Julian Moxon/PARIS
Thomson-CSF Sextant is pushing for the further consolidation of the European avionics sector, with the company's president Francois Lureau complaining that "there are still too many players" in a technologically complex and capital intensive industry.
Lureau says various forms of co-operation are being explored, including joint venture talks with various "significant companies", and that the full consolidation of the German, Italian, French and possibly Spanish avionics sectors is also likely, although "at this level, negotiations are far more complex and will take longer".
Lureau confirms that one option, the so-called 'Jupiter' plan, would bring together the avionics activities of Thomson, EADS (European Aeronautic Defence and Space) and Finmeccanica, and "would certainly rationalise things considerably". He says the Italian company's avionics business "fits perfectly" with Thomson's, and that Italy "is not in the picture enough". Things are complicated by talks between Finmeccanica and BAE Systems over the former's stake in Alenia Marconi Systems and in the 'New' Matra BAe Dynamics missile alliance.
Talks with companies including Smiths Industries of the UK and US giants Honeywell and TRW (plus its UK subsidiary Lucas) are also continuing. "We need to see if we have common interests," says Lureau. "It will be a case-by-case process based on what we think we can do together. There is no intention for hostile takeovers".
Sextant and Smiths, while rivals in some areas, are co-operating on development of a new generation flight management system (FMS) for Airbus Industrie. "We share many views", says Lureau, who adds that he also has a "good relationship" with Mike Smith, president of Honeywell - a competitor on Airbus FMS. "We believe it is possible to co-operate and to compete where necessary".
Lureau says consolidation is being driven by the continuing integration of major aircraft systems. "You need more people and more resources to address the complexity of new developments," he explains. "The airframe manufacturers would prefer to deal with fewer suppliers, having a greater range of capabilities".
Lureau says Sextant's new Fr100 million ($13 million), 20,000m² (215,000ft²) factory in Toulouse will "accommodate integrated international teams of partners formed to manage contracts on forthcoming programmes such as the Airbus A3XXand A400M".
Source: Flight International
