Paul Lewis/SINGAPORE
AVIATION INDUSTRIES of China (AVIC) and Singapore Technologies (ST) have given Boeing and Aero International (Regional) (AI(R)) until 20 March to submit fresh proposals for the joint development of a 100-seat regional jet.
AVIC has issued only two requests for proposals (RFPs), effectively reducing its shortlist for a Western partner to Boeing and AI(R). McDonnell Douglas and Daimler-Benz Aerospace are now apparently out of the running.
All four contenders originally submitted proposals in September 1995 to AVIC and prospective joint-venture partner the Korean Commercial-Aircraft Development Consortium (KCDC). The selection of a third partner has been repeatedly delayed, however, with AVIC and KCDC unable to agree on where to build the AE-100.
ST has since signed a memorandum of understanding with AVIC to take a 10% stake in the programme (Flight International, 14-21 February, P11). The two new RFPs, sent out on 1 March, with no apparent reference to KCDC, are a direct result of the revised "partnering arrangements", says an industry source.
The contents of the RFPs, are understood to reflect ST's insistence on the AE-100 project, being commercially viable and supported by a risk-sharing Western partner, holding at least a 30% stake.
Boeing's previous proposal was based on providing a technological, marketing and after-sales input, equating to a 20% interest in the $2 billion programme. AI(R) instead proposed a much greater level of involvement in the project, worth up to 30%.
A Beijing official says, "The new RFP creates a level playing field, with the same rules for both sides." A final decision is now expected towards the end of April.
Source: Flight International