Statement To The Media By Mr. Charles Edelstenne
 
(Source : Dassault Aviation ; issued Oct. 16, 2001)
 
 
 Charles Edelstenne is Chairman and CEO of Dassault Aviation.
This statement was made at the Seoul Air Show on Oct. 16


Good Morning, Ladies and Gentlemen,

I wish to welcome you at this press meeting, and tell you how happy we are,
with my whole staff of Dassault Aviation, as well as our RAFALE
INTERNATIONAL partners, to be here today.
The first reason for this satisfaction is that, throughout the years and
the different editions of the Seoul Air Show, we have been faithful to this
show. This is the third time RAFALE flies here in front of the Korean public.

The second reason is that it gives us a unique opportunity to show and to
explain to the officials, the media and the public of Korea why RAFALE is
the right answer to the FX competition.
Any decision to purchase a major defense system must be the result of a
balance between operational, financial, technological and political
factors. Simply because of the size of these programs. Simply because of
the major commitments they represent in the field of national security, of
defense budget, of industrial development and of political cooperation.

My aim is to explain you shortly why RAFALE is the best solution in each of
these fields. After which I shall be happy to answer your questions.


1. Technical / Operational: RAFALE is the most advanced fighter ever
proposed to an air force.

RAFALE is the best solution for Korea's defense because you don't win
tomorrow's conflicts with yesterday's weapons. It is the most advanced of
all competitors available today in the FX competition. RAFALE has been
designed to detect without being detected, to hear without being heard, to
see without being seen, and, finally, to attack without being hit. It is
therefore highly lethal and survivable on the battlefield of the next 40 years.

If, today, your air force would select an aircraft that is already 30 years
old, in 2030, when the selected aircraft will be at the end of its
operational life, it will be exactly as if today's US Air Force would still
rely on the Mustang, or if the Royal Air Force would rely on its Spitfire
World War II vintage aircraft.

Thanks to its flexibility and Omnirole capability, and thanks to its
comprehensive range of armaments and equipment inventory, its active
electronic scanning radar antenna, its multisensor data fusion, and many
other unique features RAFALE covers the whole range of air operations in
the tactical environment of the next 40 years. It is progressively
introduced into the French Navy and Air Force to replace all kinds of
existing combat aircraft (seven different types).

RAFALE has been designed to comply with NATO and US standards and is
therefore fully interoperable with American forces, which is so important
in your country because of the very strong security links you have with the
United States, just as we, in France, do have within the Atlantic Alliance.
The entirely new generation RAFALE system, encompassing all main new
technologies fully meets, and even in many areas exceeds all ROK Air Force
requirements.

Fitted with interception and dogfight EM/IR MICA air-to-air missiles,
anti-ship EXOCET air-to-sea missiles, long-range stand-off SCALP
air-to-ground cruise missiles, as well as many other US-made conventional
weapons in the ROKAF inventory, RAFALE indeed appears as a formidable
deterrent aircraft, as well as a force multiplier. The operational
capability of the RAFALE has been evaluated in depth by the ROKAF pilots.
Handling qualities, manoeuvrability, air-to-air, air-to-ground and
air-to-sea qualities have been demonstrated through missions that can't be
accomplished by any existing aircraft. We are proud of the results of the
evaluation conducted by the ROKAF.


2. Budget: RAFALE is the most reasonable and really affordable answer to
the FX program.

In terms of life cycle costs (because, after all, any force is also
responsible of the adequate use of the taxpayers' money by making sure the
system it buys will keep current for the next 30 or 40 years), let me just
tell you that I firmly believe that the size of RAFALE is an advantage.
That the fact that it is a new aircraft is an advantage. That the drastic
cost-saving constraints defined by the French Air Force and Navy in terms
of logistic support, operation, maintenance and training is an advantage.
It takes 60 people to support a fleet of 40 RAFALE in operation: ask our
competitors how many they need.

In addition, since the FX program is aimed at replacing with a single type
of aircraft a large quantity of existing combat aircraft that are becoming
obsolescent (such as the F-4 Phantom II, the F-5 Tiger II or the A-37), it
is therefore not supposed to be limited to a single batch of 40 aircraft.
Additional purchases will have to be made in the future. Keeping this in
mind, RAFALE today is the only competitor to meet today's requirements,
while simultaneously meeting tomorrow's ones. Any other choice would oblige
to acquire two different types of aircraft, thereby considerably increasing
the operations costs in terms of logistic supply chains, maintenance
structure, etc.
All these elements make RAFALE the most reasonable and affordable choice
for your country. Any other solution that might at a first glance appear as
a cheaper one, would, in the end, become much more expensive.


3. Industrial / Technological: RAFALE is the gateway to national
independence through sensitive technologies.

The program of industrial cooperation and technology transfers proposed to
Korea - within the frame of the F-X program - by the partners of the RAFALE
is one of the largest and most comprehensive ones ever proposed in this
field. In total, it reaches - and, in some cases, it exceeds - the figure
of 70 % of the total cost of the FX program, within a timeframe of between
10 and 12 years time.

It is a proposal that is well balanced in its content of both industrial
aeronautical production and advanced technologies transfers. It includes a
strong component of airframe, engine, electronics and armaments.
In the production field, Dassault Aviation proposes to KAI (Korea
Aeronautical Industries) to become a major partner in the production of
both military and civilian aircraft : KAI would manufacture very large
sections of the RAFALE, not only for the Republic of Korea Air Force needs,
but also for the French Air Force and French Navy needs, as well as for
other export customers in the future.

KAI would also become a major partner of Dassault Aviation in the field of
civil aircraft production, with the manufacture of important fuselage
sections of the FALCON family of business jets. Dassault Aviation is the
world leader in this category of aircraft, with over 1,500 FALCON business
jets flying worldwide. Dassault Aviation has a large order book, and KAI
could take an important share in a booming market for aircraft such as the
FALCON 2000, 2000EX twin jets, the FALCON 900 and 900EX long-range
tri-jets.

In the engine field, SNECMA proposes to Samsung Techwin, Korea's leading
aircraft engine manufacturer, the production of advanced parts of the
M-88-3 engine, as well as a wide range of activities in the field of
maintenance of engines.

In the electronics field, the key Korean electronics industry would have a
unique opportunity to be associated to the production of the Thales RBE2
active electronic scanning antenna radar, today's most advanced radar in
the world. Korean electronics companies would also be associated by Thales
to the manufacture of other advanced electronic equipment of the Rafale,
such as the SPECTRA electronic warfare suite, and the optronic equipment.
In the technology transfer field, the RAFALE proposal draws a large part of
its interest from the facts that the know-how and the technologies mastered
by the industrial partners of the Rafale program are entirely French and do
thereby not depend from a third country's authorization to be transferred.
In compliance with French laws and regulations, the French Government
clearance has already been obtained prior to the proposal to Korea.

Another unique characteristic of the RAFALE technology transfer proposal is
that it includes all of the technologies needed by Korea to achieve its aim
of developing a national high performance combat aircraft within a 15 years
timeframe. These technologies include design and development of airframe,
airframe components, in-flight testing facilities, procedures, data
gathering techniques and analysis, etc.

In the engine field, Korean engineers are already, as of November 1st,
associated to the development of upgraded versions of the M-88 engine in
France.

In the electronics field, Thales proposes a unique substantial transfer
allowing the Korean electronics companies, not only to support the
operational life of the Rafale systems, but also to acquire technologies to
design specific equipment for their own needs. This is particularly true
since the source codes of the electronic warfare equipment would be
transferred to the Korean Government, as well as technologies in the field
of optronics, electronic warfare, advanced radars, complex systems
integration and testing. Thales has been successfully working with Korea
for more than 10 years and is today fully involved inb the Korean
electronics industry, through its Samsung-Thales joint venture. Thales'
technology transfer would increase Korean electronics industry's
capabilities through co-operation not only with Samsung-Thales, but also
with LG-Innotek.

In total, the RAFALE offsets program includes more than 100 projects
allowing the Korean aerospace and defense industry to proceed with its
efforts to become one of the ten world's aerospace countries by 2010.

This is made possible because RAFALE is a young program, which is at the
beginning of its industrial and technological life, contrary to other
competing programs. It is not only a combat aircraft that will fulfill
Korean air power needs for the first half of this century ; it is a
technology vector that will bring Korea the necessary tools to keep the
pace of its technology development throughout the 21st century.
It is a unique opportunity.

And let me tell you that this unique opportunity is not only brought to you
by the main partners of the RAFALE. In my quality of Deputy Chairman of the
GIFAS, the French Aerospace Industries Association, I want to stress that
this proposal is backed by the 100,000 people working in all the French
aerospace industry.

Alongside Airbus and the Ariane launcher, the Rafale is one of the French
aerospace industry's major backbone programmes.

Our largest companies are involved in the programme, either directly or
through their subsidiaries, meaning the Rafale benefits from the applied
expertise of the industry as a whole.

With a workforce of 100,000 highly qualified staff, the French aerospace
industry boasts the human and technological capabilities necessary for
success on export markets, with products including Airbus, Mirage and
Falcon aircraft, helicopters, missiles, launchers, satellites, engines and
equipment. Its breadth of know-how covers all sectors of the aerospace
industry.

The French aerospace industry offers its export customers a permanent range
of latest products, available in their most high-performance versions, and
is keen to foster technology transfers and industrial partnerships.

In 2000, the industry received orders worth a record US$ 37 billion.

Export sales account for 75% of revenues, proof of the industry's
competitive edge and the value of products manufactured both in France or
as part of international programmes.

Over recent years, the French aerospace industry has undergone major
restructuring at both the domestic and European levels. It is now stronger
and benefits from the presence of major groups such as EADS, Thales,
Eurocopter and MBDA while preserving the potential of leading domestic
companies such as Dassault Aviation and Snecma. Alongside these, a large
number of dynamic and highly innovative equipment makers contribute to the
manufacture of aerospace products. All these companies are leaders in their
respective fields of expertise and together mean the French aerospace
industry ranks first in Europe and second worldwide.

The French aerospace industry has maintained a strong local presence in
Asia for many years and continues to forge business and industrial
relations which are strong and sustainable. It offers its customer-partners
a permanent range of products, perfectly tailored to their specific needs
and at very competitive prices.


4. Policy: RAFALE is the best opportunity for diversification.

To those who would say that Korea should select an American aircraft
because you need to stay interoperable with your allies, I shall stress the
fact that France also is a strong ally of the US. The best proof of this is
that, during the Kosovo conflict, it is my country that generated the
highest number of combat missions with its Mirage aircraft alongside the US
Air Force. Many more than any other European air force equipped with US
F-16's. In each of these missions, full interoperability was demonstrated.
I would also like to stress the fact that several countries have decided in
the past to operate French-made combat aircraft alongside their American
fighters: this is the case for Belgium, Greece, Spain, Egypt, Taiwan,
etc... If all these countries, strongly relying on the US for their
defense, have decided to diversify their supply source, there must be good
reasons.

The first one is the efficiency of French combat aircraft: the best example
of this is the Indian Air Force in the battle of Kargil, where the
introduction of the Mirage 2000 unlocked a stalemated tactical situation of
several weeks. Another reason is the absence of restrictions from the
French Government in terms of weapons and technology transfers to
long-standing friendly countries.

We fully understand that our most valuable ally is also yours. However, as
illustrated by the presence of our Defense Minister in Seoul, we think that
a reinforcement of the defense cooperation between our two countries would
be mutually beneficial.

Last, but not least, consider your country's next major defense programs
and you will agree with me that definitely F-X project is undoubtedly the
one which offers, with the most advanced fighter ever proposed to an Air
Force, RAFALE, from far the best opportunity to implement a real
diversification, and in the same time to get access to full autonomy for
further improvements or national developments.

Moreover, I can confirm that among the various countries which have chosen
to put trust in the French combat aircraft as an alternate source to a traditional one,
whether it is American or Russian, none complains, but all of them are pleased with
their MIRAGE and express satisfaction at their cooperation with us.

I shall let you think about these geo-strategic considerations, and I shall
be happy to take your questions.

-ends-

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