Douglas Barrie/LONDON
Airbus Industrie presidents were due to meet on 2 February to hear new proposals from a high-level working party tasked with finding an acceptable solution for a merger of Aerospatiale, British Aerospace, and Daimler-Benz Aerospace into a single European aerospace giant.
It is hoped that the new proposal, known as Option E, will break the logjam of European civil and defence aerospace consolidation. If the proposal is accepted, it is likely to form the basis of the response to an earlier demand from the French, German, and UK Governments that a restructuring plan be submitted by 31 March.
Industry sources say that Option E recommends bringing together the civil and military aerospace interests of the three companies. This would include combat-aircraft, space, helicopter and missile businesses of some of the partners.
While there is a consensus about the need to create a European aerospace company on the scale of US giants Boeing and Lockheed Martin, the method of achieving this has proved elusive so far.
Sir Richard Evans, BAe chief executive, has voiced the general concern, saying: "There's a view among industrialists that they should have a single European aerospace company, but there is little clarity about what form such a company should take." Option E is the latest attempt to provide a template for this.
The proposal is the latest effort to clear the way quickly for establishing Airbus Industrie as a single corporate entity rather than as a GIE (Groupement d'interêt economique). Under Option E, Airbus would form the civil-aircraft arm of the merged companies, and its restructuring would be implemented first.
The proposal is designed to counter Aerospatiale concerns which have previously stymied consolidation efforts.
The crux of the French company's concern was that it was being asked to relinquish its crown jewel, the stake in Airbus, without ensuring the future security of its remaining business. Recent concessions by Aerospatiale have seen it agree to separate its design and Airbus manufacturing activities into a separate subsidiary in preparation for the switch to a single corporate entity.
One of the critical areas for negotiation, say sources, is Aerospatiale's status as a state-owned company. They suggest that Aerospatiale president Yves Michot is trying to persuade Evans and Dasa president Manfred Bischoff that the French Government will treat Aerospatiale effectively as if it were a privately held company.
The initial proposal does not include Dassault, say industry sources, because of the uncertainty over its merger with Aerospatiale. The aim would, however, be to include Dassault and other European companies such as Saab, Alenia and the Airbus minority partner, CASA.
Source: Flight International
