Back to news

July 29, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Airbus Calls For Europe To Strengthen Defense Budgets Post-COVID-19

Tony Osborne July 10, 2020

While Airbus' commercial business faces strong headwinds from the novel coronavirus pandemic, the company's military capability is still very much in demand. But can Europe's big defense initiatives—many of which involve Airbus-—be sustained with burdened budgets post-COVID-19? London Bureau Chief Tony Osborne put those questions to Airbus Defense and Space CEO Dirk Hoke.

AW&ST: What does the defense environment look like post-COVID-19? Will we face more spending cuts, or will spending plans be maintained? And are you confident big defense programs can survive? A health and economic crisis doesn't erase the necessity of being able to defend your territory. NATO missions are continuing, and the extensive use of our A400Ms and [A330 Multi-Role Tanker Transports] MRTTs during the COVID-19 crisis is a perfect example of how much value military assets can bring in humanitarian missions, when nations are in need. In addition, spending in defense procurement, if you do it right, is always an investment in your own economy and therefore now twice as important.

The defense business was undertaking some restructuring and cost cutting at the beginning of 2020 after a difficult 2019. Where are those plans; will they have to be reconsidered? We have had to slightly adapt our restructuring due to the COVID-19 impact, but the rationale stays the same. In our defense business, many important contracts had been postponed or came later than expected, which has of course had an impact on operational planning. In our space business, we currently see an extremely flat market for telecommunication satellites. We are [the] market leader and confident that the situation will change again. But for the time being we must take the appropriate measures.

How has COVID-19 affected production and output in the various countries, and how have you overcome or are overcoming those hurdles? I would say we were early adapters. Given the experience we had at our commercial sites in China, on which we could build, it took us around a week to clear all production facilities for working under COVID-19 work restrictions. On the defense side, we also delivered aircraft in the lockdown phase and provided our services to the military crews on mission.

It was, rather, the space part, where we had to reschedule satellite launches due to the temporary closure of the launch site in Kourou [in French Guiana]. And for the desk jobs, many were working from home during the lockdowns in order to avoid [having] too many meetings at the offices at the same time. They are now coming back to their desks. We could demonstrate that also in crisis times we are a trustful partner for our customers.

Airbus proposed a compromise deal for the Eurofighter following Germany's decision on a Tornado replacement. Is Berlin showing interest in your proposals; could we see some of these Eurofighters on contract soon? Let me state that we are very proud of being part of the Eurofighter family. There are some good opportunities ahead. Recently we signed the contract for equipping 115 [German and Spanish] Eurofighters with brand-new Captor-E radars. In the autumn, we are confident [we will] sign a contract for 38 Eurofighters to replace the German Tranche 1 fleet.

Additionally, we are in discussions for planning a Tranche 5 [implementation of] the Long-Term Evolution Program. What the final decision on Tornado will be, we will see only after the elections in Germany [at the] end of 2021. In the meantime, there are further opportunities in Spain, Switzerland and Finland. The Eurofighter clearly is the backbone of European air defense.

What progress is being made on the Future Combat Air System (FCAS)? Can you talk about some of the technological hurdles, where there needs to be or has been progress to reach the next phase? There is a tremendous drive in the project. All parties, on both the political and industrial sides, are pushing for progress and can be proud of what has been achieved in less than three years after being mentioned the first time in the French-German declaration on July 13, 2017. We need to keep this spirit up to achieve our ambitious timelines. In terms of technologies, we are at the early stage of a long journey.

Overall, we are looking into a wide range of technologies in the areas of combat aircraft capabilities, digitalization and data analysis, as well as connectivity and communication. Airbus is the only company in Europe that has extensive know-how in all three areas. Nevertheless, as we are talking about requirements needed in 2040, we are far away from having definite answers yet. The FCAS is very much an incremental journey with an open end—that's what makes the program so challenging, but also so exciting.

You made representations to Madrid regarding the involvement with Indra on the FCAS. Is there any sign of that changing? Is there a point when you begin working together and sideline the differences? Spain is a very welcome partner in the FCAS program and is one of our Airbus home nations. I really believe that the FCAS project is large enough for the whole European defense industry. To make it a success, it is important that everybody contributes where he has the largest experience. In terms of system integration, it is undoubtedly Airbus—especially in Spain, where we have a large industrial footprint, are producing the Eurofighter, A400M, tankers and the light and medium transport aircraft. I think it is understandable that we expressed our incomprehension to the Spanish government.

Are you any closer to securing a contract for the Eurodrone development? Are you concerned that France could still be swayed down the U.S. route? In June we handed over our best and final offer and are expecting a decision by the nations after the summer break. Germany, France, Spain and Italy worked with us on the capabilities from the onset, so the complete design is according to their wishes. Therefore, in terms of performance, capability and European sovereignty there is no serious competitor on the market. What is clear is, the later the order comes, the more the delivery dates are slipping. I don't think that's in anybody's interest.

Are you making any proposals for Germany's Pegasus signals--intelligence (sigint) platform since Berlin withdrew from using Triton? Will you offer the Integrated Standby Instrument Systems (ISIS) system on a manned platform? That's now in the hands of the German government. Over the years of the project we developed many skills and capabilities in Germany that are required in any sigint platform. That applies especially for the ground control station, which we also deliver for NATO's [Alliance Ground Surveillance] project. Therefore, we stand ready [for] implementing our know-how once the decision has been taken. Nonetheless, I am still convinced that Triton would have been the most capable platform for the envisaged missions.

On MRTT, where do you see the next market for that platform? How many more orders could come from the European Multinational Multi-Role Tanker Transport Fleet/Unit (MMF/MMU)? Is the agreement with Lockheed on MRTT making progress on marketing for U.S. needs? What is your hope for that? Only weeks ago, we delivered the first MRTT to the joint NATO fleet. I don't want to speculate about numbers, but pooling resources as is already the case with military transport capacities is a blueprint for the future. The U.S. surely is the largest accessible market for military tankers. We have the best aircraft in this class. And besides our own Airbus footprint, we have Lockheed Martin as an equal partner in the country. We stand ready. In the end the question will be whether the U.S. is ready for this, too.

Regarding A400M tactical capabilities and exports, any progress on both? The A400M has meanwhile proven to be a real workhorse in the services, and flight testing again has made good progress in recent months. Simultaneous paratrooper jumps out of the side doors are now certified, and the helicopter air-to-air refueling is advancing well. The aircraft is simply best-in-class. Other nations recognize this very well, but it is currently a difficult environment to predict when the next exports are coming in.

Given that space has been declared a warfighting domain by several nations, are you seeing an uptake in defense interest in space, or is that something still warming? When we see how dependent mankind is on assets in space, it is high time to act and find ways to protect them. Some countries are making progress already. Others are still undecided on their strategy. As Europe's largest space company, we can make suggestions. But what is valid for the world applies also in space: You can't defend space or your assets there as a single country. What we need is a common approach. And it is needed sooner rather than later.

https://aviationweek.com/ad-week/airbus-calls-europe-strengthen-defense-budgets-post-covid-19

On the same subject

  • La DGA prépare un plan de soutien à l’industrie de défense

    May 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    La DGA prépare un plan de soutien à l’industrie de défense

    La Direction générale de l'armement (DGA), qui réalise un diagnostic précis des difficultés de la filière défense, prépare « un plan d'actions de suivi rapproché pour déterminer ce que nous pouvons faire pour assurer la soutenabilité des 1 400 entreprises considérées comme critiques pour la BITD (Base industrielle et technologique de défense) », a expliqué le Délégué général pour l'armement (DGA) Joël Barre lors de son audition fin avril à l'Assemblée nationale. La hausse budgétaire de 1,7 milliard d'euros prévue par la loi de programmation militaire (LPM) pour 2021 « soutiendra l'activité économique et la BITD », a ainsi assuré Joël Barre. La Tribune du 18 mai 2020

  • Défense spatiale : la France a rejoint le Combined Space Operations Initiative (CSpO)

    March 2, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Défense spatiale : la France a rejoint le Combined Space Operations Initiative (CSpO)

    Christelle Perret C'est officiel, depuis le 11 février 2020, la France a rejoint l'initiative Combined Space Operations (ou CSpO) en qualité de membre aux côtés de six autres nations : l'Australie, le Canada, la Nouvelle-Zélande, le Royaume-Uni, les États-Unis et l'Allemagne. C'est lors de la réunion annuelle des états membres, qui s'est tenue les 11 et 12 février 2020 à Ottawa, au Canada, que la France a signé la lettre d'adhésion au CSpO. L'objectif de cette initiative est le développement d'une collaboration spatiale et l'élargissement de partenariats clés entre les pays signataires. L'initiative Combined Space Operations Le CSpO est une initiative assez récente. Actée initialement en 2014, elle rassemblait à ses débuts les États-Unis, l'Australie, le Canada et le Royaume-Uni. La Nouvelle-Zélande a adhéré au projet en 2015. En 2016, ce sont la France et l'Allemagne qui le rejoignaient, en qualité d'observateurs d'abord, avant de devenir membres associés en 2017. En décembre 2019, l'Allemagne devient finalement membre officiel, suivie de près par la France, ce 11 février 2020, lors de la réunion annuelle des nations membres, à Ottawa. L'objectif de l'initiative est toujours le même qu'exprimé en 2014 : développer la collaboration spatiale et les partenariats clés entre les nations membres. C'est Michel Friedling, Général de division aérienne à la tête du commandement de l'espace, qui a fait le déplacement pour signer la lettre d'adhésion à l'initiative CSpO, au nom de Florence Parly, ministre des Armées. Le CSpO pour coordonner la défense spatiale Lors des échanges des 11 et 12 février derniers, les nations membres ont évoqué les enjeux spatiaux actuels et futurs, abordant également la question de la coordination des politiques, des opérations et des capacités mondiales. Il a également été question des défis et des opportunités de 2019, pour aboutir à un bilan de l'année écoulée. La France partage donc désormais les intérêts de l'initiative CSpO,soit la participation à des efforts coordonnés dans le domaine de la défense spatiale. L'existence d'une telle initiative doit permettre d'améliorer les capacités spatiales des nations membres et de faciliter les actions conjointes entre les participants. Le Général John Raymond, commandant de la force spatiale américaine, a déclaré être ravi de l'entrée de la France et de l'Allemagne au CSpO, qui correspond au « renforcement de notre conscience collective du domaine spatial », précisant que « nos alliés nous aident à conserver notre supériorité spatiale et à renforcer les bases de notre efficacité au combat ». https://www.clubic.com/mag/sciences/conquete-spatiale/actualite-886069-defense-spatiale-france-rejoint-combined-space-operations-initiative-cspo.html

  • Key House Democrats want to lock in New START weapons limits

    July 16, 2020 | International, Land

    Key House Democrats want to lock in New START weapons limits

    By: Joe Gould WASHINGTON ― The chairmen of the House foreign affairs and intelligence committees are pushing a measure meant to extend the last remaining U.S.-Russia arms control agreement amid fears President Donald Trump will let it lapse. Led by House Foreign Affairs Committee Chairman Eliot Engel, D-N.Y., the proposal would require congressional approval to increase the nuclear arsenal above the limits of the 2010 New START treaty, if the pact is allowed to expire next year. The measure was offered as an amendment to the 2021 National Defense Authorization Act, which is set for floor consideration next week. Engel's amendment was cosponsored by House Intelligence Committee Chairman Adam Schiff, D-Calif., and House Intelligence, Emerging Threats and Capabilities Subcommittee Chairman Jim Langevin, D-R.I. “This Administration's recklessness has left New START as the only remaining agreement limiting Russia's nuclear weapons. Despite the White House's claims, there's no ‘better deal' with Russia and China on the horizon, and the clock on New START is ticking,” Engel said in a statement. “The president doesn't seem to have a problem with Russia developing more and more nuclear weapons that could strike the United States, so Congress has to do everything we can to keep these protections in place.” The action came days after Russian Foreign Minister Sergey Lavrov warned he's not very optimistic about prospects for an extension because of Washington's focus on making China sign onto the pact. U.S. and Russian envoys held talks last month in Vienna, but Beijing has refused to take part. Engel's amendment states that the U.S. should extend the pact for five years, to an expiration date of February 5, 2026, unless Russia is in material breach of the treaty or if it is replaced by a new, stronger agreement. It also provides the executive branch with permission to continue inspection activities and other transparency measures if New START expires on February 5, 2021, assuming that the government of Russia reciprocates these steps The New START treaty limits each country to no more than 1,550 deployed nuclear warheads and 700 deployed missiles and bombers and envisages sweeping on-site inspections to verify compliance. The amendment would bar funding to increase the arsenal above the treaty limits unless the president notifies Congress in advance of the new military requirements, certifies that the additional deployments are necessary and justifies the deployments, reports the associated costs and operational implications, and requires that any increase in deployed nuclear weapons is subject to a joint resolution of approval. It also requires detailed reports on Russian nuclear forces and, with and eye toward potential growth in China's nuclear arsenal, requires briefings and reports regarding the administration's arms control approach with Beijing, according to a summary. It also requires a presidential certification before New START would lapse that this would serve U.S. national security interests, an assessment whether continuing limits on Russian nuclear forces would serve U.S. interests and a plan for how the U.S. military and intelligence communities will address the post-New START environment, including the potential funding and development of additional nuclear deterrence and intelligence requirements. If Engel's amendment is accepted by the House Rules Committee and adopted by the House, it would almost certainly invite resistance from hawkish supporters of the president during negotiations to reconcile the House and Senate versions of the NDAA. Senate Armed Services Committee's Chairman Jim Inhofe, a proponent of nuclear weapons spending, has historically been a skeptic of the treaty. Kingston Reif, the Arms Control Association's director for disarmament and threat reduction policy, said the Trump administration doesn't seem like it will extend New Start and that Congress ought to be putting in roadblocks. “Crucially, the amendment would require congressional approval to increase the nuclear arsenal above the treaty limits, if the treaty is allowed to expire next year. A decision as consequential as increasing the size of the deployed arsenal, which hasn't occurred in decades, merits special scrutiny,” Reif said. After both Moscow and Washington withdrew from the 1987 Intermediate-range Nuclear Forces Treaty last year, New START is the only remaining nuclear arms control deal between the two countries. Russia has offered its extension without any conditions, while the Trump administration has pushed for a new arms control agreement that would also include China. Moscow has described that idea as unfeasible, pointing at Beijing's refusal to negotiate any deal that would reduce its much smaller nuclear arsenal. Trump declared an intention to pull out of the agreement in May, citing Russian violations. Russia denied breaching the pact, which came into force in 2002, and the European Union has urged the U.S. to reconsider. https://www.defensenews.com/congress/2020/07/15/key-house-democrats-want-to-lock-in-new-start-weapons-limits/

All news