INTERVIEW/Serge Durand(Airbus): We've been here for five decades; if Romania wants, we stay five more

Airbus has been in Romania for five decades and "should Romania wish so", it can stay for another 50 years, Serge Durand, the head of Airbus Romania told an interview granted to AGERPRES.

The head of Airbus Romania also talked about the threshold of 16 helicopters that Romania should order so that the assembly activity of the aircraft in the Airbus plant in Brasov can begin. Thus, he referred to what former French President Francois Hollande had said at the inauguration of the plant in Brasov two years before.

"He said that if Romania orders H215M, this will certainly be a signal for the international market. Confidence in a product comes when a product is bought by the country where it was created. This is the reason why we established this threshold - 16 H215M, military helicopters. This is the threshold set by Airbus from an industrial, economic perspective in order to start producing this type of helicopters in Brasov," Durand brought to mind.

Airbus' representative also mentioned a more recent agreement on this topic, which stipulates that the Romanian company IAR is the prime contractor for the Romanian Defence Ministry, to supply H215M.

"Prime contractor means that we will call the aircraft IAR/H215M. It will be a Romanian product," Durand said.

AGERPRES: In a previous interview you said that Airbus considered Romania as an inconstant country...

Durand: It was a personal remark. From 2015 until now, I've met five prime ministers, but globally, the Airbus point of view, Airbus is a really constant and stable company in Romania, since 1968 Airbus is in Romania, so I would say on the contrary, that Airbus is stable on the long term in Romania. This is my message.

AGERPRES: Did you see any points of instability in Romania, as a company here?

Durand: In industry, we think long term. We think in long cycles. We have been there since almost five decades, and if we Romania wants, we will stay for another five decades. We have a lot of opportunities. We propose a lot of opportunities to Romania. We don't want Romania missing this opportunity.

AGERPRES: The assembly line for the H215 helicopters was inaugurated by Mr. Francois Hollande, the French president, in 2016. At that point, in his opening remarks, he talked about the future. Could you outline what things he talked about?

Durand: Yes, the main message from Mr Hollande was 'We are here to serve the Romanian market, but mainly, the worldwide market. So what Mr. Hollande said, I remember very well, he said that if Romania orders some H215M, this will be, of course, a strong signal to the worldwide market. To be confident in the product, the product must be bought by the country in which it is designed. So that's why we put this threshold which is known I guess, 16 H215M military, is the threshold that Airbus, industrially and economically speaking, is putting to start the manufacturing these helicopters in Brasov, which is not a lot, because if I listen to competitors, I'm hearing 45 helicopters, it's not the same. So I want to send a strong message not to compare apples with pears, because when looking at the Airbus offer, this has nothing to do. So this is something I want really to be in the interview, to compare really what is comparable. The Airbus offer is outstanding, and I don't want Romania to miss this opportunity. I have a lot of figures to quote if you want to.

AGERPRES: You talked about 16 H215 helicopters, for military use.

Durand: When you start in this plant, you need the same type of helicopter, we produce in the same scheme, and so we say 16, which is to me, not a big figure, considering the stakes, and at the same time, and this is also important to me, we had in the meantime, not with President Hollande, but with President Macron, in August, last year, signed a very important agreement, in front of President Macron, in front of President Iohannis, and  with full agreement of the Minister of Economy and Prime Minister of Romania, which is a 15-year exclusive agreement with our long term partner, IAR in Brasov, which means that for 15 years we are married to put IAR as prime contractor to the Romanian Ministry of Defence, to supply with H215M, which is a lot, prime contractor meaning that it will be called IAR-H215M. This will be a Romanian product. As in 1968 we decided to put IAR - 330, meaning Puma, and all in all at IAR they manufactured 365 helicopters, a lot have been exported, a lot are still flying in the world, so we are so reliable partner for Romania that we want to give this message: don't miss this opportunity, as Airbus is a strong partner, and this 15-years exclusive agreement is on multirole medium heavy helicopter, in the class of H215M, and so IAR, and I saw that also in an interview, that our competitors said that "we will manufacture with IAR multirole helicopters in Brasov". It's legally impossible, ask my partner, IAR, there is a contract, which has been signed in front of two presidents, so a contract is a contract, so for 15 years in Brasov, with IAR... it is an exclusive multirole medium heavy helicopter, so a word is a word. If you want to ask my partner, I would be pleased, because we have a good relationship, locally, we are working together on a daily basis, we have the same technology, we have people we exchange on a daily basis, we exchange methodology, we exchange processes, we exchange tools, we exchange students. This is a cluster. If you visit us in Brasov, and please, I invite you, you will see this is the aeronautical cluster, there is IAR, there is Airbus Helicopters Romania, there is Airbus Helicopters Industries, not yet started, and there is Premium Aerotec, which is Airbus. All in all, Airbus Helicopters, Premium Aerotec, which is Airbus, and also Airbus Defence and Space, which has a big design office in Bucharest. Airbus is contributing to the country for 6,300 direct and indirect jobs. Please ask the competition what they do...

AGERPRES: When you talk about the competition, do you talk about a particular firm, or do you talk about the competition in general?

Durand: In general, competitors. We are the sole helicopter manufacturer and big company in Romania, as a partner, so it has to be considered. That's why, when you read a lot of things, the only thing we want is open competition. We want to put on the table our products, what is our footprint in Romania, for 50 years, what is our contribution to the Romanian economy, to Romania's jobs, to Romania's education, we currently have 150 students in Brasov, which are sponsored by Airbus, in 'Transilvania' College, on Airbus technology, so they have everything which is Airbus, they are working on Airbus aircraft, they are working on processes, they are working on Airbus tools, and we sponsor, so we invest in the future... 150 students is a lot, because this is a highly specialized job. When I look in the press and reading of other competitors stating that they would do a lot, I don't care that they do, we are doing for 50 years. And so, on one side, promises, and on the other side, strong facts. This is something, and since the visit of President Hollande, there were some promises, to Mr. Macron as well. I would say that Romania has missed opportunities, because in the meantime, the H215 is sold in the world. We sold a lot, and there are manufacturers in France, because, you know, this threshold is not met. So, what is missed is opportunity to manufacture the H215 in Brasov and to export from Brasov in the world, this IAR-H215M, once again, IAR, meaning Romanian helicopter. So what is the stake for Romania? It is to belong to a very, very select club of helicopter manufacturers, which are not a lot. This is what Airbus offers.

AGERPRES: You were talking about missed opportunities. Is this a missed opportunity forever? Or is it still in discussion?

Durand: It's still in discussion. That's why I say, yes, Romania has missed opportunities, but it's not over. I hope, I do hope, this is my job, that's why I'm here since 2015, that will not be missed. This is my message.

AGERPRES: Because in spring one of the leaders of Airbus was quoted in the French press saying that Airbus is even considering withdrawing from the Romanian market. Are things different now?

Durand: Everything is on the table. We are an industry, we have a big industry, we have an interest, stakes, all over the world, so we offer big opportunity, and, once again, it must not to be missed.

AGERPRES: On the Airbus Helicopters in Romania there are announcements of hiring. Could you give me numbers?

Durand: In Brasov we have Premium Aerotec, which is employing around 1,000 people, in Airbus Helicopters, which would bring around 200 people, so there is a continuous renewal of the staff, people who retire, people who are replaced, which also corresponds to growth, and if we speak about Airbus Helicopters Romania, which has been a company that has been created as a joint venture with IAR, (49, IAR-51, Airbus), we are a worldwide success. In 10 years Airbus Helicopters Romania has provided the turnover of 300 million euro, which is shared in half, you know, of the benefits. And at the same time we exported 70-75 percent of what we do. Currently, we have aircraft from French Air Force and Army, we have Finnish Border Guard, which will be delivered in December. I invite you to come in December for the ceremony of delivery of this Super Puma which will be transformed into H215 for the Finnish Border Guard, an important, very dynamic customer. We have aircraft from Djibouti, Gabon, from Emirates, we have aircraft from Romania, from Hungary, so a lot. So this is a company that is working worldwide, so we are contributing to the export figures of Romania. This has to be considered. That's why I want an open discussion, talk. If we compare really a pear to a pear, not an apple to a pear, we will really see, understand, a big, big difference, which is in favour of Airbus. This is not because this is my company, because there are figures, there are facts, and not speaking on promises, but we are speaking on facts, that's what makes the difference. When I am sponsoring 150 students, I am preparing the future, because it is a long time to train a worker in the helicopter industry. That's why we need to invest in the technology.

AGERPRES: The 150 students sponsored by Airbus will be hired by Airbus?

Durand: If the development is confirmed, of course. We bet! It's a bet.

AGERPRES: When talking about investments in Romania, great French investors, such as Renault, also talked about the Romanian infrastructure, which is far from being perfect. How does this affect you, Airbus?

Durand: You want the truth? Yes, it doesn't affect us. Of course, if there is a new motorway, it's welcome. If there is a new airport in Brasov, it's welcome. But, until now, I cannot tell that this lack of infrastructure has stopped us to invest. It will be better, but it has not prevented us to develop our company in Brasov, because the center of gravity of aeronautics is in Brasov, and, yes, personally I would come easier to Bucharest, but to be really honest, this is not affecting our business.

AGERPRES: Could you take about Airbus' investments in Romania until now, and the projections of the investments in case Romania does not miss the chance?

Durand: The chance is to become one of a select club of helicopter manufacturers in the world. If we don't reach this threshold of 16 H215M, of course, the opportunity will disappear, so the message is yes, I am confident in the future, because when I look at the figures, when I look at history, when I look at the partners, it's obvious. I would like you to also consult in interview my aeronautical partners, because it's not like in one day that we start such a partnership. We have four decades of partnership with IAR, but with also with the company, which is performing well in Bucharest, Turbomecanica, for the engines, but also another company, which is Aeroteh, in Bucharest, but also Aerofina for avionics, Comoti for research, and so on, and so on. It's also interesting for me to have the opinion of our industrial aeronautical partners, because we are in a network. So, all in all, we are working together, with one technology, with processes. So this is something that has to be considered. That's my insight.

AGERPRES: You were talking about the threshold of 16 H215M helicopters, assembled here in Romania. What are the figures for this? Until what time? In how many years will they be, for you, projecting?

Durand: In aeronautics we have only long cycles, so let's imagine that for these 16 are ordered by the end of the year, we would probably need a couple of years or three years to be fully operational, to deliver these, because we have to put everything in place, but most important is IAR, our partner, which will be the prime contractor, has to install everything in its design office, in its premises, because becoming prime contractor is a big responsibility, and so we are currently working hard, and also it takes time, we work hard for 2 years to put in place the processes, what they will do, what we will do, how we will deliver, how we will customize for the need of the Ministry of Defence, so this takes time. This is not short-term decision, this is a long process, and fortunately, we have worked for such a long time together, we are so close in the processes, that, of course, if takes a lot less time than with any other competitor.

AGERPRES: Romania allocated 2 percent of the GDP for the Defence infrastructure, and the Romanian Government chose the American side in talking about investments. Does the French side see it as a disappointment? How do you deal with it?

Durand: Frankly speaking, as a European citizen, it could be better balanced, it could be really better balanced. I don't have all the figures in mind, but roughly, between 90-95 percent of all purchases are going to the United States, which is a good ally, but it can be a better balance. As a European citizen I think that we also have to think about the European defence, which is under construction. So 95 percent - 5 percent, this is not balance. We have such assets in helicopters in particular, but not only, because there are a lot of topics. I do believe that it can be better for Europe.

AGERPRES: The main argument, for you, as a manufacturer, and as a big company, the main argument for the Romanian Government to invest more into European facilities, would be what?

Serge Durand: First of all, to build a so-called European defence. Sometime we have to think about ourselves, you know, Europe, I mean. Second, I think this is a win-win, because if we do something in Romania, we will export this aircraft worldwide, so it is a big opportunity, big offer. Third, you know, we do believe and that is why I would like a public debate, that these products are better, cheaper, more performing. I am ready to provide figures. So, it is also the advantage of a user. And if you can interview the users, I would be pleased as well, because in the community of people which are using these helicopters, there is a common understanding. So there are so many advantages, on the one side, that I feel big imbalance. (...) On one side, if there is an open procedure I think that Romania cannot longer afford only G2G contracts, because what is the consequence for Romanian industry? Ask the Romanian industry what they get from the almost 10 billion euro spent in 10 years on the military contracts. I would like to know what has been put as offset, or as a consequence on the industrial means in Romania.

AGERPRES: This figures have to do with Airbus?

Serge Durand: No this is global. So, we have industrial policy. When we sell aircraft, we always respect the policy, and our policies are easy to put in place. So I don't know if I was clear on the advantages, but there are so many advantages. Political advantages - this is not my job, industrial advantages this is my job, and performance of helicopters this is my job.

AGERPRES: When talking about advantages, do you find an open ear from the Romanian Government, do you feel that they are listening to this discourse?

Serge Durand: Yes, Minister of Defence was visiting Airbus in July, no, it was in June, and I believe he was positively impressed by our products. People know. And the experts and there are excellent experts in the Ministry of Defence, in the Air Force in particular, they know our products. They are using the 60 Puma for 40 years. ... So when you switch from Puma to H215M, it's not so complex, so there is a logic continuity.

AGERPRES: Airbus was talking about delivering helicopters for medical reasons, for the SMURD [Mobile Emergency Service for Resuscitation and Extrication].

Serge Durand: As there should be a tender ... as I read in the press. I will not speak about, because this is an internal rule not to speak about a coming tender.

AGERPRES: So it's in the making.

Serge Durand: I've read in the press, but it has to be started soon, so I would prefer not to...

AGERPRES: You were talking about the auction, the open auction for helicopters for SMURD.

Serge Durand: Absolutely. What I can tell you, the helicopters are flying well, we are supporting the aircraft, we are doing the overall of the current fleet, which is exclusively an Airbus, and I know that the users are pleased. For the coming tender, I cannot comment.

AGERPRES: We want to know if Airbus is going to participate in the tender.

Serge Durand: Of course. We will participate, that's why I cannot comment. It's an internal rule, I cannot comment a tender to come.

AGERPRES: When it comes to the future of Airbus in Romania, could you give me some numbers, because journalists love numbers.

Serge Durand: Yes, and this is not a tricky question at all, I'm proud and I can easily insert in the discussion some figures. So, once again, what is Airbus in Romania? This is 6,300 jobs currently, direct and indirect. And so, if a plan is progressing, there will be hundreds and hundreds of jobs in addition. Not thousands, because we are in aeronautics, this is a highly specialized job, well paid, so we need time to train people, and we are not used to have thousands of people working in this industry, in short time. But this will be hundreds and hundreds of new jobs if the opportunity is taken.

AGERPRES: What about the money invested by Airbus?

Durand: It's public. The initial investment of Airbus Industries we are talking about was 52 million euro, this is a public figure.

AGERPRES: What about the future of aeronautics industry, in general? Are they going towards military helicopters or are they going towards helicopters that will be used civilly?

Durand: It is a classic sinusoid in the world. So, all in all, this is 50-50, really. This is the secret of the success of Airbus, and Airbus Helicopters in particular, because we have also both military and civil aircraft, which are not civil aircraft which we put into military dress code. This aircraft (pointing to a H215M mock-up) was a military aircraft, from which we derived civil ones, so it depends. For instance, 145M was a civil aircraft from which we derived a light attack helicopter, which is 145M, and we have fully specialized military aircraft, like the Tiger, but the secret of Airbus' success is that half is military, half is civil, so this makes us overpassing the fluctuation of the market.

AGERPRES: Recently, Airbus signed contracts with the Ukraine, Hungary, in terms of if the H215 is assembled here in Romania, will those contracts be executed, or parts of those contracts will be executed in Romania? Romania will be appointing which contracts with other countries will be executed?

Durand: I don't know yet, but what I know is that Romania is surrounded by countries which are Airbus customers, Ukraine - 55 aircraft, Hungary - 20 helicopters, light attack, Serbia - 9 helicopters, so that's why I said that this is a big opportunity for Romania, and once again, the helicopters that we will manufacture in Brasov soon, will be exported in the world, so I'm not talking about Europe, we are speaking worldwide. Recently, the H215 and H215M have been sold to Europe, Asia and Latin America, so this is the current market. It's not a promise, this is a fact. These aircraft are related to a worldwide market, but, yes, Ukraine trusts Airbus, Serbia trusts Airbus, Hungary trusts Airbus.

AGERPRES: This will be the last question, but does Airbus have a particular time in mind, if by this time our requirements are not met, then we will change the way in which we talk to the Romanian government? Do you have a particular year, by the time...

Durand: There are internal talks, internal discussions, internal decisions, I cannot unveil, but I can tell you one thing, which is important. Once again, this is a big opportunity and my job is making Romania not missing it, this is my job, that's why I'm talking to you, to put on the table this offer, for the country, for Airbus of course, because we are in business and now I'm deploying efforts to make it not missed by Romania.

AGERPRES: Do you feel that the greater discussion about this would be Europe vs. the US, with Romania?

Durand: I don't know, I know that this aircraft, as far as I understood, is compliant with some needs. And if there is a need of attack helicopters, we have also a possibility, we sold it to Hungary, we sold it to Serbia, so this we can become the helicopter of attack of Europe of defence, so technically, in terms of price, we are really competitive, so we just want an open procedure, we are ready to demonstrate that Airbus is a good choice, this is my message.

AGERPRES: Does Airbus have urgent requirements from the Romanian Government? Things that have to be done by the Romanian Government, that are absolutely necessary for their business to go as it should in Romania?

Durand: We have long cycles, so the only thing that we would like to make, pragmatically, concrete, is to get this 16 H215M order as soon as possible, because, it's a proof of confidence. I want to show to Airbus Group that we can rely on Romania, so this is a big opportunity for Romania, and also Airbus must feel comfortable with this long-term relationship, because we have been here for such a long time, that I want to stay, but it depends also on the partner.

AGERPRES: Is there anything else you would like to add at the end of the interview?

Durand: I think that the 1st of December is a very important date, I'm proud that France is participating in the 100 year celebration of the Republic of Romania, because I'm also a fan of history, I've read all the facts that happened in 1918 and the story with General Berthelot, that we are proud to contribute to the modern Romania and what has been done, it has to be recorded and I'm pleased to celebrate this 100 year of the Republic of Romania, and France is part of it. AGERPRES (RO - author: Oana Ghita, editor: Mirela Barbulescu; EN - author: Catalin Trandafir; editors: Adina Panaitescu, Rodica State, Simona Iacob)