This is the story of David against Goliath

This is the story of David against Goliath. The small manufacturer of Bremen, HBO, won yesterday, the nose and beard of the European giant, EADS Astrium, the call for tenders launched by the European Commission for the construction of the first batch of 14 satellites in the Galileo constellation, which will enable the Union to develop its own system of radionavigation by satellite by 2014. The first will be provided in August 2012, the last in March 2014. Amount of the contract: EUR 566 million, approximately 100 million less than requested EADS.

For the European Aeronautics and defence group, is rude. An internal investigation was carried out to try to explain the difference in price with his rival. Launchers for the first 10 satellites have also entrusted to Arianespace to 397 million euros, and support system to Thales Alenia Space for 85 million.

How a family business of 1.560 employees could she tamp the pawn to the European leader in the sector, about 20 times more important than her by turnover "In contrast to the large commercial satellites, the size is not necessarily an advantage on the market for institutional satellites, explains Alain Bories, Director of strategy and development of HBO." It is each time something new. Therefore, there is no scale effects.

Success story

The secret of HBO A model both less centralized and less integrated than Astrium: subsidiaries there enjoyed great autonomy while only systems integration and control of work beyond outsourcing. To reduce the costs of structure. Unless that HBO has broken the price for the piece, and is found after the fact with a contract that cost him, as the suspect some in France...

The choice of Brussels propelled in any case the German in the Court of the great, behind the two Astrium and Thales Alenia Space giants, 5-6 times larger. "We are the smallest of the great and the largest of the small," pleasant Alain Bories.

For HBO, success story began in 1981, when the small company since 1958 in hydraulics, is saved by the Christa Fuchs businesswoman. Four years later, she debauchery her husband, Manfred, who was then working... in Astrium. Aerospace activities, originally confined to scientific payloads and micro satellites, will cease to grow. Until the company, still today owned 70 by the family, but now rated for the remainder in Frankfurt, WINS 5 satellites to the German Army contract. And the book not only timely, but without additional cost. These are the same teams in the same Assembly hall, to work on Galileo.

EADS, nice player

In EADS, was yesterday showing beautiful player. The group will be entitled to a share of the pie, not only through subcontracting, but through its British subsidiary SSTL, associated for the occasion with HBO with which it will run the command (40 for SSTL, 60 for HBO).

Above all, EADS already think the mini-call for proposals that the Commission will launch on 8 satellites in the constellation to build. Competition which begins, "at best, at the end of the year", stated yesterday to the Commission. This raises a problem of break for Astrium: occupied teams to produce 4 satellites of the phase "Von" of the project, which should be launched in November 2010 and February 2011, may soon turn inches.