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DOCUMENTS "COM"
COM(78)211
Vol.1978/0071

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)211final.
Brussels.23June1978.
COMMISSION COMMUNICATION TOTHECOUNCIL
WITHAVIEWTOCONCERTED ACTION
ONAIRCRAFT PROGRAMMES
PROVIDED FORINTHERESOLUTION OF4MARCH1975
AND.THESTATEMENT OF14MARCH1977
V;
C0M(78)211final.

CONTENTS
THEEUROPEAN AEROSPACE INDUSTRY,AGROWTH
INDUSTRY
THEAIRCRAFT INDUSTRY INTHECOMMUNITY
CONTEXT :THEPAST
SCOPEANDORIENTATIONS OFCONSULTATIONS
ONAIRCRAFT PROGRAMMES
THECOMMUNITY 'SPOTENTIAL ROLEINTHE
DEVELOPMENT OFAGENUINEEUROPEAN _
AIRCRAFT INDUSTRY
CURRENT EUROPEAN PROGRAMMES

THEEUROPEAN AEROSPACE INDUSTRY,AGROWTHINDUSTRY
1.TheEuropeanaerospaceindustryismakingremarkably steady
progress,despitethedifficultgeneraleconomicsituation and
thegravecrisiswhichisaffectingtheeconomyandtradeinthe
WesternWorld.
Totalturnover (civil,militaryandspace)atconstantpricesand
1970exchangeratesroseby40%between1970and1976,represent­
inganaverageannualgrowthrateof5.7%.Thisincreaseisall
themorenoteworthy sincetheAmericanaircraftindustry'sturn­
overdroppedby26%overthesameperiod.Asaresult,the
Europeanaircraftindustry'sturnoverrelativetothatofthe
Americanaircraftindustryrosefrom18.5%in1970to35%in1976.
Itisinteresting tocomparethisgrowthwithtwomacroeconomi c
indicators fortheCommunity :
(i)WhereasMemberStates'totalexports(atcurrentprices)
increased by51%(1)between1973and1976,theEuropean
aerospaceindustry'sturnoveronexternalmarketsroseby
88%overthesameperiod(atcurrentprices).
(ii)Theaerospaceindustry'sannualgrowthrate(5.7%)is
almostdoublethegrowthratefortheCommunity'sgross
domesticproduct(2.9%)overperiodinquestion.
Oneofthemainreasonsforthisexpansioniscertainlythesubs­
tantialinjectionofpublicmoneyintheformofmilitaryorders
andresearchanddevelopment contracts,whichhasmadeitpossible
tokeepactivities expanding andemployment steady(ataroundthe
430,000mark).Anothermajorreasonisthefasterrateof
expansionoftheaircraftmarketsincountriesotherthanthose
normallyregardedasindustrialized .
2.Along-termobjectiveoftheEuropeanaerospaceindustry,andof
allaircraft-manufacturing industriesforthatmatter,isto
reduceitsdependence onmilitarymarkets(whichnowaccountfor
70%ofitsturnover).Andthisobjective canbeattained,since
alltheforecastsindicategrowthprospectsforthecivilmarket.
Between1970and1976,theEuropeanmarket,forexample,increased
invaluerelativetotheworldmarketfrom14.7%to19%(EEC
relativetotheWesternmarket).
1)
includingintra-Community trade

-2-
3.Hence,althoughtheEuropeanaerospaceindustrystillhasbut
amarginalshareoftheworldmarketforciviltransport
aircraft,itcanberegardedasagrowth,industryoverall
byvirtueofitstechnological potentialandtheperformance
ofitsend-products .
Itisthusoneofaselectgroupofadvanced-technology industries
whicharesovitalforthefutureeconomicdevelopment ofthe
Communityandlong-termguidelinesareneeded,aswellas
themeansforimplementing them.
However,someofthisindustry'sspecialfeaturesshouldbe
recalled :
(i)Itslowpercapitaturnovercomparedwiththe
Americanaerospaceindustry(1)precludestheprospect
ofanincreaseinjobopportunities intheshortorTedium
term,andmostoftheeffortswillhavetofocuson
maintainingthepresentnumberofjobsandimproving
overallproductivity .
(ii)Itscontinuedpresenceasanindependententityonthe
worldscenewilldependontheeffort(whichcanbede­
votedtotechnological progress.Productioncapacities
(sub-contracting andassemblywork)willbecreatedin
anincreasing numberofThirdWorldcountriesand,in
thelongerrun,thecompetition betweenAmericaand
Europeindesigncapacities,willveryprobablyextend
toothercountries (e.g.Japan).
(iii)Thevalue-added relativetoturnover (47%)demonstrates
itsimportancefortheCommunityandgivesanideaofits
potentialimpactoninternational trade.
II.THEAIRCRAFT INDUSTRY INTHECOMMUNITY CONTEXT :THEPAST
1.AttheCommission'sinitiative,theEuropeanInstitutions have
since1972,beenkeepingaveryclosewatchondevelopments
intheaerospaceindustry,becausetheanswerstomanyofthe
problemsaffectingthefutureofthissectoraretobefound
inabroadercontextthananysinglenation.
(1)ThepercapitaturnoverfigureforAmericancompaniesistwice
thatforEuropeanundertakings (seeDoc.SEC(77)2939of
2August1977,page47,table69).

-3-
Following aCommunication fromtheCommission,theCouncilpassed
aResolution on4thMarch1975adoptingtheprincipleof
Communityconsultation incivilaircraftmatters.InOctober
ofthesameyeartheCommission proposed anewapproachinits
"ActionProgrammefortheEuropeanAeronautical Sector"which,
whilstnotinterfering withthestructureoftheindustry,
proposed acommonstrategyforcivilaircraftprogrammes,
togetherwiththecreationofpractical meansofcooperation and
theassignmenttotheCommunityInstitutions ofaroleinachieving
theobjectives ofcollaboration ,specifically intheareaof
programmefinancing.TheapproachfollowedbytheCommission was
notonlylimitedtoproposing commonpolicyobjectivesforthe
civilsector,butalsoforthemilitaryandairtransportsectors.
Mainlybecauseofthestrategicimportanceofthisindustry,
Governments havesincethenfollowedorcarriedoutindependent
domesticre-organisation policies.
2.Andyetthediscussions followingpublication oftheAction
programmefortheEuropeanaeronautical sectorinParliament and
inCouncil,andintheindustry,thetradeunionsandtheother
interestedcircles,inparticular theEuropeanairlines,placed
emphasisoncoherentprogrammes.Moreover,theCouncil
Statementof14March1977setsthefollowingobjectives,among
others:
(i)"theestablishment ,incloseconsultation withall
interestedcircles,ofacoherentstrategywithregardto
anynewconstruction programmeforlargeciviltransport
aircraft,wherebythevariousoptionswillbeexamined
andduplication avoidedfromtheoutset;"
*
(ii)"implementation ofprocedurestobringtogether
representatives ofmanufacturers andairlinesforthe
purposeofdefiningaircrafttypesforpre-project
discussions leadinguptothedecisiontolaunch;1'
(iii)"jointactionbyEuropeanmanufacturers inthesearchfor
possibleformulaeforcooperation withUnitedStates
industry,inordertopromotepenetration oftheworld
marketbyEuropeanindustry";
Civ)theneedforajointeffortwithregardtoindustrial
technology programmes withaviewtofurthering cooperation
andthedissemination oftheknowhownecessaryforthe
nextgeneration ofaircraft.
3.Thepresentdocumenthastwoaims:
(i)toprovidetheCouncilwithinformation necessarytosee
clearlythesituationoftheconcertation inrespectof
civilaircraftprogrammes,basedonavailableknowledgeof
whatiscurrentlyhappening,particularly intheindustries
ofthethreecountries mostintimately involved(France,
GermanyandU.K.).

-L-
(n)TodefinearolewhichtheCommunitymightplayin
supportingthedevelopment oftheEuropeanaircraftindustry.
This-firstiscoveredbyChapterIIIand'thesecondisdiscussed
inChapterIVbelow.
III.SCOPEANDORIENTATIONS OFCONSULTATIONS ONAIRCRAFT PROGRAMMES
1.AfterthefeelersputoutbyseveralEuropeanmanufacturers with
aviewtoseparateagreements withAmericanmanufacturers ,itnow
seemspossibletocontemplate anagreementwhich,ifitcovered
awholerangeofaircraft,wouldhavetremendous implications for
thefutureofthecivilaircraftindustryinWesternEurope.
In1977therewerethreemajorfactorswhichauguredwellforthe
development oftheEuropeanaircraftindustry :
(i)theverymarkedupturninthevolumeofairtraffic,which
encouraged companiestothinkaboutreplacingtheirfleets;
(ii)thesuccessoftheAirbusontheworldmarket(Airbus
Industrie hastodatereceived95firmordersand63options,
takingintoaccount25optionsonthe1futureA300B10version,
atotalof158aircraft);
(iii)thedecisionoftheBritish,FrenchandGermanGovernments
toasktheirmanufacturers (Aerospatiale ,M.B.B.,
VFW-Fokker andBritishAerospace )tostudytogether ajoint
programmeofEuropeanaircraftinasinglefamilybasedon
theAirbusProgramme .
Thesethreefactorsarecloselyrelatedandhavecreatedaclimate
ofconfidence whichhasenabledthefourmanufacturers to
formulateproposals aimedatconcentrating theircombinedindus­
trialpotential ontwocloselyintegratedlinesofdevelopment :
thedevelopment oftheAirbusprogramme andthelaunchingofthe
JETprogrammebothinasingleframeworkwiththeaimofcresting
asinglefamilyofEuropeanaeroplanes,undertheumbrellaofone
jointindustrialorganization ,basedonthepresentAirbus
Industriebutmodifiedtobeabletoundertakethenewresponsibi­
litiesitwouldhavetoassume.
Thefactsandfiguresbackingupthisapproacharesetoutinan
Annexwhichalsodealswiththesmalleraircraft suchasthe
HS146andtheFokkerF28Super.

-5-
2.TheCommunityConcertation procedure,subjectofthe4thMarch
1975Resolutionand14March1977Declaration,offersMember
StatesandtheCommissiontheopportunity torelatetheproblems
oftheaeronautical sectortotheinterestsoftheCommunity
asawhole.Inthecontexttwoaspectsstandout:
(a)TheCommunitymarket
ThesuccessoftheEuropeanprogrammeswillcertainly
dependoncombiningtheeffortsandresourcesofthe
industries andcountries nowinvolved,buttheCommunity
marketwillalsobeanimportantfactor.
Abroaderapproachthanthatfollowedsofariswarranted,
therefore,theobjectivebeingtodrawtogetherthe
interestsofthedifferentpartnersintheCommunity,i.e.
bothmanufacturers andusers.Asfarasmanufacturers
areconcerned,thereexistsinalmostalltheCommunity
countriesthecapabilitytomakeacontribution towards
theproductionofaircraft,inthesamewayasregional
facilitiesintheUSAcontributetowardsfinalassembly
oflargeaircraftinSeattleorLosAngeles.Inthe
UnitedStates,moreover,manufacturers andairlines
collaborate onprojectdesign;similarcooperationis
neededinEurope.
Toensurethattheinterestsofallpartnersinthe
Communitycoincide,andtoenableallconcernedtoapprec­
iatetheimportancetotheCommunityofanaircraftindustry
whichisviableandcompetitive ontheworldscene,itis
importantthattheinitiative nowinhandshouldhavethe
effectofstrengthening thelinksbetweenthecountries
withlargeaircraftindustries andthosewhichalsohave
productioncapacities (albeitlessdeveloped )andrepresent
aconsiderable demandasusers.Anyotherapproachcould
onlydoharminthemediumandlongrun,sinceitwould
reduceindustrialpotentialandrobtheindustryofany
chanceofsecuringahome-market baseonthescaledemanded
byworldcompetition .
(b)-Financing
Althoughitisdifficultatthemomenttosayexactlyhow
muchitwouldcosttolaunchtheprogrammesenvisaged,
theorderofmagnitudecouldbeasmuchast2,000million,
including R&Dandproductiontooling.

-6-
Thestrategicimportanceofthissector,itshighLevelof
technology,anditspotentialsecondaryeffectsonthe
economyasawholearefactorswarrantingthisfinancial
outlay.Itwillbenecessaryforresourcestobemobilized
onthebroadestpossiblebasisandformanufacturers inas
manyMemberStatesaspossibletobeassociated withthese
programmes andshareintherisks.
Inconclusion,concertedactionwithintheCouncilshouldenable:
(a)alltherepresentatives oftheGovernments oftheMember
Statestoappreciate theimplications andtheprospects
oftheprogrammes nowbeingplannedbysomeofthem;
(b)meetingstobeorganizedinanappropriate settingofthe
representatives ofthemanufacturers andoftheEuropean
airlines;
(c)thepossibility ofwiderfinancialparticipation tobe
examined,entailingtheparticipation ,attheindustrial
level,ofexistingproduction capacities intheCommunity .
IV.THECOMMUNITY 'SPOTENTIAL ROLEINTHEDEVELOPMENT OFAGENUINE
EUROPEAN AIRCRAFT INDUSTRY
Goingbeyondtheproceduresforconcertedactionwithinthe
Council,thoughtshouldbegiventohowtheCommunity cancontribute
towardsthedevelopment oftheaircraftindustryonaEuropeanscale.
Firstofall,itisobviouslynottheCommunity'sresponsibility
tointervenedirectlyintheprocessofworkingoutanindustrial
strategyconcerning programmes .Thisisprimarily amatterfor
themanufacturers ,whomustshouldertheirresponsibilities ina
constructive dialoguewiththeairlines.
Anexamination oftheareasinwhichtheCommunity canplayarole
indicatesthreetypesofmeasures :
(i)measurestocreateaninternalmarket;
(ii)measuresconcerning thecarryingbytheCommunityofsome
oftheindustrialrisksinherentinthelaunchingofnew
programmes,risksusuallyassumedbytheGovernments ofthe
MemberStates;
(iii)back-upmeasuresbasedonexistinginitiatives .

-7-
1.CreationofanInternalMarket
(a)0rgarnzation_of_the_a_ir_transgort_market
SomeCommunitymeasurestakenortobetakencanLead
EventuallytotheEuropeanaerospaceindustryhaving
alargermarket.
Inthiscontext,oneshouldnotethattheairtransportmar­
ketintheUSA,becauseofitssizeandincertaincaseslow
costlevel,haslowerfaresthanaregenerallyappliedwithin
theEEC.
Thedifferences inpriceandintherelativedevelopment of
airtrafficintheUSAandEurope,arealsoattributable to
theexistenceinEuropeofdifferentnationalsystemswhich
requirethenegotiation ofmultiplebi-lateralagreements
intheframeworkoftheChicagoConvention,whilsttheUSA
marketishomogeneous andintegrated.
Takingthisintoaccount,theCommissionispreparingadraft
Regulationapplyingthecompetitionrules(Articles85,86,
90)toCommunityairtransport,onwhichitwilltakeaposi­
tionhavingtakenadvicefromnationalexperts.Amorecompe­
titivedomesticEuropeanmarketshouldleadtoinnovationand
flexibility ofservices,improveefficiencyandlowerprices
toconsumers .
Furthermore,theCommissionintendstocontinuetomakepro­
gresswiththeworkcurrentlybeforetheCouncilrelativeto
theworkprogrammeoncivilaviationmatters.
(b)Compétition rules
-Monitoring ofStateAid
GovernmentaidtoindustryandtousersintheMemberStates
fallsunderthosepartsoftheEECTreatydealingwith
StateAids(Article92etseq.).
Thedispositions ofthesearticlesmakeanyaidincompa­
tibleinprincipleifitdistortsintra-community tradeand
competition,buttheyalsoenabletheCommissiontodis­
regardthisincompatibility incertaincases.
Byvirtueofthesearticlesitisincumbent uponthe
Commissiontoexamineandevaluatefinancialaidgivenby
MemberStatestosupportparticularprogrammes.Inorder
togainaclearerideaofwhatisthecommoninterest,in
thetermsofArticle92,§.3b,whichisoneofthebasic
tenetsintheCommission'sevaluations,thisexamination
cantakeaccountofanyconsultation onsuchprogrammes.
-Inter-Company Agreements
Ascanbeseenthroughoutthisdocument,theCommissioncan
onlyhopeforclosecooperation betweenCommunity compa­
niesinbringingaboutafamilyofEuropeanaircraft.This

-8-
ofcoursewithoutprejudicetothedispositions ofthecompetition
rulessetoutinArticles85andfollowingandtheirobligationto
notifytheCommissionwhichisincumbentuponthembyvirtueof
CouncilRegulation 17/62.
(c)Harmon2zatjon_of_Techm ca_l_Le2islat2on
Aircraftmanufacturing isconductedinanenvironment ofnational
technicallegislation theharmonization ofwhichremainsoneof
theconcernsofgovernments andmanufacturers alike.
Significant progresshasbeenmade,e.g.,withstandardization and
airworthiness codes.Agroupofexpertsdrawnfromthegovern­
mentsandindustriesofsevenEuropeancountries (fiveofthemin
theCommunity )hasalreadydraftedaEuropeanairworthiness code
largelybasedontheAmericancodeandstandards.However,ulti­
matesuccessinthisfieldwilldependonwhetheritispossible
tomaketheEuropeancodebindingonallCommunitycountriesand
securereciprocalrecognition ofairworthiness certificates by
thecompetentauthorities ineachMemberState.
ThisispossibleundertheTreaty,whichprovidesfortheadoption
ofdirectiveslikethosealreadyadoptedformanyotherbranches
ofindustry.TheCommissionisincontactwiththenational
authorities andisconsidering takinganinitiative onthematter.
2.PossibleCommunityContributions towardsFinancingtheLaunchingof
theNewProgrammes nowBeingPlannedbytheIndustry
Themagnitudeoftheplannedoutlayonthelaunchingofthenew
programmes andtheimportanceoftheseprogrammestoalong-term
strategyforthedevelopmentofthesectormayjustifytheprovision'
ofCommunityresourcesinformstobedeterminedwithinexisting
financingmachinery,perhapsusingthenewfinancialinstrument
tobeemployedonrestructuring ,orthebudgetaids,ortheE.I.B..
3.Back-upMeasuresintheContextofExistingResourcesandOperations
(a)CommercialPoliçy_and_External_Re_lations
TheCommunityhasdirectresponsibilities asregardstheadminis­
trationofcommercialpolicy,cooperation agreementswithseveral
non-membercountriesanddevelopment aid.
Possibilities (ofwhichtheCommissionisalreadyavailingitself
incertaincases)arethereforeopenforfurtheringtheobjective
ofdevelopingtheCommunityaircraftindustry :
-asregardsrelationswiththeotherindustrialized countries,
improvedmarketaccesscanbeensuredbyestablishing trade
relationsbasedonreciprocity .

-9-
Tariffsarenotwithoutimportance intheaircraftfield;the
biggestaircraftproducerintheworld,theUnitedStates,still
maintainsatariffof5%whiletheEuropeanCommunitysuspends
itstariffof5%formostcivilaircraft;thereissomescope
thereforeinthecurrentMTN'sforopeningupmarketsonthebasis
ofreciprocity .
Thesaleofcompetitive Europeanaircrafttoforeignairlinecompa­
niesisalsoofteninfluenced bythepoliticalcontextinwhichthe
dealstakeplace.TheCommunitycanplayanimportantrolein
backingEuropeanaircraftproducersintheireffortstosellout­
sideEuropeasitisdoinginourrelationship withJapantocontri­
butetowardsthebalanceoftradewiththatcountry.Intheframe­
workofcooperation agreementswithindustrialized countries,with
Canadaforexample,animportantsupportcanalsobeprovidedfor
salesofEuropeanaircraftandrelatedindustrialcollaboration .
Effortsofthiskind,ifmadeonaCommunitybasis,couldhavean
immenseeffectinouroverallrelationship withotherindustrialized
countriesandhelptogivetheEuropeanaircraftindustryareason­
ablepositionagainintheworld.
-Asregardsthedevelopingcountries,whichrepresentanimportant
marketfortheEuropeanaircraftindustry,Community-type export
financingoperationsmightprovenecessarytomaintainandexpand
theactivitiesoftheEuropeanindustryinrelationtothismarket.
(b)Communit^_Interyent2on__in_the_Field_of_Industr2a_l_Technolo2 ^
ProvisionisalreadymadeintheCommunityBudgetforintervention
inthisareaandtheCommissionhasalreadypresentedproposals.The
aimisnotsomuchtotransferthistypeofoperationfromtheMember
States'BudgetstotheCommunityBudgetbut,rather,tosupportpro­
jectsplannedonabasisofindustrialcooperation andwithaviewto
increasingintra-Community cooperation whilerationalizing theuseof
publicmoney.

Annex
CurrentEuropeanProqrammes
1.TheAirbusProgramme
RecentsuccesseswiththemarketingoftheB2andB4Airbus,
andtheprospectsopenedupbyitsfirstpenetration of
theU.S.A.market(EasternAirlineshavingordered23A300B4,
withoptionsonafurther9B4splus25B10s)makeitpossibletoconsiderlaunchinganewsmaller214-217seaterversion^
(theA300/B10)inashort-haul(3300km,1800n.m.)model
andamedium-haul (5370km,2900n.m.)model•This
machinewouldrepresent aconsiderable technological advance,
particularlyitswingsandcertainelectronicequipment,and
wouldhavederatedornon-derated enginesinthe20t
category.Itwouldcomeintoservicein1982.Estimatedtotal
demandprospectsuntil1990forthecategoryofaeroplane
represented bytheB2,B4andB10Airbus,andthesales
prospectsforthelatterwouldbeasfollows,accordingto
industrial sources :
Europe USARestofthe
WesternWorldTOTAL
Totaldemand 450 1000 550 2000
Salesprospects 250 150 200 !600
(1)
(2)Singleclass,witha34"seatpitch
TheBoeing767project,atwin-engined 190/220seaterwill
beaseriouscompetitor.

-2-
2.TheJETProgramme
JEToriginally wastheJointEngineering Teamsetupbythefoursystemsmanufacturers(1^,BritishAerospace,Aerospatiale,
M.B.B.,VFW-Fokker,tostudyashort/rnedium-haulnarrow-bodied
aeroplaneequippedwithtwoenginesinthe10-14tthrust >«
category.Thesamelettersarecurrentlyusedtoidentifythis
aircraft(JointEuropeanTransport).TheFranco-American CFM56
engineissuitable,asamoderntechnologyengineforversions 11
(JET1)and(JET2)(seebelow)ofthisproject.
Thefourcompanieshavepreparedaninitialdesignforan
aeroplanewhichwouldsatisfythemarketneedsevaluatedby
anotherworkingparty,theJointMarketingTeam,andjoint
teamsarecurrentlymarketingthisprojecttotheairlines.
Thisaircraft,whichwouldcomeintoserviceatthebeginning
of1983couldbeproducedintwodifferentversions,a336
seater(JET1)anda163seater(JET2),tomeetthedemand
whichisrepresented bythesecapacities.Theirrespective
rangeswouldbe2400km(1300n.mJand3100km(1700n0m.)
Worldwidemarketforecastsforthiscategoryofaircraftupto
1990andthesalesprospectsforthetwoversionsoftheEuropean
projectwouldbeasfollows:
Europe U.S.A.Restofthe
WesternWorldTOTAL
Totaldemand
Salesprospects■400
200400
80-100(3)400
100-1201200
380-420
S
1
fc
ThebasicmodelwouldbetheJET2whichisintendedtomeetthe
requirements ofmostairlinesandwhoseseat/milecostis
optimisedforshortandmediumranges.ThesmallerJET1,which
couldbeavailableconcurrently,wouldbeaimedatthose
companieswhoneedareducedcapacitywithloweraircraftmile
cost.
(1)Thisiswhattheaircraftmanufacturers arecalledintheircapacity
asdevelopersofasysteminwhichdifferentcomponentsareintegrated :
airframes,engines,equipment.
(2)Singleclass,34"seatpitch.
(3)ThetwinenginedBoeing757,developedfromthe727/737with160/180
seatswillbeaseriouscompetitor.

Progressive increaseintheCFM56enginethrustwouldLeadinitially
toincreasedrangefortheJET2,andthensixyearsafterentryinto
serviceeithertoaJET2withthesameseatingcapacitybutarange
of4400km(2400n.m.),ortoastretchedaircraft (JET3)carrying
188passengers upto3300km(1800n.m.).Thisaircraftcouldalso
usetheRolls-Royce RB211-535engine.
Thetrendemergingcantherefore besummarized asfollows:
(i)TheEuropeanaircraftrangemightlooklikethis:
SeatingCapacity
SingleClass
(34inches)Ran
kmge
n.m.
JET1 136 2400 1300
JET2 163 3100 1700
(JET3) (188) (3300) (1800)
A300B10 214-217 3300-53701800-2900
A300B2 269 3300 1800
A300B4 269 4600 2500
Asithasbeendecidedtodevelopalonger-range versionof
theA300B4,theEuropeanrangeofaircraftwouldofferan
amplespreadofcapacities andranges,from136seatsand
2400km(1300n.m.)toabout269seatsand5500km(3000n.m.)
andtheairlineswouldhaveattheirdisposaltwobasicaircraft
(AirbusandJET)eachofferingdifferentcapacities andpei–
formances,withthecommonality ofequipmentextendingthrough­
outtherange.Thiswouldtherefore beawayofsatisfying the
airlines' mostkeenlyfeltrequirement,i.e.,averylarge
measureofhomogeneity inthedifferenttypesofaircraftmaking
uptheirfleets.
Thisstrategywouldtherefore maketheaircraftmorecompetitive
andmoreprofitable,essentialprerequisites tothelaunching
ofprogrammes .
(ii)Toensurethatsucharangeofaircrafthasmaximumcredibility
onthemarket,eachofthemmustbepartofasinglecooperative
structure (notonlyformanufacture butalsoformarketing),the
featuresofwhichareatpresentbeingstudiedindepthbythe
companies concerned.

-L-
TheirpresentLeaningsaretowardsusingthestructureofAir­
busIndustriewhilstmodifyingittotakeaccountofnewrespon-
sibiLities.
Thesharing-out oftheworkandthefinancialoutlayinvolvedarealso
beingstudiedanddiscussedindepth.Theproblemistostrikeafair
balancebetweenthepotentialpartners,abalancewhichcanbe
established onlybytakingintoaccountthewholespectrumofthe
familyofaeroplanes.
4.SmallerCapacityAircraft
Itshouldbepointedout,however,thatthisbriefsketchofthe
situationhasleftoutthequestionofaEuropeanpresenceinthe
categoryofsmallturbo-jetaircraftwithacapacityofupto110-120
seats.
Inthiscategorynoadvancehasbeenmadeinthesituationdescribed
inthereportof16February1977bytheWorkingPartyonEconomic
QuestionsoftheCounciloftheEEC.Onthecontrary,accordingto
availableinformation,BritishAerospacehasaskedtheGovernment
toparticipate inthefinancingofthedevelopment oftheHS146.
ThusboththeHS146.(four-engined 70/100seater)andtheFokker
F28Super(twin-engined 100-120seater)arestillonthescene,
togetherwiththeF28andthereseemslittleseriousprospects
ofajointresponsetothismarketrequirement .Trieperspectives
oftheF28Superwouldbealsocompromised bythelaunchingofJET1.
Thisisallthemoreregrettable sincethemarketprospectsdonot
indicatethatduplication-whichtheMemberStatesallegedlywantto
eliminate-willnothaveadverseeffects.
Meanwhile,thecancellation oftheVFW614Programmeshouldprovide
somefoodforthoughtaboutthechancesof'economicsuccessinthe
smalljetaircraftsectorandshouldalsopromptthequestionwhy
Europeanindustrialists seemtohavelostinterestinnewturbo-prop
machinesforlow-density,short-haultraffic.
5.TheEngines
TheEuropeanaircraftengineindustrywhich,inviewofthelong
productionseriesrequiredtoreachbreak-evenpoint,mustinthefirst
instanceseekaworldmarket,hasarangeofenginesandprototype
capableofmeetingtheneedsoftheprojectsdescribedabove.
AtpresentGeneralElectric'sCF6isbeingusedintheB2andB4
versionsoftheAirbusbuttheRolls-Royce RB211-524couldequallybe
installedintheB2,B4andB10versions.TheRB211-535versionof
theenginewouldbesuitableforboththeJET3andtheplanned
Boeing757.TheRolls-Royce RB432enginewouldsuittheF28Super.
Finally,theFrench-American CFM56(SNECMA/GeneralElectric)isbeing
consideredforJET1andJET2andultimatelyfortheJET3.