Julian Moxon/ATHENS
Hellenic Aerospace Industries (HAI) aims to double its revenues in the next five years by building up its civil business to the same level as that of its military activities.
"We want to achieve an even split between the two," says HAI managing director George Goulios. Military business accounts for about 80% of the state-owned firm's turnover, which reached Dr32 billion ($10.7 million) last year.
The imbalance results from HAI's traditional role of supporting Greek air force aircraft. But, while national defence work remains an "absolute priority", says Goulios, HAI has a government mandate to "look for profitable business elsewhere".
He suggests the civil business could even be spun off as a subsidiary operation and adds that, although there are no immediate plans to privatise the company, a flotation is not out of the question.
"We are trying to catch up with 40 years of stagnation, so we have to look at everything," he says. "I have to find ways to finance my investments, and I think we might consider some kind of stock market flotation. The problem I have is that my main customer is also my owner, who expects me to carry out non-profitable activities."
The Greek firm has been running at a loss for years, but hopes to generate a "small profit" this year, having restructured into four units responsible for aircraft and engine maintenance, electronics and aerostructures manufacture.
While planning an "aggressive marketing campaign in the civil sector", Goulios says that HAI "will also target foreign military air forces to strengthen non-Greek defence business".
The Eurofighter Typhoon - which Greece is almost certain to buy - does not feature in HAI's projections because the nature of any offset deal is unclear. HAI will build external tanks for the aircraft, but Goulios hopes Greece will have a more significant task.
Most of the increase in HAI's civil activities is expected to come from the aerostructures side, with the main targets being Boeing, DaimlerChrysler Aerospace (HAI's link to Airbus Industrie) and Dassault Aviation.
HAI has an offset agreement to build 150 door sets for Embraer RJ-145s, following Greece's order for up to six as platforms for the Ericsson Erieye airborne early warning radar. Further new business will come with the opening of the Athens Spata Airport in 2001, with HAI moving into a new maintenance centre.
HAI also plans a joint venture - General Aviation Service Company - with Dassault Falcon Services. "We want to co-operate with all private sector operators to consolidate maintenance and service activities," says Goulios.
Source: Flight International
