May 17, 2007
EADS’ commitment to the transatlantic alliance was underscored in a keynote speech by CEO Tom Enders, who urged even greater efficiencies in U.S./European defense cooperation to avoid duplication, eliminate unproductive overhead and achieve the optimum balance in investment and return.
Addressing the U.S. National Chamber Foundation’s CEO Leadership luncheon, Enders said the transatlantic defense and aerospace industrial base can be further strengthened through the removal of impediments to both integration and competition.
“I’m optimistic that we are heading into a new and very positive evolution of the transatlantic relationship – one characterized by multi-national partnerships resulting in cooperation as well as competition,” Enders said during his Washington, D.C. speech. “From my perspective, this will only occur when business partners align to address the inevitable complexities that characterize defense cooperation and trade.”
Enders said a positive step forward would be the establishment of a Transatlantic Economic Council, which was decided by government leaders at the 2007 European Union-U.S. Summit held last month in Washington, D.C.
“This is a sound proposal, to which industry could bring lots of added value,” he explained. “To effectively bind together the loose ends of transatlantic policy-making, this Council could potentially be composed of three chambers, or bodies: a regulatory chamber, a security and defense chamber, and a global trade chamber.”
The Council’s regulatory chamber would address such issues as patent systems and agreements such as the “Open Skies” aviation pact, reflecting the need to create common standards in order to eliminate trade barriers and spur competition.
Its second chamber could be focused on defense and security, with a mandate to address important transatlantic industrial concerns, including ITAR (International Traffic in Arms Regulations) and the effective transfer of technology among the allied nations.
The suggested Council chamber on global trade would be tasked not only with transatlantic economic integration, but with improving the health of the global economy as well.
“However, these proposed chambers must be empowered to address real issues and create real change – to have the authority to put real building blocks in place, otherwise we would just end up with more bureaucracy and less efficiency,” Enders said.
In reviewing the overall transatlantic relationship, Enders said both European and U.S. companies have benefited from the integrated marketplace.
He noted that in 2006, EADS purchased more U.S. defense and aerospace products than any other single customer worldwide, and at the component level, EADS is the world’s largest customer for U.S. aerospace export products.
“EADS has a total of more than 3,400 U.S. business partners, of which nine or 10 are among our top 25 suppliers,” Enders added. “We are investing in the U.S: we have opened three new facilities over the last four years; we operate in 32 cities and 17 states, and have over 2,500 direct employees – with this number on the increase.”
Successes for EADS products in the U.S. include the Army’s acquisition of UH-72A Light Utility Helicopters, the supply of new HC-144A maritime patrol and transport aircraft for the U.S. Coast Guard, and the utilization of EADS helicopters by government and law enforcement agencies from coast to coast. In addition, it is partnered with U.S. companies for two important ongoing competitions: the Joint Cargo Aircraft program and the U.S. Air Force’s KC-X modernization of its tanker assets.
