CASA Aircraft is in talks to join the Aero International (Regional) (AI(R)) Air Jet 70 regional-jet programme, in a move which could lead to the Spanish company becoming a full member of the regional-aircraft group, it emerged at the European Regions Airline Association meeting held in Baveno, Italy, on 9-10 October.
New CASA president Alberto Fernandez told Patrick Gavin - his opposite number at AI(R) - during a meeting on 6 October that the Spanish company is ready to become a full and risk-sharing member of the programme. A memorandum of understanding is in preparation and, according to sources, could be ready for signature "within a few weeks".
State-owned CASA would be able to use about $300 million of the development money, advanced by the Spanish Government for the CASA 3000 high-speed turboprop to buy itself into the $1.2 billion Air Jet 70 programme. The project was abandoned a few years ago "-but the money remains available", say AI(R) sources.
AI(R) has made it clear that the Air Jet 70 programme must be launched by the end of December, or it, too, is likely to be abandoned. Gavin recently briefed the presidents of the three member companies (Aerospatiale, Alenia and British Aerospace) on the aircraft, meeting what AI(R) describes as "very positive responses".
Industry sources admit, however, that BAe remains firmly set against any risk-sharing stake in the programme, but may take a role as a subcontractor for a significant component of the aircraft. This would leave Aerospatiale, Alenia and CASA as the main European stakeholders in the programme.
Gavin has set two conditions for launching the Air Jet 70. Firstly, the chief financial officers of the three AI(R) members must carry out a complete financial assessment of the programme. Secondly, a major effort is to be mounted to tie up further risk-sharing partners. There is considerable interest from South Korea and talks have also been undertaken with Embraer and Saab Aircraft.
Embraer is said to be cautious about joining, because of increasing doubts about the cost benefits of the Air Jet 70. The Brazilian company continues to have aspirations for its own 70-seat programme, the Embraer EMB-170, which the company believes could be developed for a "few hundred million dollars" less than the Air Jet 70.
It is wary of the influence which the expected launch of the Boeing (formerly McDonnell Douglas) MD-95 family might have, as the US giant develops smaller variants of the 106-seat regional. Such an aircraft could be offered at a price which, says a BAe source, "-would be very hard to beat", if the Air Jet 70 were to be profitable.
Source: Flight International
