PARIS — Laurent Collet-Billon, head of the French defense procurement office, Direction Générale de l'Armement (DGA), is very much in a good mood as he delivers an overview of developing, building and delivering weapon systems.

That positive outlook is perhaps linked to the export sale of arms unofficially estimated at some €15 billion (US $16.95 billion) so far this year, and the 12 months are not over yet. The government has also added an extra €1.5 billion to acquire equipment for the armed forces, actively deployed domestically and overseas.

Working with European partner nations is part of that development of next generation equipment. The DGA gives a glimpse of the possible future of air combat, with a simulator at the Paris Air Show flying combat drones and Rafale fighters in 2025.

Q. The Indian defense minister has said the Rafale is too expensive, so there will be no further purchase once the 36 units are bought off the shelf. So how do things stand?

A. All I can say is everything is going smoothly, with a good deal of determination. The negotiations are for 36, then it will be up to the government to decide what happens after. We are very confident. Our target is the first contract. We will see about the follow up.

India is a work in progress. With the three contracts [Egypt, Qatar and India], we will secure what was needed to fund the multiyear military budget. For France, we will take 26 planes instead of 66. The [Rafale] exports remove the risk of cuts in other programs.

We have a world-class industry for combat aircraft which sells abroad. The exports are good news for employment, the supply chain, equipment makers, and really good news for the morale. Dassault, Thales, Safran and MBDA worked well together as a close knit team.

Q. What are the prospects for a fourth Rafale export deal this year?

A. We're talking to many countries.

Q. There is an unofficial forecast of €15 billion in arms exports this year. What's your expectation?

A. The parliamentary report for last year's exports showed €8.2 billion. We're going to beat that. We must be optimistic, active and win. That's good for France, for employment.

Our sector is a positive in the balance of trade, which will be more positive. So, we are very pleased with exports.

Q. There have been media reports France has offered to repay Russia almost €800 million for the return of the two Mistral helicopter carriers. What is the prospect of a settlement?

A. This is under discussion. The secretary for defense and national security [Francis Delon] is in charge.

Q. There are media reports of DCNS competing in Australia's large tender for submarines. What are the prospects?

A. Australia is among the important potential export clients.

Q. President François Hollande has increased the multiyear budget by €3.8 billion. What drives the need?

A. The services are heavily committed, particularly the army in land campaigns in the Sahel in Africa, and also Iraq. Mobility is a priority as there are great distances in Africa to cover and mobile insurgents. That means seven more Tigers, six more NH90s. There is acquisition of multimission and offshore support and assistance ships. We are looking at whether it is possible to acquire secondhand C-130Hs, these would be close to the current fleet in terms of engines and avionics, which would allow a common logistical support. We're studying their inflight refueling of helicopters and Griffin missiles for the special forces. We are looking to deliver an analysis by the end of the year. This is not against the A400M, they have different payload capabilities.

The priorities in Africa are logistical support, mobility and intelligence gathering. We have received the letter of authorization for the second batch of Reapers, so we hope to sign a contract this summer.

Q. Will the extra €1.5 billion for the equipment cover the potential acquisition?

A. There is a very detailed, well-documented list. There will be no surprises. Most of the equipment is already in service.

Q. What is the outlook for the Navy?

A. There are 15 front-line frigates, with eight multimission frigates including the two air-defense versions, two Horizon [air-defense] frigates and five intermediate frigates. These are modern ships, they will keep the research office and shipyards in Lorient busy. The intermediate ships will be around 4,000 tons and easy for foreign navies to handle, so good for export.

Q. The Krauss-Maffei Wegmann chairman has said he would like to sign an alliance with Nexter next month and there seems to be less German political opposition to a deal. What is the outlook for the merger between Nexter and KMW?

A. The KMW chairman is very determined. We are too, on fair terms. The project has very much moved ahead. We have worked on this discreetly with Krauss-Maffei for several years. There will probably be a decision this summer. There will be a solution to the valuation of assets. The plan is for a 50:50 shareholding, so there will be a reasonable payment to ensure there is an even balance.

This is a consolidation to create an industrial core in Europe, which also supports to the maximum employment in Germany and France. This creates a company that will expand, safeguard the supply chain, and helps to prepare for future strong competition around the world.

Q. France, Germany and Italy are due to launch a study for a joint medium-altitude, long-endurance UAV. Why is the UK absent from the Euro drone project?

A. We are at a preliminary stage; all that could change. France, Germany and Italy have signed a letter of intent for preliminary studies. Further phases will be open to other countries. This could be a program for a federation in Europe.

Q. What's the importance of the British-French study for a future combat air system development project?

A. The feasibility study sets a firm foundation for the full-scale development phase that follows. The future of combat aircraft for Britain and France will be at stake in this next phase, so there's no doubt it will be funded.

The US chief of naval operations [Adm. Jon Greenert] says in 2050 there will be no more manned fighters in the US Navy. I am not so certain, but there is a trend. We have to be there. If we are not there, then we will be absent in the export market. There will be an export market. Perhaps the export market will want manned and unmanned fighters flying together. We and Britain are great aeronautical nations. We have to be on it together.

Q. British Defense Secretary Michael Fallon has said he is looking for cooperation with France. What are the possibilities?

A. With the new UK government, we will look for some projects. We will find something. We are ready to put everything on the table to see what can be done and see if it is possible to continue to work with them.

Q. What is the outlook for an upgrade of the Aster Block 1 missile with the new technology version?

A. Like all missiles, there are timely upgrades. Much like the Exocet, there are upgrades on the seekers. The development of Block 1 is in the multiyear budget. We're looking with the Italians. We have contact with Turkey. Beyond Block 1, do we want a theater weapon against ballistic missiles with a 1,500-kilometer range? How can we improve the capability? The budget includes replacing the Mica with the Mica NG, with fresh propellant and new sensors. In missiles, there is introduction of the Meteor, development of the missile moyenne portée, or medium-range missile, and end of development of the naval cruise missile.

Q. Airbus Military has said the A400M airlifter will fly at the Paris Air Show. What is next for the A400M after the crash in Seville?

A. We received the statements from Spain and Airbus. Now we are waiting for the Spanish authorities to allow the flights in Spain. We kept the planes flying for high-priority missions. We need those planes.

We expect to receive four this year. We asked for delivery of a version with parachuting from the fuselage door and dropping heavy loads from the central ramp, and self-protection. Those need to be done as there may be export clients out there.

We have to show the accident was an accident and nothing more. We are convinced it is a good plane.

Q. What are the French priorities?

A. The DGA has lots of priorities all at the same time. For the Army, it is to make Scorpion a success. For the Navy, it is to pursue the multimission frigate program, intermediate frigate and the Barracuda submarine. For the Air Force, the top priority is FCAS-DP — which is preparation for the future, A400M and pursuit of the Rafale which carries the ASMP-A nuclear deterrent.

There is also intelligence gathering beyond the Reaper. There will be a decision on the competition on the tactical UAV this year. We're starting to think about the next-generation nuclear ballistic missile submarine for 2030. There is lots to occupy the engineers at the DGA and in industry. We are highly motivated.

Email: ptran@defensenews.com

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