EMMA KELLY / ATHENS AND MAX KINGSLEY-JONES / OBERPFAFFENHOFEN
Crisis leaves sector relatively unscathed despite job cuts and cancelled options
Regional aircraft manufacturers have responded to the terrorist attacks with production and staff cuts, but anticipate that the regional sector will be less affected by the downturn than the majors, and will be the first to bounce back.
Embraer, which has so far suffered no firm order cancellations but lost 60 options valued at $1 billion, responded by laying off 1,800 earlier this month and adjusted delivery schedules to 160 aircraft this year and 135 aircraft next year.
"When we rescheduled our deliveries we looked at the rock bottom scenario so we don't expect to make any more changes," says Mauricio Botelho, president, adding that he expects the market to return by early 2003. The ERJ-170/190 orders of Swiss carrier Crossair are among those that remain firm, says Botelho.
Bombardier, which has cut 3,800 jobs in total and scaled back 50-seat CRJ200 production, is confident that the regional sector has considerable opportunities as the majors downsize. "Regional airlines will be the beneficiaries of an industry restructure," says John Howarth, Bombardier's vice president international sales.
Fairchild Dornier has been less affected by the crisis so far as its production levels are relatively low. It concedes that specific sales campaigns for the new 728JETfamily, for example at British Airways/Qantas, have effectively been put on hold "for at least three months". The manufacturer says it has now suspended production of the 328 turboprop at its plant in Oberpfaffenhofen, Germany, and is adjusting output of the 328JET regional jet version. "We are moving to a build to order on the 328JET, rather than a build to 'speculation'," says Fairchild Dornier chief operating officer John Wolf. "We're coming down from four per month, to two to four-per month," he adds, "as part of plans we had before 11 September".
The manufacturer's two main customers for the 328JET are ACJet (12 aircraft on order) and Hainan Airlines (21 orders and options), and Wolf says that a two aircraft a month rate will cater for these two contracts. Any orders above this will be built as required. "We have just delivered a 328JET to ACJet as scheduled, but we expect its next couple of aircraft to slip by a few months in to 2002," says Wolf.
Meanwhile production of the first 728JET is gathering pace, with final assembly underway in Oberpfaffenhofen. The wings and fuselage are expected to be joined in mid-November, and the aircraft should be rolled off the line by early January. Fairchild Dornier has a first flight target date of 25 March. Annual output will move to an initial rate of 60 per year, with 120 ultimately achievable.
Source: Flight International
