1. uCOUNTRY REPORT
30 ADJ June 2015
Innovation, precision, and pure excellence. That
is not all–added with the application of high-tech
knowledge delivered by teams of highly-skilled
workforce, the French aerospace and defence
industry has it all. The contribution of the industry
to the world at large is insurmountable–French
defence products can be found anywhere in
the world encompassing the air, land, and sea
domain. In recent years, though, it is the French
aerospace products that have been at the fore-
front of industry–having able to secure major
contracts beyond Europe.
The French defence industry is one of the
world’s largest. It has an interesting history which
can be traced back to the 17th century. France
strongly favours a European armaments policy
which purpose would be to synchronise military
requirements, integrate the defence sectors, and
create an institutional mechanism for cooperation
that respects the national interests of the member
states. Regardless of the uncertain economic
climes which hinder the development of the arms
industry worldwide, the French industry is roaring
high, especially in export sales.
French arms manufacturers confirmed $6.9
billion in orders to foreign countries in 2013,
which represents a 31% jump from the previous
year. Last year, France secured arms exports
worth an estimated $9.1 billion, a level not seen
since 2009, and the trend is expected to continue
this year.
DGA–Paragon of the French
Procurement
The French defence procurement agency, Direc-
tion Générale de l’Armement (DGA) has a central
role in arms procurement and defence industrial
development. The 54-year old agency’s main roles
are to prepare the future of defence systems,
equipping the armed forces, and promoting export
of defence equipment. Being the lead investor for
the French government, the DGAspent more than
$12 billion on contracts awarded for the equipment
of the armed forces, and invested $860 million in
defence research. Laurent Collet-Billon, Director-
General of Armaments, during the presentation
of the DGA’s 2014 result to the press in February
said, “Our performance is consistent with goals of
the first year of the multi-year programme law (Loi
de Programmation Militaire (LPM). It preserves
all sectors of the defence industry, and helps the
development of the technologies and skills that
will be needed tomorrow.”
DGA is mobilised to consolidate the position
of France as amongst the largest exporting
countries. Last year, the agency ordered the first
armoured vehicles of the Scorpion programme,
the MRTT tanker aircraft, the latest version of the
M51 submarine-launched ballistic missile, the 4th
Barracuda-class nuclear attack submarine, all of
which are flagship programmes of the Ministry
of Defence.
As usual, the due to the strong bond of the de-
fence industry, the small-medium sized enterprises
(SMEs) benefitted from investments by the DGA.
The Rapid project reached $50 million, thanks to
the mentoring by Defence Minister Jean-Yves Le
Drian, and two Rapid “clubs” were launched in
2014, for Photonics and cyber defence. These
clubs promote the development of SMEs by linking
them with larger companies.
The year 2014 also saw a significant increase in
Franco-British cooperation, with the launch of the
feasibility study of the Future Combat Air System
(FCAS DP) unmanned aircraft, and the award of
the ANL light anti-ship missile programme. Dur-
ing the presentation, Collet-Billon also touched
on the challenges ahead for the French defence
industry. He stressed on the importance of inno-
vative methods, both in the financial sector with
the establishment of “project companies,” and the
evolution of the DGA, with the generalisation of
systems engineering.
GIFAS–For the French Aerospace
Industry
In recent years, the French aerospace industry
has been soaring, and is set to soar even further.
With the recent success of the Rafale fighter
sales to India and Qatar, the aerospace industry
is seeking to explore new grounds–vying for other
multi-role combat aircraft programmes beyond the
European sphere. To serve the interest of the aero-
space defence companies, the FrenchAerospace
Industries Association (GIFAS) was formed. The
organisation has more than 300 members–from
major prime contractors and system suppliers to
small specialist companies which cover the full
FRENCH AEROSPACE
AND DEFENCE INDUSTRY:
FAST-PACED AND MOVING FORWARD
by Adlinna Abdul Alim
Dassault Aviation and Thales complete delivery
of France’s Rafale C137, the first European
combat aircraft equipped with an active
phased array radar (RBE2 AESA).
DassaultAviation
uCOUNTRY REPORT

2. spectrum of skills from the design, development
and production of aerospace systems to marketing
and maintenance. With all the challenges fac-
ing the industry, GIFAS is advocating a strongly
funded and structured research and development
policy which industry players and analysts said
should be effectively backed by the government.
On April 9, 2015, Marwan Lahoud, President of
GIFAS, presented the 2014 results for the French
Aeronautical, Space, Defence and Security In-
dustry. “2014 was a solid year with an increase
in turnover to $55.7 billion (+3% on a like-forlike
basis) with a significant export share of $36.3 bil-
lion representing 82% of consolidated turnover.
The civil sector represents 77% of consolidated
turnover. Our industry represents a hub of tech-
nological and economic excellence for France,
with a consistent, interdependent, responsive and
dynamic sector,” said Lahoud. He is optimistic that
the aerospace industry continues to flourish this
year, recalling that the French aeronautical and
space sector is a hub of economic excellence.
The sector remains mobilised with very full
order books, representing more than six years
of production, export contracts for the Rafale
and Airbus Helicopters, as well as the dynamism
of the space sector, consolidated by decisions
concerning the Ariane 6 rocket and electric pro-
pulsion satellites.
European Allies
The French defence industry has been enjoying a
beneficial presence in the European sphere, being
a member of the European Union. Being outward
looking, the industry has been allying themselves
with their Spanish and German counterparts to
form EADS. The Franco-German-Spanish con-
sortium has been doing really well with its sales
of military aircraft. In January 2014, EADS was
reorganised as the Airbus Group with three main
divisions that comprise Airbus (for commercial
transport business), Airbus Defence and Space
(military transporters), and Airbus Helicopters
(formerly Eurocopter). The military transport busi-
ness has been doing well, with the offering of the
CN235, CN295, and A400M transporters to fulfil
the needs of militaries worldwide. The A400M
practically succeed penetrating beyond the Eu-
ropean market–the launch nations–that consists
of Belgium, French, Germany, Luxembourg,
Spain, Turkey, and UK–by the successful sale
of four aircraft to Malaysia. The first transporter
was delivered to the Royal Malaysian Air Force
during LIMA’15 in March. Airbus Defence and
Space is currently pushing the aircraft to be used
in humanitarian assistance and disaster relief
efforts worldwide.
Airbus Helicopters
The consortium’s rotorcraft division, Airbus Heli-
copters is also doing well in recent years. During
2014, Airbus Helicopters delivered 471 rotorcraft
from the company’s civil, para-public and military
product lines and booked 402 net orders. In
Airbus Helicopters’ first year with its new identity
and full integration into the Airbus Group, the
company achieved an unprecedented certifica-
tion and service introduction of three new aircraft:
the 7-metric-ton-category EC175, along with the
medium-sized EC145 T2 and EC135 T3/P3 ver-
sions. According to Airbus Helicopters’ president,
Guillaume Faury, “2015 should be a period of
stabilisation across our industry. In this context,
Airbus Helicopters will continue its transformation,
committed to working with our customers, offering
them predictability and the right helicopters for
their demanding missions.”
The Airbus rotorcraft division also took a step
forward by changing the designations of most of
its helicopter range from “EC” to “H”. The decision
is symbolic of the company’s full integration in
the Airbus Group and consistent with the num-
bering used by the Airbus commercial jetliner
manufacturer.
There are also frequent deliveries and sales of
the Airbus Helicopters’ rotorcraft in Asia. In Octo-
ber 2014, the company announced that the Royal
Thai Navy and Air Force acquired two mission-
ready rotorcraft types: the light-utility EC645 T2
(now H645 T2) and the 11-ton class EC725 (now
H735). The Royal Thai Navy signed for five H645
T2s to be deployed on transport duties and other
missions, with deliveries scheduled to begin in
2016. The purchase represents the first export
order of this militarised version of the H145 T2.
Meanwhile the Royal Thai Air Force reordered
two H725 helicopters for search and rescue/
combat search and rescue missions (SAR/CSAR).
The company announced that the aircraft will be
provided in 2017.
A month later, the division handed over the
first of six H725 rotorcraft acquired by Indonesia
for (CSAR) missions, at a handover ceremony
in Marignane, France. The sale of aircraft was
made betweenAirbus Helicopters and Indonesian
airframe maker, PT Dirgantara Indonesia (PTDI).
The latter purchased the rotorcraft, and will cus-
tomise and deliver these configured helicopters to
the Indonesian Air Force under a contract signed
with the Indonesian Ministry of Defence on March
12, 2012. According to PTDI president, Budi San-
toso, “We will continue to work closely with Airbus
Helicopters to ensure the on-time delivery of the
remaining units, as we anticipate an additional
order from the air force for 10 more EC725s to
complete its squadron of 16 helicopters.”
The delivery of three TH 135 training helicop-
ters to the Japan Maritime Self-Defence Force
(JMSDF) sealed the Asian deal for the year 2014.
The helicopter, which is a variant of the light twin-
engine H145 T2 has been customised to JMSDF’s
requirements. The three aircraft delivered between
October and December last year are the JMSDF’s
11th, 12th and 13th units. More deliveries to Japan
came this year. The Japanese Coast Guard has
received an H225 LP in March. This is the last of
three it ordered by JCG in July 2011; the earlier
two having been delivered last year.
French Defence Companies–
in a Hallmark of Its Own
The success of the French industry is, no doubt at-
tributed to the close collaboration and cooperation
between the nation’s defence companies–hailed
as Team France. It is due to this strong spirit of
camaderie that make the French industry to the
standard that it is today.
Dassault Aviation
No introduction is needed to this world-leading
French aerospace giant. The pride of France, the
company’s success stories comprise the Falcon
2000 maritime reconnaissance/surveillance air-
craft, the new European combat drone–nEUROn,
and of course, the star of the company, the Rafale
omnirole fighter. In March this year, Dassults’ CEO
and Chairman Eric Trappier announced that for
2014, Dassault has launched the F3-R standard
development of the Rafale optimised for deliveries
as of 2018. It includes MBDA’s long range Meteor
BVR air-to-air missile, Thales PDL-NG designa-
tion pod and Sagem’s laser-guided variant of the
AASM (SBU-38 Hammer).
The year 2015 proved to be a very successful
one for Dassault, having sold the Rafale beyond
the European sphere. In mid-February, French
defence minister. Jean-Yves Le Drian signed a
AirbusHelicopters
Helicopters assembly line.
France Defence Industry
ADJ June 2015 31

3. uCOUNTRY REPORT
32 ADJ June 2015
contract with the Egyptian government for the
sale of 24 Rafale fighters–a move that spearhead
the foreign order of the French-built aircraft. The
sealed deal is worth around $5.7 billion. In April,
Dassault clinched an Asian deal with the sale of
36 of the Rafales to the Indian government, after
a long series of negotiations that span several
years. The contract with India is the biggest ever
for the Rafale. Initially, the deal was to equip the
IndianAir Force with 126 of the fighters. However,
as both parties failed to agree on the cost, the
number of aircraft was reduced.
Dassault marked another milestone in the
Middle East market by successfully sealing the
Rafale deal with Qatar for the sale of 24 aircraft
in a $7 billion deal. The deal might open a bigger
opportunity for Rafale, as more and more Gulf
Arab states are boosting its military firepower
due to tensions in Libya, Syria, and Yemen. The
contract is said to also include MBDAmissiles and
the training of 36 Qatari pilots and 100 technicians
by the French Army. Currently, talks are going on
with the UnitedArab Emirates on the possible sale
of 60 Rafales to replace the Gulf state’s ageing
Mirage 2000-9s.
As for sales in Asia, Dassault Rafale is among
the four shortlisted contenders for the Malaysian
multi-role aircraft (MRCA) programme. The com-
pany is committed in lobbying for the big ticket
deal–by once again deploying two of the fighters
to the Langkawi International Maritime and Aero-
space (LIMA) exhibition last March. However, the
Malaysian MRCA deal might not come too soon,
as the nation is currently exercising cost-cutting
measures and looking into other alternatives to
sustain its fighter fleet.
Dassault is also soaring high with the sale of
its Falcon 2000 MSA. Originally developed as a
commercial business jet–the Falcon 2000 LXS,
the maritime surveillance version was recently
selected by the Japanese Coast Guard to en-
hance its operational fleet. This contract marks
the first sale of the maritime surveillance version
of the aircraft.
Rafale–Purely French
Dassault Rafale is definitely a French pride–
boasting French-made systems and components.
The fighter is powered by Snecma M88 turbofan
engine–built especially for the fighter–which offers
high thrust-to-weight ratio with easy maintain-
ability. The engine boasts advanced technology
such as integrally bladed compressor disks, a
low-pollution combustor with smoke-free emis-
sions, single-crystal high-pressure turbine blades,
ceramic coatings, and composite materials. The
Rafale is also the first operational, and so far the
only European fighter to to use an active electronic
scanning radar (AESA)–the RBE2, developed by
Thales. What makes the radar stood out form
the conventional ones is that it provides unprec-
edented levels of situational awareness, enabling
earlier detection and tracking of multiple targets.
Oct 2012 marked the first time the AESA radar
was delivered to the French DGA to be tested by
the French Air Force–with much success. The
delivery of the radar also comes together with
the successful firing of MBDA’s Meteor beyond
visual range air-to-air missile (BVRAAM), also
on the same October at DGA’s flight test centre
in Cazaux, south-western France. In lateApril this
year, teams from the French Ministry of Defence,
Dassault Aviation and MBDA successfully carried
out the first guided firing of the long-range Meteor
missile against an air target from a Rafale combat
aircraft. This firing marked an important milestone
in the integration of Meteor onto the Rafale in line
with the development of the aircraft in its next
F3-R standard.
Drone Programmes
In recent years, France has placed a lot of em-
phasis on research and development concerning
drones–namely the nEUROn UCAV programme.
Launched in 2003, the main aim of the project is
to sustain and develop European manufactur-
ers’ aeronautic and other technologies for next-
generation combat aircraft and UAVs. Dassault
Aviation was given the mandate by the DGA as
the prime contractor to manage this programme.
Apart from France, the programme also see the
participation from the Italian, Swedish, Spanish,
Greek and Swiss governments acting together
with their related industrial teams, Alenia, SAAB,
EADS-CASA, Hellenic Aerospace Industry (HAI)
and RUAG.
In the latest development, the nEUROn has
completed its 100th remotely piloted sortie from
Istres, France. The combat drone will soon be
handed over to Alenia in Italy for further tests, as
well as to Saab in Sweden for long-range flight
testing.
Sagem
Ahigh-tech company in the Safran Group, Sagem
is one of the world’s leading suppliers of optronics,
avionics and navigation systems electronics and
safety-critical software. The company operates
both in the civil and military markets, supported
by over 7,500 employees all around the world.
In 2013, the company recorded annual sales of
$1.39 billion. In the avionics area, the company
is one of only two companies in the world to apply
all key inertial navigation technologies–mechani-
cal, vibrating, resonant, optical-fiber and laser
gyros–needed for the air, space, land and sea
applications. Hailed as No 1 in Europe and No 3
worldwide in this market, Sagem develops and
produces complete navigation systems as part
of a broad product line.
The company’s Sigma family of laser gyro
navigation systems is used by many leading
aircraft, ships and vehicles, including the Rafale,
Su-30MK1 and MiG-29 fighters, Airbus A400M
military transport, NH90 and EC725 helicopters.
Sagem is the main contractor of the Hammer
Modular Air/Surface weapon system (AASM)
that is currently used on the Rafale fighter. Cur-
rently, the company also develops and produces
self-guidance systems for its partner, MBDA. The
avionics division also provides mission planning
and restitution systems for military aircraft. The
French Air Force deploys the SLRPM system to
plan missions for all of its aircraft, and the SICOPS
system to manage its air bases.
DCI–The Epitome of French Training
The company is an intermediate sized service
company, created in 1972, with the French
government as the concurring shareholder. As
an operator in the transfer of the Ministry of De-
fence know-how, Defense Conseil International
(DCI) proposes services, to foreign countries,
based on a capability approach–that consists of
providing an operational capability and not merely
accompanying equipment sales.
In the field of aerospace, DCI is one of the
partners that formed Helidax, together with INAER
Helicopter France, with a 50-50 partnership deal.
The purpose of this outsourcing is to supply the
EALAT (International joint centre for helicopter
pilots) with the flight hours required for the basic
training of pilots from the French Armed Forces
(army, navy, air force) and Gendarmerie Nationale,
among other beneficiaries. Helidax was awarded
the first public-private finance initiative with a 22
year contract to provide pilot training.■
DCI
France Defence Industry
Combat equipment exports include
training package as well.