Eurofighter GmbH eyes an export goal of 250 to 300 fighter aircraft.

Interview with Mr. Enzo Casolini, CEO of Eurofighter GmbH

07:34 GMT, November 25, 2009 With production of Tranche 2 aircraft in full swing, the Tranche 3A order signed, Phase 1 enhancements being implemented while Phase 2 is being negotiated, and several export possibilities being actively pursued, the Eurofighter programme is in its full maturity as far as production is concerned. Volker Schwichtenberg, CEO of the Mönch Publishing Group, and Dr. Ezio Bonsignore, Editor-in-Chief of MILITARY TECHNOLOGY (MILTECH) – a media partner of defpro.com – travelled to Eurofighter GmbH’s headquarters in Hallbergmoos near Munich, Germany to discuss the current situation and future prospects with the company’s new CEO, Enzo Casolini.

This interview is published in two parts at defpro.com on 24 and 25 November 2009. Part one of the interview can be read here: http://www.defpro.com/daily/details/454/.


MT: Could you provide an overview of your current efforts at winning new export customers for the Eurofighter, and the various international competitions you are currently involved into?

Casolini: In general terms, we estimate a global market over the next 15 to 20 years for more or less 800 modern generation fighter aircraft, and we regard it as a realistic goal for us to sell between 250 and 300 Eurofighters (of course, beyond the orders by the four partner nations). Against this background, we are currently involved in ongoing competitions in Switzerland and India, and we are exploring emerging possibilities in Japan, the Gulf region and Eastern Europe as well as regards a repeat Saudi order.

We also feel that there is a need in Turkey, although this has not yet taken the form of an official requirement, for 40 to 80 air superiority fighters. We are convinced that the Eurofighter is uniquely qualified for such a requirement, but we also realise that any commercial breakthrough there would have to go through convincing the Turkish Air Force, which has traditionally operated US-made combat aircraft, that the European solution is a very good one in operational, logistic support and industrial terms. We are already working in that direction, including through joint exercises involving Italian Air Force’s and Royal Air Force’s aircraft to demonstrate to the TuAF the performance and capabilities of the Eurofighter design. We are currently aiming at organising an official presentation during 2010.


MT: Would Turkey, and other prospective NATO-member customer countries, be offered full participation in the Eurofighter programme?

Casolini: Full participation in the programme by any potential customer would be a very difficult proposition. But what is feasible, and very effective I think, would be to involve the Turkish industry in the further development of the aircraft, initially with a specific level system design responsibility. Such a Turkish involvement would be a very sound way to develop specific capabilities for their aircraft and deliver huge technology transfer to the local industries.

Turkish industries would also be able to take full control of in-country service support, maintenance and modification of TuAF aircraft. Local final assembly is of course also an option, depending on an order covering a sufficient number of aircraft - say, at least 40 - as to make it sustainable in economic terms.


MT: India is understood to have demanded total licence construction as a condition sine qua non for its MMRCA competition. Could you detail your position in this regard? Are you willing and prepared to offer India the capability for complete local construction of its aircraft?

Casolini: We are still evaluating this issue, and studying ways to match that aspect of the Indian requirement. A final decision on how exactly to formulate our bid in this regard would need to take into account the ideas and interests of not only the member companies of Eurofighter GmbH but also our suppliers and sub-contractors. Also, the Indian demand for a very extensive technology transfer package (including e.g. access to source codes) has implications that go beyond industrial interests as such, and would rather require the approval by the four partner nations.

As regards the Eurofighter GmbH shareholders, we are looking forward towards reaching a consensus by the end of the year, and are confident that this would allow us to formulate an attractive compliant proposal with the Best and Final Offer (BAFO) document that is to be submitted by March next year. Even beyond the size of the MMRCA programme, India is emerging as a key strategic partner for Europe, and we will thus be willing and prepared to go the extra mile there.


MT: Would the same approach also apply to Japan, should an interest towards the Eurofighter materialise?

Casolini: The way to sell the Eurofighter to Japan would again be different than applied to India or other nations. Japan would not be a partner of the Eurofighter community as such and would rather develop its own version of the aircraft, although Japanese industries could conceivably contribute towards joint enhancements. More in general, the latter is an approach we could also offer other prospective customer countries bestowed with a reasonably capable domestic aerospace or electronic industry, starting most notably with India.


MT: Is the ongoing programme for Saudi Arabia completely in the hands of BAE Systems, or would you describe it as also being a Eurofighter GmbH’s export venture?

Casolini: Project “Saalam” for Saudi Arabia is a government-to-government contract, under which the UK government appointed BAE Systems as main contractor and BAE Systems then sub-contracted its partners within Eurofighter GmbH. BAE Systems will also be responsible for the organisation of the planned final assembly line in Saudi Arabia.


MT: What about the proposed transfer of second-hand aircraft to Romania? Would you be involved in this, or would it be a govt-to-govt affair?

We are pursuing the goal of ensuring an Eurofighter presence not only in Romania, but indeed in all other Eastern European countries. Needless to say, we are fully aware that the current economical situation in these countries tends to rule out any possibility of purchasing new aircraft. For this reason, and in order to counter US proposals for second-hand F-16s, we think that Eurofighter procurement could only take the form of earlier-batch aircraft being “cascaded” from the air forces of our main customers. Both the Italian Air Force and the Royal Air Force have indicated a willingness in principle to make some of their Tranche 1 aircraft available for this purpose.

A particular aspect involving the possible sale of Italian Tranche 1 Eurofighters to Romania is that according to the law, the proceedings from the govt-to-govt sale of surplus military materiel shall be returned to Treasury, rather than being re-invested to the benefit of the Armed Forces. For this reason, the sale could rather go through Alenia Aeronautica as main contractor that would also refurbish and upgrade the aircraft before delivery.


MT: Export-oriented efforts for the Eurofighter are currently based on the lead-nation principle, rather than going through centralised marketing at Eurofighter GmbH. Do you feel this scheme offers better opportunities?

Casolini: The lead-nation approach is basically a reflection of the very nature of the market we are operating into. Nobody buys combat aircraft as such; rather, these purchases are always perceived in the framework of a political and strategic partnership with a country or group of countries, irrespective as to whether the customer is Saudi Arabia, India or Switzerland.

This said, no doubt there is a need for increased support and coordination in the relationship between the four Eurofighter industrial partners as well as the four governments. Apart from very special cases such as the Saudi Arabia order, which was largely based on the long-standing relationship between Saudi Arabia and the UK, it is no longer possible for a given individual country/industry to go and win a sale virtually of its own. Rather, efforts shall be implemented in a coordinated way, including not only industrial aspects but most notably as regards political support.

As far as we in industry are concerned, we are currently running a series or workshops, to finalise a new structure whereby we would henceforth move all together on the export market. The lead nation + national prime contractor model will stay, but it will be reinforced through strong involvement of, and support by the other three nations and main industrial partners. We are also asking the four MoDs to contribute to their respective governments’ political support actions by e.g. making aircraft and crew available for demonstrations abroad in important potential customer countries, such as India or Japan. This is exactly what the US Air Force and Navy do for American fighters, or the Armée de l’Air does for the RAFALE. At the end of the day, we are all in the same boat, and winning export sales is not only in the interest of industry but also of our air forces, ministries of defence and indeed nations as a whole due the economic impact that such sales generate.


MT: How important is political support?

Casolini: It’s vital. If we don’t succeed in obtaining some form of coordinated political support to our export-oriented activities, we will be facing an increasingly serious problem. If our partner countries, which have invested quite some money towards the development of a superb fighter aircraft, are then not willing and prepared to throw their political weight around to help us sell it, we stand very little chances - particularly vis-à-vis the exceptional commercial dynamism as demonstrated by other European heads of state and government.


MT: Are you worried by the competition by the F-35 Joint Strike Fighter?

Casolini: Not really. The Eurofighter and the F-35 are aimed at different sectors of the market. Actually, we feel that the very presence of the F-35 will turn the Eurofighter into the veritable “Coalition Fighter”. Despite claims by the manufacturer about air combat capabilities, it is pretty obvious that F-35s deployed in their primary attack role would need to be protected from the possible presence of enemy fighters - and with the F-22 programme terminated at 187 aircraft, there is no way the US Air Force could extend its air superiority umbrella to cover allied/coalition attack assets in addition to its own. Some countries that are currently considering the possible purchase of the JSF, basically in that it would enable them to participate to US-led coalitions, will soon discover this basic point. This is for instance the case with Turkey or Japan, which would eventually want to deploy the same mixed fleet of Eurofighters and F-35s as Italy and the UK.


MT: Let’s conclude with another personal question - what would you wish to have accomplished, by the time you will hand the helm of Eurofighter GmbH to your successor?

Casolini: Well, that will be in 2012, which does not leave me a lot of time. But, I would be very happy if I could get a substantial export contract.


MT: Mr. Casolini, thank you very much for this interview.