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Home | Update | Latest Issue | Gallery | FR Profile | Datafiles | FR 2/97 "JUMBO" MERGER by Wolfdietrich Hoeveler A new giant is born. Boeing, the leading aircraft manufacturer with a market share of over 60 percent, and McDonnell Douglas, until just recently the No. 1 of the US defence industry, are fusioning. If the Federal Cartel Office and the responsible boards of the two companies agree to the deal, the world's biggest aerospace concern will have been founded by mid next year under the lead of Boeing. No one doubts that this will happen. Both company's managements have been talking for three years. The administration in Washington has supported and enforced these talks. Boeing's leading position in the airliner market - and with it the position of the American industry - will be further built up, apparently beyond reach. Still, the rest of the world and especially Europe should not be awestruck now. If Europe takes action, there is no need to freeze in such a position, says the aerospace coordinator for the German government, Dr. Norbert Lammert. The series of fusionings and joint ventures in the USA and also in Europe is not at all finished. Transatlantic cooperations should not be put aside unfinished either. For weeks there have been reports on a possible cooperation between Airbus Industrie and Northrop Grumman. Lockheed Martin is labeled with similar ambitions. The new mega-fusioning has not only straightened the frontiers. Paradoxically, the situation has become more complex, offering new possibilities at the same time. Airbus partner British Aerospace is now linked tighter to Boeing. The British are now fully participating in the Joint Strike Fighter program and are also building the newest version of the Harrier and the T-45 Goshawk trainer together with the American partner. Rolls-Royce and the British avionics industry are participating as well. Since the current civil programs of Douglas in Long Beach are continuing for the time being, another European company is part of the transatlantic business: BMW Rolls-Royce. The German engine manufacturer is supplying the propulsion for the projected MD-95 100-seater. What's to be done in Europe? First, Airbus must do its homework. The transition of the consortium into a functioning and independent company, which has meanwhile been decided upon by the board, has gotten a new push forward. Also, the Europeans must accelerate and round out the top and the bottom of their product scale if they don't want to miss the boat. Resistance is coming mainly from France and is primarily attributed to Aérospatiale head Michon: The national capacities should not get into the hands of an international company without the chance for governmental influence. This once more highlights that, in the opinion of many important Europeans, united Europe is only a vague and imaginary long-term goal which is only to be strived for if it is useful for their own national interests. Dr. Lammert and Dasa head Dr. Bischoff are right: this is not the time to worry. Airbus offers innovative products which continue to have a very good market potential. It is vital to continue on this course and, based on the growing together of industrial Europe, to develop the new company structure, as well as, the large Airbus and the 100-seater. After all, the positive development of Airbus Industrie led to the newest fusioning in the USA. So, who is afraid of whom? From page 4 of FLUG REVUE 2/97 Home | Update | Latest Issue | Gallery | FR Profile | Datafiles | FR 2/97 Copyright 1997 by Motor-Presse Stuttgart. All rights reserved. Last updated January 10, 1997