Interview | Airbus, European Defence, and Climate Change
A conversation with Nathalie Errard, Airbus SVP and Head of EU/NATO Affairs
After the European Council and NATO meetings, European defence seems to be back on the agenda at the very highest level. Within the EU, work will mainly focus on developing industrial capabilities. However, the huge effort needed to step up capacities will not be done at the expense of the EU’s climate ambitions.
Our very own Thomas Harbor and Battiste Murgia had a wide-ranging conversation with Nathalie Errard, Senior Vice President at Airbus. Nathalie is in charge of the EU and NATO public affairs at Airbus.
With war on Europe's doorstep, calls for a Europe of defence are multiplying. What are Airbus' answers and what are the avenues envisioned for the future?
Airbus is best known for its position as the world's number 1 in commercial aeronautics. We are also the leading manufacturer in defence within the European Union. In this field, our trademark is the major military aeronautical and space programs carried out in cooperation, as in the civil: A400M, Eurofighter, Tiger helicopters and NH90, Helios observation satellites... We are therefore, as an industrialist, a contributor to European defence. We provide European armed forces with shared critical military capabilities. We naturally have the ambition to see this cooperation extended, in particular to future major capability projects that European States intend to launch jointly to modernize the equipment of their forces. The Future Combat Air System (FCAS) is the most emblematic example.
The recently adopted EU Strategic Compass is a roadmap to guide the EU's external action for the next ten years. It intends to promote investment in the defence capabilities of the Member States and strengthen cooperation between the countries of the Union. What role does Airbus intend to play in this context?
We are an important industrial player, the most important within the EU in defence, but our role as a company is first and foremost to meet the expectations in this area of our customers, in this case the armed forces of the Member States.
From this point of view, the Strategic Compass sets guidelines that are both useful and welcome for us. On the one hand, it aims to draw up a list of the capability priorities shared by the Member States and thus, in a way, to harmonise demand. On the other hand, it favours, through various incentive tools, joint acquisitions and cooperation on new programmes. Followed up, these recommendations allow Airbus to make the most of a broader market perspective and its know-how in multinational cooperation.
In addition to diversifying and securing energy supplies, the European Council of 30 and 31 May led the Member States to conclude the urgency of putting in place measures to coordinate very short-term needs in the field of defence and strengthen European defence industrial capabilities. How does Airbus intend to play a role in this?
For obvious reasons, the war in Ukraine has had a significant impact on reflections and initiatives concerning European defence, with a more shared sense of urgency. At the instigation of the Council of Heads of State and Government, and in the wake of the Strategic Compass, the European Commission has made several proposals to promote a coordinated response to the most urgent capability needs. The latter concern in the immediate future the delivery of equipment to the Ukrainian army and its replacement in the stocks of the Member States which supplied it. Of course, we stand ready to respond to these short-term demands but, as the leading European player in defence industrial cooperation, we also expect the implementation of EU instruments to extend the incentives of the European Defence Fund (which finances research and development) in the field of acquisitions.
How is the FCAS aircraft project, the air combat system of the future, a program launched by France, as part of a cooperation with Germany and Spain to succeed the Rafale and the Eurofighter, making progress? The CEO of Dassault Aviation complains that the Spanish and German subsidiaries of Airbus are slow to find points of agreement on the distribution of tasks. Will there be a delay in the achievement of the initial standard, normally planned for 2040?
The FCAS is a project launched by France and Germany, then joined by Spain. There is indeed a difference of interpretation between us and Dassault on how to conduct industrial cooperation. If we remain in a tug-of-war to define who will have power, we risk not breaking the deadlock. Each aircraft manufacturer has its own history: Dassault has always made its fighter jets alone while Airbus has always done so in cooperation. We have to find the right balance. It is clear that neither the Rafale nor the Eurofighter have been strong enough to counter the American F35 on the European market. In the future, it will be worse, given the difference in the US and European military budgets. If we want a European offer and industry, we must overcome mistrust in order to find a win-win solution. This is precisely what constitutes the DNA of Airbus.
Given the exceptional results of Airbus this year and the strengthening of its position against its competitor Boeing, weakened with its 737-max still on the ground due to technical problems, how do you see the future? Is there a particular project that the company intends to promote?
The coming years promise to be exciting but still very challenging, with a clear focus from our side on the decarbonisation of the aviation industry. This transformation will require an unprecedented effort in both innovation and investment. Artificial intelligence, digitalisation, autonomous flight, and the use of new sources of energy and new propulsion systems, will transform how aircraft are designed, developed, flown and maintained. It’s no exaggeration to say that we are in the early stages of a revolution that will change the face of our industry forever. For our part, we are committed to leading the decarbonisation of the aerospace sector. We are conscious of our responsibility to play a key role in developing climate-neutral aviation for the future and we see this as an opportunity.
In the framework of the Green Deal, the European Union has set the goal of reducing greenhouse gas emissions from transport by 90% by 2050. How does Airbus intend to achieve these climate goals?
At Airbus, as leaders of the decarbonisation of the aerospace sector, we have come together with the main industry players of the European aviation sector to establish a roadmap (Destination 2050 – A Route to net zero European aviation) to reach net zero CO2 emissions by 2050 and to reduce CO2 emissions for European flights by 55% by 2030, thereby strongly contributing to the EU’s mid to long term climate ambition.
In the very short term, fleet replacement can provide immediate benefits in fuel efficiency. Today only 13% of the global fleet are the latest generation aircraft such as the A320 NEO and A350, whilst these most advanced modern aircraft achieve up to 25% less CO2 emissions than the previous generation of aircraft. In the short to medium term, accelerated deployment of Sustainable Aviation Fuels (SAF) will be very important. In the longer term, for the next generation of aircraft, we need to accelerate several energy and technology pathways simultaneously – including hybrid-electric engines, alternative fuels, wing and airframe improvements and hydrogen technologies – while fostering the development of a new energy ecosystem.
These changes will require to align the entire stakeholder community associated with the ecosystem. As such, we think that the launch of the Alliance for Zero Emission Aviation, recently announced by Commissioner Breton is a very positive and timely signal to politicians and the whole private and private stakeholders community that we are all confident and supportive of the next generation of sustainable aviation products and services. The Alliance will bring together all the players in the future clean aircraft ecosystem, identify the barriers, and make recommendations on how to remove them, aligning the needs of industry, airlines and airports, while coordinating investment through IPCEIs (Important Projects of Common European Interest).
In the current context (inflation, slowed value chains, instability linked to the war in Ukraine) will Airbus be able to meet the deadlines it has set for the development of the hydrogen aircraft?
Despite the various crises the aviation industry is facing, we remain committed to the decarbonisation of our sector. We do see hydrogen as one of the most promising zero-emissions technologies under consideration. Airbus plans to bring into service a zero emission hydrogen aircraft by 2035. At first, this will be limited to smaller aircraft, but if hydrogen propulsion works for short range aircraft it will progressively be possible to extend it to longer-range aircraft. This means we’ll be able to fly very soon with no emissions and minimal impact on the environment, and with the levels of reliability and safety second to none in the transport sector.
To achieve this, Airbus is collaborating with industrial partners on a flight demonstrator which will help define hydrogen propulsion system requirements with the aim to reach a mature technical readiness level. Alongside this, Airbus is also partnering with airlines and airports around the world to explore the overall ecosystem, such as airports as hydrogen hubs, to ensure infrastructure and low carbon hydrogen availability.
But we also need to consider the high investment this transformation demands at a time the impact of the crisis is still being felt. This is why we also need the support of the European and national institutions and for some funding mechanisms or incentives to be implemented. The support to R&D is essential, as well as an enabling regulatory framework.
On 2nd June 2022, the Council adopted a General Approach on the Sustainable Aviation Fuels Regulation, known as ReFuelEU Aviation. It aims at replacing fossil kerosene with fuels of non-fossil origin.
Although considered the main decarbonization tool for the next twenty years, according to the FNAM (national federation of aviation and its professions), their production and use remain marginal in Europe.
How does Airbus intend to register its action in favour of the development of sustainable fuels?
The Destination 2050 roadmap clearly shows that after technology, Sustainable Aviation Fuels (SAF) brings the most significant CO2 emissions reduction. Airbus latest generation aircraft are already capable of flying with 50% SAF which means an additional 40% emissions saving on top of the 25% for fleet renewal. And we are working to make our aircraft capable of 100% SAF uptake by 2030, which means up to 80% less emissions. In parallel, we are partnering with a number of airlines and fuel producers globally to support the scale-up SAF with regional projects, as well supporting work at the International Civil Aviation Organisation (ICAO) to harmonise and facilitate SAF deployment at a global level.
As such, the EU’s RefuelEU Aviation initiative is welcomed ⎼ Airbus supports the intent of the initiative to boost the production and uptake of SAF to ensure their large-scale availability at low costs in the medium and long term. We also need strong incentives for the SAF ramp up. Recent studies, including by the World Economic Forum, indicate that an ambitious mandate in 2030 is achievable with the right policy and investment framework to scale up production and capability. Such ambition in 2030 will ensure an easier transition to the subsequent targets laid out under the RefuelEU Aviation initiative. It would also help to better spread investments and, consequently, the building of new SAF production capacities in Europe over time.