Airbus Helicopters boss urges Europe to stick together on defense

The outgoing head of Airbus Helicopters called for deeper European collaboration in defence procurement and warned that fragmenting programmes into national projects would drive costs beyond what countries could afford.

CEO Bruno Even also defended the NH90 programme after a series of delays or cancellations and said a future replacement for the military helicopter must remain European.

"People who say European co-operation doesn't succeed are wrong, just wrong. It's a question of will," Even told Reuters.

"In an ever-tightening budget situation, if we had to follow national logic for everything there would be a problem; we wouldn't be able to pay. So European co-operation is the answer, but there are conditions that have to be met."

Even was speaking after eight years leading one of Europe's two military helicopter makers alongside Italy's Leonardo LDOF.MI, and the world's largest civil supplier.

The comments from a close ally of Airbus AIR.PA CEO Guillaume Faury come at a time when Europe is debating how to organise its defence industry, including disagreements between Airbus and Dassault over the FCAS fighter programme, and as governments start outlining what they want from the next generation of military helicopters.

WARNS AGAINST NATIONAL-FIRST DEFENCE PLANNING

In an interview, Even warned against "interests that are not necessarily national ones, but which may be industrial interests pushing for national programmes".

The former French defence official said he was sticking to his brief, but acknowledged his warning against insular thinking on defence could be interpreted more widely.

"Even if you can read my remarks in a more general way, I am sticking to (the subject of) helicopters," he said.

Dassault AM.PA declined comment.

France and Germany are in talks to rescue the FCAS fighter after both Dassault and Airbus said they were ready to go separate ways.

NH90 PROBLEMS 'BEHIND US'

Airbus Helicopters has its roots in a Franco-German merger prompted by the development of the Tiger attack helicopter.

Even's tenure has been marked in part by efforts to tackle problems with the European NH90 sub-hunting and army helicopter.

Manufacturers avoided a court trial last year by settling a dispute with Norway over Oslo's decision to cancel its NH90 order.

Even said problems over availability and other issues - which also prompted Australia to retire aircraft early - had now been addressed.

"It's a programme introduced over 20 years ago that may have had issues with maturity. These problems are behind us."

Spain ordered 34 NH90s and the Netherlands three last year, bringing total orders to 639, of which more than 500 are in service.

The programme won further support last week when NATO buyers cleared a version being developed for French special forces. The first of 18 black-painted aircraft will be delivered this year.

Even said NH90 partners, which also include Leonardo LDOF.MI and GKN Fokker, were pursuing new export campaigns but declined to elaborate.

Studies are under way for the next round of helicopters known as Next-Generation Rotorcraft Capability.

Airbus and Leonardo have presented different concepts, with Leonardo favouring a tilt-rotor and Airbus promoting a design based on its experimental half-plane, half-copter Racer model or a more conventional alternative.

Even said Airbus would be ready to work with Leonardo as it had on the NH90, which could meanwhile continue to be upgraded.

"All options are on the table and ... in the current situation it's essential that we have a European solution."

-Reporting by Tim Hepher, Editing by Louise Heavens/Reuters