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Home | Update | LATEST ISSUE | Gallery | FR Profile | Datafiles | FR 6/98 EUROPEAN INDUSTRY ON ITS WAY TO CONSOLIDATION by Dr. Norbert Lammert, State Secretary and coordinator for aerospace affairs in the German cabinet The fourth ILA after German re-unification will take place under special conditions. With further significant growth in the number of exhibitors, it has become well established among the big international aviation and space trade shows. This year it will once more prove to be an outstanding forum for East and West, as the geographic and political role of Berlin suggests. This year the ILA commemorates the 50th anniversary of the Berlin Airlift. On one hand, the airlift was an admirable technological achievement. On the other, it was and still is a sign of the changed relationship of the Western Allies with the occupied Germany. The victors and occupiers had visibly become protectors. A threatening military confrontation could be avoided with the help of a unique airlift. The Berlin Airlift in 1948 was an example of other humanitarian airlifts that followed later: In 1998 it gives a dignified theme for the traditional aviation and space exhibition at Schönefeld airport. The airlift was a building block on the long path leading from confrontation to co-operation. If you apply this to transatlantic relationships, The ILA shows the fruits, that such a policy can bear, basically unshakeable, but at the same time intent on overcoming conflicts and building partnerships. There is a common Russian-German enterprise to maintainthe MiG-29, which is to look after and develop a fighter plane belonging to the former Soviet block. Russian, Ukrainian and West European companies and governments are looking into possibilities for co-operation on the development of a future military transport plane. The international space station has shown the way to global co-operation perspectives between America, Russia, Japan and Western Europe. In 1998 the european aviation and space industry looks with pride at full order books, secure projects and promising prospects for the future. At the same time it is faced with extraordinary challenges. The German Government has shown its support and committed itself to some major acquisitions. The most important are the Eurofighter, participation in the International Space Station and the military helicopter project Tiger. However, the favourable situation as regards orders should not make the industry close its eyes to future demands, which arise from changes in the nature of competition and new technological developments. A series of mega mergers in the US aviation and space sector has created technologically and financially highly integrated US enterprises, which are able to operate from a strong basis of a unified American market. In Europe, however, there are still small, fragmented markets with much smaller companies with different industrial and political structures. Last summer the German Government took political initiatives towards the creation of necessary industrial restructuring processes. In December the French, British and German Governments declared their common political and economic interest in an internationally competitive and efficient European aviation, space flight and defence industry. The readiness to take the necessary measures for restructuring has also been expressed. At the same time the Heads of Government called upon industry to come up with a clear concept and detailed time frames for the restructuring and integration process. The joint report by all firms, which are involved with Airbus, was submitted on time. The Spanish CASA's interest in being incorporated in the process is very welcome, and the four partners have stressed emphatically, that they want the involvement of other European enterprises in the integration process. The report documents everyone's conviction, that future economic success depends critically on complete integration and restructuring in Europe. This has been my opinion for a long time. The report also highlights consensus on many fundamental questions. Among these are: the aim of integrated European aviation and space enterprises. entrepreneurial orientation and international conditions for competition with access to capital markets and stock exchange notation, Airbus to be a central component of this company, the need to combine civil and military powers, the fastest possible and most far reaching integration Although the companies in question are politically quite diverse and their ownership structures are very different, they correspond in many areas. Of course, there are still many complex questions, which will have to be resolved. It is up to industrialists and politicians not to surrender in the face of the difficulties that the task brings with it. One should not look for reasons for failure, but should find a way to succeed. Central questions about the structure of the company have to be resolved. They have to be made clear between the various firms and the shareholders. As long as the politicians of the countries involved are prepared to play a major part, the German Government will lead the discussion. We are supporting private-economic structures, which should be the aim of the process. We can point to good experiences, which we made with the current restructuring of German aviation and space under private-economic conditions. In my opinion any political hurdles should be overcome by all governments together. I am sure that by this summer many uncertainties will have been resolved. It has to be stressed that a common strategic interest in integrated European aviation and space flight as is also a sign of the political integration in Europe and openness towards other partners. The continuation and harmonisation of national European promoting give a framework for common rules on export and help to harmonise military demands. Becoming mutually dependent will result in the limitation of national sovereignty. The upside of this will be mutual giving and taking and the relinquishment of the striving for dominance. Achieving this will not be easy. It is, however, necessary and promising as a prerequisite for a technologically and economically viable European aviation and space flight industry in the 21st century. From page 36 of FLUG REVUE 6/98 Home | Update | LATEST ISSUE | Gallery | FR Profile | Datafiles | FR 6/98 Copyright 1998 by Motor-Presse Stuttgart. All rights reserved. Last updated May 7, 1998 FLUG REVUE, Ubierstr. 83, 53173 Bonn, Germany