By FrostSullivan on Wednesday, June 26th, 2013
The 50th Paris Air Show Manages a couple of Surprises for the Defence Industry
The 50th Paris Air Show this year offered some anniversary surprises, however roughly expected, starting with the huge Russian defence industry exposure.
While almost hiding out within the static display area, the newly upgraded Russian jet fighter Sukhoi Su-35s stole the thunder several times from other aircraft within the skies. Its high manoeuvrability and extreme acrobatics monopolized loads of conversations. What was less expected were the new jet trainer Yak-130 and quasi silent Ka-52 alligator’s equally powerful demonstrations, highlighting their agility and handling abilities. The Russian Aerospace and Defence industry was working hard to modify its post-cold war image of low-tech and fragmented production and support base.
Conversely, European military aircraft took the sky with out a real variants from what was originally expected; the Airbus A400M was the largest highlight. However, the second one big surprise of the show was the absence of yankee aircraft within the sky – even the Blackhawk S-70i was Polish. The yankee defence industry option to the Paris Air Show this year have been quite interesting, placing legacy because the cornerstone in their presence, as opposed to innovation. This time there have been no V22s or Super Hornets. If Farnborough was American last year, the sky above Le Bourget was Russian this year.
Why this sudden change within the approach of american citizens? Already stretched, complicated, too political, the ecu defence market is rife with opportunities for American OEMs without even having to advertise or showcase their products. Europe will buy American weapon systems to bridge its capability gaps; the unmanned systems being the fitting illustration.
In view of the commercial constraints, American OEMs prefer investing towards a presence in Middle East and Asia-Pacific tradeshows, as competition is way higher in those regions. In Paris, the usa industry was keener this year to extend its market share around the far more buoyant commercial aviation segment. The Airbus-Boeing match, again neck and neck with recent orders, is a part of tradeshow tradition and this 50th Air Show was no different. an analogous trend has also been verified around the helicopter markets; the Anglo-Italian AgustaWestland has received new commercial orders against its main competitors, confirming that 2013 would be the year of AW139.
Despite the absence of massive military aircraft contracts, the Paris Air Show offered one last interesting surprise within the military support in-service segment. Marginal till 10 years ago and almost restricted to North America outsourcing of military aircraft support to the industry has become a globally significant marketplace for Tier 1 and Tier 2 OEMs.
Economic downturn and personnel reduction, especially in Europe, are increasingly making this segment more credible and engaging for the traditionally reluctant MoDs. The hot Eurocopter solution named E-HOTS (Eurocopter Helicopter On Theatre Services) or the OEM Defence Service contract to keep NH90s for five years, and the brand new Sikorsky-Boeing Three way partnership for support and logistics in Saudi Arabia are further steps during this direction.
With these solutions, the Western military OEMs targeted aim is not just to scale back platform lifecycle costs burden, but more specifically to make the purchase price of latest platforms more accessible and to draw hesitating end-users inside the following few years.
If this strategy is successful for the NH90, then Farnborough 2014 can be really promising for European defence consortiums.
Alix Lebounlanger is a Research Analyst for Aerospace, Defence & Security Sector, at Frost & Sullivan.
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