Francisco Fernández Sáinz Chairman of EADS-CASA

Firstly we would like to congratulate you on the launching of the A380 yesterday. Although we are aware that you are not directly responsible for the whole aeroplane, such a historical event for civil aviation cannot go unmentioned.

I am in charge of EADS in Spain..

Yesterday I was with a member of the staff whom I had worked terribly hard with, at the time the division of labour for this project was carried out, in order to prove that the technology to manufacture section 19 of this aeroplane was ready to be applied. It is the only plane in the world with a capacity for more than 100 passengers, which has a carbon fibre fuselage. It took ten years of hard work in Spain to produce it.

And is it true that it seats 555 passengers?

Yes, and those summer flights to the Far East will hold 825. After all, this is what passengers want: ever lower priced fares.

Since 2001, global tourism has gone down due to oil price increases. This aeroplane is expected to revolutionize civil aviation thanks to its lower costs. Could you please tell our readers what this plane's technical advantages are?

As well as the more advanced technology, this plane signifies that customers will now have two planes to choose from. Before this, there was only one "Jumbo". This, more than anything, is why it will revolutionise the airline industry.

Secondly, bear in mind that the 747 is over thirty years old, even if in that day and age it was a major achievement. The fact that our project is new means its technology is absolutely state of the art. Although the "747" has undergone several changes and modifications, there are certain adaptations that would simply not be feasible. In contrast, the A380 incorporates much more important "state of the art" technology and applications. These are not only the traditionally made by us "tail and moveable parts" technology but additionally we have been able to assemble the entire rear section of the fuselage out of carbon fibre. Technology that has no practical application and is not profitable will go nowhere. Our work has improved the product which is now manufactured at a lower cost, not only is it a better offer for customers, its systems are much improved as well.

We must also take into consideration that this plane will fly 15,000 kilometres, so passengers cannot be idle during the whole flight. They must have some kind of leisure activities as well as business facilities. We have carried out significant innovations for passengers who have to use their flight time productively. In fact, passengers may now make their flight plans based on the aeroplane rather than the airline. This will revolutionize airlines.

This plane offers interesting possibilities. I have seen, for example, that airlines can configure the plane as they wish.

But that is standard. Normally airlines configure the inside of the plane according to their needs to fulfil passenger requirements.

But this plane offers many more options for leisure space, for example, I have heard that Richard Branson, the President of Virgin Atlantic, wants beauty salons, gyms, casinos and even queen-sized beds in his planes!

There are those possibilities, but it will be up to the airlines to decide what type of passengers they want to attract and what routes they want to fly. Summer holiday flights to tourist destinations are not the same as flights during other times of the year with a higher percentage of business passengers.

What are your thoughts on the Concorde and the A380 as representatives of two different periods in European aviation? You have spoken of the A380's low cost and practicality. Has the industry's philosophy had to change in order to achieve this new plane?

The first important difference between the two is that the Americans would not allow the Concorde to get off the ground, so to speak. The Concorde was the expression of a Europe, and in particular two companies, with sufficient "state of the art" technology to manufacture an extremely fast plane targeting business people who valued efficiency, especially in trans-Atlantic flights. In fact, it embodies European innovation, which is a historical characteristic. Unlike other cultures, Europeans have always looked to the future, and have always been ahead of the rest of the world. The Concorde was a landmark achievement aimed at increasing business productivity.

I would like talk about another of your products, the A400M. As a result of geopolitical changes, rapid reaction jet? planes are becoming increasingly more important for humanitarian and military uses. We have all seen the recent overwhelming human tragedy in South East Asia. How could A400M be used to help in this type of crisis?

The A400M is the main result of the Armed Forces of Europe's need to transport men and materials fast. A long analysis process of the European countries led to the plane's size and capacity. This is due to the role that Europe must play in humanitarian missions, without going into the military uses that Governments apply as they see fit. There were problems to move large quantities of supplies quickly for the desert and Iraq wars as well as for the tsunami disaster victims. In a dramatic catastrophe like the Tsunami, a rapid response is vital. It would have been much better if all the resources had been transported the very next day rather than the record month that it actually took.
Up to now this kind of aircraft did not exist. There is the incredibly expensive C17 which has a more specific role. Therefore we have achieved several landmarks. This is the first time in 30 years that European countries, except for Italy and Portugal which abandoned the project, decided to develop a military transport aircraft. I think this was a wise decision. Firstly, because it has provided the European Armed Forces with a means of transport which I am sure will be vital in a near future. Secondly, from a viewpoint of trade, I think the A400M may well end up being sold in the U.S. The C17 is the closest plane the U.S. has but it is not useful for these kinds of operations. It also has the C-130, the most up-to-date model, the "J", will be 35 years old in 2015. Its old fashioned technology will affect productivity and will lead to higher costs for the U.S. Armed Forces.

As well as manufacturing specific parts for other planes, the A400M will be assembled in Seville. We understand you had a meeting with the Andalusian Minister of Science and Business, Francisco Vallejo, to favour the setting up of new companies linked to these projects in Andalusia. Could you explain in detail what the business environment is like in Andalusia, your relationship with the Andalusian Government, and how it fits in with Spain's high technology industry?

CASA has always been in Andalusia. The company was not opened just to build the A400M. In fact, CASA as such, and HISPANO AVIACIÓN are companies that were set up in Seville in the 1960's if not earlier. At the beginning of the 1970's CASA started to internationalize the company and launched the 212. Its final assembly line was in Seville. Since then, all CASA's military planes have been assembled there. At that time a difficult decision was made to assemble freighters rather than military aircraft, but there is a tradition, experience and a culture in Andalusia of transport plane assembly. Out of that grew three products that now lead the market globally.

My message is that Seville is the number one manufacturer in the world of the light and middleweight range of military aircraft. Little by little we have eliminated the competition. Additionally, Andalusia has clearly had a vocation for aeronautics and has appreciated its importance.

The Andalusian Administration has participated in and helped with many significant aeronautics programs, some were successful and some others were not. The Central Administration has always given important, constant assistance and support to the Regional Administration to the technological and industrial development in Andalusia. The A400M is the number one aircraft freighter.

For twenty years now Seville has been producing planes and a very important foreign market is becoming a reality. We recently reached an agreement with South Africa for a minimum of 8 aircraft.

The Andalusian Administration has come to the realization that even greater assistance is necessary today. On occasion I have said I would not leave Seville, and this factor, our permanence, is important for the Administration, which has followed through with measures of support for the Andalusian industry which will soon bear fruit. In fact, it is finalizing agreements with Japanese automobile manufacturers, who have realized that Andalusia has a great deal to offer.

When British people come here they are on holiday and of course, they are not thinking of our industry. They do not realize that many of the things we use daily are manufactured here.

What I mean to say is, there are many factors, the entrepreneurial spirit and what President Chavez calls the "second industrialization". All of this will bear fruit.

In any case, it is important for the British to know we still have the best holiday spots. After all, that is an industry as well.

Andalusia offers the British a wonderful perspective. Each Spanish region has developed at its own pace. European integration itself has affected Spanish geography. Strangely enough, other Spanish regions have developed more quickly, which is quite unfair.

Yes, Andalusia deserves closer attention…

In fact, autonomous laws have been set up to facilitate and develop investment. Andalusia is in the forefront of many Spanish regions in the field of aeronautical systems.

Your company is in a very strategic sector. How do you see its importance in terms of foreign policy? Do you believe that over time EADS could help the E.U. set up an alternative foreign policy to that of the U.S.?

My opinion is a bit different on that. First of all, the importance of the role the U.S. plays in the world has to be recognized, whether you are a fan or not. As a matter of fact, I believe the theory that power in the world moves along with the movement of the sun. But when you are the superpower, there are certain things the international community requires of you. I do not think Europe has to figure out what alternative it can offer. Rather Europe is a group of countries, a developed entity which has obligations towards less developed nations, etc. I do not mean a moral obligation, but obligations we must take on to ultimately avoid problems.

Thus Europe does not have to focus on offering an alternative to the U.S. It must, however, fulfil its inevitable role as a developed nation. We have the technology to make products and to help the third world. This is a part of our responsibilities. We must be there and help out.

In our April 2004 report we did not speak about the current Government as they had only been in office for a short time. But now, can you tell us about the relationship between EADSCASA and Defence Minister Bono?

The transition has been very easy. When Minister Bono was the President of Castilla La Mancha he had already become deeply involved in the aeronautical industry. Additionally the Defence team is very good and I am not speaking from a political standpoint here, they are simply excellent professionals.

When a new Government takes office in Spain there is a greater turnover in personnel than in other European countries. Despite those changes, their support for us has been extraordinary. They have continually been the first to back us, even when many of the projects are very long-term.

Your biggest competitor, Boeing, went from 68% of global aircraft trade in 1999 to 47% last year. Tim Clark, the President of Emirates Airline said that "Airbus has been more courageous and more ready to spend", while "Boeing has been more concerned with the value of their shares". Do you think that your courage has been an important factor in enabling you to achieve the number one position?

Airbus has had a very clear technological strategy, a well-developed vision of the market and the requirements of the airlines for many years now.

I believe what happened with Boeing is that some years ago they had very serious problems with their product, and this led them to change a strategy which had been successful for them since the mid 60's, when they became the only successful commercial aircraft company in the U.S.

This strategy change may have been due to a generational change in the management, perhaps they did not take Airbus seriously, or it may have been a combination of different factors. What is clear is that the successes we are having are the result of constancy of our line and attention to their market.

If our competitor rest on his laurels, that makes things easier for us. Airbus' greatest success is that four industries, four countries, have worked together, no matter what else was going on in Europe. All of us firmly believed that our technology was going to lead us to where we are now.

AIRBUS' greatest success is the matches won on other playing away from home!