BRENDAN SOBIE / SINGAPORE

Taiwan's Aerospace Industrial Development Corporation (AIDC) is poised to win a contract to supply tail booms for Bell Helicopter's AH-1Z combat and UH-1Y utility helicopters.

Industry sources say Bell has tentatively selected AIDC over Turkey's Tusas Aerospace Industries (TAI) and Poland's PZL, although a final decision has yet to be announced. Price negotiations between AIDC and Bell are due to begin shortly. Bell's decision to award the estimated $50 million contract to AIDC could be driven in part by further delays in the Turkish army's purchase of 50 AH-1Z KingCobras. Talks between Ankara and the USA have stalled several times in the past three years, most recently over Washington's refusal to supply source codes for key aircraft systems. TAI is the proposed prime contractor in Turkey's AH-1Z programme.

Bell is eyeing Taiwan as a launch export customer for the AH-1Z. Taiwan's army last year began evaluating the aircraft and Boeing's AH-64D Apache Longbow in a competition for up to 75 new attack helicopters. A selection is expected in late 2004 or 2005.

The tail-boom contract will initially cover about 180 AH-1Zs and UH-1Ys being remanufactured for the US Marine Corps, but may be extended to cover exports. AIDC may later assemble AH-1Zs if they are acquired by Taiwan.

Boeing is prepared to award AIDC work to meet a 40% offset requirement if the Apache wins the attack helicopter competition.

Source: Flight International