Korea's Samsung may turn to purchasing the turboprop operations of one of the European manufacturers following the collapse of its plans to buy Fokker's remaining assets.
Fokker's administrators ended discussions with Samsung on 28 November after Fokker suppliers declined to accept further orders because of the uncertainty surrounding the prolonged Dutch-Korean talks.
Samsung's failure to reach agreement with the receivers has highlighted uncertainties in the attempts of Asia-Pacific governments to enter the commercial aviation business. The South Korean authorities, who encouraged Samsung's bid, surprised both sides by announcing that any deal would require their approval and the participation of other Korean companies.
Samsung requested a further extension of talks to secure approval but this proved unacceptable to Fokker suppliers, notably the wing maker Shorts. 'We didn't think the timescale [for agreement] was that tight but it became so when the Koreans indicated that government approval was no longer a formality,' says Ben Knuppe, one of Fokker's receivers.
South Korea, Taiwan and China have all indicated their desire to enter the 100-seat jet market. However previous talks with US and European manufacturers have tended to fold following disagreements about the level of technology transfer. 'Taiwan and Korea don't have a clear view about what they want to do, while China is clearly targeting the 100-seat market as an entry level,' says a European manufacturer involved in talks with all three.
He suggests Korea and Taiwan may be forced to change tack and focus on building technology transfer through the turboprop business where they can maximise their labour cost advantage. The source suggests Samsung may now consider acquiring British Aerospace's turboprop business, although Saab may also prove attractive.
This could also pave the way for Korea to become involved in a subcontracting role with the Airbus partners for the consortium's family of jets, which would fulfil Seoul's desire for technology transfer.
Meanwhile, Fokker's trustees will continue to satisfy its existing Window III order book until May 1997.
The one bright spot for owners of Fokker aircraft is an expected recovery in their values, which have dropped in recent months. The absence of competing product in the 70-seat market for another four years will enhance Fokker 70 demand as operators trade up from smaller aircraft.
Knuppe says the administrators are not actively seeking alternative investors since the company is not a viable concern following Shorts' withdrawal. However, he does not dismiss any last-minute rescue. 'Anyone who knocks on the door with a solid financial background will at least get a cup of coffee.'
Source: Airline Business
