Kevin O'Toole/LONDON

BRITISH AEROSPACE AND Dassault Aviation are setting up a joint research centre, in a venture, which foreshadows the creation of a single European military-aircraft company to rival the US giants.

The initial aim is to establish a "centre of excellence" to develop technologies for future aircraft programmes, but talk within the two companies suggests that the long-term goal is towards the creation of a world-class European military-aircraft company.

"This joint venture will become one of the leading military-aircraft builders worldwide," says Bruno Revellin-Falcoz, engineering vice-president at Dassault. "The main objective for the time being is to develop a future aircraft beyond the Eurofighter and Rafale combat aircraft flying by the year 2020."

BAe chief executive Dick Evans is more restrained about the future direction of the co-operation, saying that the immediate priority is to develop technologies to update the Eurofighter and Rafale.

Evans does not rule out going further to co-operate on a next-generation Europe strike aircraft. The two companies have held at least two years of talks aimed at establishing such co-operation.

Evans is keen to stress that development of a future offensive aircraft with Dassault does not necessarily conflict with UK involvement in the US Joint Advanced Strike Technology requirement, for which BAe is part of one of the bidding teams. He says that it is possible that the UK may require both aircraft.

The Dassault co-operation appears to underline a new determination within BAe to force the pace of defence consolidation within Europe. Evans warns that the defence industry needs to create world-class "centres of excellence" within Europe and to put an end to national duplications of effort, if it is to ensure its survival against giants such as Lockheed Martin.

Evans says that consolidation should be led by industry, although he warns that the lack of a coherent UK industrial strategy is hampering efforts.

"The UK Government must commit in advance to new programmes. France and Germany have severe doubts about UK suitability for partnership," he says. Evans stresses that the aim is not to create "fortress Europe" or to abandon US collaboration, but to allow it to go into joint ventures from a position of strength.

Source: Flight International