Airbus Industrie's European Future Large Aircraft: A Critical Turning Point for British Aerospace

Strategic Insights -

The recent decision by Airbus Industrie to take on design, development, and production responsibility for the European Future Large Aircraft (FLA) is a critical turning point for British Aerospace (BAe). The preferential treatment of the American Lockheed C-130J by the Ministry of Defence, despite its off-the-shelf availability, poses a significant threat to BAe's expertise and future in the sector.

Key Takeaways:

  • The Airbus Industrie plan for the European FLA is crucial for BAe's continued involvement in designing and manufacturing fixed-wing aircraft.
  • The Ministry of Defence's preference for the Lockheed C-130J may lead to a loss of edge for BAe in a strategic sector of the economy.
  • A decision to buy American would result in BAe losing its designer and manufacturer status, eroding the UK's manufacturing base, and leading to job losses.
  • The DTI supports the European option, emphasizing the importance of competitive strategy in industry development.
  • Airbus Industrie's partnership with European partners is vital for maintaining BAe's wing technology expertise.
  • The Prime Minister must intervene to resolve the dispute between the DTI and the Ministry of Defence, prioritizing British industry first.
  • BAe's expertise in the civilian Airbus series is unparalleled, with the company's expertise being a significant asset in the sector.
  • Losing BAe's designer and manufacturer status would have significant economic implications for the UK.

Statistics:

  • The European FLA is not expected to be available until 2002.
  • The cost of the European FLA is still not fully costed.
  • The UK currently has a few centres of technological and manufacturing excellence, with aerospace being one of the most critical.
  • Defence cuts have already decimated the manufacturing base in the sector, with jobs at risk if BAe loses its designer and manufacturer status.

Sources:

  • ALEX BRUMMER The Times
  • Rolls-Royce (no specific date mentioned)