The chief executive of aerospace and defence giant Airbus, Tom Enders, has revealed that he is open to establishing a European mega-merger that would produce a military aircraft firm with the strength to compete with the United States.
The Sunday Times revealed on Saturday that Enders said that it was due time to “seriously look at consolidating and coalescing efforts” into establishing one body.
Enders was able to get the chance to examine the futuristic jet fighter of BAE that is known as the Tempest. Last week, it was unveiled to the international defense and aerospace industry and the company is planning to send into the skies by 2035.
The news comes after BAE Systems after it called for help to manufacture its designs for a new jet fighter during the previous week, in a project that coss more than £10 billion which has received only £2 billion in funding from the Ministry of Defence so far.
In 2012, Airbus tried to establish a merger with BAE to the tune of £34 billion, however, it was rejected by Angela Merkel, the Chancellor of Germany, over concern of Airbus expanding too heavily into the defence industry.
The said proposal would see the military aircraft divisions of BAE, Airbus, France’s Dassault, Italy’s Leonardo, and Sweden’s Saab all combined to form one effort.
Enders stated: “There’s no room for three different programmes, not even for two. We really want the next generation to be competitive with the Americans and we need to consolidate that into one. That is the imperative.”
He further added that the key players must “align industrial forces to create one big program” that could have “a significant chance of winning big export orders outside Europe.”
He concluded: “If you look at how the world develops, it makes a lot of sense, irrespective of political divisions we might have in Europe, that the major industrial forces of the continent work together.”