Chris Jasper/LONDON Andrzej Jeziorski/SINGAPORE
Airbus has stepped up its campaign to recruit Japanese companies as contractors and risk-sharing partners on the A380 project, following Boeing's rival offer of full wing construction for the 747X. Boeing president Phil Condit, meanwhile, tells Flight International that, while Japanese industry could act as a supplier on both projects, "you can be a partner with only one person".
Airbus confirms it is in talks with all of Japan's key aerospace manufacturers - Fuji Heavy Industries (FHI), Japan Aircraft Manufacturing, Kawasaki Heavy Industries (KHI), Mitsubishi Heavy Industries (MHI) and ShinMaywa - over work packages and risk-sharing on the A380.
While contracting deals can help offset manufacturing costs, a risk-sharing agreement represents a much bigger prize. Boeing is understood to have offered Japanese industry 20% of the 747X programme, corresponding to an investment of $1 billion out of development costs the airframer says will be "around $4 billion".
Having previously offered Japan 747X wing subassemblies and the centre torque box, Boeing apparently upped the ante by offering full wing production, currently undertaken at its Everett plant, prompting a backlash from the machinists union.
Despite union difficulties, potential Japanese funding - half of which could come in "soft loans" from the Japanese Ministry of International Trade and Industry - is such that Boeing is unlikely to modify its offer. The wing is the key departure in the 747 stretch, and therefore perhaps the only production element able to satisfy Japanese demands that investment should deliver new technologies.
Airbus is thought to have offered Japan 8-10% of A380 production, including spoilers and ribs for the wing, plus cargo doors and panels. All five Japanese companies approached are Boeing subcontractors, while KHI and key player MHI produce Airbus components. The latter is examining the effect of Airbus' offer on its relationship with Boeing.
Condit acknowledges that Japanese companies "have been partners with us and they have been great partners". He adds that "you can be a supplier to both", but not a partner to both.
Mike Turner, chief operating officer of Airbus 20% shareholder BAE Systems, confirms that the airframer will shortly launch an Airbus Japan unit to promote sales and links with industry there. He adds that, while risk-sharing remains a goal, a simple sub-contracting deal is also desirable, and would help sell the A380.
"Whatever deal you come to on manufacturing helps them order aircraft," he says. "Boeing has a strong relationship with the Japanese, and has been leaning on them to go down the 747X route. They've been trying to convince them that it will be a civil leader, but we've seen lots of A380 orders so they're looking for them to be a leader on the freighter side. But the Japanese will want the A380 when it starts flying into Tokyo."
Japan Airlines, the country's biggest carrier and the world's largest 747 operator, has an all-Boeing fleet, hence Airbus' attempt to establish a bridgehead by offering two A320s for lease by its JAL Express subsidiary, although there may be political pressure to stick with Boeing due to Japan's US trade imbalance.
Additional reporting by Paul Lewis
Source: Flight International
