Identifier
Created
Classification
Origin
07BRUSSELS843
2007-03-13 16:27:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Brussels
Cable title:  

Belairbus Copes With Airbus Restructuring

Tags:  EAIR EIND EINV BE 
pdf how-to read a cable
VZCZCXRO4105
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHBS #0843 0721627
ZNR UUUUU ZZH
R 131627Z MAR 07
FM AMEMBASSY BRUSSELS
TO RUEHC/SECSTATE WASHDC 4647
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/FAA NATIONAL HQ WASHINGTON DC
RUCNMEM/EU MEMBER STATES COLLECTIVE
UNCLAS BRUSSELS 000843 

SIPDIS

SIPDIS
SENSITIVE

STATE PASS USTR
STATE FOR EB/TRA, EUR/ERA AND EUR/UBI
USDOC FOR 3133/USFCS/OIO/EUR
FAA FOR DKRIMSKY AEU-10

E.O. 12958: N/A
TAGS: EAIR EIND EINV BE
SUBJECT: Belairbus Copes With Airbus Restructuring

REF: 06 Brussels 3531

UNCLAS BRUSSELS 000843

SIPDIS

SIPDIS
SENSITIVE

STATE PASS USTR
STATE FOR EB/TRA, EUR/ERA AND EUR/UBI
USDOC FOR 3133/USFCS/OIO/EUR
FAA FOR DKRIMSKY AEU-10

E.O. 12958: N/A
TAGS: EAIR EIND EINV BE
SUBJECT: Belairbus Copes With Airbus Restructuring

REF: 06 Brussels 3531


1. (SBU) Summary. The consortium of Belgian companies
producing parts for Airbus, known as Belairbus, claims it
has taken steps to minimize the impact of Airbus
restructuring program. Maintaining the competitiveness of
the companies is key, as well as diversification in both
products and customers. The Belgian government has
agreed in principle to a reimbursable aid program for
Belairbus for 150 million euros to help Belgian firms
corner a share of the downstream production orders. End
Summary.


2. (U) In response to Airbus' announcement of a major
restructuring program, Belairbus says it has already
taken steps to meet future Airbus plans to distribute
greater subcontracting and design investment
responsibilities. Belairbus, an associated partner of
Airbus, is the collective of three companies, Sonaca,
Eurair, and Asco Industries, which design, manufacture
and assemble parts for Airbus, as well as Boeing. The
consortium claims it has already adjusted prices, and is
taking steps to cut costs, as it knows that Airbus will
be increasingly looking for more competitive
partnerships. Belairbus will also continue its
aggressive research in composite materials because it
supplies Boeing as well, and Boeing is shifting towards
carbon fiber composites in construction in order to
decrease plane weight. Airbus is also looking to
increase its use of composites in its 350 model design.


3. (SBU) According to Flemish Business daily De Tijd,
Federal Economics Minister Marc Verwilghen is prepared to
push for funding from the federal budget to assist
Belgian companies participating in A350 development. The
government previously made an agreement in principle for
a 150 million euro reimbursable aid package for non-
recurring costs of development relating to the A350 by
Belgian companies. The Belgian contribution to the A380
superjumbo was 195 million, not all of which was
disbursed.

IMBRIE