The three founders of Europe's Aero International (Regional)(AIR(R)) will, in principle, have to bid for work on the proposed new Air Jet regional programme alongside other potential risk-sharing partners, says chief executive Patrick Gavin.
He says that Aerospatiale, Alenia and British Aerospace were invited to the bidding conference in January to brief subcontractors on aerostructures work for the proposed 58- and 70-seat regional jets.
"They will have to play by the same rules as everyone else," says Gavin, although he admits that the preferred option is for the three partners to take work in line with their third shares in the existing AI(R)venture.
The business plan, presented to the partners last October, proposed that the three companies would retain 60%of the project, with AI(R)putting out the remaining 40%to new risk-sharing partners, who would also contribute cash to the $1 billion development cost.
Some 13 work packages, including the fuselage and wing, were put to potential risk-sharers at the conference, and detailed discussions are due to start in mid-March, with the aim of putting the pieces in place by mid-year. Gavin would not be committed to a launch at the Paris air show in June, however.
He adds that to receive the go-ahead from its partners, AI(R)must be able to show "negotiated agreements", including commitments, but not necessarily firm orders, from airline customers. AI(R)also confirms that the aim is to keep down the cost of the new family, with the 70-seater selling at a target $21 million.
Gavin says that, meanwhile, AI(R)will continue to press ahead with integration of the BAe and ATR businesses. The venture was launched at the start of 1996 to offer joint marketing and customer support. In the second phase of the development, due to take place this year, the partners will begin to pool assets involved in customer support, including spares inventories and training centres. An AI(R)leasing company and a separate asset management operation are also due to be established.
AI(R) also hopes to improve sales of its existing product lines in 1997, as the market picks up, with an internal target of around 80-100 new orders. The Avro RJ regional jets had another solid year, with 21 orders in 1996, roughly in line with the annual production rate, and are expected to stay at that level this year. There were 25 new orders for ATR turboprops, however, against a build rate of around 40 a year, although sales are expected to rise in 1997.
The weakest performer was the Jetstream J41, for which AI(R) ended 1996 with a backlog of only 12 of which only around half are due for delivery this year. AI(R)also placed 30 used aircraft during 1996, including three RJs and an Embraer EMB-120.
Source: Flight International
