BMW chairman Bernd Pischetsrieder says that further consolidation of the German aero-engine business has been "-postponed rather than cancelled", despite the breaking off of the 1996 discussions held between BMW Rolls-Royce (R-R) and Daimler-Benz Aerospace powerplant subsidiary MTU.
Although there is no current prospect of fresh talks between the two companies, Pischetsrieder says the he would still like to see consolidation "not just of the German aero-engine industry, but of the European industry".
He says that the long-running talks with MTU eventually foundered over its continuing contractual obligations to US partner Pratt &Whitney. MTU, however, says that the idea of consolidating the German engine industry through a merger with BMW R-R has been dropped.
The comments come as BMW R-R posted a DM627 million ($370 million) pre-tax loss in 1996, an improvement of only DM25 million on the previous year. BMW board member Volker Doppelfeld says that the losses would have been significantly lower but for a 24% increase in development spending, largely connected with the selection of the BR710 as the powerplant for the British Aerospace Nimrod 2000 maritime-patrol aircraft for the Royal Air Force.
About DM2.5 billion has been invested in BMW R-R to date, and further spending could be on the cards if the firm wins in its bid to power the Chinese/European AE-100 regional jet with the BR715-56. BMW R-R says that it expects "fundamental decisions" to be taken this year (Flight International, 12-18 March).
The engine was originally launched on the McDonnell Douglas MD-95, but its future is in doubt following Boeing's pending take-over of the group. Boeing is also studying its own 100-seater, for which BR-R has already proposed the BR 715.
Source: Flight International