Paris Air Show
Aerospace |
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Dassault
Not Concerned About Privatization
As for the proposed Boeing-McDonnell Douglas merger, Dassault says the action by the two U.S. aerospace companies to create the world's largest aerospace concern "makes it urgent for European restructuring." Asked if the EU should approve the Boeing McMerger, Charles Edelstenne, Dassault senior executive vice president of economic and financial affairs, side-stepped the question. "The answer should be from the EU, not us. This is a legal and a market answer." Edestenne added that the merger will not change anything between Dassault and the two U.S. companies in the military market, "because we already compete with them. They're also our customers." One journalist accused Dassault of changing stories, stating that the Dassault president was heard on the radio the day before decrying the proposed merger, but today seemed to be more relaxed about it. The answer was simple. As the president of the French aerospace industries, GIFAS, Dassault was expressing their opinion on the radio, including that of member Aerospatiale. Today, he was only the spokesman for Dassault Aviation. Leaning into the issue for privatization, Dassault began, "We must come to the table with our partners as a private industry," meaning, undoubtedly, that the steps toward privatization are critical to continue if the French industry has a chance to compete. But it doesn't need to be a totally private (or public) company to qualify for privatization in Dassault's book. "51% would be sufficient," offers Dassault, who didn't state if he was serving as spokesman for Dassault or for the other French aerospace companies. Looking to the future, the Dassault executives expressed their desire to work in partnership with other international partners in the post-Rafale era. Two possibilities mentioned were British Aerospace and DASA. New international ventures are definitely on the radar screen. Which countries might be approached first? "First might be the U.S. We have a new factory in Little Rock, Arkansas being inaugurated in July," home town of the current U.S. president. Also being considered are Taiwan and Germany. But the past has its skeletons, as well. Consider the situation with Norway, seeking new fighter aircraft to replace its ageing air force. Dassault more than subtly charged the French government with failing them in the negotiations. "The problem is the intensity of support in comparison with our competitors." And well that might be. "When the Norwegion government had decided to publish its short list, we were preparing our proposal." As for future design directions for fighter aircraft, Dassault has a full list. Stealthy characteristics, including low observables, new aerodynamics, cockpit ergonomics and many others are on the list. But the company is not conceding anything to the competition, even though the U.S. has been flying aircraft with stealth capabilities for twenty years. Dassault contends that it has consistently met the requirements specified by its primary customer - the French air force. As new requirements for stealth and low observability are defined, Dassault is answering, said Bruno Revellin-Falcoz, executive vice president in charge of Research engineering and cooperation. Dassault seems to be walking the perfect tightrope as the new Socialist government steps in. Serge Dassault is a well-known friend of French president Jacques Chirac. But the Socialist government certainly sings a new tune, one that has a certain appeal to the industry. For one, the Socialists are not fans of privatization, believing that the efforts spells the end of French jobs. Dassault sees the Rafale program as a perfect example for the new government. "One Rafale equals 2,000 French jobs," says Dassault. "It's our duty to support employment in France." That sounds not only politically correct, but politically astute. And a precursor to a plea for more orders. Dassault was just recently awarded a formal order for 13 Rafale fighters
from the French government. Another preliminary order, negotiated some time
ago, is for an additional 48 aircraft. While the 13 are at full price, the
government demanded that the additional 48 be discounted 10%. The whole
process smelled of big future trouble for Dassault in exacting reasonable
revenues from the program, considered unduly costly by the Socialists. But
with one Rafale equaling 2000 French jobs, it's pretty hard for the Socialists
to even consider cutting the program. Especially considering Dassault's
estimates of the future market. "200 aircraft will be needed for the
Air Force and 50 for the Navy," as the French military upgrades their
current fighter fleet. "We want to double that in exports," added
Dassault. Major francs, major foreign trade, major jobs. What could be better
than that? |
Paris
(June 14, 1997) -- At a press conference at today's Air Show, Dassault Aviation
executives, including President Serge Dassault, talked about privatization,
Boeing and the Rafale program, three areas of intense interest for the entire
French aerospace industry.