Paul Lewis/Singapore
BOEING IS SEEKING alternative partners to develop a 100-seat aircraft, having conceded defeat in its bid to join with China in the development of the AirExpress AE-100 regional jet.
The US manufacturer threw in the towel after Commercial-Airplane president Ron Woodard admitted that Europe is China's preferred choice. "We believe that China will not select Boeing for its Western partner in the 100-seat aeroplane programme," says the company.
Having conceded loss of the AE-100 programme to the European Aero International (Regional) (AI(R)), it is unclear what Boeing's next move will be. The company had previously discussed co-operation with Japan on its YS-X regional-jet programme, and is talking to other potential partners. "We will continue to evaluate our options with other partners in the 100-seat market," says Boeing.
Boeing's withdrawal effectively pre-empts an official selection of a Western partner by an Aviation Industries of China (AVIC) and Singapore Technologies joint steering committee. A decision had not been expected until mid-May.
AVIC refuses to comment on Boeing's announcement, but a Chinese source confirms that a final selection has not been made. It had planned to hold more detailed discussions with Boeing and AI(R) before making a final decision.
Boeing, however, has been suffering setbacks in China because of strained relations between Washington and Beijing. It recently lost to Airbus Industrie a major China Aviation Supplies order for 30 narrowbody jets.
It decided to quit after a Boeing delegation, including Woodard and Richard James, head of the company's low-cost small-aircraft project, met AVIC in mid-April.
Boeing's final meeting with AVIC followed the latter's signature in Paris of a letter of intent to co-operate with AI(R). "Boeing's proposal was not very attractive," confirms an AVIC source. "They were told to try much harder."
Aside from the Sino-American political fall-out, Boeing's bid has been hindered by its wish to limit the top end of the AE-100 family to a 125 seats, to avoid any overlap with the Boeing 737-600. AVIC instead wants to develop a family of three aircraft, up to and including a stretched 140-seat version.
The South Korean Government, in the meantime, is showing signs of compromise in a bid to rejoin the AE-100 joint venture. Talks between AVIC and the Korean Commercial-Aircraft Development (KCDC) consortium stalled in late 1995 as a result of China's four-point demands, which ruled out any second production line in Korea.
Senior Government officials appear to be more flexible on the issue of production, provided that a compromise can be reached in other areas, such as shareholding.
The Samsung-led KCDC consortium is signalling its continued intent to develop a regional jet by ordering a 100-seat mock-up for display at the Seoul air show in October. The aircraft will include a mock-up cockpit with avionics supplied by Rockwell Collins.
Source: Flight International
