Airbus sweetens potential A400M deal with promise of work for UAE suppliers

UAE's plane-parts maker and maintenance service provider could win contracts if Air Force buys A400M military jets, Airbus says

Visitors inspect the Airbus stand at the 17th edition of the International Defence Exhibition and Conference (Idex) in Abu Dhabi that started on February 17 and runs until February 21. EPA

Airbus is in talks with UAE plane-parts maker Strata Manufacturing and military aviation maintenance, repair and overhaul (MRO) service provider Ammroc for work packages on its A400M as it seeks to win its first Middle East order for the military transport aircraft.

The European plane manufacturer is offering the UAE companies a workshare in the "primary production" system of the military airlifter, Gerd Weber, head of the A400M programme, said at a press briefing on Tuesday on the sidelines of the International Defence Exhibition (Idex) in Abu Dhabi. The primary production refers to making sections of the aircraft's fuselage.

"We are in intensive talks with our partners here in the UAE when it comes to localising part of the production here. We even intend to have part of the primary production system probably being done in the UAE. We are ready to do so," Mr Weber said. "It's going to bring a lot of complex jobs, complex aircraft manufacturing to the country, and we truly believe it will be a big benefit for all of us."

Airbus expects that orders for the A400M could reach 30 to 40 aircraft from the Middle East region, with the UAE's potential requirement being about eight to 10 of the total, he said. Mr Weber expects that the UAE needs to replace its current military airlifter, the C130, starting in 2028, and believes a decision on replacement aircraft will be made this year.

He expects Saudi Arabia will require a larger number of about 15 to 20 of the A400M and said the country needs them "rather soon".

"We are also in conversation with the kingdom of Saudi Arabia, probably the second-biggest [A400M] campaign here in the region after the UAE," Mr Weber said. "We have a number of interested countries that we started conversations with [in the region]."

Visitors at the Airbus stand at Idex. Antonie Robertson/The National

The campaign with the UAE is likely to conclude before that of Saudi Arabia, he added, though he said he could not provide details on commercial discussions with potential customers.

"It takes a bit of time for the air force to define their needs, if you talk about succession of the military airlift programmes which they are having in service right now. So, they are on the way to defining what is the requirement and what are the missions they are flying tomorrow," Mr Weber said. "This is very advanced in the UAE and probably takes a bit more time in Saudi Arabia."

Airbus is pitching the A400M as the "natural replacement" for the C130 as it is more capable, has a longer range, carries a bigger payload and offers more diversified mission capabilities. The Airbus discussions come as major military spenders such as Saudi Arabia and the UAE are seeking to localise their defence procurement and develop their defence manufacturing sectors to reduce reliance on foreign suppliers and diversify their economies away from oil.

Potential for exports

Airbus is seeking to build on its 15-year partnership with Strata, which makes composite parts for Airbus commercial aircraft. Strata makes the A330 and A340 Flap Track Fairings, Ailerons and Spoilers, A350-900 Flap Support Fairings and Inboard Flaps, A350-1000 Flap Support Fairings and the A380 Flap Track Fairings, according to its website.

"We can build on this relationship with Strata by giving some work packages, should the UAE Air Force decide to purchase the A400M, and giving them some components manufacturing capacity and also developing part of the training and MRO with companies like EPI," said Gabriel Semelas, the newly appointed president of Airbus in Africa and the Middle East.

Airbus is also in talks to foster a model, not just for production of plane parts, but also for their re-export to other markets, he added. Airbus is constantly monitoring all the suppliers globally to find the right match for its production needs. "When we do this, we don't do it just as a favour to the country, it has to match our needs in terms of timing, delivery and quality, of course," he said. Strata is a Tier 1 supplier for Airbus.

"To be very clear, we are ready to go, we have the dossier … when the [A400M] contract is signed," Mr Weber said.