All good things come to those who wait, as the saying goes, and the Airbus partners should know that better than most. From a standing start, when the four-nation industrial consortium was formed in December 1970, it has taken more than 30 years for the European partners to resolve a lifelong battle of wills to unite as one entity which will speak and act with one voice.
So the bosses of the new Airbus have every right to celebrate, not just because they can now focus their energy on the interests and performance of their new company rather than ensure the interests of the partner companies are being protected, but also because the landmark accord is a defining moment for European aviation.
For if the conception of Airbus Industrie was complex and its growth unsteady, its rebirth has been wrought with complications. Resolving sometimes extremely acrimonious negotiations over industrial workshare, design leadership, asset values and decision-making procedures was not easy when there were four partners - with their governments in tow, of course. But the true test of solidarity of purpose has been over the last 10 months with one minority partner, BAE, forced to negotiate with its newly-merging partners with 80% of the voting rights in Airbus.
Even with BAE's opt-out clauses, compensatory package and the like, for Europe's most politicised industry to settle its national differences and strike a deal that can only benefit all concerned is a triumph indeed. Waving goodbye to a highly complicated management structure, operating procedures, decision-making and financing to usher in a simpler, more accountable and clear business focus gives the reborn Airbus literally a new lease of life once it comes into operation on 1 January.
And breaking the deadlock over the creation of the single corporate entity or AIC (Airbus Integrated Company) now means the company's management team can secure the necessary government launch aid for the A3XX future large airliner family. The whole programme will be a shot in the arm for the company, its suppliers and the European aerospace industry as a whole. The A3XX family can be expected to generate at least 22,000 new jobs in the UK alone and have an economic spin-off for Europe spanning a good 40 years or so.
The timing for the launch of the AIC could not be better, either. Airbus Industrie has climbed from a start-up to steal the march on its chief rival Boeing in the market leadership stakes. And the group promises that its latest backlog figures will pose a serious challenge to its US opponent .
No mean feat for a group which has faced as much rivalry from within as from external forces throughout its lifetime. Surely, then, the new simple structure and strong corporate ethic and focus on returns for shareholders can only generate more success and sustain, if not grow, Airbus' market position in the years ahead? Arguably, yes, but only so long as the competitiveness improvements which the AIC is destined to produce are achieved. The decision that there will be no guarantee of workshare for any shareholder, with some exceptions in strategic areas, may have been difficult to swallow ultimately but the true test will come when some time in the future it may be deemed cheaper and more efficient to manufacture parts - even assemble - aircraft in China, for example.
And given the price tag of technology, while concentrating R&D and creating centres of excellence is crucial to preserving Europe's aerospace capability, the necessary returns on projects are needed to sustain them. A3XX's bill will come to more than $10 billion and Airbus' shareholders will be wanting to see just how efficient the company is some way down the road once production begins to be assured of a return on the investment. And with Boeing rising to the challenge, airlines will be looking for bargains.
Time to celebrate new beginnings. Yes, definitely. But if Airbus has broken the shackles of its roots, it now faces the biggest challenge of its life in its new corporate world of transparency and accountability.
Source: Flight International
