SINGAPORE WANTS prospective Western partners to commit to taking a greater stake in the development, production and marketing of China's planned AE-100 regional jet.
Singapore Technologies (ST) has signed a memorandum of understanding (MoU) with Aviation Industries of China (AVIC) to take a 10% share in the programme. ST officials emphasise that the agreement is "very, very preliminary" and dependent on an acceptable business case being made.
"If it is not commercially viable, then we will not go ahead with it," says a senior group source. ST is understood to want the yet-to-be selected Western partner to take "at least a 30% interest".
The move is designed to give the AE-100 less of an "Asian appearance" and more of an international collaborative look. A larger Western involvement could enhance the programme's technical and market credibility, lock manufacturers into fully supporting the programme, and limit competition.
Under the MoU, ST will be involved in raising programme financing, while its subsidiary ST Precision will undertake component manufacturing. Singapore Technologies Aerospace (STAe) will provide design assistance and leasing and product support.
It gives STAe a mandate to open discussions with competing airframe manufacturers, Aero International (Regional), Boeing, Daimler-Benz and McDonnell Douglas, and to advise AVIC on the final selection of a partner.
The agreement also allows STAe to negotiate with, and help, China select the aircraft's avionics, engines and auxiliary power unit (APU).
Honeywell has already signed an MoU to supply the AE-100 with either its VIA 2000 or Primus 2000 avionics systems, but faces competition from Rockwell-Collins, offering the Pro Line 4 and 21 avionics suites. Engine candidates include the BMW Rolls-Royce BR.700, CFMI's CFM56 Lite and Pratt & Whitney's PW6000. Competing APU suppliers include AlliedSignal and APIC
The bilateral AVIC-ST agreement will almost certainly add further pressure to the already strained relations between AVIC and the Samsung-led Korean Commercial-Aircraft Development (KCDC) consortium. Talks have been stalled since the end of 1995 over KCDC demands for a second assembly line in South Korea.
"We don't have any details of Singapore's participation, and we have had no direct dialogue with Singapore," says Samsung Aerospace vice-president Yu Moo-Sung. o
Source: Flight International
