EADS Casa and Indonesian Aerospace (IAe) plan to forge a new co-operative agreement by year-end that could shift the C-212-400 assembly line from Spain to Indonesia.
Industry sources say the two manufacturers have been working for several months on reviving their long-standing partnership, which involved IAe licence-producing the NC-212 and co-developing the CN-235. But their relationship has languished in recent years and the companies have been competing against each other for sales in Asia.
Sources say the new tie-up will meet EADS’s goal of lowering costs by outsourcing more work overseas and IAe’s attempt to restructure its floundering business by focusing more on partnerships with Western manufacturers.
EADS and IAe sources say the target for completing the new agreement, which may include handing IAe new workshare on the C-212, C-235 and C-295 programmes, is the year-end.
IAe, under the leadership of new acting president director Nuril Fuad, is also trying to complete a supplier contract with Bombardier by year-end as part of an increased focus on component manufacturing, which also includes new Airbus work and possibly new Boeing work.
Sources say EADS is interested in moving the C-212-400 assembly line to IAe’s Bandung facility to make the turboprop more cost-competitive. IAe stopped selling the NC-212 under a restructuring initiated in 2003, but is still completing the final three aircraft left in its inventory for the Indonesian navy. Sources say IAe is interested in restarting C-212 production for the airline and military markets and is in talks with the Indonesian transport ministry, which may acquire passenger C-212-400s for subsidised air services to remote parts of the country.
CASA and IAe are also discussing outsourcing some work on the larger C-295 to Indonesia along with further work on the CN-235.
IAe is already manufacturing the tail section of the CN-235 for EADS and, in return, EADS builds the nose of CN-235s assembled in Bandung.
The companies are also discussing co-operating on CN-235 sales – they now compete with each other for CN-235 orders in several countries.
IAe this year has delivered one CN-235 to Pakistan and one to Malaysia. It plans to deliver a second CN-235 VIP aircraft to the Malaysian air force late next month and next year will begin manufacturing three CN-235 maritime patrol aircraft for the Indonesian air force.
BRENDAN SOBIE/SINGAPORE
Source: Flight International
