Aeronautics, a major stake for our region

When we talk about aeronautics in our region, we revive the traditions that thrive since the first
seaplane flight of the pioneer Fabre on the Berre Lake and the creation of the airport in Marignane, indeed happy times when everything was yet to be conquered. Since then, many things have changed and the
airport has taken on an important place in the development of the region by welcoming numerous companies.

The various names of the aeronautical companies working alongside this big runway gave birth to the world's greatest helicopter constructor, while Toulouse, the airmail birthplace, gives birth to the world's largest passenger plane, the A380, and the entire sector of activity including subcontracting generates roughly 150.000 jobs. This progressive evolution took place so quietly, without any disturbance, that it was not even noticed; we could almost have wondered if it was still present. Then all of a sudden, on the occasion of attributing a label, it reappeared: "Pegasus" is here. It is supported by Eurocopter, the subcontractors, and all the economic and political actors adhere to it. The region resumes its place and even more, because it leads to an agreement between three competitiveness clusters of the aeronautics field: Aerospace Valley, AS-Tech and Pegasus, which grouped together will represent one of the most impressive creative and industrial forces of this sector in the world.

A regional SME is honoured

This union offered the opportunity to the Prime Minister to honour one of the leading aeronautic subcontractors of our region with his visit. Indeed, the company PMA, specialised in treating surfaces, led by Eric Bonnans, has secured a firm foothold on this field thanks to its professional skill. This company is a 100 % subsidiary of Bonnans Holding, which owns two other companies, Prodem, near Toulouse and S.I.I. in Marseille. The visit of the Prime Minister, François Fillon, was indeed a well-deserved honour for Eric Bonnans who, despite all the turpitude and difficulties that a manager may experience, has succeeded in taking over and revitalizing the family business, present in Marseille since 1921, thanks to a great deal of work and self-abnegation, and today it employs 124 persons. The Bonnans group is of course a member of the Pegasus competitiveness cluster.
Following this visit, the Prime Minister went to Eurocopter where he was welcomed by the CEO, Lutz Bertling. After a scrupulous visit of the assembly lines of the worlds leading helicopter manufacturer, and having greeted all the politicians and institutional representatives of the department, the Prime Minister took place at the speakers' pulpit.

Aeronautics, a true global stake

Everybody awaited a favourable comment for the development of the aeronautical field, but nobody dared to wager on a precise axis. The SME's that were present were eager to take part in the discussions. As every time when an influential personality comes to talk on a subject that involves the industrial future of a field, the participants are very attentive. The Prime Minister did not disappoint them…
Indeed, he began by expressing his pride and interest in visiting the production lines, indicating that if they make the reputation of Eurocopter, they also contribute to make Marignane the world helicopter capital. He greeted the workers, the technicians, the designers and the engineers, "whose professionalism and spirit of innovation are the essential trump cards of the aeronautical field," he declared, before adding : "Here, I see France working and undertaking to rank among the leaders." The tone was set, the real speech could begin… It seems evident that if he was eager to attend the signing of the agreement between the three poles, it is a sign that the government intends to mark the importance of applying a strategy that could enable us to be, more than an element in the field of world aeronautics, a leader. "Research and innovation are the keys to future prosperity, the key to employment, the key to growth which needs to be enriched by our industrial capacities. To accompany the development of the aeronautical field, the State intends to give this strategic sector the necessary tools to achieve its ambitions."

Upon this statement, everybody opened their ears, eager not to miss a single word of what was to follow. The first of these measures is to massively support Research and Development, to make French economy become competitive. "That is why we radically reformed the research tax credit" declared François Fillon, before completing: "In due time, 2.7 billion euros will be dedicated every year to the companies that go into research. It is an unprecedented effort. It will benefit the aeronautical field for which the "brain war" is decisive." He then became more precise in his speech, recognizing the need for modernising the field and experimenting new methods of organisation, while taking into account the necessity of boosting the subcontractors. He confirmed the desire and absolute necessity to preserve the bases of industrial production in France and to develop them, which is essential today when companies are becoming international in a context of fierce competition. "In this spirit, the government has decided a plan to support the aeronautical field, based on four objectives," resumed François Fillon before adding: "The first aim is to strategically help the field to become structured, because we must have sufficiently strong companies to face competition."
It is true that Airbus should offer opportunities to the "rank 1" subcontractors, notably those who will be capable of conceiving and making vast subsets for tomorrow's aircraft. For that, the development of these companies must be a priority, because they guarantee maintaining the subcontractors in our country. Secondly, the aim to increase the Airbus production concerning the A320, which should attain 40 aircraft per month, and beginning the production of the A380 should represent about 90 % of the work load that the suppliers will have to absorb between 2006 and 2010. The message is clear: the challenged proposed to the SME rank 2 subcontractors and the others, is to succeed in answering this demand, while preparing the future that is taking form with the A350 program.

On the basis of these reports, the government has decided several types of action, as François Fillon explained: "Our companies need advice and expertise. For this, we are going to finance individual strategic diagnoses in about 200 SME's, to facilitate their adaptation to the increased workload and to the reorganization of the field. A sum of 50 million euros will be mobilised to offer various measures to help small and medium-sized firms. Two other new specific financial devises will be created: a guarantee fund in which Airbus will participate, intended for the SME's of more than 250 persons, to facilitate their access to the loan. It should amount to 10 to 15 million euros, permitting to guarantee between 70 and 100 million euros. Furthermore, a capital development fund will be dedicated to the aeronautical SME's to support their development. Its vocation will be to accompany the growth and the emergence of companies capable of becoming essential partners of the field. In the first stage, it should gather together about 100 million euros, brought notably by the manufacturers of the field and the financial investors. "
The Prime Minister then moved on to the subject of employment, announcing several measures to accompany the subcontractors in their efforts of adaptation, so that they no longer suffer from the ups and downs of the order books and technological evolutions. This implies framework agreements to be concluded between Airbus and its subcontractors, the various approved collecting bodies (OPCA), the concerned local authorities and public employment offices.

The third objective announced by the Prime Minister, was more specifically aimed at the Rank 1 subcontractors in the field of "aero-structures," who constitute an essential link within the aeronautical field. This particularly concerns the A350 programs and the successor of the A320 in the medium term, for which Airbus has already begun the development and which represent a major stake for their future activity. Indeed, the production of the aero-structure elements of this aircraft will furnish a workload for the next thirty years. We understand better the interest of this sector and we are not surprised to note that the government wants to accompany its development by mobilising all the competent financial and industrial actors, whilst approximately 100 million euros of public credits will come in support over the next five years.
The fourth and last objective, explained by François Fillon, concerns a strong sector-based support for research and development. Indeed, the combination of public credits and the research tax credit should offer a considerable capacity of action. On the one hand, about 150 million euros will be mobilized in 2008 in the form of different direct assistance, while the research tax credit should also be in the region of 150 million euros. This new effort should be long lasting. "For the Airbus sector alone, about 100 million euros will be annually mobilised for direct assistance in R & D. It is totally innovative; we have virtually multiplied our efforts by four, which makes us leader of the concerned European countries," completed François Fillon, before concluding: " I shall make sure that this effort entices our partners of the Union."
A very busy day, and since it was dedicated to "An ambition for the aeronautical field" it certainly pleases us. But as we do not want our aeronautical expertise to leave for other horizons, we shall remain vigilant, because it's great to be the world's leading helicopter cluster, but to remain so and in our region is even better !