Anti-French and German political rhetoric in the U.S. during recent
months has done nothing to alter EADS' plan to expand its North
American operation, although it has slowed progress, says Ralph
Crosby, the executive overseeing its U.S. activities.
"The fundamentals stand," Crosby said of the four elements
of his strategy, which includes consolidating existing EADS operations
to be more efficient; investing in new facilities; pursuing mergers
and acquisitions, and partnering with U.S. companies.
The effort was begun less than a year ago, just before transatlantic
political tensions flared up. EADS officials are hopeful the tumult
won't last. "My view is the half-life of the political fall
out is certainly going to be shorter than people are projecting,"
Crosby said. And, he stressed, "the swings of the policy
pendulum will not cause us to restructure our policy."
The North American business is already on the acquisition prowl,
with a "handful" of firms under close examination. EADS
plans to be cautious as it proceeds, getting U.S. authorities
used to the acquisitions. "We're probably not going to start
big," Crosby said.
One of the most significant acquisition programs looming in EADS
future is the U.S. Air Force's tanker modernization plans, although
the Pentagon recently appears to have poured cold water on any
aspirations. The Pentagon agreed with Boeing on terms for the
lease of 100 KC-767 tankers, and senior officials indicated that
to get the cost down, they promised the U.S. aerospace company
more KC-767 orders would follow.
But Crosby is undeterred by the latest pronouncements, instead
invoking comments the U.S. Air Force made earlier in which it
promised to consider an EADS bid down the road. EADS was rejected
as a candidate for the first round because it didn't have suitable
refueling boom technology. The company has now committed research
and development money to rectify that shortcoming and, Crosby
noted, "we intend to be there to compete." The next
round of tanker acquisitions isn't expected to occur until 2006
or later.
But the North American plan has not just suffered setbacks, it
also made a major inroad by winning a U.S. Coast Guard contract
to supply CN-235 maritime patrol aircraft. The initial order is
for two aircraft, which should grow to about 30. EADS teamed with
Lockheed Martin and Northrop Grumman, which are the primes for
the umbrella Coast Guard modernization program, validating one
of the core tenets of EADS' U.S. plan, Crosby stressed.
Other efforts may be on the horizon, as well. As the U.S. Air
Force pursues a new combat search and rescue helicopter, Sikorsky
with the S/H-92 and a Lockheed Martin, AgustaWestland, Bell Helicopter
team with the US101 have expressed their interest to compete.
The NH 90 helicopter, in which EADS' Eurocopter has a dominant
share, however has been noticeably absent. Crosby indicated, though,
that the final word on that may not have been spoken, although
the company is running out of time to find U.S. partners that
would almost certainly be required.
