Julian Moxon/PARIS

CASA of Spain has joined the negotiations on the future of Europe's regional-aircraft industry as a launch decision on the planned Aero International (Regional) (AI(R))Airjet regional jet seems likely to be delayed beyond the original end-of-year deadline.

Talks between AI(R) president Patrick Gavin and new CASA chief Alberto Fernandez are understood to have centred on ways of incorporating CASA into what could be a wider grouping than that formed by AI(R) partners Aerospatiale, Alenia and British Aerospace.

Several scenarios are under discussion, and sources indicate that one option centres on an entirely new regional-aircraft grouping incorporated into Airbus Industrie, charged with developing aircraft lower down the range than the 95-125-seat AE316 and AE317 planned by the joint venture involving Airbus, Alenia, Singapore Technologies and China's AVIC. These could become the A314/A315/A316.

Another option is to retain the Airjet, with AI(R)becoming the regional arm of Airbus, teamed with other potential partners now in negotiations.

The talks are understood to be at a crucial stage, particularly as the decision on a European regional jet is being paced by other planned 70-seat regional-jet programmes, including the Bombardier Canadair Regional Jet 700, the proposed Fairchild-Dornier 728/928 JET and Embraer RJ170.

Sources confirm, however, that a decision on the launch of the Airjet 70 will "possibly"be postponed until beyond the end of the year - a deadline which AI(R)said in September was "imperative". Potential partner Saab Aircraft has said that it will decide soon whether to terminate production of regional aircraft, while South Korea and Taiwan, touted as risk-sharing partners in the Airjet 70, are suffering the major financial reversals affecting many Asian countries.

Meanwhile, AI(R) confirms that offset negotiations for a potential Chinese order for up to 200 ATR 72s are still under way with Aviation Industries of China (AVIC), but it denies any talk of transferring all ATR 72 production to China.

According to a source at AI(R), the discussions centre on the trade-off between the size of the order and the amount of technology that AI(R) is willing to transfer. The consortium has set an order of around 100 aircraft as the minimum for establishing an entire production line; orders for less than that would entail progressively less offset work.

At the Paris air show in June, AI(R)and AVIC signed a memorandum of understanding on ATR 72 co-operation and possible final assembly, one month after ATR had won a contract to supply five ATR 72s, plus five on option, to China Xinjiang Airlines. As part of the deal, Xian Aircraft received a contract to build rear fuselages for the aircraft.

AI(R)is also negotiating with Indian Airlines for the sale of up to 26 ATR 42s, in competition with Bombardier, which is offering the de Havilland Dash 8-300. Saab is no longer taking part in the negotiations.

Source: Flight International