What is behind the Netherlands decision to buy the AH-64 Apache instead of Eurocopter's Tiger?
Douglas Barrie/LONDON Julian Moxon/PARIS
After prolonged indecision, the Netherlands Government has finally made a choice for its "armoured-helicopter" requirement following a campaign between Eurocopter and McDonnell Douglas (MDC) which at times was almost vicious.
Netherlands Prime Minister Wim Kok announced on 7 April that his Government was opting for up to 32 MDC AH-64D Apaches at a cost of about $910 million, despite pressure from the Franco-German Eurocopter consortium for a Tiger procurement.
"The Apache is already operational, whereas only four Tiger prototypes are flying," says Kok.
Beyond the battle between MDC and Eurocopter, which is now being replicated in the UK, the contest has signalled an increasingly bitter transatlantic competition over procurements.
Kok is reported to have initially favoured the Tiger, taking a pro-European stance. The Netherlands defence ministry, however, has consistently supported the AH-64D.
The decision has been lamented by Eurocopter: "What the group [Eurocopter] deplores most of all is that a vital opportunity to contribute to the building of a Europe united in its political, military and economic aims has been irrevocably missed."
Such statements ignore the fact that 30 helicopters hardly constitutes a major order. It also stretches credulity that, for such an acquisition, the Netherlands was expected to be the launch customer for the programme. Despite the pleas of senior Eurocopter management, neither France, nor Germany, has yet fully committed to production of the Tiger.
Particularly galling to Eurocopter, however, is that, despite all its efforts, MDC has secured a European bridgehead for the Apache.
Jean Fran‡ois Bigay, Eurocopter's president, says that he is not surprised by the decision, as the Netherlands specification fitted "exactly that of the Apache".
He claims, however, that the explanation about the decision is not adequate, although he admits that: "We are perhaps being penalised by our delays." Bigay is now pushing for a quick decision on Tiger industrialisation, which, if the existing UK and French in-service timescales are to be honoured, must be taken by the end of July.
The Netherlands armed forces were keen to have an attack helicopter available as soon as possible. While the Tiger was only to become available in 1999 at the earliest, AH-64s will be delivered to the Netherlands in 1997.
MDC was able to offer an interim solution by providing A-model Apaches, which Eurocopter could counter only by offering ex-German BO.105s and Gazelles.
During 1996, the Netherlands will receive 12 ex-US Army AH-64As. These will essentially be on loan and "...will allow for establishing both pilot training and maintenance schemes. Delivery of D-model aircraft will begin in the first quarter of 1998."
The Netherlands will eventually receive the full D-model aircraft, but without the Martin Marietta Longbow millimetre-wave radar.
The Tiger offer combined the escort/support version to be purchased by France with the US Hellfire anti-tank missile, to create a hybrid anti-tank/escort/support machine. "It was certainly not the best use of the Tiger's mission-equipment package says one Eurocopter source.
If the Netherlands military's preference was clearly for the Apache, the battle was almost certainly won, and lost, on the industrial playing field.
Eurocopter has been accused of trying to influence the deal, some sources claiming that there was "...extremely heavy pressure brought to bear". MDC therefore had to ensure that an attractive industrial-participation package was on the table.
The company effectively dangled the same bait as it used to entice Westland to tie its fortunes to an AH-64 Longbow Apache bid in the UK.
Netherlands industry, including Daimler Benz Aerospace subsidiary Fokker, will be involved in all A- to D-model conversion work, as part of the industrial participation (IP) package. The total minimum offset obligation for the procurement is 100%.
Eurocopter, in attempting to influence the decision, offered an IP package of over 120% in terms of offset.
Both MDC and Westland are now looking to make as much capital as possible out of the Netherlands decision in the UK.
The dossiers on the final bidders for the UK's Staff Target (Air) 428 for an attack helicopter have now been completed by the UK Ministry of Defence Procurement Executive, with a decision planned in July.
The Netherlands is believed to have rejected the Bell AH-1W Cobra as not meeting its baseline criteria. In the UK, both Westland and British Aerospace, which is leading the Tiger bid, will now use this as ammunition against the GEC/Bell Cobra Venom offer in the UK.
Westland will also push the commonality line as far as the AH-64 is concerned for the NATO Rapid Reaction Corps, to which the Netherlands and UK armed forces may commit the bulk of their attack helicopters.
All eyes are now on the UK decision. With 91 helicopters at stake, the battle is bound to be intense.
Source: Flight International
