The Czech aerospace industry has had a mixed time of it since the fall of the Communist regime brought a wave of foreign investment. The sector had been strong in the Soviet bloc days, employing 35,000 people and situated in what has historically been one of Europe's richest engineering cultures.

But early hopes that the drying-up of military business that inevitably followed the collapse of the USSR would be made up for with Western joint venture investment have been, if not exactly dashed, then tempered by the challenges of staying afloat in a ferociously competitive market populated by firms with distinct technology advantages.

Difficult transition

Companies such as Honeywell and Latécoère bought into Czech rivals and have stayed the course. Others, including Boeing, have got out. The Boeing example says much about how difficult the Czech transition has been. A tie-up between the US giant and the Czech Republic's flagship airframer, Aero Vodochody, ended when Boeing sold its 35% stake, leaving the company back in state hands and facing bankruptcy two years ago.

Vodochody was saved last October when it was bought for CKr2.91 billion ($130 million) by a division of central European equity firm Penta Investments. Penta's plans for its investment include aerospace production and ventures with foreign investors - as well as developing a charter and low-cost airport on Aero's manufacturing site 13km (8 miles) north of Prague.

Vodochody makes S-76C++ airframes for Sikorsky, and it says it will participate with another local aircraft maker, Evektor, in developing the EV-55, a multipurpose twin-engined turboprop aircraft. But its Ibis Ae270 turboprop joint venture with Taiwan's Aerospace Industrial Development Corporation is being dissolved - AIDC called it a "disaster" - and one of its key priorities remains to try and sell some of the 70 or so L-159 light attack jets that have been abandoned by the Czech air force in favour of Saab Gripens. In short, it is hard to have confidence in the company's ability to retain the ability to develop aircraft on its own.

But Vodochody does have good prospects in niche aerospace projects. Indeed, it may be in the niches that the entire Czech industry will find its way.

One of those niches is light sport aircraft. Both Czech Aircraft Works and Interplane Aircraft export most of their production to the USA, where the LSA sector is just gaining the attention of mainstream airframers like Cessna. Ironically, while European markets are enthusiastic buyers of ultra­lights, the larger LSAs have yet to catch on. If the European Aviation Safety Agency can develop a Europe-wide certification standard for LSAs the local market may take off, which could help Czech manufacturing.

Higher up the technology ladder, however, there are other Czech niches. One of the most intriguing developments is last week's announcement that General Electric is to purchase, for an undisclosed sum, Walter Engines, which produces the M601 turboprop powering the Let L-410 19-seat commuter aircraft. The deal will give GE Aviation a product in the small turboprop market below its 1,800shp (1,340kW)-class CT7. The 750shp-class M601 is a competitor to the Pratt & Whitney Canada PT6, and is used on 30 different aircraft types.

GE is not saying much about its plans, but the 520-employee company will stay in the Czech Republic even though the deal does not include Walter's existing facility in Prague. About 85% of Walter engines are operated outside the USA and western Europe. "They are very prevalent in emerging markets - India, China, Russia, Brazil - which makes them attractive to GE," the US company says.

Carbon composites

Vodochody, meanwhile, is investing heavily in carbon composite manufacturing technology, spend­ing some CKr300 million ($14.7 million) at its plant near Prague to make shields protecting aircraft parts from high engine temperatures and another CKr70 million on composite technology in conjunction with the National Composite Center of Ohio. It is also about to close the acquisition of a western European carbon composites maker.

The company's Vitezslav Kulich told Flight International that S-76 production for Sikorsky will continue to be of major importance, "but in future, its share in our total sales will gradually fall at the expense of other projects such as making wing parts for Alenia's C-27J Spartan".

Kulich adds: "The extent of our work for Alenia is now comparable to the one for Sikorsky."

Source: Flight Daily News