If Rome's rule once galvanised the European continent and gave it a sense of purpose, culture and identity, the Italian capital's role in determining the futures of Europe's two emerging aerospace and defence empires is also likely to be a central one. For Rome is being courted by Europe's two powerhouses in rival bids for leadership of the continent's aerospace industrial empire.
But Italy's decision over whether it links arms with BAE Systems or the Franco-German-led European Aeronautic, Defense and Space (EADS) will mean more than simply adding muscle and influence to either party. Its decision will serve to vindicate the winning suitor's business strategy and management philosophy.
On offer from the trinational EADS is a seat for Italy's aerospace crown jewel, Alenia Aerospazio, at the table with parent companies Aerospatiale Matra (France), DaimlerChrysler Aerospace or Dasa (Germany) and CASA (Spain). Apart from the attractive 50:50 partnership, also on offer is a 50% stake in a new fighter company to rival BAE, pooling the Eurofighter interests of Germany, Italy and Spain plus jet trainers, avionics and systems and, eventually, Dassault's fighter business.
Another plus from the EADS camp could be the place Italy's political leaders and aerospace bosses would have at European-level negotiations with the USA over transatlantic cooperation. Manfred Bischoff, Dasa's boss, and Jean-Luc Lagardère, the architect of the Aerospatiale Matra French powerhouse, have made clear their tough stance on future deals with the USA, ruling out any Euro-US industrial link-ups unless the USA guarantees the Europeans a fair crack at selling into the USA.
In joining EADS, Italy would be pinning itself firmly and unashamedly to the mast of an all-European industrial logic. Politically, this may find favour with Italy's labour unions, who may think that EADS management may be more sympathetic to workforce issues in contrast to the more cost-conscious, shareholder-driven, Anglo-Saxon-led group. The appeal of the EADS offer may, too, lie in its looser, almost federal, structure more in keeping with progressive European organisational development models.
But equally, Italy's leaders could well be awe-struck by the ultimate "Rome" of the European aerospace industry - BAE - the controlled empire builder with global ambitions.
Although BAE is being more coy about its talks with Alenia and its state-controlled parent, Finmeccanica, it is understood to be appealing to the Italian Government's wider business ambitions, in Europe, the USA and further afield. Joining BAE, it says, will allow Alenia to be part of a strong European group with strong links with EADS, but also grant access to the US market given its special status in the USA.
Alenia already has strong links with Boeing. Italy may also see a strategic tie-up with BAE as a more clear-cut option given the imminent privatisation of its parent. Far better to join a quoted group with a clear structure, financial clout and offers of guaranteed protection of Italy's management powers, so the argument goes, than link with EADS, which has yet to be cleared by the regulatory bodies and in which a majority partner - namely Dasa - has an option to withdraw from the venture if it is falls foul of its expectations. Alenia may also be weighing up the benefits of the EADS military company plan against a deal with BAE. BAE has 45% of the value of the Eurofighter programme (taking out the engines) even though its stake is 37%. If Alenia joined BAE, the combined entity would have a combined Eurofighter share of 56%, all of the fighter's fuselage and wing work (Alenia) plus cockpit and tail-end (BAE) and a much wider fighter and trainer portfolio including JSF work.
Does Italy welcome in BAE's "Roman" legion, a culture-changing experience promising a dynamic, transforming, industrialisation programme for Italy's aerospace industry but which while admired, may also be feared? Or will Rome take the progressive, yet experimental, route offered by its continental neighbours?
Understandably, Rome does not want to be caught in a tug of war in Europe. But its pedigree as a unifier means it could broker a deal that bridges the divide and be the saving grace for Europe's industrial base.
Source: Flight International
