Brussels, 03/07/2009 (Agence Europe) - Despite the economic and financial crisis and a reduction in budgets in Europe, the aerospace and defence industries have managed to “hold their own”, President of the ASD (AeroSpace and Defence Industries Association of Europe) Allan Cook said on 2 July. Cook, who is also the chief executive of Cobham, was taking stock of the results of the sector for 2008. There was 2.5% growth compared with the previous year, despite the difficulties of the civil aeronautics industry, which was most affected by the crisis, the results of which were counterbalanced by military orders. The “relatively strong” position of the aerospace and defence industries compared with other sectors could very well continue in 2009, although it is still too soon, Cook said, to say what level of growth the sector will enjoy in these times of financial market contraction. Calling on the new European Parliament and Community bodies, Cook highlighted the importance of investment in research and development (11% of the industries' income went on R&D) and the importance of the sector - in particular its small and medium-sized enterprises - which could prove to be the levers of economic recovery. “Our industries are strategic assets for Europe. … Investing in our growth-enhancing sector … will help us continue to provide highly skilled employment, technological innovation and environmental performance,” Cook said.
Results. Overall the aerospace and defence sector had a turnover of €136.9 billion in 2008, 2.5% more than the previous year. Employment also rose slightly (0.3%) from 642,100 in 2007 to 644,100in 2008. Cook said that these fine results were due to high growth in the first half of the year, with the second half showing a significant slowing, particularly in the civil manufacturing sector. The civil aeronautics sector was the most affected by the global economic downturn, which had a considerable impact on business aviation (the order book is empty) and on airlines hit by falls in passenger numbers and increases in fuel costs. IATA (International Air Transport Association) says that airlines could see their revenue contract by more than $80 billion (15% less than in 2008) and the total losses in the sector could reach $9 billion by the end of the year - something that would have a marked effect on new orders. The planned budget for the purchase of new aircraft for this year (around 1000 Airbus and Boeing) could fall by $10-20 billion. The civil aeronautics industry's poor results are, however, counterbalanced by defence aeronautics orders, largely by third countries (India, Brazil, South Korea, Singapore, United Arab Emirates and Saudi Arabia). This has meant that the whole aeronautics sector (civil and military) has been able to record growth of nearly 3% (+2.7%), with, at the same time, a 1.2% contraction in employment. The overall turnover of companies specialising in land defence and the naval sector rose by 6.5% (€31 billion in 2008) and employment by 4%, while the space sector recorded 9.7% growth, especially thanks to growth in the satellites market. Cook was cautious on the results for this year, which may be affected by “falling growth rates” and “reductions in funding”. “We remain particularly vigilant over the situation of our SMEs. Preserving our supply chain … is crucial to ensure that our industry will be fully operational when the economy - and global demand - start growing again,” he said.
Clean Sky. ASD welcomed the Commission's will to take forward the implementation of the programme (a research programme to develop clean aviation technologies) to which the aeronautics sector has contributed €800,000 (50% of the total budget). The Commission, which was criticised by the industry only three months ago, particularly for the inflexibility of its procedures and lack of financial cover, has managed, Cook said, to reassure the sector. It has created its ad hoc group which is responsible for facilitating and speeding up decision making in the programme. Safran Executive Director Eric Dautriat has been put in place to lead the group which should be up and running from this autumn. “It's too early to say it's enough, but we've already seen good will from the Commission,” ASD Secretary General François Gayet said. Cook pointed to the target the industry set itself in the Advisory Council for Aeronautics Research in Europe (ACARE), namely reducing greenhouse gas emissions and noise pollution by 50% by 2020.
Transatlantic cooperation. The dialogue between the European and US industries would seem to be on the right track. The last high-level meeting was held on 16 June on the sidelines of the Bourget Air Show, under the patronage of ASD and AIA (American Aerospace Industries Association). The two associations called on the US government and on the EU to avoid protectionism. This was particularly directed at the Bill on safety inspections passed by the US House of Representatives in May, which will impose regular, compulsory inspections (twice yearly) of European companies responsible for the maintenance of American aeroplanes (see EUROPE 9910). Just like the European Commission, which called for explanations from the US when negotiations on the second stage of the Open Skies agreement resumed, ASD believes that the above-mentioned plan cold put into doubt the agreement between the US and the EU on air security (BASA). In concrete terms, the law will call into question the principle of mutual recognition of safety certificates guaranteed by the agreement and will, thus, call into question the whole system which seeks to avoid duplicating the work (and doubling the costs) in aviation safety. The industry says that if the Bill is adopted, the Commission should immediately take similar action and impose similar measures for the 1250 US companies that maintain European aircraft (compared with 450 European companies that specialise in this area). Both associations are also working together on drafting best practice to prevent corruption and ensure transparency in the sector. (A.By./transl.rt)