BRANDON SOBIE / SINGAPORE
Bell Helicopter and Korea Aerospace Industries (KAI) are in talks to jointly develop and build a new variant of the 427 light twin as part of an effort to revitalise the struggling programme.
Industry sources say a new avionics suite capable of supporting operations under instrument flight rules (IFR) would be the biggest change compared with the existing 427, which is limited to visual flight rules. But Bell and KAI are also due to discuss in a meeting this week a change in their work share arrangement that could result in South Korea taking over responsibility for the avionics and engines.
KAI, which has been a partner in the 427 programme since its launch in 1997, already supplies the fuselage and cabin. Bell is responsible for avionics, engines, transmissions and rotors. Final assembly is done in Canada for all aircraft except those sold by KAI.
But KAI has only entirely produced two aircraft, which earlier this year Bell quietly bought back. KAI says the 427's inability to operate in IFR conditions and low temperatures have hampered sales in its territory, which includes China, South Korea and South-East Asia.
Bell also has netted fewer than 70 427 sales world-wide and has suspended most marketing until it can restructure the programme.
KAI is being offered almost all manufacturing responsibility for the new variant, which should be available from 2005. Korean conglomerate LG may supply the new IFR-capable avionics and some engine work may also shift to South Korea from Canada.
The new work share is being negotiated, but Bell will probably retain responsibility for the rotor system and final assembly so the 427 can retain its US certification. Bell also may take over all marketing and sales.
The 427 upgrade project will require funding of $30-$80 million, depending on the configuration selected. Bell and KAI have already invested $200 million and $60 million, respectively, in the project.
Source: Flight International
