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June 16, 1997

DASA Pushes Eurofighter, Challenges Europe

Paris (June 15, 1997) -- Dr. Manfred Bischoff, CEO of Daimler-Benz Aerospace (DASA), opened the company's first press conference at the Paris Air Show by saying, "DASA is pressing for stronger European competitiveness. I believe a partnership based on equality is the key to success." Those would be his nicest words about the situation in European aerospace.

It became quickly evident that DASA wants Europe's aerospace industry to press ahead with reorganization. And, Bischoff said, he intends to start shaping its future soon.

In the face of powerful United States' competition, Bischoff called for Europeans to set aside traditional national egoism and he appealed to European partner countries.

"The very future of high technology in Europe is at stake. We therefore have no time to indulge in the favorite game of Europeans, summed up by the question, 'Who dominates whom?' We must not content ourselves with cooperations and program companies. What we need are true European joint ventures," Bischoff said.

And, even though joint ventures was the underlying theme of the press conference, Bischoff did not mention any definite partners or joint ventures.

He did, however, mention the Eurofighter time and again. Bischoff was confident that a financial solution for procuring the Eurofighter in Germany will be found before the summer ends. Discussions with policymakers are making good headway but have not yet been brought to a conclusion despite goodwill on both sides.

Bischoff stated that the need to procure the Eurofighter in Germany is "largely undisputed," further adding, "The world's most modern jet fighter of its class is the best military solution for safeguarding Germany's air defense."

DASA feels the aircraft is an important factor in determining Germany's suitability as an alliance partner and - against the background of ongoing "Europeanization" of the aerospace industry - the country's appeal as a partner in international projects. "The Eurofighter is an important integration factor for Europe's development," Bischoff said. "It carries considerable economic and technological importance for Germany as an industrial site."

"A withdrawal would mean deliberately foregoing thousands of highly skilled jobs, top technological expertise and tax revenues for the public treasury worth 70 percent of the resources used. I can't imagine that responsible political decision makers will simply sweep these facts under the rug."

"WE ARE STILL FIGHTING FOR IT."

Bischoff gave evidence of the ability for European companies to partner, referencing the Eurocopter helicopter joint venture between DASA and Aerospatiale, as well as the agreement signed in May with the French Matra-Lagardere group with British partners.

"The aim of this was to pool the companies' activities in the fields of aerospace, guided weapons and defense electronics. Here, the core European countries of the aerospace industry have joined forces in the spirit of an equal partnership and economic efficiency in order to form corporate units of world ranking."

Bischoff said, "We are taking action. And we would like to see our example followed in other sectors of the industry."

According to Bischoff, the Matra-Lagardere agreements are already being implemented and, if all goes well, they should be finalized by the end of 1997. Bischoff pointed out that his company has officially submitted its bid for the defense electronics division of Siemens.

There has also been progress in meeting the second important challenge -- to develop industrial organizations in Europe that are competitive on a global basis.

"The conversion of Airbus Industrie into a single corporate entity will inevitably occur," he stated confidently. The company will be equipped with everything necessary to meet the future challenges of the global civil aircraft market."

In Bischoff's eyes, the Airbus partners are in the process of jointly defining the path to a successful future. Bischoff pointed out the fact that discussions are necessary, owing to different starting positions, which in no way detracts from the common goal, as defined at the beginning of the year in a Memorandum of Understanding between all the partners.

"Competition is the measure of all things for us, he said.

A product offensive will be pursued in order to permit Airbus, as a complete supplier, to demonstrate its technological and economic superiority of its products in all sectors.

Bischoff mentioned the market launch of an extended version of the long-haul Airbus A340, (equipped with up to 370 seats) and was convinced that the planned wide-body Airbus A3XX would become a valuable part of the Airbus family.

"As the world's biggest passenger aircraft, this plane will set new standards. The interest of potential partners is developing as expected, and it is expected that the aircraft will be officially offered to airlines towards the end of 1998, as planned," he said.


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