SINGAPORE Technologies (ST) is mounting a last-ditch effort to salvage an agreement between China and South Korea for joint development of the proposed AE-100 regional jet.
ST is understood to have dispatched a team to Seoul to meet with the Korean Commercial-Aircraft Consortium (KCDC). ST is trying to broker a compromise deal allowing South Korea's aerospace industry to rejoin the planned programme.
The Singaporean initiative was prompted by concern that a restructured KCDC, or individual members such as Samsung Aerospace, would join a rival international regional-jet venture, or even launch its own national aircraft programme.
Under the proposed compromise, South Korea's share of the programme would be increased to around 15%. Aviation Industries of China (AVIC) in turn would cut its planned 45% stake by up to 5%, while ST is indicating "flexibility" on its earlier memorandum to take 10% in the programme.
Industry officials warn, however, that any major reduction in the size of Singapore's stake could make it difficult to accommodate Taiwan Aerospace (TAC). TAC is discussing taking up to half of ST's share in the Chinese programme.
The Samsung-led Korean consortium had earlier demanded a minimum stake of 25% along with aircraft finishing and painting. AVIC instead offered only 12.5% during two days of heated discussions in Beijing, which South Korea rejected and walked out on (Flight International, 26 June-2 July).
AVIC and ST's continuing negotiations with Aero International (Regional) have not been affected by the rift with South Korea. It is hoped to reach a tripartite agreement between China, Europe and Singapore as early as the end of July, says a senior source.
Source: Flight International
