Andy Nativi/GENOA Andrew Doyle/MUNICH
European Aeronautic, Defense and Space (EADS) is proposing the creation of a new European military aircraft company (EMAC). The strategy is part of a bid to outflank BAE Systems to land a merger deal with Alenia Aerospazio, the largest European aerospace concern not yet committed to either camp.
At stake is effective majority control of the four-nation Eurofighter programme, plus the Italian company's trainer, transport and civil aircraft businesses and avionics and overhaul units. Alenia parent Finmeccanica is expected to select a winner by mid-March.
EADS, which will be created later this year through the merger of Aerospatiale Matra, DaimlerChrysler Aerospace (Dasa) and CASA, is offering Finmeccanica a 50% stake in EMAC.
The joint venture would merge the 44% of Eurofighter to be controlled by EADS - 30% from Dasa and 14% from CASA - plus the pair's military aircraft businesses - with Alenia's 19% stake in Eurofighter, a product line including the AMX light attack/advanced trainer and a share in the C-27J transport jointly developed with Lockheed Martin.
EMAC would also incorporate avionics, electronics, component production and overhaul businesses from EADS and Alenia, sources say. Aermacchi, which is 25% owned by Finmeccanica and produces the MB339 trainer, may also be included, although this would need the approval of its largest shareholder, the Foresio family.
While EADS' offer of a 50:50 venture is attractive, a stumbling block could be Italy's long-held desire to participate in the Airbus civil aircraft programmes. EADS is understood not to be addressing the issue at this stage, and is constrained by the consortium's structure. Any change in ownership requires the consent of BAE, its rival in the Alenia tug-of-war.
EADS has also deferred discussions over the future of Alenia's 50% stake in regional turboprop manufacturer ATR. The rest of ATR is owned by Aerospatiale, which became a part-owner last year of Brazil's regional jet giant, Embraer. Neither has the role that Dassault Aviation might play in EMAC been defined, the French fighter manufacturer being linked to EADS through Aerospatiale's large minority holding.
BAE, meanwhile, is stepping up its own bid to win Alenia, which would give it 56% of Eurofighter and add the AMX to its product line, below the Saab Gripen. Although the BAE Hawk and the MB339 are direct competitors, and Aermacchi is developing another advanced trainer with Russia's Yakovlev (the Yak/AEM-130), these are thought to be relatively minor concerns.
In BAE's favour are the strong transatlantic ties both companies have developed, an amicable agreement over the Alenia Marconi Systems joint venture in the wake of the BAe/Marconi merger, and a history of co-operation in the Eurofighter and Panavia Tornado. Against are Italian concerns over the imbalance of power in any agreement with BAE, which, as a result, might be forced to propose a military aircraft joint venture solution of its own.
Political considerations may carry as much weight as industrial logic in Finmeccanica's decision, with heavy lobbying coming from France, Germany and the UK. A decision on Alenia is expected within weeks, since state holding company IRI plans to privatise the rest of Finmeccanica in June.
• Socata is to remain a subsidiary of Aerospatiale Matra, says the general aviation specialist's president, Stéphane Bernard, and will not be spun off as the French giant develops its future within EADS. He admits, however, that an "alliance" with airframe sub-assemblies manufacturer Latécoère is a possibility (Flight International, 13-19 October 1999).
"We're certainly looking for an alliance, and talks with Latécoère are advanced," he says. "But our shareholder intends us to remain a company offering general aviation and aerostructures products".
Source: Flight International
