Airbus

HC Deb 24 June 1968 vol 767 cc1-4

1. Mr. Onslow

asked the Minister of Technology what is his latest estimate of the cost of research and development of the European airbus; and what percentage increase this represents over the last previously published figures.

7. Mr. McMaster

asked the Minister of Technology when he expects agreement to be reached to go ahead with the development of the European airbus; and what are the latest estimates for development costs for the airframe and engine separately.

12. Mr. Fortescue

asked the Minister of Technology if he will make a statement on the progress of the inter-governmental discussions regarding the building of a prototype A300 airbus.

15. Mr. Marten

asked the Minister of Technology if he will make a statement about the European airbus.

The Minister of State, Ministry of Technology (Mr. John Stonehouse)

Full technical and financial reports were submitted by industry in May and are being evaluated by international teams of officials. Engine launching costs are now estimated by Rolls Royce at something over £70 million for a 54,000 lb. thrust engine as against the earlier figure of £62 million for a 47,500 lb. thrust engine. Airframe launching costs are estimated by Sud Aviation as at least £215 million against the earlier figure of £130 million. These new figures take into account the effects of devaluation. In all, this represents an increase of nearly 50 per cent., though the figures are of course subject to further negotiation and are not yet officially endorsed. Ministers plan to meet next month, as scheduled, to make a decision on the future of the project.

Mr. Onslow

In view of that very disturbing information and of other developments with reference to the airbus, does the Minister still stick to his categoric assurance that it will be built?

Mr. Stonehouse

We are very hopeful that it will be built, but we have always made clear that this is not a political project; it is a commercial one. We want to build an aircraft which will be commercially viable and which will be attractive to the airlines to buy it. If we can meet those terms and conditions along the lines of the strict criteria we laid down last July, we shall do it.

Mr. Marten

As the costs have escalated, I think the right hon. Gentleman said from 50 per cent. to 70 per cent., what chances are there of this being a commercial project? If it is not a commercial project, what will be left of the civil aircraft industry in this country?

Mr. Stonehouse

The civil aircraft industry does not rely on the airbus alone by any means. I ask the House to remember that the project has been changed considerably in character during the last year. The specifications are not by any means identical with those we had in mind a year ago because, of course, the aircraft now more nearly meets what the airlines have in mind. In this sense it will be more commercially attractive than the original plans were.

Mr. Fortescue

Has the Minister had any recent indications from the French Government as to a change in their attitude towards this project after the recent events in France?

Mr. Stonebouse

As I said, the Ministers expect to meet next month. In that discussion we shall understand what the current French decision is.

Mr. Raokin

May we take it that my right hon. Friend in making that statement was making a categorical denial of the statements which appear in this morning's Press that the Government do not mean to proceed with the airbus 300?

Mr. Stonehouse

We have made no such decision. We shall await the complete evaluation of the reports to which I have referred, and of course we shall be discussing it with our partners, Germany and France, at the discussions to be held next month.

Mr. Corfield

Can the right hon. Gentleman either confirm or deny that he has made approaches to the Boeing Aircraft Corporation with a view to its participation in this project in return to its abandoning a competitive aircraft? If he has made those approaches, can he give an indication of Boeing's reactions and also the reactions of the French Government to that suggestion?

Mr. Stonehouse

There is another Question on the Order Paper about my visit to the United States. I prefer to wait for that.

Mr. Robert Howarth

Has my right hon. Friend seen Press reports on the attitude of Lufthansa towards this project? What observations has he to make on this?

Mr. Stonehouse

I fully understand the position and that Lufthansa, as with any other airline, will wish to have the full specification and particulars of any aircraft before being committed to it. The Lufthansa airline decision must be decided finally by Ministers concerned in Germany, and we have had an assurance from German Ministers that they wish the airbus project to continue.