DE 03

 

Memorandum from EADS UK

 

Defence Select Committee Report

 

I am writing to respond to the Committee's invitation to industry to submit views on the Committee's enquiry into Defence Equipment.

 

1. DE&S

 

EADS believes that remarkable progress has been achieved merging the DPA and DLO organisations in the midst of difficult circumstances strategically and financially. Everyone recognises that when two substantial organisations are merged it takes time to embed a single new culture and way of working. However, to focus only on the difficulties would we believe to overlook significant achievements like signing off the underwriting of the FSTA PFI contract despite extraordinarily hostile financial market conditions.

 

2. Programmes

 

While there remain challenges in some programmes, on A400M it needs to be recognised that this aircraft is designed to meet a seriously demanding and much needed requirement for the RAF and European air forces. It will provide a unique and very flexible capability; but it is consequently a very complex machine. For example, this aircraft will incorporate state-of-the-art systems and structure in addition to using power plants designed from scratch specifically to deliver the performance capability demanded by the customers. It was also designed to be as US ITAR restriction free as possible and to create a sovereign ability in Britain and Europe to design create and support serious tactical/strategic lift for our military customers. It is clearly not a straightforward civil Airbus product, and accordingly cannot be approached in the same manner as simply procuring a civil aircraft. We and our suppliers are working intensively with our customers to resolve outstanding issues as well as to mitigate the impact of any delays. We are confident of agreeing a robust way forward.

 

Taken together, the FSTA and A400M programmes will represent the establishment in Britain and Europe of a major sovereign capability in large strategic military aircraft.

 

6 November 2008