Kevin O'Toole/LONDON
AIRBUS INDUSTRIE must start to rework its consortium structure and finances, before going ahead with the launch of a new A3XX large-aircraft project, says British Aerospace chief executive Dick Evans.
There is little prospect of BAe approving a new Airbus programme "...unless there is a satisfactory restructuring running in parallel", says Evans.
The position of German partner Daimler-Benz Aerospace is "very close" to the thinking in the UK, he says, adding that "encouraging" signals are emerging from France, with plans to force a merger of Aerospatiale and Dassault.
The French restructuring is scheduled to take place within the next two years. Evans believes that changes at Airbus will be "...within that sort of horizon".
A panel is compiling a study into possible changes to the consortium structure, with a report due to be presented by June (Flight International, 28 February-5 March).
The key issue is finance. Under the existing GIE structure, similar to a partnership arrangement, the four consortium companies take responsibility for funding on their own balance sheets.
BAe now wants to find ways of allowing Airbus to raise finances on its own account. A3XX costs could run to over $8 billion once it is launched.
BAe says, that it would be difficult to justify raising finance on its own books, at interest rates of 10-11% for a project unlikely to make a pay- back in double figures.
Cheap government loans have been used to finance projects, but these have been severely limited by Europe's trade agreement with the USA on state subsidies.
Airbus is also likely to bring in new partners specifically for the A3XX project, says Mike Turner, chairman of BAe Commercial Aircraft. Italy's Alenia is keen to be involved, and several of Asia Pacific's budding industries have expressed interest in the project.
Also in prospect from the restructuring are moves to expand the Airbus role, now largely concentrated on sales and marketing, to include more customer support and design-engineering functions.
Turner says that BAe would have to think "long and hard" before taking the next logical step and consolidating Airbus manufacturing. BAe is adamant that having paid heavily for its own reorganisation, it will not contemplate a merger involving it in underwriting restructuring elsewhere in Europe.
The comments came as BAe revealed another solid set of annual results, with 1995 net profits held steady at £140 million ($214 million) despite a dip in revenues to £5.7 billion.
Source: Flight International
