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THREE-CORNERED FIGHT FOR REGIONAL AIRLINE DOMINANCE

The early bird catches the worm. Right now there would appear to be much truth in the proverb, as Bombardier is finding. At any rate the Canadians are in the lead in the race against time. Bombardier is the first aircraft manufacturer to be able to demonstrate flying versions of both a 70-seat and an 86-seat jet. Having abandoned development of the BRJ-X, an all-new regional airliner in the 90- to 110-seat class, the company is pinning all its hopes on the CRJ family.

The latest addition, the 86-seat CRJ900, is in the middle of flight testing, having flown for the first time on 21 February. Certification is expected in the third quarter of 2002, with first deliveries scheduled for the beginning of 2003. The launch customer in the USA is Mesa Air Group, which ordered 20 aircraft. The Americans have also ordered twenty of the CRJ900's sister model, the 70-seat CRJ700, so that the orderbook for the CRJ700, which entered service with Brit Air in mid-February, now stands at 195 firm orders.

Things are also looking good in the 50-seat class. Eurowings recently ordered 15 CRJ200's, while on 26 April Bombardier delivered its 500th regional jet to Atlantic Coast Airlines, ten years after the maiden flight of the CRJ. As far as Steven Ridolfi, President of Bombardier Regional Aircraft, is concerned, the CRJ has been a pioneering programme. "The CRJ has revolutionised the regional airline industry." Since programme launch the sales force has booked 1045 firm orders plus a further 1060 options for the CRJ family. From February 2002 Bombardier plans to increase production of 50-seat planes in Dorval from 12.5 aircraft per month to 14.5. Production of the larger models is taking place in the new Mirabel plant so as to ensure that there is adequate capacity in Dorval.

On the other hand, the recent order by Air Wisconsin for 75 aircraft worth $1.5 billion illustrates just how strong the competition is among the regional jet manufacturers. To secure the business, the Canadian government is granting the airline a credit line of $1.1 billion. Despite similar practices by Brazil, Embraer has lodged a protest with the World Trade Organisation, which is currently looking into the deal.

In the meantime just how long Bombardier will be able to hold its own against the competition only the stars can tell. To ensure they would be the first to bring a ready product to the market, the engineers chose to base their regional aircraft on the fuselage of the Challenger business jet. The Canadians may have beaten Embraer and Fairchild Dornier to the post, but the aircraft currently under development by those companies have significant advantages when it comes to cabin space.

The Embraer product is already waiting in the wings. The prototype of the ERJ 170 is approaching final assembly. Components are arriving in Sao José dos Campos from various suppliers. For example, the first wing centre section built by Kawasaki recently came in from Japan. Roll-out and maiden flight are scheduled for the end of this year. Deliveries are scheduled to commence at the end of 2002. Altogether Embraer has won 120 firm orders for the ERJ-170/190 family (70 to 108 seats) plus a further 205 options.

After the record year of 2000, the South Americans are the fourth largest aircraft manufacturer in the world. Revenues for 2000 rose by 55 per cent to $2.9 billion. With the recent order from Skyway Airlines for 20 ERJ 140's, Embraer has now notched up over 855 orders and 212 options for the ERJ 145 family. Like their rivals in Canada, the production rate is set to increase. From the end of the year 20 aircraft will be assembled per month instead of 16.

The Brazilian jets are very popular with the airlines. "Embraer's passenger planes are in a class of their own," explained Embraer President Mauricio Botelho on the occasion of the handover of the 400th regional jet, a ERJ 145, to Crossair last March. Within the space of only four years since delivery of the first ERJ 145, the company has established itself as one of the leading lights in the industry.

Fairchild Dornier is still some way off from matching these figures. Nevertheless, their new flagship is making rapid progress. The first fuselages of the 70-seat 728JET are currently being assembled in Oberpfaffenhofen. This year the American-German aircraft manufacturer will produce fuselage sections for six aircraft. Of these, numbers 3 and 6 are earmarked for static testing.

The first wing is already being assembled at Casa in Spain, while the General Electric CF34-8D engine is progressing well in flight testing. Component testing of the hydraulic, electrical and flight control systems is in full swing with a view to achieving a maiden flight in the spring of 2002. 1800 hours of flight testing will then be spread over five aircraft in Granada, Spain. Deliveries of the 70-seater could commence in the middle of 2003. So far Fairchild Dornier has clocked up a total of 276 orders and options for the 728JET.

Its 80- to 110-seat sister model is also coming along nicely. The design engineers have already completed the first series of wind tunnel tests for the 928JET in a wind tunnel in Amsterdam. Here they have been testing the wing design of the airliner, whose span has been extended by 1.69 m to 28.81 m. The jet from Oberpfaffenhofen will probably make its debut at the end of 2003.

A year after the company was re-capitalised by Clayton, Dubilier & Rice and Allianz Capital Partners, Fairchild Dornier chairman Chuck Pieper is positive about the company's prospects. Considering the product range and the over sixty 328JET's delivered to date, he sees Fairchild Dornier as a "major player" in the market segment for aircraft of 110 seats and under. The company is therefore stepping up its international marketing activities. After all, the company's own marketing strategists estimate the requirement for 70-seater aircraft up to the year 2010 at 1100 units.

BAE Systems, another player in the field, is hoping to snap up a goodly proportion of this with its Avro RJX. Admittedly the four-engined jet, which recently completed its first flight, has been out of the competition up to now, having won only 14 firm orders so far. But once again the planners are hoping to profit from the continuing regional boom.

From page 62 of FLUG REVUE 7/2001