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MARCH 2000
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 A world leader in both military and commercial aviation as well as in the space arena, Boeing has participated in projects dealing with attack and heavy-lift helicopters in Turkey. It is currently competing in a bid to produce up to eight AEW&C (Airborne Early Warning and Control) aircraft for the Turkish Air Force and currently provides Harpoon missiles to the Turkish Navy. The aerospace giant sells commercial jetliners to the Turkish airline industry and is proposing launch, satellite and communications equipment to the domestic space industry. In addition, Boeing is involved in the concept, or prototype, phase of Turkey's Joint Strike Fighter
(JSF) program.
"I think we've made great progress in explaining to the government,
the military sector the quality of our products, that those products can
meet the needs of the military sector, that they are financially
affordable and really are the cutting edge and the best products in the
arenas," says Pepin.
Current projects
Turkey has issued a request for proposals for four AEW&C aircraft with options for six, seven or eight, and according to the Boeing director this is a front-running program. "The 737-800 is a very capable solution. I believe we have a strong team behind us in building this new AEW&C, with Northrup Grumman and Havelsan as our partners. Our other partners are Turkish Aerospace Industries [TAI] and Turkish Airlines [THY], also very strong in the sense that our platform is the 737. THY has the same basic platform in their commercial aircraft, so maintenance and simulation can be done quite easily. We'll transfer all the requisite technology to modify and integrate the systems at TAI. There really is no other company out there that has the domain experience in building AEW&C aircraft that we do. We have the solution that many other countries as well as the U.S. Air Force are evaluating, and we are absolutely confident that we meet all the Turkish requirements."
Commenting on Boeing's recent elimination from contention in the Undersecretariat for the Defense Industry's
(SSM) attack helicopter tender, Pepin expressed disappointment but adds: "We are still convinced that we have the world's most capable and technologically advanced attack helicopter. The Apache is combat tested and operated by countries around the world in addition to the U.S. Army."
Developing a strategic alliance
Boeing, however, did not open an office in Turkey solely for one project or merely to provide more commercial aircraft to the civilian aviation sector; the company envisions cementing a long-term relationship, a strategic alliance with Turkey. "We want to be here and work with Turkey and Turkish industry for a long time. We want to be a strategic partner with Turkish industry. We think we are unique in the aerospace industry in that we can bring alliances in the area of commercial aircraft, like the 737-800, the 757, the 767. We believe we can bring the aerospace business to Turkey in the space business, in Delta 4 rockets and in satellites. We can bring defense aircraft of the future to Turkey, such as the
JSF. Helicopter production is another area we can incorporate and build up an alliance so that Turkish industry can help produce these aircraft.
"I'll give an example of a company in Istanbul that makes landing gear struts for 737 aircraft. Those landing gear struts are not just for aircraft Turkey is going to buy. Wherever we sell the 737, they make the landing gear struts for them as well. That will continue and continue. We want to have the same strategic relationship here in Turkey with industry -- to not just work on one project, but expand it. The helicopter area that we are looking at is just one of those examples. Why shouldn't we help industry here, TAI for example, and others such as
Havelsan, be able to produce the entire range of Boeing products? Why shouldn't we help those industries produce commercial airline parts? Why shouldn't we help those industries engage in more space participation?
"That's what we are really looking for -- we're here to establish a long-term strategic relationship, and that means bringing all the portions of Boeing to bear. Other companies can say, 'We want to be a long-term partner,' but do those other companies bring space business with them, do they bring commercial airline business, do they bring future defense aircraft, do they bring helicopter business, do they bring the AEW&C? Or are they in just one sector of the aerospace business? I think Boeing is unique in that we cover the entire gamut of the aerospace business, and that is the type of strategic alliance that I hope the Turkish government realizes we want to bring to Turkey. That's why we want to have a long-term relationship that covers the entire range of Boeing, not just do one program and walk away from it. We want to be here for a long period of time, and I know Boeing has the capability to do that.
Another realm of possible opportunities for developing good community relations is that of offsets, which are agreements the company must enter into once it is selected for an equipment program. In order to help offset the significant funds going from the Turkish Treasury to a foreign company, a certain percentage of the contract price must be invested in Turkey, either directly in the aerospace industry, or indirectly in a way that furthers Turkey's industrial requirements.
"In a direct offset, for example, we could develop a company so they could make parts for the Delta 4 rocket. They would be making the parts for every rocket we use to launch satellites with. It has nothing to do with any particular program, but it's in the aerospace arena. Indirect offsets would again be furthering Turkey's industrial requirements, but not in aerospace. This could be in a training environment. For instance, we could send military officers or government employees back to the States to get a master's degree in aerospace engineering. We could then have them work in industry and train at Boeing for a year. It doesn't have to be related to any particular program, just in the aerospace arena. Those engineers will come back to Turkey, and whether they work for TAI, the
SSM, the air forces or the land forces, they would make a contribution in whatever area they trained for.
"Or we could go to the Southeast and find small businesses out there. We could bring expertise we have that may not be directly related to the aerospace business but may be an offshoot of something we have developed from building aircraft that they could also do. For example, we may find in developing strike fighters some technology or a portion of it that we could use in another field which maybe marries up with a company in the Southeast. We would assist with that, perhaps set up plant or machinery, give technical advice, provide whatever technology we could for that company to become a viable industry. It's not aerospace, but again it's developing Turkish industry. The Southeast has great potential, and the people out there are very industrious. They just need something to assist them in channelling that industriousness and being productive.
"And that's why Boeing sees it as being a member of the community. We are part of the community here, and we should look for ideas out there. In being selected for a program, we would be looking at the Southeast; we would try to put as much as we can in that area. We would try to develop as many relationships with the Boeing Company as we can. It goes back to the strategic alliance that Boeing seeks."
Helping Turkey become a global aerospace country
Pepin concludes by reiterating Boeing's uniqueness in its field and how that impacts what the company can do for Turkey. "We bring all aerospace with us -- jet fighters, current jet fighters like the F18 and the Harrier. But we also bring the jet fighters of the future, the
JSFs. We bring missiles like the Delta 4 rocket that launches satellites. We bring the AEW&C, not just these four or seven or eight planes that will be done here. This is the AEW&C of the future. We bring the helicopter business. We bring the commercial aircraft business. We bring the whole gamut of aerospace business. Boeing can help Turkey become a truly global aerospace country.
"As I said before, we want to have a strategic alliance with Turkey. We aren't here to do one program and then move on. We want to be here for the long term, the long haul, and develop the aerospace industry in Turkey. We hope that Turkish industries and Turkey want Boeing as an aerospace partner. That's good for Turkey. It meets their defense requirements, it meets their commercial airline needs. And it's good for
us". (Turkish Daily News)
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