Max Kingsley-Jones and Kevin O'Toole/LONDON
Airbus Industrie is working at top speed to fly the first Rolls-Royce Trent 500-powered A340-600 in January 2001, following board approval for the full launch of the $2.9 billion A340-500/600 programme.
The European consortium says that it holds some 100 commitments, from seven customers, with orders already announced worth over $13 billion. Deliveries of the A340-600 will begin in early 2002, followed shortly after by the A340-500, to be flown in July 2001.
The introduction of 313-seat, 15,800km (8,500nm)-range A340-500 and 380-seat, 13,900km range -600 will see Airbus entering the the 300- to 400-seat, long-range market for the first time. The consortium is optimistic that it will capture at least half of the 1,500 sales in the category forecast through to 2010.
British Aerospace says that it is still waiting for an official reply from the UK Government over its application for £123 million ($208 million) launch-aid loan to cover part of the group's £370 million investment in the A340-500/600.
Despite support from the Department of Trade and Industry, the application is understood to have run aground in the Treasury, which is constrained by tough spending controls. Although it has granted R-R a repayable loan for engine development, the Treasury apparently believes that BAe can apply for commercial loans.
While BAe concedes that the Government now seems unlikely simply to sign off the request, it remains hopeful of getting some support, but perhaps in the framework of a broader deal. BAe admits that it is capable of funding the new A340 investment from healthy Airbus cash flows, but it is keen to establish the principle of Government support as it continues discussions to restructure the consortium and looks at the options for an A3XXlaunch.
BAe points out that there may be "room for manoeuvre" because of the volumes of cash now flowing back from launch-aid repayments on the original A340 and A320. The group is on course to have repaid £400 million (including interest) by 2000 on the original £250 million investment in the A320 made in the 1980s.
The option has been raised of looking for risk-sharing partners from countries such as Italy or Spain if their Governments will help with funding, but that is "on the backburner" pending an official UK reply, says BAe.
Meanwhile, Pratt & Whitney is renewing efforts to power the A340-500/600 models with a version of the new 289-298kN (65,000-67,000lb)-thrust class engine now proposed for the increased gross weight Boeing 747-400 and 767-400.
The change in heart follows the recent weight increase of the A340 derivatives , brining their thrust requirement within reach of the higher-thrust engine being proposed for the Boeings.
Additional reporting, Guy Norris
Source: Flight International
