Graham Warwick/WASHINGTON DC
Brazil has threatened to suspend trade negotiations with Canada in retaliation for Bombardier's decision to switch from the Embraer EMB-314 Super Tucano to the Raytheon T-6A Texan II turboprop trainer for its NATO Flying Training in Canada (NFTC) programme.
The Canadian company says that it awarded the contract for 24 aircraft to Raytheon after becoming concerned about Embraer's ability to meet the schedule, which calls for first deliveries in November 1999. Bombardier had earlier selected the Super Tucano and British Aerospace Hawk 100 advanced trainer as the basis for its private-venture NFTC programme.
The Canadian Government signed a 20-year, C$2.85 billion ($2 million) contract in November 1997, under which Bombardier will take over training of Canadian Forces pilots, providing aircraft and simulators in return for a fee. The programme is also being marketed to other NATO air forces.
Bombardier says that Raytheon will deliver the first three T-6A-1s to CFB Moose Jaw, Alberta, in November 1999, with the rest following at a rate of two or three a month. This is the first export order for the Pilatus PC-9-derived T-6A, winner of the US Air Force/Navy Joint Primary Aircraft Training System competition.
Raytheon will deliver the first T-6As to the USAF in November 1998, and says that the ramp-up of production for the Air Force "-is so slow there will be no problem meeting the NFTC schedule."
Embraer had expected a $90 million contract for 24 EMB-314s, and the Brazilian Government has threatened to suspend negotations between Canada and the Mercosur trading bloc (Argentina, Brazil, Paraguay and Uruguay). The Canadian Government says that the choice of trainer was entirely Bombardier's responsibility, as NFTC prime contractor.
The row could escalate a trade dispute between Brazil and Canada over the extent of government subsidies provided to Embraer and Bombardier, respectively, for regional-airliner development and sales. This was exacerbated in December 1997 when Brazil's state-owned BNDES National Development Bank signed a 16-year, $1.1 billion, deal to finance the sale of 67 Embraer RJ145 regional jets to AMR Eagle.
Raytheon expects Greece to issue a request for quotations in the first quarter of 1998 for 40-50 turboprop trainers. Chile has signed a letter of intent to acquire 15-20 T-6As, with deliveries to be expedited if it selects a US aircraft to meet its fighter requirement.
Source: Flight International
