PaulLewis/ZHUHAI
AERO INTERNATIONAL (Regional) (AI(R)) is asking competing engine manufacturers to provide lease financing for the yet-to-be-launched AIR 70 regional jet, in exchange for being selected to supply the new aircraft's powerplant.
The European consortium is asking the three rival engine suppliers to assist with up to 25% of the cost of leasing the planned new 60- to 84-seat family of regional aircraft to prospective operators.
This aspect will be "taken into account" in the final selection of the engine, says AI(R) chief executive Patrick Gavin.
Competing to power the AI(R) 70 jet are Allison with its planned new AE3012, General Electric, offering the CF34-8C, and Pratt & Whitney Canada/Snecma, offering the SPW14. A shortlist of two candidates is expected by the end of the year, with a final selection in the first half of 1997. AI(R) is seeking to enlist risk-and-revenue sharing partners to cut the cost and risk of developing the new aircraft. Development cost of the AIR 70, along with the smaller AIR 58 variant, is put at $1.1 billion.
AI(R) had earlier stated a willingness to offer up to 40% stake in the programme to a mix of different international partners, but this may be increased to as much as 55%, say industry sources.
Having held exploratory talks with potential partners earlier in the year, AI(R) is now attempting to go a step further and identify possible work packages, and the consortium is understood to be in "serious discussions" with South Korean manufacturers on possible participation in the project.
While AI(R) declines to comment on the talks, sources indicate that Korean Air and Daewoo Industries have been contacted with a view to taking a stake of up to 25% in the programme. Much depends, however, on the outcome of the current negotiations between Korea's Samsung Industries on taking over Fokker Aircraft.
Approaches have also been made to Taiwan's Aero Industry Development Centre (AIDC), and aerospace companies in China, India and Indonesia.
"We hope to have a clear view on who will be the most important partners by the spring of 1997," says Gavin.
In the meantime, AI(R) is working to establish an advisory group of ten to 12 airlines by the end of the year.
Launch of the AIR 70 is expected at the Paris air show in June 1997, and the 58-seater may be launched shortly afterward.
The AIR 58 would sell for around $18.5 million, against the $22 million price of the larger aircraft. The first flight of the AIR 70 would be in mid-2000, with the AIR 58 following at the end of the same year.
Source: Flight International
