ATR and Embraer expect to decide by the end of the year whether to launch new 70-seat size regional jet developments. At the same time, the companies are continuing to seek partners and jointly discuss a possible collaborative programme in what is fast becoming an overcrowded market.
The Brazilian manufacturer says it will complete a worldwide airline survey within a month, assessing the demand for either a 70 or 80-seat jet and preferred choice of cabin cross section, as well as trying to analyse anticipated market and economic changes. "We have to look at the external environment, how the airline market will be affected and if it makes business sense to go into a new programme now," says Embraer president Mauricio Botelho.
ATR simultaneously is again considering launching the shelved AirJet in the wake of British Aerospace's departure from the former Aero International (Regional) consortium. The Franco-Italian partnership plans to submit a proposed business case for the aircraft to the company's board by late October. "We have to reassess and reaffirm the market. We also have to look at the availability of partners," says ATR chief executive Antoine Bouvier.
Contacts have been re-established with several potential ATR partners including the Aerospace Industrial Development Center of Taiwan and the Korean Commercial Aircraft Development consortium, which had signed a memorandum with AIR to take a risk sharing stake. According to Bouvier, China has also "asked questions."
Embraer has also been in discussion with possible partners in China, Finland, the Netherlands, Portugal, South Korea as well as LTV, Northrop Grumman of the USA and ATR. "We've been holding discussions with ATR-they are looking for a partner," confirms Satoshi Yokota, Embraer vice-president industrial.
The company acknowledges that a decision is urgent, given the launch of the Fairchild Dornier 728JET and scheduled first flight of the competing Bombardier Canadair CRJ-700 in early 1999.
Meanwhile, Embraer has announced $2.5 billion in new orders, including 75 ERJ-135s and 75 options from American Eagle, in addition to its earlier commitments for 42 ERJ-145s.
Continental Express has ordered another 25 ERJ-145s, increasing its fleet to 75, plus 25 options. Other deals include four ERJ-145s for National Jet Systems, five for Luxair and another eight ERJ-135s for Flandre Air.
Elsewhere in the regional market, Atlantic Southwest Airlines has ordered 15 Canadair CRJ-200s and 12 -700s worth $575 million. Bombardier has sold has sold another 10 -200ERs to Atlantic Coast Airlines, increasing its orderbook to 33 aircraft. Midway Airlines has converted seven -200ER options increasing its firm orders to 20 aircraft.
Source: Flight International
