Julian Moxon/PARIS
Saab Aircraft will shut down production of its 340 and 2000 turboprops in 1998 and leave the regional-airliner market altogether, unless new orders can be secured by the end of 1997.
In a statement, Saab warns that the decision could come as soon as the end of the year, because of falling sales and "considerable Financial losses". President Gert Schybourg adds that manufacturing can be maintained only if there is "much higher demand for our aircraft and a better return".
Only two 35-seat Saab 340 turboprops have been sold this year and eight 50-seat Saab 2000s. "Our costs are too high," says the company, adding that "we have not taken a firm decision, but we cannot continue to struggle forever".
The 340 is believed to have made consistent heavy losses since entering production in 1984, as has the 2000, introduced only four years ago. The programmes are estimated to be on course to lose another SKr500 million ($65 million) in 1998, even if production ends.
The company has a backlog of 11 340s and eight 2000s, which will keep production going until around April 1998. Despite the announcement, Saab says that it is still in negotiation for new orders for both aircraft (believed to include Mesaba for 19 more 340s and Crossair for six more 2000s) and, if successful, production could continue for another two years. Saab is known to have discussed the sale of the entire 2000 line to various Asian countries, including India and China.
Saab intends now to concentrate on increased co-operation with manufacturers of large commercial aircraft, and a deal to take up to 5% of the Airbus A3XX programme was signed earlier this year.
A deal with the Aero International (Regional) regional-aircraft consortium to join in the Air Jet 70 programme is "not yet on the cards", but the business case is "still being examined", according to Saab.
With overall sales of around 440 340s and some 60 2000s the company stresses that it will maintain and build on support services for its existing customers, having sold . "We want to exit from the business in a controlled way. We do not want to repeat of what happened to Fokker," it says. Many of the 1,800 employees in the regional aircraft business will be transferred to the JAS39 Gripen Fighter programme, now building up for export. A "few hundred", however, are due to face redundancies.
Source: Flight International
