Farnborough Show News - July 14, 2008 - (Page 40)

FA R N B O R O U G H 2 0 0 8 ON THE RECORD— Pier Francesco Guarguaglini, Chairman and CEO, Finmeccanica Finmeccanica Grows in America In the last two years Finmeccanica also offered to buy Alenia’s 50% in has radically changed its footprint what is considered to have been an in the U.S., winning the VH-71 appealing offer. Why did you presidential helicopter program refuse? with Lockheed Martin, the C-27J A. “You cannot sustain your stratprogram with L-3, and expanding egy to increase your role and AgustaWestland helicopter pro- become a stable industrial player in duction in Philadelphia. It has a the U.S. if you sell one of your most 26% share in the Boeing 787 air- visible investments and early indusframe through Alenia Aeronautica trial activities there just because it and the Global is financially in Aeronautica JV with teresting. Beyond Boeing in South that, our continued Carolina. Now it has presence in Global agreed to buy the Aeronautica has a DRS defense elecsound industrial tronics company for and financial value. about $5.2 billion. Finmeccanica is the largest exhibitor at this year’s Farnborough Air Show, and a cosponsor of the event. It regards Pier Francesco Guarguaglini the UK as its second home market. Aviation Week Show News writer Andy Nativi last week discussed Finmeccanica’s global strategy with chairman & CEO Pier Francesco Guarguaglini. Q. What is the strategic purpose A. “ The perception of Finmecca- nica in the U.S. has changed a lot in the last few years and will further change after we complete the DRS acquisition. By then we shall have more room to maneuver. I also want to understand how DRS sees the U.S. market and compare our viewpoints to decide our strategy in the U.S. and elsewhere. By combining experiences and approaches in an integrated common view we can achieve a lot, both in the U.S. and globally.” Q. Can you elaborate on Finmecca- wants to keep strong roots in Europe and Italy, with the UK being its second “home market.” Q. Finmeccanica could partner with Boeing to offer an “Americanized” M-346 trainer to replace the T-38 in the U.S. market, or are you also considering other partners?” A. “It is too early to discuss the role of the M-346 because it is simply not yet at the starting gate. At the moment we have an agreement with Boeing for the international markets which will boost the opportunities in the training aircraft market for both companies.” Q. What could be the industrial ben- behind these moves, and where is Finmeccanica in the U.S? A. “We want be perceived as an international company with a strong presence in the U.S.—we believe it is impossible to achieve growth without having a major footprint there. This goal can be achieved through a combination of means, including acquisitions, joint ventures, alliances, and direct efforts. But to be a major player in the U.S., you need to have a major local industrial presence, and we are building this presence in different business segments. After DRS we will have more than 12,000 workers in the U.S. in our three main businesses: aeronautics, helicopters and defense electronics.” Q. Boeing bought out Vought’s 50% nica’s “three pillars” strategic concept? A. “Finmeccanica plans to be major player in three main business segments, even if we are active in many more. The three pillars are aeronautics, helicopters and defense e l e c t r o n i c s . We h a v e already achieved major results in aeronautics and rotary wing, but we were still lacking optimal strength in the defense electronics area. By adding DRS, we will bring the weaker of the core businesses into line with the other two. That we are doing so in the U.S. further contributes to the effort to make Finmeccanica a truly international company.” Q. Is Finmeccanica think- efit for Finmeccanica if the U.S. Department of Defense decides to award the USAF tanker program to Boeing, considering the agreement Alenia Aeronautica had with Boeing following the Italian acquisition of four KC-767s? A. “There is a two-fold interest. On one side we could produce and deliver the special kits to allow the transformation of the B767 into a tanker. Our Alenia Aeronautica is also involved in commercial B767 production.” Q. What is your strategic view of The M-346 trainer a deal with Boeing? Obviously, if the DRS acquisition goes through, we will be viewed differently in the U.S. with no further need to prove how important it is for Finmeccanica to have a U.S. presence.” Q. Do you feel Finmeccanica has stake in Global Aeronautica, and it 40 finally cracked open the U.S. door, considering acquisitions, contract victories, JVs, and program involvements? ing to follow the BAE Systems example, shifting the focus of its industrial operations from Europe to the U.S? A. “We are pretty different. We have a different culture, a different home country, and nobody has the special relationship that the UK has with the U.S. We also have a different strategy: Finmeccanica is being transformed into an international company with a world market and a strong U.S. presence, but it still Finmeccanica’s growth potential in Russia? You have the Superjet JV, and now AgustaWestland is also moving. What else is planned? Do you want to establish other JVs? A. “Beyond regional jets and helicopters, we are already involved in the railway sector, railway signals and security, postal automated distribution systems and communications systems, not to mention air traffic control systems. There is a substantial opportunity to grow further. Finmeccanica is already one of the international hi-tech groups with the largest footprint in Russia.” Q. Given the chance, are you still interested in buying the other half of ATR? Or could you consider a July 14, 2008 www.aviationweek.com/shownews http://www.aviationweek.com/shownews

Table of Contents Feed for the Digital Edition of Farnborough Show News - July 14, 2008

Farnborough Show News - July 14, 2008 Contents Thirty More Years CFM Reveals New Engine Boeing Reduces Forecast UAVs’ Quiet Revolution Finmeccanica: U.S. Success A Plethora of AESAs BAE North America Plus L-3 Becomes a Prime Better Late Than Never A Peek Behind the Curtain China’s J-10 Revealed Boeing’s 787 Dreamliner Breaking LM’s Hegemony

Farnborough Show News - July 14, 2008

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