Andy Nativi/GENOA
BAE Systems and the European Aeronautic, Defense and Space company (EADS) are battling to recruit Alenia Aeronautica, the biggest element of Finmeccanica's Alenia Aerospazio subsidiary and one major European concern that is not yet tied to a strategic partnership. Discussions have taken place at industry and government level.
BAE chief executive John Weston recently visited Rome for talks with Finmeccanica and Alenia Aerospazio executives, having already secured a deal with Alenia Difesa on the joint venture Alenia Marconi Systems. A major sticking point is Finmeccanica's desire to agree the fine print of any deal, having had its fingers burnt in an earlier agreement with Airbus that was never implemented.
The Italian conglomerate wants to define short-, medium- and long-term accords with any intending partner in areas such as programmes and workshare, know-how and technology specialisation, investment and production plants. Alenia Aeronautica's financial recovery has also complicated the valuation process: the business is now profitable and is expanding its workforce after accumulating a two-year order backlog.
Alenia had earlier been targeted by DaimlerChrysler Aerospace and Aerospatiale Matra (now EADS partners) and by British Aerospace, but Finmeccanica rejected various offers and instead sought to enlarge the company by bidding for Spain's CASA before selecting a partner.
With the establishment, however, of EADS and CASA's decision to join it, Finmeccanica has less room for manoeuvre. The planned privatisation of Finmeccanica by mid-2000 brings added pressure in that the fate of Alenia Aeronautica must be determined by February or March.
Integration will not be painless, whichever partner is chosen. BAE's Hawk and, in theory, the Saab Gripen, compete with Alenia's AMX (above), while CASA's C-295 is up against Alenia's C-27J. On the civil side, Alenia's plans for Airbus membership have faded, and instead it aims to become a risk-sharing partner in selected programmes - starting with the A3XX - while continuing to supply other airframers.
Finmeccanica's Agusta helicopter subsidiary and Alenia Aerospazio's Alenia Spazio division have already been established as independent companies pending the transfer of structures, personnel and programmes. Agusta will partner GKN-Westland, while the space business will link up with DaimlerChrysler Aerospace and Matra Marconi Space to form Astrium, in which Finmeccanica wants a 25% holding.
Source: Flight International
