PAUL LEWIS / WASHINGTON DC
Co-operation between the USA and Europe is the theme of talks between L-3 Communications, EADS and ThalesL-3 Communications is discussing a transatlantic defence equipment tie-up with Europe's EADS while looking to consolidate its newly approved Aviation Communication Surveillance System (ACSS) joint venture with Thales by broadening into other areas.
The US company has initiated co-operation talks with EADS, which like Thales, is looking for a local partner to help establish the new Franco-German conglomerate in the USA. "Unlike BAE Systems, which already had a $4-5 billion presence in the USA, Thales and EADS have far less here and need to establish relationships," says Frank Lanza, L-3 chairman and chief executive.
EADS and L-3 are looking at several areas of potential co-operation, including supplying datalinks for new European unmanned air vehicles (UAVs), flight displays and satellite communications. "We're also interested in working with EADS on missiles, such as global positioning antennas for precision guided weapons and fusing," adds Lanza.
The European company is already developing closer ties with US giant Northrop Grumman across a range of larger programmes including UAVs, surveillance systems and civil maintenance. Airbus accounts for the bulk of EADS turnover and the company is urgently seeking new defence activities to give it better balance.
"We're exploring with Thales other opportunities, such as anti-submarine warfare for the US Department of Defense or a combination of product types that could benefit them and us," says Lanza after the European Commission and US regulatory authorities gave the Franco-American ACSS partnership the final go-ahead.
For L-3, a European partner such as Thales helps fills the global marketing and support role once carried out by former parent Honeywell before it was forced to sell off its traffic alert and collision avoidance system (TCAS) business in order to merge with AlliedSignal. The French company has taken a 30% interest in ACSS in return for a $73 million investment.
The immediate focus of ACSS will be the newly announced development of a new total surveillance system, combining the functionality of TCAS, ground proximity and wind sheer detection.
The new system, known as T2CAS, will cost $25-30 million to develop and is targeted to reach the civil market next year. A military version is also planned for tanker and transport aircraft.
Under the terms of the joint venture, Thales will be responsible for international marketing, sales and distribution of the new system, along with L-3's TCAS 2000 and the military 1500 version.
While L-3 claims an overall one third share of the TCAS market, it acknowledges that Rockwell Collins and Honeywell have a stronger overseas presence in civil air transport. The local US market, regional jets and corporate aviation will remain ACSS' responsibility.
Source: Flight International
