The ILA air show is a showcase for German aerospace, the place to forge new business tie-ups and where East meets West
Berlin's bi-annual ILA air show manages to offer a unique proposition to exhibitors despite its proximity to arch rival Farnborough, and its organisers are preparing to implement aggressive expansion plans that will see the event move to a new home by 2012.
Over the years ILA has focused on positioning itself as a gateway to doing business in eastern Europe, Russia and the CIS. "East and West meets in Berlin," says Messe Berlin chief executive Raimund Hosch. "And not only decision makers of the industry, but the political decision makers.
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©Messe BerlinAggressive expansion plans will see the ILA move to a new home in 2012 |
That's what Germany stands for: being a moderator, giving some impulse. One of the main reasons they come here is that we have the biggest conference programme," he adds. "Much more than Farnborough and Le Bourget, and that's always mixed between decision makers from industry and politics."
For the 2008 show ILA is looking even further east, by signing India to replace Russia as the official partner country. "India sees the chance to get into the European market and I think it's the big first step," says Hosch. "They had the big chance to be a partner of ILA here in Berlin and they took it. They saw the success two years ago with Russian industry."
PIVOTAL SUPPORT
EADS's enthusiastic support over the years has been pivotal to the Berlin show's development and - despite the fact that the company is in the throes of a major cost-cutting drive - fears that it might cut back its spending at ILA appear unfounded. "I think it's still the same size booth as two years ago," says Hosch. "We don't really feel their cost cutting."
Messe Berlin vice-president Stefan Grave admits: "To be honest they shifted some things. They shifted from the space in the halls to the chalets. But in financial terms it's the same amount of money we are earning from them. We suppose they have different targets - more political targets, not so much in the direction of the public visitors."
Ever since Farnborough moved to July from its traditional September date, debate has raged in the industry over whether both shows can be successful in the long run, separated as they now are by just a few weeks. Hosch argues that holding ILA in late May is advantageous for exhibitors aiming to close deals by the end of the year.
"Up to the year-end if you will close a contract - especially in the aerospace industry - I think you need about five to six months," says Hosch. "So it's just the right time to start at the end of May or beginning of June."
Dr Michael Haidinger, president of Berlin-headquartered Rolls-Royce Deutschland, offers an industry perspective: "It's not ideal to have these shows so close together and it's a significant effort to serve both events. They have different characteristics: Farnborough is slightly more a trade show and bigger, but it's not up to us to change that so we're going to cope with the situation.
"I think the general intent of ILA is to show clearly what the aerospace industry is all about in Germany. There are significant funds made available from the German government to support programmes and technology programmes in Germany. I think it's an event to present to the public the significance of this industry for, and in, Germany.
"Secondly," says Haidinger, "you have as always this event as a platform for all sorts of business relationships - customers and suppliers get together for doing business. And thirdly it's also a platform for the politicians and various international, let's say, programme councils, to meet there."
Whereas it still makes sense for UK-based Rolls-Royce to exhibit at both Berlin and Farnborough some German aerospace companies, such as MTU Aero Engines, have decided to stay away from the latter on cost grounds.
CLOSE RELATIONSHIPS
"The Berlin air show naturally is our home show, and that makes a big difference for MTU, all the more so because of our close relations with German politicians, government agency representatives and the Bundeswehr, which is our largest single customer by far," says MTU chief executive Egon Behle.
"Considering that we need to focus our financial and staff resources also in trade shows and exhibitions, we'll stick with Le Bourget as our second large international air show but again stay away from Farnborough," he adds.
Berlin's redeveloped Schönefeld airport is to open in late 2011, meaning that ILA will move into new facilities. "I think we will have a brilliant concept from 2012," says Hosch.
Source: Flight International
