FLUG REVUE May 2004: German aerospace association looks up

Interview with Hans-Joachim Gante, managing director of the BDLI

“JOBS WILL GROW AGAIN 2005”

The German Aerospace Industries Association (BDLI) stages the Berlin Air Show (ILA) in tandem with Messe Berlin, Berlin's fair company. In this FLUG REVUE interview, BDLI managing director Hans-Joachim Gante gives his views on how the show is developing and on the prospects for the industry as a whole.

FLUG REVUE: Mr. Gante, how important is the ILA for the German aerospace industry?

Hans-Joachim Gante: The ILA is simply a great opportunity for the German aerospace industry to position itself in relation to the competition both in Europe and globally. I believe there is a real need for the German aerospace industry to do this, in contrast to the British and French industries, which are significantly larger in Europe. That's particularly true of the defence sector. They are stronger internationally and more export-oriented than the Germans. So in that respect the ILA is very important for the German aerospace industry.

FLUG REVUE: How many exhibitors and visitors are you expecting at the ILA?

Hans-Joachim Gante: We are assuming that we will reach similar levels to ILA 2002. We are expecting around 1000 exhibitors from 40 countries. It could be a little bit more or perhaps a little bit less, but those are the sort of numbers we are expecting.

FLUG REVUE: What are the main focal points of the ILA this year?

Hans-Joachim Gante: The main political focus of ILA 2004 will be the expansion of the EU to the east, which is taking place on 1 May, of course, just before the ILA. And that will give suppliers the chance not only to welcome these new EU countries but also to present their products to them at the ILA.

The main focal points as far as space travel are concerned will be the exploration of Mars and Galileo, with Galileo very significant because of the enormous importance of the European satellite navigation system for the entire space industry. Galileo itself is not so far forward in terms of either the project or its presentation as to be able to take its own stand. Nevertheless, it will still be one of the top themes running through the show.

The second main focus of interest will, of course, be defence. In the context of the supplies industry, the Airbus A400M is very important, but one should also not forget the Eurofighter and unmanned aerial vehicles (UAVs) like the GlobalHawk. They will also be a focus of interest in their own right at ILA 2004.

Besides these focal points, the conferences will be another distinguishing feature of the ILA. There will be 60 conferences taking place at the ILA, most of them international. This is something on which great emphasis is placed at the ILA, something that sets it apart from its competitors. And these conferences span the entire range of issues in the industry, from global security and military topics to air traffic management, essentially anything that is currently of interest in the aerospace industry.

FLUG REVUE: To what extent are the major international players taking part?

Hans-Joachim Gante: With a few exceptions, all the major global players will be there. Unfortunately, BAE Systems is one of the few that won't be. The show has many supporters, including politicians.

FLUG REVUE: Does the ILA receive adequate support from politicians in Germany?

Hans-Joachim Gante: On an international comparison the answer would have to be “no”. But if you consider the ILA in isolation, the support it receives from German politicians is really quite good; you can't complain. We are, of course, delighted that Chancellor Gerhard Schröder is opening the ILA and that members the government like Otto Schily and Edelgard Buhlman will visit the ILA.

FLUG REVUE: Does the aerospace industry make sufficient use of the ILA to present itself as an engine of innovation? In Germany, innovation suffered something of a setback with the Toll Collect debacle.

Hans-Joachim Gante: I am absolutely convinced that the aerospace industry is, by its very nature, an engine of innovation in the industrial landscape. In whatever area you care to look – from microtechnology to nanotechnology – the aviation and aerospace industries are playing a leading role. The problem I see is that aerospace does not enjoy a high level of approval in German society, and that this engine of innovation is accepted only reluctantly in some quarters. The industry has some obstacles to overcome here, in terms of both communication and publicity. My impression is that the aerospace industry still has a negative image in German society, and that the positive achievements of the industry and its function as a driver of technological progress are not sufficiently acknowledged.

FLUG REVUE: How will the future of the ILA look when Berlin-Brandenburg International (BBI) airport is expanded, as planned? Are you holding talks with the consortium to secure the ILA site on a long-term basis?

Hans-Joachim Gante: We have been holding intensive discussions with both Brandenburg and Berlin for the last 9 months, and with the fair company as well. We have agreed that the interests of the ILA should be incorporated into the plans to expand the airport, as represented by both the fair company and the BDLI. And to this end we have set up a joint working group.

This was done for two reasons. Firstly, if the interests of the ILA are taken into account, it will make a significant contribution towards reducing the costs of the ILA. And secondly, since we are engaged in international competition, we would have suffered considerable disadvantages in terms of the buildings available to us if these interests were not taken into consideration. I am hopeful that as of ILA 2010 our facilities will be equally as good those of our competitors and may even be better. I am therefore very happy that we have managed to come to this agreement with all those involved.

FLUG REVUE: Russia and the CIS states traditionally have strong representation at the ILA. Will that be the case again in 2004?

Hans-Joachim Gante: Absolutely. The registrations we have received so far indicate that we can expect at least as many exhibitors from those countries as in recent years. I am also hopeful that the Russian exhibitors will not only bring a lot of aircraft with them to Berlin-Schönefeld this time but will also be flying them. We have sorted out the lien situation with the legal representative of the Swiss partner. This was one reason why Russian exhibitors stayed away from other shows in the past. We can offer Russian exhibitors legal security. This could be a really big attraction at ILA 2004.

FLUG REVUE: The ILA presents itself as a global player. How important is the Asian aviation market for jobs in Germany? And, above all, how important is it for small and medium-sized companies?

Hans-Joachim Gante: Without the Asian market, the entire German aerospace industry would be in a drastic situation. The only significant growth in aviation is taking place in Asia. The Asian market is much the most important growth market in the world. This applies not just to the civil sector but the military sector as well. In the medium term the North American civil aviation market will continue to stagnate because it is reaching saturation point. Business with China, for example, is also developing well for small and medium-sized suppliers.

FLUG REVUE: Can the BDLI provide even more support here?

Hans-Joachim Gante: In addition to the contacts established by companies in the industry themselves, the association must make increased use of its connections at association level for the sake of its members in order to provide joint platforms on which contacts can be made and the outstanding capabilities of small and medium-sized companies can be presented. There are also some promising signs in Japan, for example, where we are currently in the process of concluding agreements. We also help our members to understand the prevailing conditions and to improve them in the countries concerned. There is really a lot that we, as an association, can do for small and medium-sized companies.

FLUG REVUE: What is the jobs situation like for BDLI companies?

Hans-Joachim Gante: In the last two years we have had relatively stable employment figures following the job losses suffered in the previous years. BDLI companies employ a total of just under 70,000 people. I don't think much will change in 2004; we cannot expect any increase in that until next year. The current stable employment figures can be put down primarily to the concurrently running military programmes of the Eurofighter, NH90 and Tiger. As of 2005 things will also begin to look up in terms of jobs in the civil sector as well. The effect of series production of the Airbus A380 will begin to be noticed, for example. And from 2006 we will also be producing the A400M military transporter, which will inevitably also have an effect on the number of jobs in Germany. The planned start date for deliveries of the A400M is 2008.

Volker K. Thomalla was asking the questions.

From page 76 of FLUG REVUE 5/2004

Last updated 15 April 2004

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