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Home | Update | LATEST ISSUE | Gallery | FR Profile | Datafiles | FR 5/98 REGIONAL AIRLINER MAKERS IN TURBULENT TIMES By Norbert Burgner Fairchild Dornier is ambitiously planning a further extension to its products, Embraer remains successful, the European Construction consortium AI(R) has reached its end and Indonesian IPTN loses its guiding force. The regional market is consolidating itself. The Brazilian plane manufacturer Embraer is developing nicely. Only a few years ago no one would have given any credit to the clapped-out state run firm. Since most of it was privatised in 1994, Embraer has blossomed. Although the 50seater regional jet ERJ-145 was seen critically at its roll-out in 1995, it is now well established and can stand its ground next to the "arch father" of this plane category, the Bombadier Regional Jet. This is enough reason for Embraer to start working on a new project: the ERJ-135. The rollout for the 37seater, the little brother of the ERJ-145, is already planned for August. There will hardly be any recognisable differences apart from the fuselage, which is 3.54 meter shorter. The engines, Rolls-Royce/Allison AE3007A-3, the cockpit, wings, tail unit, fuselage diameter and all main systems will be the same. However, the ERJ-135's starting mass is 19,000 kg, which is approx. 1.6 tons less than the bigger - 145. The fuel capacity remains the same with 5216 litres. This applies also to the range: with 1350 NM (2500 km) the ERJ-135 flies only 20 NM (37km) further than the ERJ-145. The new Brazilian regional jet will hit the market in the first half of 1999. The development of this jet cost 100 million US dollars, and Embraer estimates, that they will be able to sell up to 500 planes within the next ten years. The company was able to announce its first big order in Singapore: After the French Flandre Air with eight fix orders and 12 options and the US American Wexford Management LLC with 20 orders and 20 options, the US carrier Business Express has bought 20 planes and signed options for further 40 ones. If these intended orders become definite ones by the "Feeder" for American Airlines, Delta Airways and Northwest, the value of these orders rises to 810 million US dollars. Seeing that these developments are so positive, Embraer intends to float its company on the stock exchange. From the second half of this year shares will be available. As early as last May, the Brazilian plane constructor already sold papers valued at 70 million US dollars at the American Bond Market. After three days the offer was sold out. At Fairchild Dornier bosses would have been pleased to boast similar orders for the new Dornier 328JET (FR 4/98). However, 42 orders were placed, some definite, some options, and this seems to be such a pleasing prospect for Oberpfaffenhofen and San Antonio, that designers are even thinking of increasing the product range. The firm is toying with the idea to construct a 40seater 428JET, a stretched 50seater 528JET and even a 90seater 928JET. The later is seen as a development following on to the planned 728JET. By the end of March the Fairchild Dornier Management wanted to come up with a decision concerning the program launch. There are three engine-options for the low-wing-twin: It will either be the Snecma/Pratt & Whitney SPW14, the General Electric CF-34, which is also used with the Bombardier RJ or the Rolls-Royce/Allison AE3012. The cabin layout is planned to house a five-abreast seating. Fairchild Dornier predicts a necessary investment for the development and construction of the 728JET at around 600 million US dollars. The company does not intend to carry the financial burden on its own. As Earl Robinson, the Regional-and-Business-Aircraft-President told the press in Singapore, 17 companies are being considered with regards to risk share at the moment. If the 728-program is going to be successful, Fairchild Dornier is planning to start with the development of the 528 and the 928JET. The company is also committed to the construction of the 428JET. It is approximately three meters longer than the 328JET and is designed to carry 42 to 44 passengers. The chosen engine will probably be the Pratt & Whitney PW308-Turbofan with an output of 32 kN (7200 lbs). One might also consider a higher-thrust-version (29 kN/6650 lbs) of the original 328JET engine (26.9 knots/6050 pounds). However, the necessary "tuning" will most definitely increase fuel consumption and maintenance costs and by this move the economy curve out of competitiveness. But exactly this is what Fairchild Dornier is marketing the 328JET for. With a cost of 10.99 million US dollars the jet made in Oberpfaffenhofen is cheaper than any competitor. If one considers the direct running costs, it is more reasonable than the Bombadier RJ, the Embraer ERJ-145 or the new ERJ-135. According to the company the jet even beats turboprops like its sister model or the Saab 340 to top it all. The 428JET, priced at 12.49 US dollars, is supposed to perform equally well. This jet will, according to the Bavarian/Texan management, be ready for action after a development period of two years. However, it will not be fitted with the Daimler-Benz-Aerospace-Augsburg made wings. These will be made in San Antonio in future. Final assembly will remain in Oberpfaffenhofen - for how long? The AI(R) (Aero International Regional) history has definitely come to a close. The consortium of plane constructors, which was founded on 1. January 1996, lost its reason for existing at the end of last year, when the programs for the planned 50-to 80seater AI(R)JETs were stopped. The reason for the common marketing of the partners', i.e. ATR (Aerospatiale/Alenia) and British Aerospace products, was the realisation of a new European regional plane family. However, there is empty talk of the partners in Singapore about continuing the co-operation. Hardly anyone wants to believe this. The French/Italian ATR will focus on their successful turboprops ATR42 and 72 and BAe on the remaining products of Avro-Liners. The British were finally able to break even in their program for 1997 after heavy losses in previous years. Unfortunately already the mid-term prognosis for the four jet propelled Avro RJ do not look rosy at all. This plane's fuel consumption is much too high, in addition, the AlliedSignal LF507 engines are not very reliable. As Crossair Boss Moritz Suter commented recently, "We are glad that this plane has four engines. This way we are guaranteed to arrive home safely with at least three working ones." The situation is not better at Lufthansa CityLine. It is questionable whether the installation of a more powerful engine will instil the airlines with more trust. Then there is the question of cost: The problem stricken Avro RJ sells at 20 million US dollars and is more expensive than the Boeing 717, which will be on the market soon. In order to make the "Jumbolino" competitive, BAe started negotiating with Kazanah Nasional Berhad (KNB) about the possible part manufaturing in Malaysia, in order to drive down costs. The talks are said to have went as far as to a potential takeover of the whole Avro-production-line by KNB. Unfortunately Asia's financial crisis, which has affected Indonesia, South Korea and most of all Malaysia, has curtailed this plan. British Aerospace must supply a substitute. Rumour has it, BAe has found it in Tatarstan. The company is called Kazan. It is busy constructing the Tupolew Tu-214, the combi version (passenger/freight) of the Boeing-757 would-be competitor Tupolew Tu-204 in the former Soviet Union. With respect to the profitability assessment in the future Airbus structure required by every partner a clever ploy. But is it really the CIS manufacturer or just a mix-up of equal names? British Aerospace was not willing to comment. The Ex-IPTN Boss Jusuf Habibie has also rid himself of his problems in an elegant way. Faced with his imminebt election to Indonesian Vice President, the aviation and space engineer, who was trained in Germany, stepped down (officially) from any leading positions he has had, one of them that with the state run plane constructor Industri Pesawat Terbang Nusantara (IPTN). Hari Laksono, his deputy became his successor at IPTN. The future of the Regio-Turboprop N-250, which has been tested for the last three years is uncertain. Certification was expected for 1999. The project concerning the 130seater jet N-2130, which for Indonesia's technological abilities was nothing more than utopian from the beginning, seems to have moved completely out of reach because of the economical crisis the whole region is suffering from - if Mr. Habibie cares about that. From page 26 of FLUG REVUE 5/98 Home | Update | LATEST ISSUE | Gallery | FR Profile | Datafiles | FR 5/98 Copyright 1998 by Motor-Presse Stuttgart. All rights reserved. Last updated April 7, 1998 FLUG REVUE, Ubierstr. 83, 53173 Bonn, Germany