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October 8, 2019 | International, Aerospace

Arms firms fret over delays in Franco-German fighter project

PARIS — France's Dassault Aviation and Europe's Airbus have stepped up pressure on France and Germany to agree the next stage of a planned fighter project, warning Europe's arms industry and long-term security could suffer from delays.

The two companies are the leading industrial partners in a project to build a futuristic swarm of manned and unmanned warplanes, announced by the leaders of France and Germany two years ago and expanded earlier this year to include Spain.

Dassault and Airbus won a 65-million-euro contract in January to develop the concept for the Future Combat Air System (FCAS) but await a new contract to build demonstrators for interlinked fighters, drones and an “air combat cloud” by 2026.

Dassault Aviation Chief Executive Eric Trappier told a conference of policymakers last month that the demonstrator contract should have been launched in September but this was now slipping towards end-year. He called it “indispensable” to avoid any further delays in order to maintain the 2026 deadline.

No reason has been given for the delays.

On Monday evening, Dassault and Airbus amplified those warnings with a joint statement.

“If Europe does not move forward — and move forward quickly — on this program, it will be impossible to maintain the development and production capabilities needed for a sovereign defense industry,” the companies said.

The warplane system is expected to be operational from 2040, with a view to replacing Dassault's Rafale and the four-nation Eurofighter, in which Airbus represents both Germany and Spain.

The new project faces competition from Britain and its plans for a new combat jet dubbed “Tempest”.

The fighter developments have split the current Eurofighter consortium and led to a shake-up of industrial alliances as Italy joins Eurofighter partner Britain on Tempest, turning its back on Germany and Spain, while Sweden has opened the door to abandoning its independent stance by co-operating on Tempest.

The FCAS is also overshadowed by differences between France and Germany over export policy after Germany imposed a ban on arms exports to Saudi Arabia over the death of killing of journalist Jamal Khashoggi a year ago by Saudi operatives.

The ban, recently extended to March, has raised questions over a long-delayed Saudi border systems contract run by Airbus.

Airbus Defence and Space Chief Executive Dirk Hoke called in a magazine interview last week for the export ban to be relaxed. German Chancellor Angela Merkel's government has said there is no reason for the moratorium to be lifted.

France and Germany are expected to discuss the issue at ministerial meetings this week.

AIRBUS SETBACK IN SPAIN

Airbus meanwhile faces a battle to shore up its position as a top defense contractor in Spain after losing its place as the representative of Spain's interests on the upcoming fighter project to local defense electronics firm Indra Sistemas.

Spain last month named Indra as contractor for the Spanish share of the Franco-German-led FCAS project, displacing Airbus from the Spanish coordinator role it had held on Eurofighter.

Airbus officials have pledged to try to overturn the move but a Spanish defense source told Reuters there was no change in the decision.

Indra declined to comment.

Publicly, Airbus has said it was surprised by the decision but has pledged to continue to defend Spain's best interests.

Dassault will meanwhile mark a long-awaited milestone on Tuesday when it delivers the first of 36 Rafales to India, the culmination of a fighter procurement process that lasted almost 20 years and involved the cancellation of a much larger deal.

La Tribune reported on Monday that France and India were discussing a possible repeat order for 36 more Rafales. (Additional reporting by Emma Pinedo Gonzalez in Madrid, Tassilo Hummel in Berlin, Editing by Deepa Babington)

https://business.financialpost.com/pmn/business-pmn/arms-firms-fret-over-delays-in-franco-german-fighter-project

On the same subject

  • Fonds européen de défense : 100 millions d'euros pour l'eurodrone

    March 26, 2019 | International, Aerospace

    Fonds européen de défense : 100 millions d'euros pour l'eurodrone

    Par Justine BOQUET La Commission Européenne a annoncé qu'un budget global de 525 millions d'euros avait été débloqué au titre du fonds européen de Défense, dont 100 millions devraient être attribués pour le programme Eurodrone. La Commission Européenne a détaillé le 19 mars la répartition du budget du fonds européen de défense pour la période 2019-2020. Un budget initial de 500 millions d'euros a ainsi été approuvé. A cela s'ajoute « un montant supplémentaire de 25 millions d'euros [qui] a été affecté à l'appui aux projets de recherche collaboratifs dans le domaine de la défense en 2019 », rapporte la Commission Européenne. Deux projets ont d'ores et déjà été sélectionnés, lesquels bénéficieront d'un soutien financier émanant du FED. Parmi eux, figure l'eurodrone. Le drone male européen, développé par Airbus, Dassault et Leonardo, obtient ainsi un financement de 100 millions d'euros. Le programme de communications militaires ESSOR hérite lui d'une enveloppe de 37 millions d'euros. L'institution a par la même détaillé les domaines qui devraient hériter d'un financement, dans le but de soutenir la BITD européenne et pour permettre aux Etats Membres de se doter d'équipements leur permettant d'assurer leur sécurité. « L'accent sera mis sur des domaines tels que la technologie des drones, la communication par satellite, les systèmes d'alerte rapide, l'intelligence artificielle, la cyberdéfense ou la surveillance maritime », précise la Commission. Afin de sélectionner les programmes qui bénéficieront d'un soutien européen, l'Union Européenne réalisera un appel à propositions pour 21 projets sur la période 2019-2020. Parmi les axes technologiques soutenus par la Commission Européenne, on retrouve la prévention des menaces NRBC et le domaine de l'anti-drones, volet qui hérite d'un montant de 80 M€. La cybersécurité, la cyberdéfense, la surveillance de l'espace, les capacités d'alerte rapide et de surveillance maritime bénéficieront d'une enveloppe globale de 182 M€. « 71 millions d'euros soutiendront la mise à niveau ou le développement de la prochaine génération de capacités de frappe de précision au sol, de capacités de combat au sol, de capacités de lutte aérienne et de futurs systèmes navals », ajoute la Commission Européenne. Pour soutenir le domaine de l'intelligence artificielle, de la réalité virtuelle et des cybertechnologies, l'Union Européenne débloquera une enveloppe de 27 millions d'euros, laquelle permettra par ailleurs d'appuyer les PME dans la conduite de leurs projets. http://www.air-cosmos.com/fonds-europeen-de-defense-100-millions-d-euros-pour-l-eurodrone-121705

  • U.K. Carrier Program Brings ‘Two More for the Good Guys’ as Royal Navy Set to Partner More with U.S., French Navies

    October 2, 2018 | International, Aerospace, Naval

    U.K. Carrier Program Brings ‘Two More for the Good Guys’ as Royal Navy Set to Partner More with U.S., French Navies

    By: Sam LaGrone ABOARD HMS QUEEN ELIZABETH, OFF THE COAST OF NEW JERSEY – The Royal Navy lays out the intentions of its largest warship to visitors immediately. “HMS Queen Elizabeth: Welcome to Britain's Conventional Deterrent,” reads a giant sign hanging in the carrier's second island, over a ladder well just off the flight deck. The 70,000-ton carrier and its sister ship, Prince of Wales (R09), and their embarked air wings of F-35B Lightning II Joint Strike Fighters are set to be the centerpiece of Britain's nascent carrier strike group construct. The move – after years of starts and stops – is reshaping the Royal Navy from a force that was a key NATO partner focused on anti-submarine and mine warfare in the Cold War to one that will blend closely with the carrier forces of American and French allies. “The U.S. has 11 carriers,” ship commander Capt. Jerry Kyd told USNI News last week. “We'll bring two more for the good guys, as we see it.” The ship was off the East Coast last week conducting the first shipboard F-35 tests with American aircraft, kicking off several years of testing ahead of a planned deployment in 2021. “We used to do this a lot in the U.K., but we've had a bit of a gap getting back into the carrier strike business,” Royal Navy Commodore Andrew Betton, commander of the U.K. carrier strike group, told USNI News last week. “[We're] working alongside our French and U.S. partners to understand the most effective way of fighting and operating a carrier strike group.” Last year, the heads of the U.K., French and U.S. navies signed a formal trilateral cooperation agreement for three navies to work together in the realm of carrier operations and anti-submarine warfare. “[We] share many national security challenges, including the threats posed by violent extremism and the increasing competition from conventional state actors,” the one-page agreement read. “More than ever, these threats manifest in the maritime domain. Given these common values, capabilities, and challenges it makes sense for our navies to strengthen our cooperation.” In particular, the Russian submarine force has been on an aggressive modernization drive and operating attack boats at a rate not seen since the Cold War – which is seen as the prime driver of the recent U.S. focus in the Atlantic. That boost in activity in the Atlantic comes as the U.S. and U.K. are in a period of naval reset after 17 years of operating in support of ground forces in Iraq and Afghanistan. The U.K. is working through a gap in fixed-wing aviation at sea, after London decided to scrap the Royal Navy's light carriers and fleet of GR7 and GR9 Harrier strike aircraft earlier in the decade. To maintain skills, the U.K. has relied on an extensive exchange program with the U.S. Navy and Marine Corps and the French to keep some carrier skills native in the Royal Navy. “We've had lots of individuals, pilots, maintainers, etc., operating onboard your flattops of various descriptions, but also we've had U.K. units join American [aircraft carriers] on deployments around the world and indeed the French carrier,” Betton said. “The mutual support and interoperability – we haven't stepped completely away from that, and what we're trying to rebuild now is the sovereign carrier strike group that we can plug in with allies as and where required.” While the intent of the Ministry of Defence was to field a completely U.K.-generated carrier strike group and air wing, the Royal Navy and Royal Air Force are still years off from that capability. The first operational deployment of the U.K. carrier strike group in 2021 will have an air wing built around U.S. Marine Corps F-35Bs assigned to the “Wake Island Avengers” of Marine Fighter Attack Squadron (VMFA) 211, in addition to the RAF's 617 Lightning F-35B Squadron. As of this summer, the U.K. has received about 16 of the 43 F-35Bs it's ordered, which prompted the planned deployment of the U.S. Marines on Elizabeth. The reliance on Marines for the first deployment was presented as a benefit of the program rather than a liability. “We're international by design, but there will be a sovereign core to the task force. But we very much look forward to working with allies, whether that is at range or as an integral part of the task group,” Royal Air Force Air Vice-Marshal Harv Smyth, the commander of the U.K.'s fast-jet units, told reporters last week on Elizabeth. “There are options there.” While the Royal Navy has operated fixed-wing aviation from ships in the recent past, the level of cooperation proposed between the U.S. and the U.K. for carriers strike group operations will be the largest in decades, Chris Carlson, a retired U.S. Navy captain and naval analyst, told USNI News on Friday. “With the Brits now trying to integrate their carrier with ours, there isn't anything in the recent past that gives them something to base this on,” he said. During the Cold War, the U.K. had a fleet of three 22,000-ton Invincible-class carriers that fielded Harriers that arguably provided little utility in maritime operations and air defense operations, Carlson said. “Harriers had short legs. They didn't have a really good air intercept radar, it was just really hard for us to put them in, so [the Invincibles] were looked at as being the centers of ASW escort groups because they could carry a ton of helicopters and the Brits were really good with ASW.” The new cooperation between the U.S., French and U.K. navies will be key to making the British and French get the most out of their carrier forces. Both the U.K. and French are short on carrier escorts and will have to rely on allies. “It's making a virtue out of a necessity,” Carlson said. “They're going to have to partner with us. They're going to have to partner with the French because neither one – the French or the Brits – can do sustained operations with a decently balanced [carrier strike] group.” The current plan is for the Royal Navy to continue testing the carrier strike group into the next decade, with more F-35B testing off the East Coast of the United States next year and a group sail to certify the strike group in 2020, Elizabeth commander Kyd said. “That'll be another two years before we're ready to go out,” he said. “The first deployment is '21. Who knows where, but we'll be ready.” https://news.usni.org/2018/10/01/video-u-k-carrier-program-brings-two-good-guys-royal-navy-set-partner-u-s-french-navies

  • DoD: Shipbuilding, Aviation Hardest-Hit Sectors in Defense Industrial Base by COVID Pandemic

    April 21, 2020 | International, Aerospace, Naval

    DoD: Shipbuilding, Aviation Hardest-Hit Sectors in Defense Industrial Base by COVID Pandemic

    By: Megan Eckstein The shipbuilding, aviation and small space launch sectors are the three hardest-hit by the COVID-19 pandemic within the defense industrial base, according to the under secretary of defense for acquisition and sustainment, despite a slew of memos and authorities signed out by the Pentagon to relieve pressure from sick workers and facilities closures. “We see a slowdown in the shipyards to an extent. Aviation is actually the most highly impacted sector we have right now. So the 20 different memos that Kim Herrington (director of defense pricing and contracting) put out are really to make sure our cash flows and we quickly get on contract so we can keep going,” Ellen Lord told reporters on a Monday morning news conference. She said her team is still in the process of going program by program and understanding what production milestones may be at risk due to pandemic-related disruptions – everything from work slowing down on assembly lines to allow for social distancing, to coping with a smaller workforce as some employees are sick or taking leave to care for children at home, to breaks in the supply chain as component suppliers struggle to keep on schedule. For now, Lord said she could not point to any specific programs or any specific milestones most at risk, but she said major defense acquisition programs as a whole will face about a three-month slowdown due to COVID-19. To try to stay ahead of the spreading disease, “we follow very carefully where the highest number of cases are throughout the country and we look at the defense industrial base, where they are located, so we try to anticipate the problems and work with the companies to keep going to the greatest degree possible” and work with companies in emerging hot spots to put mitigation measures in place before their workforces are hit. Lord also said that, as the Pentagon takes a close look at its supply chain, “one of the key things we have found out are some international dependencies. Mexico right now is somewhat problematical for us, but we're working through our embassy. And then there are pockets in India as well.” Specifically on Mexico, she said there is “a group of companies that are impacting many of our major primes” in the airframe production industry. She said she spoke to the U.S. ambassador to Mexico last week and would speak to Mexico's foreign minister today to ask for help reopening these major international suppliers. Without naming companies or sectors, Lord said in her opening remarks that, of 10,509 major prime contractors, 106 are currently closed and 68 have closed and already reopened. On the vendor side, out of 11,413 companies, 427 are closed, with another 147 having closed and reopened. Though the Pentagon can't help companies having to close because the workforce is sick, leaders can ensure that companies with healthy workers aren't left without work and waiting for contracts to be signed. The Navy and DoD have accelerated contract awards and urged prime contractors to quickly push work down to their suppliers of all sizes, so that as soon as a company is ready for new work, the work is awarded and money already paid. “I remain proud of the department's responsiveness in addressing defense industry concerns outlined on [regular calls between the Pentagon and industry associations]. Mr. Kim Herrington, director of defense pricing and contracting, has issued 20 defense pricing and cost memos, aggressively responding to industry needs and impacts. Those memos include guidance for increased telecommuting, increased progress payment rates, acquisition timeline impacts, relief for those who cannot work, and more,” Lord said. “Vice Adm. David Lewis, Defense Contracting Management Agency director, modified 1,500 contracts to help companies to file invoices at the higher progress payment rate, and he also worked with Defense Finance and Accounting Service for a seamless transition for invoices. Based on submitted invoices, we expect payments at the higher progress payment rate to start this week, helping provide $3 billion in increased cash flow to industry. I commend Lockheed Martin and Boeing for both publicly committing to ensure this cash flow goes quickly down the supply chain to small businesses who need it most. We are hoping for similar public announcement from other major primes.” In addition to the actions the Pentagon can take on its own to help industry, Lord said the Defense Department is actively in talks with lawmakers and staffers to discuss a follow-on economic stimulus bill in the works. Though she couldn't get into specifics, she said it would cost DoD “billions and billions” to implement a section of the Coronavirus Aid, Relief, and Economic Security (CARES) Act “which allows agencies to reimburse contractors for payment to workers who are prevented from working due to COVID-19 facility closures or other restrictions.” She said the Pentagon hoped to see some funding in the next stimulus bill to help with that bill, as well as to pay for medical supplies and cover costs of delays in major defense acquisition programs. So far, the Defense Logistics Agency has provided more than 1.8 million N95 masks, 3.2 million non-medical and surgical masks, 8.4 million pairs of exam gloves, 275,000 surgical gowns and 8,000 ventilators to the military services, which are being used both to keep DoD personnel healthy as well as to support DoD's contribution to the multiagency efforts around the country. The Pentagon has also provided 10 million N95 masks to the Department of Health and Human Services and the Federal Emergency Management Agency and is prepared to give another 10 million from DoD stockpiles. Additionally, DoD will invest $133 million to increase domestic production of N95 masks to more than 39 million in the next 90 days, Lord announced. Contracts have been finalized with 3M for $76 million, O&M Halyward for $29 million and Honeywell for $27.4 million. Beyond new mask production, DoD also spent $415 million to buy 60 Battelle Memorial Institute Critical Care Decontamination Systems that will be able to sterilize N95 masks to allow for reuse up to 20 times, and therefore reduce the demand for new masks. “Six units were delivered last week, including two to New York and one each to Columbus, Ohio; Boston; Chicago; and Tacoma; providing the ability to sterilize 3.4 million masks a week, reducing the need for new masks by the same number,” Lord said. “All 60 systems will be available by early May for prioritization and distribution by Health and Human Services and Federal Emergency Management Agency. Once all are delivered, these 60 units will allow 4.8 million masks to be sterilized per day, almost 34 million per week.” https://news.usni.org/2020/04/20/dod-shipbuilding-aviation-hardest-hit-sectors-in-defense-industrial-base-by-covid-pandemic

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