Sentiments of Spring
LONDON In a contest with US competitor Boeing, the German-French armaments company, EADS, has succeeded in obtaining a British arms contract worth billions. Thus London, considered a possible hurdle for German efforts at dominance, strengthens its economic and military ties with Berlin and Paris.
During the coming years, the British Air Force plans to equip the Royal Air Force with new military tanker aircraft. Funded with approximately 19 billion Euro, this is the largest armaments contract ever offered by Great Britain. Two groups of bidders competed for the award: The US corporation Boeing together with the British BAE Systems; and the ,,Air Tanker Consortium"led by EADS and the EADS subsidiary Airbus, the French armaments corporation Thales, as well as two British companies, the jet engine manufacturer, Rolls-Royce, and the military technology supplier, Cobham. As of now, the British government has decided to continue negotiations for the renewal of the in-flight refueling tanker fleet, exclusively with the German-French air-and-space corporation.
Worldwide...
After the subsidiary of EADS Airbus outflanked the toughest rival, Boeing, with civilian aircraft, the German-French company tackles the dominance of the US corporation in the military arena. The future supplier of the Royal Air Force, is guaranteed that good opportunities for similar contracts with other states will take place. In the near future the defense ministers of France, Australia, Saudi-Arabia and the United Arab Emirates plan to decide the purchase of new in-flight refueling tankers. In addition, the delivery of the Airbus-A310 tanker, which had been converted for military purposes, will begin delivery to the German and Canadian air forces. The German EADS Company Chief, Hertrich, announced that shortly Airbus will establish production facilities in such countries as China, Japan or Russia.
... better climate
EADS also counts on improved prospects for expansion in the lucrative armaments market of the US. 1)The US Air Force is ready to renew its strategic in-flight-fueling tanker fleet which would amount to many times over the British 19 billion contract. Hertrich stated that the US defense department seeks a moderately mixed fleet of Boeing and Airbus aircraft. Berlin's advances to the US administration, to establish a ,,complimentary military power"and to ,,join in winning"the struggle for a ,,new world order"in an ,,equal"partnership is considered especially beneficial for business. 2)It is suggested that as ,,ill feelings concerning Iraq"fade into the past, the climate for European companies in the US armaments market seems to improve.
Rays of sunshine
In Great Britain, which is considered to be a potential stumbling block for German attempts at dominance, the hope for a German-French armaments industry has now become reality. Due to its energy supply, Great Britain depends increasingly on German corporations, thus becoming more susceptible to ,,German-French hegemony in Europe." 3)Although Great Britain is considered a close ally of the USA in the political and military arena, the defense ministry increasingly buys ,,European". In mid-October of last year, EADS already had secured a large order for the installation of the military satellite program ,,Skynet 5". The German EADS Company Chief, Hertrich, states: ,,In England we are now becoming the second largest supplier for the armed forces. With more than 16,000 employees we are now one of the biggest employers of our industry."
1) See also earlier article Competition and strategic alliances (VI)
2) See also earlier articles Complementary War Powerand Fit for War
3) See also earlier article A powerful presence in the British energy market
Sources:
EADS will Airbus weltweit produzieren; Die Welt 12.01.2004
EADS erhaelt Grossauftrag der britischen Regierung; Financial Times Deutschland 23.01.2004
EADS schnappt Boeing Milliarden-Auftrag weg; Frankfurter Allgemeine Zeitung 27.01.2004
Airbus-Tanker auch fuer die USA?; Muenchener Merkur 28.01.2004
