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New A400M Freighters

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Old 15th Dec 2004, 05:58
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From The Citizen - 15th December 2004

Govt defends R8bn planes deal
CAPE TOWN – The government’s main intention in the R8bn A400M Airbus programme is not to acquire aircraft but to participate in their design and manufacture, says the secretary for defence.
The secretary, January Masilela, said in an affidavit filed in the Cape High Court on Tuesday that the government intended to sign not a supply contract, but a “declaration of intent” to take part in the design and manufacture.
The affidavit was in response to an application by Terry Crawford-Browne of Economists Allied Against Arms Reduction for an order restraining the government from “signing and concluding supply contracts” for the aircraft.
It was reported last week that the government intended to acquire a fleet of massive, highly sophisticated military transport aircraft as the logistical platform for peacekeeping operations.
Crawford-Browne said in his founding affidavit that even with offsets, the deal was “clearly economically irrational”, as there was no plausible threat to South Africa that could be addressed by such equipment.
He has asked the court to find that “the offsets” do not meet the constitutional requirements for government procurements of a system that is fair, competitive and cost-effective.
However, Masilela said because the government was only about to sign a declaration of intent, a bid to interdict the signing of “supply contracts” was premature.
He also said that the programme did not have offsets because South Africa would be not the acquirer of weapons, but the manufacturer.
He said Airbus Military recently approached South Africa and invited it to participate in the A400M multi-role mission transport aircraft design and manufacture programme.
“This approach by Airbus should be understood against the backdrop that South Africa had identified Europe as a source of accessible and appropriate technology and expertise, which could be used to the advantage of South African industry as well as a partner in the promotion of democratic values in the global order,” he said.
South Africa developed a significant skills base in the aerospace industry in the 1970s and 1980s.
Without growth in the industry, these skills were in danger of being lost.
“This is not an acquisition programme or venture, which requires tenders and observance of section 217 of the Constitution,” he said.
“Airbus is the only aircraft manufacturer in the last 40 years, which is involved in the manufacture of large aircraft for military and civilian purposes.
“When they invite South Africa to participate in the venture, South Africa must either accept or reject the invitation.” – Sapa.
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Old 15th Dec 2004, 13:45
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News24

Govt signs mega aircraft deal
15/12/2004

Pretoria - The government signed an aviation deal with European aircraft manufacturer Airbus in Pretoria on Wednesday, which could benefit the economy by between R6bn and R15bn.
"At this stage it's difficult to say exactly by how much the country will benefit but the ball park figure will be between R6bn and R15bn," said Public Enterprises Minister Alec Erwin.

The deal, which sees local aviation companies become global partners in the building and design of the new A400M military aircraft, will also allow South Africa to purchase between eight and 14 craft at a later stage.

Erwin said participating in the programme would boost and revitalise the local aerospace industry.

The A400M, which would ultimately replace the SA National Defence Force's ageing C130 transport fleet, is set to be in full production by 2009.

Defence Minister Mosiuoa Lekota said the acquisition of the aircraft would greatly benefit not only South Africa but Africa.

He said the country had a large role to play in peace support initiatives and disaster management, which was costing "huge amounts of money" because flights had to be chartered.

"This deal will go a long way to equip our forces in the region," he said.

The SANDF's current military transport and airlift capacity is carried by a small fleet of nine Hercules C130 aircraft which are due to be replaced by about 2010.

Partner for life

But the deal was described as not only being of military value but also economic.

Francisco Fernandez Saintz, managing director of Airbus Military, said the company had already confirmed orders for 180 aircraft to be built - a process in which South Africa would be completely involved.

Richard Thompson, senior vice president, commercial, said South Africa had become a global partner in a "benchmark programme" which would see new military aircraft designed and built through a non-military process that would incorporate cutting-edge technology.

Local companies Denel and Aerosud have been named as contributors because of their existing experience and capability in aircraft manufacture, but Thompson said that as the process moved forward more companies would be contracted.

"The C130s lasted for 50 years. There is no reason why the production life of the new planes won't be as long," he said, explaining that South Africa would be a partner for life.

The agreement states that as the programme matures between 2010 and 2014, South Africa would be allowed to take delivery of between eight and 14 aircraft. Eight aircraft would cost €837m (R6.4bn).

The A400, an all-new four-turboprop aircraft that's currently in development, is expected to make its maiden flight in early 2008, with deliveries to the air forces of partner countries starting in 2009.

The deal is the first commitment for the aircraft from a country outside the group of seven European launch nations.

To date, Airbus Military has booked 180 firm orders from partner countries: France, Germany, Spain, Belgium and Turkey.

Airbus, which is 80% owned by European Aeronautic Defence and Space Co and 20% by BAE Systems, has a 64% work share in the A400M.
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