Boeing noses ahead of Bell in attack helicopter competition after key committee delivers favourable assessment
Boeing appears to have gained an edge in Taiwan's attack helicopter competition, following a favourable assessment of the AH-64D Apache Longbow and bids by a local manufacturer for 7E7 workshare.
Taiwan is evaluating the Apache and Bell Helicopter's AH-1Z for a 30-aircraft requirement. Industry sources say a Taiwanese army committee has rated the AH-64D above the AH-1Z in a recently completed cost and operational effectiveness analysis, which if endorsed by the ministry of national defence would tilt the contest in Boeing's favour.
Proposed industrial offset is another key factor, as Taiwan's Aerospace Industrial Development Corporation (AIDC) is trying to line up new projects to ensure its future. Bell tried earlier this year to gain an upper hand in the offset battle by awarding AIDC a contract to supply tail booms for the US Marine Corps' fleet of remanufactured AH-1Zs and UH-1Y utility helicopters (Flight International, 2-8 March). But industry sources say AIDC's new management team is focusing restructuring efforts on expanding its commercial aircraft components business. The value of potential 7E7 contracts would far surpass the value of the proposed AH-1Z/UH-1Y work.
Sources say AIDC is bidding for three component contracts for the 7E7 that are to be awarded later this year by first-tier suppliers Boeing Wichita, Kawasaki and Vought. These contracts could help Boeing meet the offset requirement for an Apache sale and fulfil its goal to expand well beyond supplier contracts for the Boeing 717 and several general aviation aircraft that have so far generated limited revenues and have been unprofitable.
Bell can do little to help AIDC's push into large commercial aircraft, but believes it can give the company a larger share of its attack helicopter, because the Apache fuselage is already sourced in South Korea.
Manufacturing the new heavy attack helicopter is one of several potential projects in AIDC's new business plan. Taiwan's ministry of economic affairs has formed a team to determine by July whether the company is capable of manufacturing the entire aircraft, including its radar, as proposed. Sources expect the proposal to be rejected, because it would increase programme costs and delay deliveries. AIDC is instead likely to be responsible only for final assembly.
The ministry of national defence is expected to review the army's analysis of the two candidates around mid-year, with Bell arguing that the initial army assessment should be rejected, claiming that the assessment process was flawed.
BRENDAN SOBIE / SINGAPORE
Source: Flight International
