year, to 2002, and total numbers have been reduced from 86 to 60, while the first air force squadron will not now be operational until 2005. Two "air force" versions of the navy aircraft will be prepared by 1999, however, to enable the Rafale to be promoted for export.

Other programmes, such as the Dassault Mirage 2000N nuclear bomber have also been hit in the budget plans, with the number of 2000Ns reduced from 90 to 86. Fourteen Boeing C-135 refuelling aircraft will be purchased instead of 16, and three Northrop Grumman E-2C Hawkeye airborne early-warning aircraft, instead of four.

France has also cancelled its 20% stake in the US-led MEADS anti-missile missile co-operative programme.

Source: Flight International