Shenyang Aircraft (SAC) is poised to become a major risk-sharing partner on Bombardier’s proposed CSeries programme if it can secure approval from its parent, China Aviation Industries I (AVIC I).
Industry sources say Bombardier has been in talks for several months over a potential partnership that would include SAC investing in the CSeries and manufacturing the fuselage.
Sources say SAC aims to finalise the supplier contract within the next few weeks, which could help convince Bombardier’s board to approve the launch of the CSeries. But sources also warn that AVIC I in Beijing is reluctant to approve the contract because it is concerned the aircraft may not generate enough sales to cover China’s proposed investment.
Sources say SAC has lined up financial support from the Shenyang city and Liaoning provincial governments, but federal support is also being sought. Bombardier has sent at least two high-level delegations to China in the past three months to persuade Beijing to become a partner in the programme, but so far no agreement has resulted.
Bombardier and AVIC I negotiated a licence production agreement in 2002 covering the CRJ700 and CRJ900. But sources say AVIC I decided against signing the deal at the last second because it was concerned it would have trouble selling the aircraft and because Bombardier has experienced difficulties forging supplier deals and selling regional jets in China. But the manufacturer’s transportation division has strong ties with Beijing, selling over 1,500 railway cars, which could be leveraged to cement a deal on the CSeries.
Sources say potential overlap with AVIC I’s indigenous 78- to 85- seat ARJ21 regional jet, for which SAC will supply the tail and vertical stabiliser, is not holding up approval of the CSeries proposal. Sources say the CSeries proposal calls for SAC to manufacture the centre and aft fuselage, as well as the doors and wing-to-body fairings.
Bombardier was scheduled to make a decision on launching the CSeries in June, but has repeatedly postponed it, in part because it has had trouble securing risk-sharing partners. Signing up China as a partner could help lead to a launch by year-end or early next year, but rejection by Beijing could also convince Bombardier to scrap the programme.
BRENDAN SOBIE/SINGAPORE
Source: Flight International
