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Dassault Threatens to Exit EU Combat Jet in Spat With Airbus

Talks between the French company and the German and Spanish arms of Airbus have reached an impasse.

Dassault Threatens to Exit EU Combat Jet in Spat With Airbus
A French Air Force Rafale fighter jet manufactured by Dassault Aviation SA. (Photographer: SeongJoon Cho/Bloomberg)

Dassault Aviation SA threatened to pull out of an alliance with Airbus SE to develop a future European fighter jet, in an escalation of the drawn out dispute between the two defense contractors over leadership of the project.

Talks between the French company and the German and Spanish arms of Airbus have reached an impasse and an agreement on moving to the next phase still hasn’t been signed, Dassault Chief Executive Officer Eric Trappier said at a press conference outside Paris on Friday.

The Germans “have to trust this new team, including the leader of the team, which is Dassault,” he said. “If this isn’t the case, it’s better not to go.”

He added that he won’t accept any co-leadership organization. “I won’t do it,” Trappier said. “We’re hitting up against that.”

A Dassault exit would be a significant setback for a project touted as a symbol of European Union cooperation just as war erupts on the continent. Germany’s landmark decision to massively raise military spending in the wake of Russia’s invasion of Ukraine could have been expected to staunch the bickering, but that hasn’t yet proved to be the case. Trappier’s comments indicate the divide may be widening.

The combat plane project, known as the New Generation Fighter, was first mooted by former German Chancellor Angela Merkel and French President Emmanuel Macron in 2017, following the 2016 decision by U.K. voters to leave the EU. The program has been paralyzed by months of infighting between the leading industry suppliers. 

Dassault joined the program on the condition it received certain commitments from Airbus, Trappier said. 

“The first one was the leadership of Dassault in the architecture of the future fighter, the second is that the flight control system is for us,” the executive said. “These were the two red lines.” 

Staying Committed

Airbus has made several proposals to find a solution “which will respect both the skills of each partner and the lead role of Dassault Aviation,” a company spokesman said. The Toulouse, France-based planemaker is confident a solution can be found if these aims are followed, he said, adding that Airbus is committed to the project.

In the current generation of warplanes, France went with its own fighter, Dassault’s Rafale, while Airbus teamed up with the U.K.’s BAE Systems Plc for the Eurofighter Typhoon. 

German Chancellor Olaf Scholz and other political leaders have reiterated the importance of the Franco-German collaboration, especially in light of Russia’s military buildup and subsequent invasion of Ukraine. 

“That is why, for example, it is so important to me that we build the next generation of fighter jets and tanks here in Europe together with European partners -- and France in particular,” Scholz said in a speech last Sunday.

While Dassault is the industrial leader of the New Generation Fighter, there is disagreement over what exactly that means.

Airbus CEO Guillaume Faury said last month there are complex discussions about “the work share, the lead share, the responsibilities of both companies.” 

He told reporters that it isn’t uncommon to debate these points before reaching such a large deal. “Is failure to reach an agreement an option? That’s not the way we look at it,” Faury said.

Russia’s Invasion 

The new combat jet isn’t expected to enter service until about 2050 due to delays, Trappier said, adding that Russia’s invasion of Ukraine “could facilitate” dialogue on the project between European governments. 

BAE has a rival fighter jet program called Tempest, unveiled in 2018, with partners including Rolls-Royce Holdings Plc and  Leonardo SpA. It targets joining the Royal Air Force fleet from 2035.

Many in the industry see the two projects ultimately combining, though Trappier has ruled out cooperation with the U.K. He reiterated he has a ‘Plan B’ for the future combat jet, without providing details.

©2022 Bloomberg L.P.