Mike Martin
Airbus Industrie is struggling with the economics of the AE31X project, outgoing chief executive Jean Pierson admitted at Asian Aerospace '98 yesterday.
At the other end of the range, Airbus's A3XX 555-seat and up superjumbo could be further delayed if technical challenges to delivering the promised performance are not resolved.
However, Pierson, retiring after 13 years at the helm, says he believes both projects will go ahead. Delay is a small price to pay for delivering the right product, he says.
On the AE31X, Pierson says: "We know where the market is and what the market is: we know what the brand new aircraft has to do.
"Where we are not clear - and this is why we are not in a position to take any decision - is in the financial business case for such a project."
A range of issues such as cost of investment are still be resolved. One issue - cost versus selling price - "-still gives us some headaches".
Airbus Industrie Asia (AIA) and Aviation Industries of China (AVIC) earlier this month agreed to launch pre-development work on the AE31X project in March, before any final joint venture agreement and without the active participation of Singapore Technologies Aerospace.
Turning to the A3XX, he says the engineering design team has been unable to meet the end of 1997 deadline for meeting direct operation cost (DOC) reductions of 15%.
"We can achieve (this) target by the end of 1998 and if at the end of 1998 we have not achieved this I strongly suggest we delay again until we do."
Pierson says the revised entry-into-service date for the A3XX is the third quarter of 2004.
"I want to emphasise that with a project estimated to cost some $8-9 billion, one that will shape the aeronautical landscape of the next millennium- it is essential that we get things right. If this means taking nine months to do so, it is a minor delay."
Pierson reveals that Airbus has sent a "letter of intent" to apply for certification of the A3XX to the European Joint Aviation Authorities in order to open a dialogue on a range of issues, including such things as vortex separation. "This is a very serious decision because we need to have more discussion with the authorities."
Source: Flight Daily News
