Paul Lewis/WASHINGTON DC

United Express operator Air Wisconsin is to concentrate on identifying a regional jet (RJ) replacement for its British Aerospace 146s and decide the future of its Fairchild Dornier 328 turboprops after finalisation of a $1.5 billion order for 75 additional Bombardier CRJ200s and a similar number of options.

"This is the next major thing in Express land," acknowledges United Express president Chris Rado. "We have some decisions to make about the 146s and the rest of the turboprops. I would like to get to an all-jet fleet some day," he adds.

BAE Systems is making a strong push to replace the 18 146s with RJX85s. Embraer and Fairchild Dornier have been encouraged by United's new scope-clause agreement with its pilots, which gives greater latitude for a replacement other than the RJX, specifying only an "aircraft certified to seat 85 or less, or two smaller jets".

Air Wisconsin's initial CRJ200s, to be delivered from the end of the year, will be configured as standard 50-seaters. The carrier has the option of switching to a 40- or a44-seat layout should it choose to replace its 23 smaller 328 turboprops with the CRJs. Trading the turboprops in for 328JETs is another option.

A critical factor against the CRJ200 is its relatively long runway field performance. Air Wisconsin employs its 146 jets and 328s into mountain airports such as Aspen and Eagle/Vail, Colorado.

"If you fly into Aspen or Eagle, you have to have a 146-type of aircraft," says Pat Thompson, Air Wisconsin executive vice president operations. "We've asked United what they would like to do."

Air Wisconsin also hopes to be informed by United Express within the year of its allocation of RJ operating rights in 2004, on which the final 24 of its CRJ200 orders hinge. United will ask Air Wisconsin, along with fellow Express operators Atlantic Coast Airlines and SkyWest, to bid on additional RJs this summer based on available deliveries (Flight International, 10-16 April).

Appleton-based Air Wisconsin already has an agreement with Express to add an initial 51 CRJ200s to the nine 50-seaterswhich it now operates. The aircraft will be delivered at a rate of two per month. 5403

Brian Dunn/MONTREAL

Bombardier is increasing CRJ200 production from 2003 and creating additional manufacturing jobs at its Montreal facilities on the back of the Air Wisconsin deal.

Air Wisconsin's firm order for 75 aircraft pushes its total regional jet sales to over 1,000, including 860 CRJ200s and 185 stretch CRJ700s and 86-seat CRJ900s. Its backlog now totals 551 aircraft, prompting Bombardier to increase production to 14.5 aircraft a month from 12.5 during its 2003 fiscal year, and adding 1,000 jobs.

Bombardier plans to deliver 135 CRJ200s during this fiscal year, increasing to 165 aircraft in 2003 and 174 the year after. Additional space will be created for CRJ production at the Dorval plant by transferring CRJ700 and CRJ900 assembly to the new C$200 million ($128 million) Mirabel facility, which is due for completion late this year.

Air Wisconsin's C$2.35 billion order is supported by upto C$1.7 billion in low-interest loans from Ottawa to offset similar financial incentives offered by rival Embraer (Flight International, 16-22 January).

Although the Canadian Government will not release details of the financing package, industry minister Brian Tobin said in January that the loans could finance as much as 75% of the transaction.

Canada and Brazil have been arguing over aircraft subsidies for years: the World Trade Organisation has considered the issue and ruled in Canada's favour, authorising Ottawa to impose C$2.4 billion-worth of economic sanctions against Brazil over seven years.

Mitsubishi Heavy Industries says it plans to double the production of CRJ700 regional jet fuselages for Bombardier to four a month by the end of the year. The Japanese company builds the rear fuselage section for the 70-seat CRJ700 and the new 90-seat CRJ900.

Source: Flight International