MAX KINGSLEY-JONES AND JUSTIN WASTNAGE / LONDON DATA COMPILED BY AIR TRANSPORT INTELLIGENCE The rush to develop new jet models has subsided as manufacturers buckle down to rolling the new aircraft off the production line

Aircraft manufacturers' insatiable desire to expand product lines over recent years has begun to subside, as the production gets under way of the first of the new large regional jets. As output soars, the regional market is suffering the first ill effects of the economic downturn in the wake of slowing order intakes.

As outlined in the first instalment of this year's World Airliners directory, Bombardier is now delivering CRJ700s and is working through the test programme for the larger CRJ900. Meanwhile, at Embraer and Fairchild Dornier, final assembly has started of the first ERJ-170 and 728JET, respectively.

With the product line expansion that has been the theme over recent years now abating, efforts to convert the new models from paper to reality are making the headlines. Embraer will roll out the first 728JET in Sao Jose dos Campos in October, and the first 728JET will emerge in Oberpfaffenhofen early next year.

Meanwhile BAE Systems will begin delivering its new RJ-X family in the first half of 2002.

The regional jet order boom is subsiding, with just 200 orders placed in the first half of this year, compared to around 780 for the whole of 2000. The industry is yet to generate the same level of excitement for the larger regional jets as it has for the 50-seaters, with most orders taken for new aircraft in that category so far coming from leasing companies rather than airlines.

Around 420 regional aircraft were delivered last year, of which almost three quarters (304 aircraft) were regional jets.

Output continues to surge, with 170 regional jets delivered in the first half of 2001 and around 330 are expected to be produced in total this year. However the industry has a weather eye on the slow down, and some manufacturers, notably Embraer, are already making plans to stabilise production rates.

Boeing has linked up with Russian manufacturers to develop an all-new regional jet for Russian markets, but the omens for international collaboration in that region are not good. While the connections with the US manufacturer adds some credibility to the project, some observers believe that what the world does not need now is yet another all-new aircraft in that category.

The turboprop has been relegated to a bit-part now in terms of new business, with just ATR, Bombardier and Raytheon remaining faithful to the propeller. All three are finding the going tough, with turboprop sales increasingly marginalised by the regional jets.

Efforts are intensifying to prevent the huge installed turboprop fleet from suffering early obsolescence. Freighter conversion programmes are now offered or being set up for current generation turboprops such as the ATR 42/72,BAe ATP, Embraer Brasilia and Saab 340. Other avenues, such as the corporate shuttle market, are also being explored.

Source: Flight International