Memorandum submitted by Airbus in the
UK
Airbus welcomes the opportunity to give its
views to this inquiry. Airbus in the UK is a subsidiary of Airbus
SAS and owned by EADS NV, a global leader in aerospace, defence
and related issues. Airbus is a global company with design and
manufacturing facilities in France, Germany, the UK and Spain
as well as subsidiaries in the US, China and Japan.
Since its advent 40 years ago, Airbus has become
a model of multi-national enterprise by developing the most modern
family of aircraft in the world, securing market parity with Boeing
in a market previously dominated by companies from the US. Airbus
delivered 483 aircraft in 2008, surpassing its previous year's
total by 30, achieving the highest ever on-time rate and quality
level. As of the end of August 2009, Airbus had delivered a total
of 5,820 aircraft and had total sales of more than 9,340.
Airbus is the market leader in the civil aerospace
industry in the UK with a workforce of over 10,000 on its two
sites at Filton (Bristol) and Broughton (North Wales). Airbus
in the UK has a highly skilled workforce, responsible for wing
design, manufacture and assembly for all Airbus aircraft, including
responsibility for landing gear and fuel systems integration.
The submission gives a general view of Airbus'
position in the UK aerospace industry and future goals. It sets
out Airbus' views on the effectiveness of Government policies
in supporting the aerospace industry and provides responses to
some of the specific questions posed by the Committee.
SUPPORTING LOCAL
ECONOMIES
The two sites of Filton and Broughton have been
a home to the UK's aerospace industry for 100 years and 70 years
respectively; since 1979, when British Aerospace joined Airbus
Industrie, the UK has developed its technical expertise to the
point where it designs and builds Airbus' wings, affording the
UK the title of Centre of Excellence for "Wing and Pylon".
The history of the plants has led to significant
industrial investment within the areas surrounding the two sites,
driving and supporting the local economy. In the South West, for
example, the world-class Airbus cluster at Filton is of regional
as well as local significance, as it is estimated to support around
37,000 jobs (directly, indirectly and induced in other companies)
and sources 40% of its total supplies in the South West.
INVESTING IN
PEOPLE
Airbus in the UK has an award winning apprenticeship
programme responsible for enrolling more than 6,000 apprentices
over the last three decades. They also operate a two-year graduate
programme employing around 60 graduates each year. The company
is currently in The Times Top 100 Graduate Employers.
Through its engineering activities, Airbus in
the UK generates at least 2,500 high quality job roles with the
majority of the employees holding degree level or equivalent qualifications.
In addition, Airbus in the UK employs a highly experienced work
force; 30% of employees have 15 years or more experience and 10%
with 25 years or more experience in the company.
In 2009, Airbus in the UK recruited 67 graduates
to its Direct Entry Graduate programme, more than 100 interns
for short-term placements and 94 apprentices to its Apprenticeship
programme. Airbus currently employs more than 500 apprentices,
not only is the scheme recognised internally (70% of senior managers
at Airbus started their career as apprentices), but also externally
with annual success in the EEF Apprentice of the Year Competition.
WORKING WITH
UK UNIVERSITIES
R&T The research relationship between Airbus
and UK-based universities is very strong. The company has R&T
links with 35 UK universities, including Bath, Bristol, Cranfield,
Imperial, Manchester and Southampton.
The main mechanisms for partnership with universities
on R&T include: direct research contracts; sponsorship of
PhDs; support to university bids for funding from the Engineering
and Physical Sciences Research Council (EPSRC); as well as inclusion
of Universities in TSB and EU supported collaborations. In a recent
move, Airbus is also in the process of establishing a Chair in
Aerostructures Design for Assembly & Systems Installation
at Cranfield University. This position is funded by Airbus with
support from the Royal Academy of Engineering through their Research
Chair scheme.
— Airbus directly funds University research
at a rate of about £2 million per annum[2]
for PhD and postdoctoral research.
— EPSRC support to Universities adds another
£1.5 million per annum.
— Airbus also helped Universities, through
in-kind contribution; win further grants from EPSRC adding another
£1.5 million per annum.
— University participation in TSB collaborative
projects led by Airbus adds about another £1 million per
annum.
Hence, Airbus is helping to support about £6
million of university research pa and in addition, many UK universities
receive research funding from involvement in EU Framework projects
led by Airbus.
FLY YOUR
IDEAS"—STUDENT
COMPETITION
In order for Airbus to maintain its excellence
within the aerospace sector and further develop Airbus' relationships
with universities and students alike. Airbus launched, in January
of 2009 "Fly Your Ideas", a global competition designed
to engage university students to develop eco-efficient ideas to
improve the aviation industry. The competition, made up of three
rounds, proved hugely successful attracting 2,350 students (225
teams) from 82 countries. The UK saw seven teams from Bath, Bristol,
Southampton and London through to the second round of the competition,
with ideas ranging from windowless cabins to formation flying.
The ideas generated by the competition are being reviewed and
some will become collaborative research projects to ensure that
the aerospace industry meets its environmental commitments.
UNDERGRADUATE SUPPORT
The partnership between Airbus in the UK and
universities is not restricted to the development of new technologies;
Airbus in the UK provides large amounts of resource in developing
undergraduate curriculum and the undergraduates themselves.
The interaction between the company and the
leading engineering universities ensures that the curriculum taught
to undergraduates is the current and relevant to the work climate.
Airbus is also committed to the development of engineering undergraduates,
with the introduction of their mock interviews and CV workshops,
benefiting the whole engineering and undergraduate community.
SUPPORTING GROWTH
Since the creation of Airbus, technology has
played a major role in the success of its products. From the supercritical
wing of the A300, the fly-by-wire flight control system first
seen on the A320, through to the composite centre wing box on
the A380, successful development and application of technologies
has been a huge part of Airbus' success.
Such successes are only possible through continued
investment and support into R&T; The £12 million Airbus
Composite Structures Development Centre (CSDC)—a 4,500 square
metre facility at Filton—is the hub of a regional alliance
of companies, universities and colleges in the South West, which
was formed to provide world-class capability in the field of composites
technology.
In recent years Airbus has consistently been
one of the UK's top 10 largest investors in R&D. The BERR
2008 Scoreboard shows Airbus in eighth place, with an annual investment
of £397 million. The company's R&D investment represented
about 2.5% of the total annual R&D performed by UK businesses
in that year, thereby making a significant contribution to the
Government's stated aims of securing a substantial increase in
the scale of private sector investment in R&D.
INQUIRY QUESTIONS
1. The effectiveness of Government policies in
supporting aerospace
1.1 Government Investment
The announcement in August 2009 by the Government
of a £340 million loan (subject to final terms and conditions)
to Airbus was an important development for the aerospace industry
in the UK. The loan will support the development of the A350 XWB
wide bodied aircraft and the funding was drawn partially from
the Government's £750 million Strategic Investment Fund.
The Government gave close scrutiny to the case made by Airbus.
Overall this signal of support will ensure that UK industry is
well placed for Airbus products in the future. Airbus A350 XWB
is a family of three large civil aircraft ranging in capacity
from 270-350 passengers. It is being supported by four partner
nations, UK, France, Germany and Spain. France announced at the
Paris Air Show, on 15 June, support of €1.4 billion for the
A350 XWB programme. Germany proposed in principle support of €1.1
billion. The Spanish Government is still in discussions with Airbus.
Government investment takes the form of risk-sharing
participation in the design and development of specific civil
aerospace projects in the UK. The Launch Investment of £340
million is repayable, not a grant, and earns a real rate of return.
It is available only to the aerospace sector and stems from the
provisions of the Civil Aviation Act 1982.
At present there is a clear distortion of competition
in terms of global government investment in civil aerospace. The
787 has received over $5 billion in subsidies from the U.S., Italian
and Japanese governments, none of which is repayable. The decision
by the UK government brings Airbus closer to a level playing field
with Boeing.
1.2 Sales Support
The UK Government is briefed on Airbus sales
campaigns on a regular basis. From time to time the Government
makes representations to other governments where there is an active
sales campaign. Airbus works actively with the Advanced Manufacturing
team at UKTI to ensure that all Airbus in the UK export and inward
investment opportunities are maximised.
The Export Credits Guarantee Department (ECGD)
provides an important level of support to the aerospace industry.
Airbus in the UK has been working with the ECGD to enable them
to work more closely with their French and German counterparts,
thus ensuring a more straightforward transaction for its customers.
In comparison Boeings customers only have to deal with one credit
agency the EXIM Bank.
It is crucial to Airbus that the long anticipated
switch to a "one agency fronts all" system being fully
implemented in relation to all airbus export credit cases, in
partnership with the other airbus export credit agencies. Airbus
also look forward to the ECGD renewed efforts in allowing its
guarantees to be used in more cost-effective capital markets structures,
as is the case with the US Eximbank but not, so far, with the
European export credit agencies. The widening pricing gap between
American and European aircraft export credit is of serious concern
to Airbus.
It is the ECGD's staunch support to Airbus that
has enabled a high level, predicted to be around 35% to 40%, of
Airbus deliveries financed by export credit in 2009.
Airbus is making representations to the Government
at the moment on the matter of whether the Bombardier C-Series
should be allowed to remain in Category 2 of the new OECD agreement
on Export Credit financing, As the C-Series is a direct competitor
to Airbus products which are in Category 1, Airbus feels that
this contravenes the "level playing field" principle
which is part of the new agreement.
1.3 R&T Support
As was briefly covered in Section 4 above, Airbus
is a huge investor in R&T in the UK.
The Airbus R&T Strategy and plan is developed
and updated on a yearly schedule, giving increasing detail for
the coming year and updating the mid and long term goals. The
main focus of the R&T strategy for 2009 is ensuring Airbus
is in position to deliver the next product (A30X) that can deliver
the ACARE targets, which will only be possible by implementing
some "game changing" technologies. The Strategy also
considers the development of in service aircraft, support for
A350XWB and studies for post-A30X technologies.
The UK National Aerospace Technology Strategy
(NATS) encompasses an important partnership between UK industry,
academia and Government. The Strategy addresses the critical aerospace
technologies required to both ensure UK competitiveness in the
foreseeable global aerospace markets, and helps industry to meet
the ambitious environmental performance targets of aviation.
To ensure the UK retains it's ranking as the
world's second largest aerospace economy in an increasingly globalised
and competitive market, it will need to be at the forefront of
innovation. Focusing on UK strength areas, NATS provides the framework
to enable the translation of science through to innovative technologies
and processes, from the research base through to market, to deliver
that competitive edge.
The following objectives encompass the joint
Government/industry approach to Airbus R&T:
— Airbus in the UK will be the technical
and economic choice for future Airbus wing, landing gear and fuel
system design and wing manufacture and final assembly.
— Ensure that higher value-added design,
production engineering and manufacturing for all elements of the
wing remain in the UK for future programmes.
— Maintain Airbus in the UK's track record
as a high performing component of the Airbus business, including
the UK supply chain, the UK's currency position, and the UK's
ability to maximise the opportunities of globalisation.
— Deliver low carbon and eco-efficient
aircraft and manufacturing activities in order to meet the global
climate change challenge.
This strategy has over the past five years seen
the investment by Airbus and the Government in the following R&T
programmes:
— Establishment of Composite Development
Centre in partnership with South West RDA and other composite
partners. Motorsport companies are also involved in this project.
— Announcement of Next Generation Composite
Wing project.
— CFMS—new project set up for alternative
fluid mechanics design. This includes involvement by partners
from outside aerospace eg Microsoft and Williams F1.
— £50 million "Protocol"
agreement. It is likely that this funding will go towards projects
related to structures technology and for projects pertaining to
Low Drag Aircraft (Laminar Flow studies).
Looking to the future however, Airbus is concerned
that the funding of the Technology Strategy Board is constrained.
Recent bid subjects have not been linked to the strategies as
defined in the National Aerospace Technology Strategy.
1.4 International Regulatory Support
The UK Government has played an important role
in the WTO issue concerning support for civil aerospace and the
WTO.
In 2005 The US Government lodged a subsidies
case against Airbus at the WTO. The EU promptly retaliated with
a counter claim against Boeing. This was despite the 1992 Bilateral
Agreement on funding. The problem was difficult to resolve because
the US perspective was strongly embedded within a free-market,
neo-liberal economic philosophy, while the Continental view was
more in tune with a social democratic model of the mixed economy,
where government has a key role.
The WTO continues to have the pivotal role in
policing and disciplining illicit forms of state support for business.
But in the context of the world recession the survival of strategic
industries creates a new and pressing agenda. Airbus believes
that the political and economic premises that underwrote the US/EU
WTO case are no longer valid and make the legal challenge largely
irrelevant, if not obsolete and meaningless. When governments
are nationalising leading banks and putting money into major car
companies, a case at the WTO over repayable loans for aircraft
development seems mired in contradictions, especially when one
of the protagonists in the case receives grants that are not repayable.
Despite the attempts by Boeing and their US
political supports to portray the recent WTO Interim report as
supporting their position on this issue, it is important that
the Committee understands that this is the first non binding interim
report on the US. Its findings have no legal or financial impact
on either company.
The interim report on the EU counter case is
expected in the next few months.
By abandoning the Airbus/Boeing WTO case the
relevant authorities would have an opportunity to assess the current
and future levels of funding that are now being given to the aircraft
industry in Canada, Japan, Russia and Brazil. With ever more countries
seeking to play in the 100 plus seat commercial aircraft sector
a truly multi-lateral solution to government funding is now called
for. The Airbus/Boeing dispute lags behind the new market reality
in large commercial aircraft. It is also a major distraction for
the Western Alliance.
2. How to maintain the UK's excellence in academic
research in aeronautical and automotive engineering, and related
disciplines, and how to extend relationships between universities
and businesses still further
2.1 Threat to Continued UK Engagement
Unlike the UK, which privatised the DERA (Defence
Evaluation & Research Agency), France and Germany have maintained
large, powerful, publicly funded research institutes in the Aerospace
sector; ONERA (French) and DLR (German).
Attracted by the large, strategically directed
and publicly funded research programmes at these institutes, Airbus
has established an engagement strategy—linking these institutes
to the EADS corporate research centres.
Without steps taken to counter the weaknesses
in the current UK research infrastructure, this developing relationship
with DLR and ONERA will pose a threat to the future of Airbus
engagement with Universities in the UK. Cut off from their source
of innovation in the UK, other Airbus development activities may
follow the fundamental research, to France and Germany.
2.2 Fragmentation and Lack of Strategic Direction
at the Level of Key Technologies
There can be no doubt that there is world-leading
expertise in UK universities in many of the fields of interest
to Airbus. There is also a very substantial amount of public funding
supporting that research, the majority of it coming in the form
of grants from the EPSRC. In these two aspects, the UK universities
are clearly competitive vis-a"-vis the institutes noted above.
However, the expertise in the UK is scattered
throughout a large number of university departments. There is
a lack of an authoritative voice to speak on behalf of UK excellence
and scattered islands of capability may never achieve the "critical
mass". This leads to a situation where it is difficult for
industry to engage with (or in some cases even to find) the expert
"community" in the UK. Furthermore, the different research
groups are competing with each other for funding which is a disincentive
to them truly collaborating on research. Compared to the perceived
ease of working through a central point of contact to access capabilities
in DLR or ONERA, the prospect of separate negotiations with multiple
university enterprise & development teams in the UK is not
an attractive one.
Currently, comparison with the perceived strengths
of DLR and ONERA, calls into question our ability in the UK to
develop the sort of joined up research programmes of which they
are capable—ie research that constitutes a purposeful development
of knowledge, technology and skills towards some future application.
Historically, public funding has been allocated to support proposals
from academics—which could be broadly classed as "curiosity
driven"—provided that they align with broad programme
goals and that they meet required standards of excellence.
As mentioned in Section 1.3, in 2004, the UK
Aerospace Innovation and Growth Team established a National Aerospace
Technology Strategy (NATS), including a set of roadmaps linking
aerospace market opportunities, through aerospace products to
drivers for validation programmes and the underpinning, fundamental
research.
Under the current funding arrangements, there
is no mechanism to create any kind of link between the NATS and
the publicly funded research at UK universities. Grants awarded
may only last a few years whereas the NATS roadmaps span more
than a decade. In summary, a fragmentation of UK excellence threatens
to disable strategic inward investment from industry and technology
"push" remains disconnected from application pull.
2.3 The Proposal for a "UK Research Institute"
Airbus is working with other UK industries to
support the Aerospace & Defence Knowledge Transfer Network
that is leading the development of a proposal for a UK Aeronautics
Research Institute.
It is hoped that different research groups can
create an entity to orchestrate in some way the research carried
out at scattered locations. It should also provide a mechanism
to ensure the publicly research funding can be applied in a strategic,
purposeful fashion.
Some preliminary thoughts as to what such a
centre might do include:
— Create and deliver strategic long term
research programme (five to 10 years) delivering the key National
Aerospace Technology Strategy themes at Technology Readiness Levels
(TRLs) 1 to 3.
— Direct and commission public funded research
to enable a focus on application led requirements whilst fostering
curiosity driven research.
— Manage delivery of the publicly funded
National Aerospace Technology Strategy TRLs 1 to 3 including the
transition to higher TRLs.
— Manage delivery of the academic contribution
to industry led collaborative programmes through to higher TRLs.
— Provide a legal entity such that strategic
partnerships can be established with industry enabling fuller
disclosure of industry's strategic priorities.
— Provide a framework for multiple research
establishments and funding bodies to collaborate to deliver industry
requirements.
— The National Technical Committees within
its governance and strategy and recognises existing research intensive
organisations to promote and access as appropriate.
— Periodically benchmark research capabilities
in the UK to ensure promotion of best in class researchers into
the institute and to protect strategic research and test facilities.
— Provide a catalogue of public funding,
capabilities and outputs delivering TRLs 1 through to 3.
— Promote and represent world class UK
aeronautics research capability.
3. The impact of the recession on the aerospace
industry
Historically growth in global air traffic volume
has averaged around 5% per annum over a number of decades. The
typical air traffic growth pattern correlates closely with the
rate of increase in world GDP. As markets have matured in the
advanced Western countries the highest levels of growth in recent
years have been seen in the emerging economies of the Middle East
and the Asia-Pacific region.
Periodic crises associated with war, economic
downturn, health scares or terrorist events such as 9/11 have
interrupted the air traffic growth trend at various times in past
decades.
In 2008 the global economy has suffered a sharp
and synchronised downturn. Much of the world economy has remained
in recession in the first quarter of 2009, with levels of activity
in many countries significantly lower than a year ago. However,
recently there have been some encouraging signs that the recession
may have bottomed out, with some countries having returned to
growth and others expected to follow in the near future.
The current economic downturn is having an adverse
impact on the demand for international air travel. Figures released
by the International Air Transport Association (IATA) for international
scheduled traffic show that passenger demand for June 2009 fell
by 7% compared to the same month in the previous year, with air
freight demand showing a 17% fall in the same period.
Accordingly airline revenues and profitability
are under severe pressure, with IATA forecasting a global loss
of $11 billion in 2009. Responding to the reduction in demand,
some airlines have cancelled orders or re-phased the schedule
for the delivery of new aircraft. Consequently both Airbus and
Boeing have taken steps to adjust their near-term production build
rates to reflect the current economic situation.
Earlier this year Airbus announced that the
build rate for the A320 single aisle family will be set at 34
aircraft per month rather than increasing further, and the build
rate for the A330/A340 long range family will remain at around
8½ per month for the moment. Some airlines that have ordered
the A380 have pushed back their deliveries due to the impact of
lower passenger numbers and consequent decisions to delay the
launch of some of their anticipated new routes. Consequently,
earlier this year Airbus announced a reduction in the numbers
of A380 aircraft to be delivered in 2009.
Nevertheless, Airbus has a strong forward order
book for more than 3,500 new aircraft, with the position at end
July 2009 being shown below. Airbus made record deliveries of
483 new aircraft in 2008 and expects to achieve a similar output
this year.
3.1 Airbus Order Book—August 2009
| A320 Family
| A300/A310 | A330/A340
| A350 XWB | A380
| Total |
| Total Orders | 6,418 | 816
| 1,413 | 493 | 200
| 9,340 |
| Total Deliveries | 3,985 |
816 | 1,001 | —
| 18 | 5,820 |
| Forward Orders | 2,433 | —
| 412 | 493 | 182
| 3,520 |
| |
| | | |
|
In this challenging business environment Airbus is maintaining
its drive further to improve its productivity so that it may continue
to offer high quality products at competitive prices. The Airbus
Power 8 performance improvement programme launched in 2006 has
already significantly reduced Airbus' cost base through the adoption
of a streamlined organisational structure, leaner processes and
strict cash management. In 2008, Power 8 delivered cost savings
of approximately €1.3 billion, which is more than half way
to the €2.1 billion objective for 2010. The Airbus team in
the UK has made a significant contribution to these performance
improvement goals. These actions will make Airbus well positioned
as it returns to growth.
In furtherance of the aerostructures reorganisation strategy
initiated under Power 8 to allow Airbus to focus on its core business,
part of the Airbus facility at Filton was sold to GKN in a deal
that was completed in January 2009. GKN Aerospace's new facility
at Filton will continue to supply major aerostructures to the
Airbus wing assembly line at Broughton in North Wales. Airbus
looks forward to working in partnership with GKN on advanced wing
production for many years to come.
4. The role of SMEs in the Supply chain supporting the sector
Airbus was one of the 19 founder signatories to the SC21
national strategy. Since the launch of this programme, there has
been some real tangible improvement within the UK supply chain
but there is still a lot of work to do, particularly against the
background of challenges faced from operating within a global
environment.
SC21 was actively embarked upon by Airbus to overcome problems
of an often disconnected and fragmented supply base operating
with non-standardised processes with high levels of waste and
duplication. Business relationships were often considered to be
poor and the interests of different parties often mis-aligned.
Airbus has actively encouraged its supply chain, including SME's
to sign up to the SC21 programme as it firmly believes that without
a common and coordinated improvement programme with involvement
of all tiers of the supply chain, the continued success of its
industry could be put at risk. It is for this reason that, in
conjunction with the North West Aerospace Alliance, BAE Systems
and Rolls Royce, it has encouraged a cross section of its supply
companies to participate in its Aerospace Supply Chain Excellence
Programme located on site at Broughton within its Lean Learning
Academy.
The aim of this programme is to build a world competitive
supply chain through the introduction of senior operational /manufacturing
mentors into selected companies to provide world class training
and coaching across a number of key foundation processes to drive
business excellence and continuous improvement within the supply
chain. Companies are strategically selected, based on capability
and core competency and positioned into a tiered structure. Senior
Airbus personnel have acted as mentors to supply chain companies.
Typical involvement is two days a month for two to three years
As the majority of supply chain companies to Airbus are also suppliers
to other primes, this provides an opportunity to show suppliers
joined up thinking in terms of the Primes approach to supplier
development.
Companies need to develop strong and robust business processes
and continue to improve these processes to remain competitive.
It is also clear that loosely coordinated companies cannot compete
with a well-organised supply chain acting as a team. Supply chains
must be integrated from the largest prime contractor to the smallest
SME, with companies accepting responsibility for providing a total
design, manufacture and support service that is 100% on time,
100% on quality and with all work taking place at the appropriate
level (in terms of competence and capability) of the supply chain
to ensure optimum cost with acceptable risk. In order for this
to happen, key skills and processes within all companies need
to include: leadership, strategic business planning, project and
risk management, manufacturing excellence (including LEAN), supply
chain management and strategic "make versus buy" decision
making, skills assessment and development, innovation, e-procurement
and collaborative working
5. What barriers are there to further innovation in these sectors
and what can be done to overcome them?
A key enabler from government is financial support to the
industry players. R&T grants play an important role in both
"oiling the wheels of collaboration" as well as demonstrating
UK's commitment to the industry in a competitive market. Major
industrial companies have a choice over where to carry out research
and subsequent product development, with R&T work tending
to migrate to those locations with the most favourable business
environments. By supporting R&T not only is the technology/capability
itself developed but also the UK is perceived as supportive and
a good place to do business. The lack of a specific aerospace
strategy can impede successful collaborations and R&T projects
6. What steps can be taken to encourage the application of
the technology development in both sectors to create new design,
products and process in other industries?
It should be recognised that Aerospace already has a good
track record in working with other sectors in collaborative R&T
programmes. Projects like CFMS Core Programme—a collaborative
projects developing new methods of analysis and data handling
which will improve processing time by 1000 times include as partners
Airbus, Rolls-Royce and BAE Systems from aerospace, Williams from
F1 and Frazer Nash (Maritime) together with software and hardware
suppliers. The spill over from the sector is significant. Similarly
some of the projects related to composites materials have application
into other sectors—for example Wind Turbines, F1 and Marine.
Simplified mechanisms for IP ownership, protection and exploitation,
which recognise the sensitivity within sector, whilst supporting
exploitation in other (non-competitive) sectors could help.
A study commissioned by the SBAC with Oxford Economic Forecasting
demonstrated that the aerospace industry generated very high spillover
returns for other sectors of the economy.
7. How successful existing initiatives such as the Aerospace
Innovation Networks and Aerospace Technology Validation Programmes
have been in transforming new concepts into marketable technology
The National Aerospace Technology Strategy is without doubt
the benchmark for industrial collaboration. The recently produced
Technology Roadmaps are a significant result of NATS.
The Technology Validation programmes in being large integrated
and higher-level technology Readiness levels have been important,
as they required large investment from both Government and Industry.
Through strong lobbying at the outset, a new funding mechanism
was established—Validation of Complex Systems- which was
the umbrella funding scheme for the TVPs. Collaboration and 50%
industry contribution was still required however it was possible
to "bid" for substantial grants to support these large
projects which proved effective and efficient. These programmes
have been the first R&T programmes to make leverage regional
support.
The technology derived (typically from Integrated Wing in
Airbus' case) has made contributions to A400M, A380 and A350 development
and production. The size of the programme has meant that "full
scale" validation is being carried out which inevitably makes
the technology more immediately available for product development.
The Aerospace Innovation Networks were looser arrangements.
Individual projects were established under the umbrella of and
AIN with government and industrial support but the overall activity
and funding levels were not achieved. CFMS Core Programme is an
example of a project created within the Aerodynamics AIN. The
AINs and the National Advisory Committees were in some cases duplicating
activity. This has lead industry to propose the re-vamping of
the Aerospace and Defence Knowledge Transfer network. National
Technical Committees are now in place that carries out the advisory
role of the NACs together with the more operation role of the
AINs in creating R&T projects. The NTCs also maintain the
specific technology Roadmaps of NATS. There is a risk that if
the A&D KTN is subsumed into a Transport KTN that the focus
of the KTN will be diminished.
The value of the AINs has been that the technical leaders
within industry, together with academics have been able to share
technical developments and opportunities and create new R&T
projects. They have not however achieved the overall level of
activity and hence funding hoped for. As the projects tend to
be a lower Technology Readiness levels they have not delivered
so directly into product but are supportive of the technology
validation projects.
22 October 2009
2
Note that the figures vary greatly from year to year so these
figures are three to five year averages. Back
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