EU eyes helicopters, satellites for joint project

The European Union urged member states on Tuesday to sign up to schemes to launch work on a new European heavy transport helicopter and next-generation satellite observation system from late 2008.

The helicopter project would aim to make an existing Franco-German plan commercially viable by doubling expected output from 60 to around 120 machines. The satellite system would also seek to bring together existing European efforts.

"We are looking at the second half of 2008 under the French presidency that we can agree a common project -- either one of the two, or both," said Alexander Weis, head of the European Defence Agency (EDA), a body charged with nurturing coordination between the EU's national Defense sectors.

France is due to take over the rotating presidency of the 27-member EU from July of next year for six months and has signaled its intent to inject new impetus into EU efforts to push a common security and Defense policy.

Weis told reporters the helicopter project would involve bringing other EU member states into a Franco-German plan unveiled at Le Bourget airshow in June to improve their transport helicopter capability by 2020.

He said Germany was looking to replace some 40 of its transport helicopter fleet by that time, with France in need of 20 machines -- a total that would not by itself justify the two billion euros ($2.8 billion) of development costs.

"It would probably be possible to increase the number of helicopters (required) and make the two billion euros more affordable by dividing them among more nations," Weis said of the plan, which would be coordinated by the EDA.

Nations would need to commit to buying a further 60 or so helicopters to make the project viable, he said.

The cost could be further reduced by buying in certain subsystems from U.S. manufacturers, said Weis, adding that discussions with U.S. firms were planned.

The satellite observation project would likewise enable EU states to join existing efforts, notably the six-nation "Musis" project involving France, Germany, Italy, Spain, Greece and Belgium and the German SARLupe satellite system.

Both those complementary systems are being eyed for their military applications, unlike the EU's cash-strapped Galileo satellite navigation system which at this stage is intended for purely civilian use.

European officials are keen to have their own satellite observation system despite the existence of the Pentagon-developed Global Positioning System (GPS) because they want to ensure independent access to sensitive satellite data.

Weis, former German deputy national armaments director, replaced Briton Nick Witney as the EDA's chief executive this month.

Source: M. John - Reuters

To find out how your company can successfully compete for bids and tenders in European defence and aerospace sectors, contact Jeffrey Strategic.