AIRCRAFT: Two New Birds from Europe

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But severe misgivings have nonetheless arisen since the project was begun in 1968. Combined orders from the four customers have slipped from a planned 1,180 to 807—and could shrink more because of costly design compromises. The estimated cost of developing the plane was $1.8 billion. The British Labor government has resolved to review thoroughly the project with its West German and Italian partners before the next phase is authorized. But in British aviation circles at least, the plane is regarded as superior to such U.S. offerings as the F-15, F-14 and F5. Says a high R.A.F. officer: "The American planes are either heavier and more expensive or cheaper and less effective."

U.S. aircraft-industry executives do not view the new European entries as seriously diminishing their share of the non-Communist world's aircraft market; American planemakers hold 95% of the commercial market, which is expected to generate sales of $150 billion during the next ten years. But they do bemoan their lack of fresh ideas; nothing new was displayed by the U.S. at the 1973 Paris Air Show, which is considered the aviation showcase of the world. (Instead, U.S. aircraft companies simply revised existing designs.) Yet even with the A300B, the MRCA and many other entries by the British, the West Germans and even the Soviets, there is a feeling that the European industry is in need of organizational streamlining. Airbus Industrie, for example, is a consortium of companies in Britain, West Germany, The Netherlands, Spain and France. Each company builds components that are shipped to the Aérospatiale center in Toulouse, where they are finally assembled. The MRCA is built by Panavia of Munich, jointly owned by the British, West Germans and Italians. But the work is divided according to each country's share. Thus Britain builds 42.5% of the airframe, West Germany builds 42.5% and Italy builds 15%—the wings. Work on the propulsion system is broken up in the same proportions. Many a European airman argues that a more efficient way must be found, perhaps by merging several companies into a multinational giant to compete with U.S. makers.

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