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Home | Update | Latest Issue | Gallery | FR Profile | Datafiles | FR 9/97 GOOD NEWS FOR GERMANIES AEROSPACE INDUSTRY by Wolfdietrich Hoeveler The German government has decided: The German research institute DLR and the German space agency DARA will be merged, the next budget will account for the Eurofighter and, Germany has confirmed its participation in the International Space Station. After years of struggling for the new German Air Force fighter, the government has now earmarked DM847 million of the 1998 budget for the procurement of the aircraft. The medium-term budget planning for 1999 and 2000 shows DM1,183 billion and DM1,35 billion respectively. For 2001 another DM1,578 are planned. Since these funds have to be raised from the defence budget, this procedure is generating a predatory competition. For example: The projected operational group transport for the Navy will be delayed by one year. Still, the priorities are correct, for German air defence as well as the German aerospace industry. The branch can keep highly qualified jobs and the know-how which is necessary for future partnerships. If the parliament agrees on the procurement bill in its fall meetings, the new fighter will be ultimately over the worst. Meanwhile, the government and Daimler-Benz Aerospace continue to negotiate over an advanced pay-back of the Airbus pre-financing. The cabinet though has put an end to negotiations concerning the projected merger of DLR and DARA. Lean structures, more flexibility and a stronger punch in European programms, those are the objectives of this long awaited measure. The German government has made another decision: The new space strategy was finalized and the way for signing the contract concerning the participation in the International Space Station in the fall of this year has been cleared. Germany will pay DM2,5 billion until 2004 for the program. Contracts in a similar amount will flow back into the German industry. Also, the parliament has agreed to the continuation of the Ariane 5 development. However, the resistance of the industry concerning the new directions of the research minister did not cease. The branch is especially criticizing the reduction of ESA research funds, believing that this is limiting the chances for new commercial markets such as telecommunication, multi-media or earth surveillance. On the other hand, the industry is not objecting against the extensive opening of commercial markets, as called for by Research Minister Rüttgers. According to the German Aerospace Industry Association, already 30 percent of the turnover of German space companies is generated in this regard. All that glitters is not gold but, the decisions which had been called for by the industry have finally been made. The situation in Germany is now much more calculable. The German industry can take a deep breath. This breath is needed to stand in the international competition, in which the EU Commission has now agreed to the merger of Boeing and McDonnell Douglas. Still, while Boeing has dropped its exclusive contracts with airlines, the fight for airline orders will become even harder. Since Boeing has the benefit of the full support by the Clinton administration, the decision from Brussels has, just in time, precluded a trade war between the USA and Europe which would have not only degraded the market chances for Airbus on the US market but, also for other European products. This would have been a tough one for the export-oriented German industry. There is no time for relaxation. More than ever do the Airbus partners need to get together and form a strong and truly unified company with a capable management, one that can fill positions without influence from the governments, such being able to catch up to Boeing's product scale. From page 4 of FLUG REVUE 9/97 Home | Update | Latest Issue | Gallery | FR Profile | Datafiles | FR 9/97 Copyright 1997 by Motor-Presse Stuttgart. All rights reserved. Last updated August 5, 1997 FLUG REVUE, Ubierstr. 83, 53173 Bonn, Germany