Safran sees UK-EU industrial ties warming under Labour government

By Joanna Plucinska and Florence Loeve

LONDON, Oct 27 (Reuters) - French aircraft engine maker Safran sees an appetite from Britain's Labour government to work more closely with the European Union on industrial policy, marking a shift after years of post-Brexit tensions, CEO Olivier Andries said on Tuesday.

Prime Minister Andy Burnham has repeatedly said Britain needs a closer relationship with the EU, which the country left in 2020 following the 2016 referendum.

"With this new government, there is a willingness to get back closer to Europe, and this has been a conscious decision in terms of developing partnerships," Andries said, referring to Burnham's government.

He added that Britain's and France's aerospace industries shared longstanding ties and were natural partners.

Safran has 14 facilities across England and Wales, according to the company's website.

Earlier this month, Safran reported higher third-quarter revenue and reaffirmed its 2026 outlook, although its shares fell as investors worried that a slowdown in aftermarket sales growth could extend into 2027.

Andries said the company remained committed to expanding its maintenance, repair and overhaul capacity to meet rising demand, particularly after maintenance bottlenecks that emerged following the COVID-19 pandemic.

"There is already very strong need for engine maintenance. And now we're seeing an increase in the delivery of aircraft which means that eventually there will be a greater need for engine maintenance," he told journalists. 

He added that Safran expected to meet all of its delivery commitments to Airbus in 2026. 

COLLABORATIVE COMBAT

Andries also reiterated Safran's interest in working on an engine for the next generation of collaborative combat aircraft, as the French government seeks greater industry input in the programme.

France's defence procurement agency asked companies in June to outline their capabilities in collaborative combat drone systems, with responses due by the end of August.

While declining to say whether Safran responded to the request, Andries said the company remained committed to developing engines for emerging technologies, including studying whether to design an engine for the M15 collaborative combat aircraft concept.

"We are currently looking into whether or not to launch a design for an M15 engine, but at the moment we haven't done so yet," Andries said. 

(Additional reporting by Inti Landauro. Editing by Sudip Kar-Gupta and Mark Potter)