SPOTLIGHT
European Aeronautic Defence and Space Company (EADS)

By GORDON I. PETERSON
Senior Editor

Sea Power: The merger in 2000 that created EADS led to the world's first trinational corporation. How has this corporate structure influenced your defense product lines during the past two years?

Hertrich: First let me say that EADS is unique. One of our strengths is diversity. Our management, our engineering, our design, and our production teams bring many different perspectives to the table. And indeed, with our broad portfolio of businesses and technologies, EADS is in an advantageous position to serve the customer. Aerospace and defense markets increasingly demand complex system solutions, combining intelligence, deterrence, and power projection as well as survivability and homeland defense--in other words, customers require solutions way beyond our core-platform business.

For these reasons, an integrated systems approach is the order of the day. And this is our chance to demonstrate the value of a diversified group: the ability to combine existing businesses to new ones and to implement cross-divisional synergies. We have established a Defense Coordination Group to coordinate and integrate defense strategy globally to satisfy the new requirements. Our Homeland Defense Task Force was one of their first issues.

Many of our readers will associate your company with the aerospace industry, but you also see opportunities in other defense sectors of the U.S. market, correct?

Definitely. We are a leader in everything that flies in both commercial and defense markets. If you look across the spectrum of EADS, we are a market leader generating the second highest revenues worldwide. For example, in the missile sector we are number two in guided-missile activities in the world, and we are the leader in Europe with extraordinary competencies in an area that is on everyone's mind--ballistic-missile defense. Also, EADS is a key player in MEADS [Medium Extended Air Defense System], which is a joint program with Lockheed Martin. And in helicopters, we have found exceptional success in the parapublic market and look forward to increased access in the U.S. defense market. These are just a few of the opportunities we see.

Your corporation recently elected Ralph D. Crosby Jr. to serve as the chairman and chief executive officer of EADS North America. What factors influenced this decision?

Creating this top management position marks a strong strategic commitment by EADS to establish a real industrial presence in the United States, to develop strategic partnerships with U.S. companies, and to enhance the access of EADS to all elements of the U.S. defense and aerospace marketplace. This initiative signals our commitment to the U.S. market--an essential element in EADS' global strategy. As our senior official in the United States, Ralph will oversee our efforts to expand our business, develop industrial partnerships, and ensure strong customer relationships in a critical market. His excellent operational background and many years of experience in a prime contractor role ideally suit him to lead this effort.

What is your role as a major subcontractor to the new Integrated Deepwater System created by Lockheed Martin and Northrop Grumman for the Coast Guard's recapitalization program?

We are heavily involved through three lines of our business: EADS MTAD, our Military Transport Aircraft Division; our Defense and Civil Systems business; and our helicopter division, Eurocopter. We are very pleased to be part of the team, and we look forward to continuing our long-standing relationship with the U.S. Coast Guard.

EADS also received a contract recently to manufacture electronic components for the Multifunctional Information Distribution System [MIDS], an important NATO C4 [command, control, communications, computers] program. Will this system be installed on ground-based and naval platforms as well as combat aircraft?

Yes. In the first step, it is planned to equip combat aircraft, but in the long term ground-based and naval platforms also are scheduled to be equipped as this is the precondition for the establishment of a true network-centric warfare capability.

At the Farnborough International Air Show in July, EADS and Boeing announced a new corporate partnership for ballistic-missile defense. What is the significance of this partnership, and what systems or products are
envisioned?

The EADS and Boeing partnership is very significant. It is an indication of increased openness to developing transnational and transatlantic defense programs and emphasizes that EADS is a prime choice for partnership with U.S. industry. The agreement allows us to offer significant contributions to current NATO programs and to provide an important industrial framework for future defense programs on both sides of the Atlantic.

Europe can provide many key technological contributions to a joint missile defense. MEADS and Aster are programs for Theater Missile Defense. Space-based sensor applications; long-range detection radars; fire control radars; interceptor technology, based on the French Ballistic Missile experience; and mobile communications technology are but a few examples of technological areas where we can make a significant contribution. *