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Home | Update | Latest Issue | Gallery | FR Profile | Datafiles | FR 4/97 AI(R) CONSORTIUM HAD A DIFFICULT FIRST YEAR by Norbert Burgner The European regional aircraft consortium Aero International (Regional), which was established at the beginning of 1996, finished its first business year with a modest result, logging a total of 59 new orders from its three different airliner families and achieving a turnover of $1,3 billion in 1996. However, having to face the integration of the three partners British Aerospace, Aérospatiale (France), and Alenia (Italy) the consortium must be content with the results, said AI(R) head Patrick Gavin at a press conference in February in Toulouse. In detail, AI(R) logged orders for 13 Jetstream J41 turboprops (29-seat), 14 of the larger ATR 42 (48 seats), eleven of the stretched 72-seat ATR 72, and 21 RJ-85 jets. According to Gavin, the total number of AI(R) customers has increased to more than 250 and with 85 deliveries in 1996, the worldwide AI(R) fleet amounts to 1500 aircraft, the consortium holding a 28 percent market share of the 20-seat to 120-seat turboprop market and of the 70- to 120-seat jet market. Gavin sees a clear market development in the direction toward jets. While the relation between turboprops and jets in the 50-seat regional aircraft category was balanced up until 1994, the development in the past two years has shown a clear two-third majority for jet aircraft, the reason being the significant fragmentation of the regional air traffic in connection with the increasing acceptance of the regional jet concept. There is a definite need for jet airliners operating the so called "long and thin" routes in a category below the 737 and A320 but beyond the turboprops. However, this does not mean a competition for the turboprops from above. The propeller-turbine powered airliners are still regional air traffic's workhorses on routes between 180 and 250 NM on which they can be operated more economically than jets. Only on routes beyond 400 NM do jets, due to the higher speed, offer shorter cycles and higher flight frequencies, resulting in higher earnings for the airlines and time savings for the passenger. That's why, according to AI(R) head Gavin, 50-seat jets have their place in the airliner market. In the long-term however, the market will demand a further specialization of the models, the consortium is laying out the reasoning basis for the development of its 70-seat AI(R) jet. Current prognoses see a need of 2000 jet aircraft in the 40 to 90-seat regional market over the next 20 years. According to Gavin, an AI(R) study and a questionnaire of 35 potential customer airlines have supposedly confirmed this forecast and are pointing to a small jet family with two versions, offering 70 and 58 seats respectively. The new AI(R) jet is to enter the market in exactly those two configurations. The jet will be powered by either two General Electric CF34-8C engines or by the new Pratt & Whitney/Snecma cooperation product SPW14. The aircraft design will supposedly be based on the fuselage cross section of the ATR turboprops and, fully loaded, is to offer a range 1500 NM. The MTOW is currently given to be around 30740 kg, the airliner reaching a cruise speed of Mach 0.75. AI(R) plans to delegate 40 percent of the $1,1 billion development costs to sub contractors and possibly to risk-sharing program partners. Gavin did not confirm rumors about ongoing negotiations with the Swedish manufacturer Saab. The AI(R) jet's market entry, in its 70-seat basic version, is projected for mid-2001. This is approximately six months after the debut of the 70-seat brother of the Canadair Regional Jet, the recently launched CRJ-X. Gavin is convinced that the time disadvantage will be more than compensated for by the modern conception of the AI(R) jet. The new regional airliner from Toulouse will supposedly cost around $21 million. AI(R) head Gavin is discarding the image of a small Airbus, saying that the company is working on a 100-seater project together with Airbus Industrie, Aviation Industries of China and Singapore Technologies. While the 100-seater is aimed at the so called major airline market, the AI(R) jet will be designed for the needs of the regional air traffic. The priority is clearly on simpler systems and significantly lower costs. Gavin continues, saying that this is the reason why AI(R) must decide on one of the two engine offers for the 70-seater. To pursue two concepts up until the aircraft certification would be too expensive. "The only common point of both projects, the 70- as well as the 100seater is that, in the end, they will need to be profitable for all participants." Gavin does not see a conflict between the new AI(R) jet and the consortium's current jet, the Avro RJ: "The Avros are 85 to 100-seaters with specific qualities for their class. We don't see a conflict. Should one arise, we will react accordingly". Gavin sees a priority in restructuring the consortium which currently has a structure that is similar to Airbus and doesn't have a direct profit and loss control. The goal is to push the integration of the marketing and sales consortium to become the leading manufacturer in the regional aircraft market. From page 34 of FLUG REVUE 4/97 Home | Update | Latest Issue | Gallery | FR Profile | Datafiles | FR 4/97 Copyright 1997 by Motor-Presse Stuttgart. All rights reserved. Last updated March 7, 1997