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 Post subject: SAAF to acquire A400M
PostPosted: 10 Dec 2004, 10:28 
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From News24:

Quote:
SA, Airbus to sign a deal

09/12/2004

Johannesburg - South Africa is committed to buying at least €837m worth of military aircraft in exchange for investment, technological knowledge and jobs, the transport department said on Thursday. The country has agreed to participate in the A400M multi-role mission transport aircraft design and manufacture programme, after it accepted an invitation to do so by Airbus Military.

In return, South Africa is committed to procure between eight and 14 aircraft - valued from Eu837m - between 2010 and 2014.

The terms of the agreement between the South African government and Airbus Military were still being negotiated.

"We are confident that a memorandum of agreement will be signed in the coming weeks," the transport department said in a statement.

Airbus Military's Peter Jost said in September a University of the Witwatersrand study had shown that an interest in as few as eight of the about Eu98m (R778m) aircraft would create at least 401 direct jobs and 2767 indirect employment opportunities over the programme's projected 50-year life.

It could also add R859m to the country's gross domestic product over 15 years.

Jost said the SA Air Force needed the aircraft. The existing SAAF transport fleet, a dozen upgraded C130 medium transports and a few, smaller Spanish-built Casa light transports, could not meet future airlift requirements.


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PostPosted: 14 Dec 2004, 16:01 
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News24:

Quote:
Govt defends aircraft deal

14/12/2004

Cape Town - The government's main intention in the R8bn A400M Airbus programme is not to acquire aircraft but to participate in their design and manufacture, says the secretary for defence.

The secretary, January Masilela, said in an affidavit filed in the Cape High Court on Tuesday that the government intended to sign not a supply contract, but a "declaration of intent" to take part in the design and manufacture.

The affidavit was in response to an application by Terry Crawford-Browne of Economists Allied Against Arms Reduction for an order restraining the government from "signing and concluding supply contracts" for the aircraft.

It was reported last week that the government intended to acquire a fleet of massive, highly sophisticated military transport aircraft as the logistical platform for peacekeeping operations.

Crawford-Browne said in his founding affidavit that even with offsets, the deal was "clearly economically irrational", as there was no plausible threat to South Africa that could be addressed by such equipment.

He has asked the court to find that "the offsets" do not meet the constitutional requirements for government procurements of a system that is fair, competitive and cost-effective.

However, Masilela said because the government was only about to sign a declaration of intent, a bid to interdict the signing of "supply contracts" was premature.

He also said that the programme did not have offsets because South Africa would be not the acquirer of weapons, but the manufacturer.

SA would design and manufacture

He said Airbus Military recently approached South Africa and invited it to participate in the A400M multi-role mission transport aircraft design and manufacture programme.

"This approach by Airbus should be understood against the backdrop that South Africa had identified Europe as a source of accessible and appropriate technology and expertise which could be used to the advantage of South African industry as well as a partner in the promotion of democratic values in the global order," he said.

South Africa developed a significant skills base in the aerospace industry in the 1970s and 1980s.

Without growth in the industry, these skills were in danger of being lost.

"This is not an acquisition programme or venture which requires tenders and observance of section 217 of the Constitution," he said.

"Airbus is the only aircraft manufacturer in the last 40 years which is involved in the manufacture of large aircraft for military and civilian purposes.

"When they invite South Africa to participate in the venture, South Africa must either accept or reject the invitation."


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PostPosted: 10 Jan 2005, 16:25 
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Business Report: 10 January 2005:

Quote:
Defence analysts slam state's 'rushed' €1.2bn Airbus deal

By Lynda Loxton

Cape Town - Defence analysts last week blamed the apparently rushed and even "secretive" deal

by government late last year to buy into the new Airbus A400M project on a belated

realisation of the full implications of the increased military and humanitarian role South

Africa has to play in Africa.

But the analysts said it was unlikely the government would have to start paying for the eight

to 11 new cargo carriers for a few years as they were still in the design stage with local

manufacturers Aerosud and Denel involved in some of the design work.

The local manufacturers would also make parts for the new aircraft which was due off the

production line in France in about two years' time.

The deal would cost South Africa between €834 million and €1.2 billion (R9.5 billion),

depending on the number of aircraft bought. This will be paid off over 17 years.

The analysts said that the importance of stepping up military cargo airlift capacity had been

"overlooked" because of shrinking military budgets in the post-apartheid era. Most defence

strategists had been resigned to a minimalist role on the continent.

Not only were there other, more pressing socioeconomic priorities at home, but many former

anti-apartheid activists had been strongly lobbying for the military, and the airforce in

particular, to limit their regional outreach.


"But it has become increasingly clear that many countries want our help in the region and in

Africa as a whole, and we have to increase our cargo airlift capacity," said one analyst.

The dilemma was that while this could be done using the existing ageing fleet of Hercules

C130 aircraft, they would not last beyond 2015.

They would also become increasingly unable to meet the demand for moving troops, portable

ambulances, helicopters and other military hardware and humanitarian aid to trouble spots

where South Africa was playing an aid and peacekeeping role.

The gap could be met by chartering cargo aircraft, but this had negative security and safety

implications.

At the same time, Airbus, which had been lobbying government for some years to get involved

in its new A400M project, "lost patience and went public" in a bid to get government to make

a decision, the analysts said.


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PostPosted: 12 Jan 2005, 16:03 
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Hmm, interesting article, but I can't quite figure out what the journalist is trying to say with it.

It opens up in a very negative tone, making it appear as if leading defence analysts were against the purchase of the A400M transport aircraft. However, the only motivation it gives for this apparent hostility to the deal is that the analysts feel it was "rushed" and "secretive" due to the govt's belated realisation of SA's needs in terms of its obligations in Africa.

Now, while I do agree that the deal was too secretive (an all too common trait in the ANC nowadays), and that it was rushed, the impression I get from the article is that the defence analysts do support the purchase, but are annoyed at the way it happened. That's somewhat different from being opposed to the deal altogether.

After all, the only quoted statements from the un-named analysts appear to be supportive of the SA govt's belated recognition of the need for greater airlift, after the exasperation faced by these same analysts in previous years as they observed the SAAF's airlift need being overlooked.

All in all, the way I see it, what this article is saying can be summed up in the following:
  • South Africa has certain obligations in Africa which require decent airlift capacity
  • After years of neglecting this requirement, the SA govt has belatedly woken up to its necessity
  • For safety and security reasons, chartering airlift is a poor option
  • Therefore the purchase of the A400Ms is a good thing
  • However, the secretive and apparently rushed nature of the purchase was a negative aspect


So, somewhat different to what the rather sensationalist headline implied. I think it's a pity when journos use sensationalism in their articles.


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PostPosted: 31 Jan 2005, 16:18 
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Joined: 30 Jan 2005, 21:25
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Location: South Africa
Hi! Very Interesting.

It is now 30 Jan. Has there been any further news on this subject and would someone please update meconsidering the purchase of the aircraft.

Thank you!
francois 8)


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