Farnborough Show News - July 14, 2008 - (Page 41)

FA R N B O R O U G H 2 0 0 8 But Maintains European Identity barter deal, involving, as proposed by EADS, your stake in MBDA? A. “When we proposed that, we were moved by the desire to build a regional aircraft “hub,” leveraging on ATR to support the participation in the Sukhoi Superjet project. We have now followed a different approach and, therefore, we are less interested. Furthermore, the ATR value is now buoyed by the flow of new orders. While we don’t know for sure if the new production volumes will remain stable in the long term, I never buy at peak value. As for MBDA, I feel that our 25% stake in the missile producer is consistent with our financial and strategic goals.” Q. You frequently use the Never Say ing on the table such as restarting the discussions we had with Thales. Let me also add that I’m not so convinced that there was ever a real alternative offer delivered to DRS.” Q. If the DRS acquisition is successful, Finmeccanica will have four defense electronics companies: DRS, Selex Communications, Selex Galileo, and Selex Sistemi Integrati? Isn’t that way too many? With DRS C-27J to be assembled in Alabama. ing if a good opportunity arises. But we don’t need to consider anything in the DRS size.” Q. Do you expect any obstacles from Never movie title when discussing potential alliances, but in the case of Sukhoi Superjet represents just one of many activities in Russia. the U.S. authorities on your attempt to acquire DRS? A. “The DRS acquisition process is going on, and there are still several steps that need to be completed. I’m confident that we shall arrive at a positive close by the year’s end.” Q. Both Airbus and Boeing are considering successors for the B737 and the A320. Are you planning to confirm your special relationship with Boeing, or is the field open with Airbus? And can you say if you have finally got a deal on participating on the A350XWB? A. “It is a bit too early to decide what to do for the new single aisle aircraft when we have our hands busy with the next generation twin widebodies. Regarding the A350XWB, I would restate that in the current economic and industrial environment nobody is willing to play a role at whatever cost in a new program. There should be a sound industrial and business case.” Q. This is your fourth term at petition is not at all detrimental; it is useful to really understand how your units are doing. Also, I’m more concerned about missing a contract because I don’t have a company with an appropriate product or a technology than having two opportunities to score.” Q. You mentioned the price you will pay for DRS is worth what you are getting, but the Finmeccanica pockets will be empty after buying DRS. Do you feel the financial burden is sustainable? Is Finmeccanica now out of the merger and acquisition business? A. “We think we are going to pay the right price for DRS, and we are pursuing a strategy to finance this acquisition that is compatible with our financial goals and that will allow Finmeccanica to continue to sustain its business and R&D investments with needed flexibility. As for further acquisitions, we are going to complete DRS acquisition and then digest it. That does not mean that we are no longer capable of act- VH-71 will carry the U.S. president. Thales (which apparently tried to snatch DRS from your hands), you said that after DRS the picture is changed. You originally proposed a 50-50 equal footing alliance. If you were to discuss an alliance with Thales after DRS is in your bag, what could be the new basis for discussion? A. “When we started discussing a strategic alliance with Thales four years ago, without results, there were certain opening positions that have now changed. Obviously, a “post-DRS” Finmeccanica is much stronger in defense electronics. The respective postures, therefore, are different. But currently there is noth- won’t you have too many overlaps? A. “Each of our original defense electronics companies had some integration and product portfolio issues that required some “homework” before they were ready for any further step. We have created a combined Selex Galileo within the avionics realm. There are still some further activities these companies need to go through before we can consider what to do next. And obviously the DRS addition will call for additional adjustment and changes, but not in the short term. “Overlaps? First of all, I think that some level of ‘internal’ com- Finmeccanica’s helm. Are you considering a fifth one? What is the legacy you want to leave behind when your term expires in 2011? A. (smiling) “Well, honestly, I would rather not like to consider a fifth term in Finmeccanica! I have just started the fourth one!” July 14, 2008 41 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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