Domingo Ureña Raso, Madrid

A new large aerospace programme will strengthen and streamline the industry Europe needs to preserve technologies, capabilities and talent in defence

by Domingo Ureña Raso, CEO, Airbus Military, Madrid

Once again, Europe has the opportunity to build a common approach to its defence policy. This December the EU Council should agree to address key topics that will shape the capabilities of the Union in Defence and Security for the coming decades, precisely at a time of economic constraints and growing doubts about the role of the European institutions. The aim of this Council will be to increase the effectiveness and enhance the development of capabilities and to strengthen Europe’s defence industry, and we fully support this.

We need common sense agreements Despite discussions in 2005, no clear progress has been made since on the matter. The issues that Europe will have to face are well known: the national interest placed above the European interest; protection of the national champion as a matter of national pride, a very fragmented market with unlimited local specifications, and above all no European vision able to provide clear guidelines to the industry for the future. We need some common sense agreements to tackle this issue: we must protect technology and capabilities to generate innovation, avoid wasteful duplication in those capabilities, create or reinforce a truly European Defence Agency (the EDA could be the basis for this, or an amalgamated EDA/OCCAR) and define some large transversal and multinational projects that will foster technology and help bond industrial capabilities, as has happened in the past.

The market demands a European champion The consolidation of the defence industry in Europe is a pending issue that must be resolved. Duplication of efforts increases costs and reduces efficiency. Competition is good, but the market demands a real European champion with enough power to be able to compete on an equal footing with its mainly American rivals. Also, the industry needs to be managed on more commercial terms. We all know and accept that the defence industry

The first A400M delivered to the French Air Force

© Airbus Military 2013, by e m company / A. Doumenjou

requires strict regulations and all the necessary approval and controls from the authorities for its exports, but at industrial and operational level too much governmental interference only increases complexity and reduces efficiency. EADS is a good example of this, as well as some of the big aerospace programmes that European industry has developed.

The defence industry has a great capacity for innovation The defence industry in Europe has demonstrated a great capacity for innovation over the years and has been able to create new technologies, thanks to the talent and dedication of hundreds of thousands of highly skilled professionals. This capacity to generate innovation and technology must be preserved, even in times of budget constraints. If we lose the talent now, it will be almost impossible to recover it when the need arises in the future. Over time, the industry has demonstrated that it is well prepared to work in a cooperative mode and to bring to the market products that are at the forefront of technology. The A400M is the latest of those achievements and is a clear demonstration of innovation, despite difficult conditions and specifications to suit the needs of seven countries.

The reduction in the defence budgets at European level makes it even more urgent to take measures to increase the efficiency of the defence sector. For this, collaborative programmes across Europe are a key instrument: they are the only way to be financially sustainable and are paramount for strengthening and streamlining the industry, as well as for preserving technologies, capabilities and skilled human resources.

Pooling and sharing is the right way Besides this, there is a need to rationalise assets and for this the “pooling and sharing” concept would be an efficient solution for the EU. The agreement on the joint use of air-to-air refuelling aircraft is a good start, but this should be extended to other capabilities, offering gains in efficiency and availability. The A400M is a good example, but why not apply the same concept in the fields of Search and Rescue, Maritime Patrol, etc.? And additionally, these joint agreements can perfectly be extended to the area of support services. The new generation of aircraft such as the A400M and A330MRTT have superior reliability, closer to that of their commercial counterparts, and greater flexibility. Governments are currently starting to outsource more and more support services. The scheme selected by the Royal Air Force for the air-to-air refuelling capability could show the path, and the industry must be prepared to deliver.

Domingo Ureña Raso Managing Director, Airbus Military and member of both the EADS and the Airbus Executive Committee since February 2009. He was born in Camarena (Toledo) and graduated in 1982 from the Polytechnic University of Madrid 1982 started his career as an engineer in CASA in Spain. 1989 Airbus Industrie, Toulouse. 1998 CEO and Member of the Board of Aircelle’s joint venture between Airbus Industries and SNECMA. 2002 CEO of the first privatised defence company in Poland, PZL, and then Member of the Board for the Eurofighter programme, Munich. 2004 Restructuring EADS Defence division. 2006 Airbus Industries Toulouse as Head of the Airbus Industrial Strategy team. 2007 in charge of the vital Airbus “Power 8” turn around programme.

Europe today is a relatively secure place. But if we want to keep our society secure, European institutions and governments should be ready to invest enough. The protection of Europe by US forces is a thing of the past, while the threats to the EU continue and are growing in sophistication.

We must invest in security and force projection In addition, it is increasingly necessary for Europe to protect its citizens abroad; it must provide credible force projection with increased and modern capabilities if it wishes to play a role on the global scene. Conflicts like Afghanistan, Libya or Mali have shown, on the one hand, the need for and determination of Europe to intervene to safeguard its own interests or to support its allies. On the other hand, they also showed the gaps in Europe’s ability to execute missions and the poor strategic punch it has. These limitations have an impact on agility and on the capability to fulfil the mission and increase the risks for European troops on the field. In the future, Europe will need to act in other scenarios and must be prepared to support complex operations far from home. Mali, just 2 000 kilometres away, shows the European gaps, but also offers a great opportunity. In this case, the solution now exists. The A400M and MRTT would have dramatically changed the way in which this operation could have been performed, saving time, and probably lives. With the upcoming first delivery of the A400M and the recent start of operations of the A330MRTT, more efficient tools will be available for forces. In summary, Europe needs a clear path in the area of defence policy over the coming decades. This is the stepping-stone to determining future needs and will show the industry where we need to invest and preserve knowledge. December 2013 is a great opportunity to take the appropriate decisions and to protect European interests and the European citizens.