CHINA HAS ASKED AERO International (Regional) (AI(R)) to modify its regional-jet partnership proposal to include Airbus Industrie, to improve marketing and after-sales support for the planned Air Express AE-100.
The involvement of Airbus is among key demands made by Aviation Industries of China (AVIC) during recent discussions with AI(R). At the same time, Boeing has been told to bring its proposal in line with China's need for a larger family of aircraft.
AVIC and its joint-venture partner Singapore Technologies have asked for the revised best and final proposals to be submitted shortly, with a view to narrowing the selection to one prospective Western bidder by mid-May. It is hoped to finalise a partnership agreement by June/July.
According to informed industry sources, one of AI(R)'s main areas of weakness compared to Boeing is in sales and product support. AVIC is keen to use the Airbus customer network to strengthen sales and simplify training and maintenance at the aircraft.
Airbus has, until now, shied away from the 100-seat regional aircraft programme. Consortium managing director Jean Pierson, however, confirms that China wants Airbus involved and says that a way of meeting the requirement will probably be found.
Other areas of contention include AI(R)'s demand for more than a 30% stake in the joint venture and insistence on retaining some subassembly work in Europe for its three partners.
AVIC wants its Western partner to focus on key high-technology areas, such as fly-by-wire flight controls, and for labour-intensive structural work to be done in Asia.
Boeing, by contrast, is understood to be happy to limit its involvement to 30% and for production to be centred in Asia. The company's main contribution would be in certain high-technology areas, certification and marketing and supporting the aircraft as a Boeing product.
The US manufacturer, however, wants to limit the top end of the AE-100 family to "120-plus seats", to avoid any market overlap with its new-generation 737.
Its baseline AE-100 would seat 106 passengers with 90- and 125-seat variants also planned. AI(R)'s variants range from 95 to 140 seats.
Source: Flight International
