Andrew Doyle/LONDONPaul Lewis/SINGAPORE
EUROPE'S AEROSPACE industry, has received a significant boost from the visit of Chinese prime minister Li Peng to France, with Beijing agreeing a major deal with Airbus Industrie, and the surprise signing of a memorandum of understanding (MoI) with Aero International (Regional) (AI(R)) to cooperate in developing a new regional jet.
The AI(R) agreement appears to make the European consortium the preferred partner in the race to partner China and Singapore in the development of a new 100-seat regional jet.
The MoI, signed by Aerospatiale chief Louis Gallois and Zhu Yuli, president of Aviation Industries of China, expresses a "...positive will on both sides, that the European solution be chosen".
News of the agreement took Boeing, AI(R)'s rival for the AE-100 deal, by surprise. "We have no indication whether the door is closed or open," it says. Boeing "...continues to evaluate options in the 100-seat market", China's decision will "not change that".
Aerospatiale says that the 11 April signing "...is a step in an ongoing negotiation process, which is not finished. Boeing is still in the race". The final selection is expected in June. AI(R), the Aerospatiale, Alenia and British Aerospace regional-aircraft consortium, is thought to have offered to take a 30% stake in the project, compared with Boeing's 20%, and proposed a higher technology transfer content.
Airbus earlier agreed a deal to sell 30 A320s to China Aviation Supplies (CASC). Following its breakthrough, the European consortium is already pushing for additional orders from Chinese carriers.
CASC's $1.5 billion order is the European consortium's largest single deal in China to date. It almost doubles the number of Airbus aircraft in China to 65.
The Airbus sale represents a setback for Boeing's dominance of the Chinese market, coming at a time of deteriorating Sino-US relations. For the first time, Airbus also threatens McDonnell Douglas' number two position in China.
Of the 30 A320s ordered by CASC, ten will go to China Southern Airlines. The Guangzhou-based carrier is a major victory for Airbus, having until now operated an all-Boeing jet-airliner fleet. It ultimately requires up to 25 new 150-seat aircraft.
The remaining 20 CASC A320s will go to other regional carriers, details of which have to be finalised.
Delivery will commence in 1997, with China Southern. No engine selection has yet been made, but will likely involve a "political mix" of General Electric/Snecma CFM56-5 and International Aero Engine V2500-A1s.
Manufacturer attention is now focused on Air China's evaluation of the A320/321, and competing 737-700/800. The flag carrier has a requirement for 15-20 narrow-body aircraft, together with a similar number of wide-bodies.
The deal also included confirmation that the final three A340-300s previously ordered by CASC will go to China Eastern Airlines.
Source: Flight International
