THE FRENCH aerospace industry and Government are trying to salvage the ailing European Future Large Aircraft (FLA) programme with suggestions that private funding of the French portion of the programme be sought and that a reduction be made in the military-transport specification, to cut costs.

The FLA project - led by France and Germany - was thrown into chaos late in February when the French Government announced that it would not fund development of the transport because of severe defence-budget constraints.

With the project heading towards the scrap heap, French defence minister Charles Millon now says that the air force will buy the aircraft, as long as specification and costs are cut and the resulting product is exportable.

"Better to have a transport aircraft that will meet 80% of the armed forces' needs, than a 100% sophisticated aircraft that is too costly and may never take off. Above all it must be exportable," he says.

French industry, led by Aerospatiale and Snecma, have proposed to finance France's development costs partly from their own funds. Industry is looking for redeemable Government-loans for 20% of the estimated Fr7 billion ($1.4 billion) needed. The funding request has been forwarded to the Ministry of Transport, but the defence ministry would have to commit to ordering the aircraft.

By reducing the specification, the French estimate that overall development costs could be cut from Fr13.5 billion, to Fr30 billion.

Senior Daimler-Benz Aerospace sources reacted cautiously to French industrial-funding proposals. While welcoming the move, they remain concerned as to whether the level of funding would be adequate to drive the programme forward.

They say that only a clear signal of support from the upper echelons of the French Government would re-establish the programme's credibility.

The French Government says that it is determined to bring about the consolidation of the defence industry and has the means to bring about the merger of Dassault Aviation with state-owned Aerospatiale. Dassault is trying to fight off Government pressure to force through the amalgamation.

Speaking during a debate in the National Assembly, defence minister Millon said: "The Government is perfectly determined to bring these major projects to a conclusion, whether they are participation in the companies, or in the choice of investment it makes in the forthcoming defence budget."

Source: Flight International