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Aviation History
1991
1991 - 3058.PDF
HEADLINES Japanese in A350 talks Airbus Industrie has had "preliminary" talks with Japanese companies — Mit subishi Heavy Industries, Ka wasaki Heavy Industries and Fuji Heavy Industries — about taking part in its planned 600- to 800-seat aircraft. The European consortium says, however, that the aircraft is still in the pre-design phase regarding range and configura tion, "...so we can't talk about what the Japanese might do". The consortium has damped speculation, however, that it is looking for risk-sharing part ners, saying: "It is hard to see any of the current partners giving up any of their share for a new programme." • Asian Airbus rises out of Douglas break-up BY JOHN BAILEY IN TAIPEI AND GUY NORMS IN LOS ANGELES McDonnell Douglas (MDC) has completed the first step towards the planned re structuring of its commercial aircraft business, with the sign ing of a memorandum of under standing (MoU) covering equity investment from Taiwan Aero space (TAC) on 20 November. While the document contains no specific commitments by ei ther party, it paves the way for the establishment of a new inter national civil aircraft consor tium, based on MDC's Douglas Aircraft subsidiary, and de scribed as an "Asian Airbus" by MDC deal marks first of Taiwan tie-ups A proposed deal with McDon nell Douglas (MDC) is the first in what Taiwan Aerospace (TAC) hopes will be a series of international joint ventures. The new company, established last month, hopes to "...leapfrog the long learning curve in enter ing the aerospace industry" by entering co-production deals with overseas partners. Aside from MDC, a succession of foreign companies, including Aerospatiale, Boeing, British Aerospace and United Technolo gies, has approached TAC, hop ing that co-production deals would provide access to the increasingly important Tai wanese market. The talks have ranged from straight commercial subcontracting to co-production MD-11 wings: last of the line for MDC Canada deals with assembly in Taiwan. Ownership of TAC is shared between the Taiwan Govern ment, with 29%, and a consor tium of major local industrial companies including: Formosa Plastics, Evergreen, Tatung, Yuloong, Hwa-Lung and Pacific Electric Wire & Cable. Total startup capital was $200 million, with another $50 million pend ing. It is not clear whether the $2 billion needed for the invest ment in MDC will be provided by the Government or raised through capital markets. TAC's stated aim is to become "a major Asian aerospace com pany by the year 2000". Its business scope will include aircraft, engines, avionics and materials, plus systems engineer ing and industrial services. The initial strat egy is to acquire ex pertise in design and manufacturing by joining international projects as a risk- sharing or co-pro ducing partner. Additional experi ence will be gained through offset pro grammes for equip ment purchased by Taiwan. Until the deal with MDC is con cluded, and the two companies work together to establish a manufacturing base, TAC will remain little more than a shell company. At present, it does own an automation centre at Taichung. In its home market, TAC hopes to perform subcontracting and co-production work on mili tary projects managed by the Aero-Industry Development Centre, and to handle in-country logistics support. The company says it will also become a sys tems integrator for local projects and participate in maintenance and service industries. • F-117 restart budget cut M oney to restart production of the Tockheed F-117 stealth fighter has been removed from the US defence budget in the final stages of its passage through Congress. The compromise bill, which emerged from the conference of House and Senate Appropria tions Committees, deleted $560 million set aside for four F-117s in the compromise authorisation bill agreed by the Armed Serv ices Committees. The conference increased the number of Lockheed C-130s for the US Air Force Reserve and Air National Guard from the eight requested to no fewer than 40. TAC president Dr Denny Ko. The consortium will be owned jointly by MDC and TAC, and by prospective investors from South Korea and Japan. MDC will retain control with at least 51%, while TAC plans to invest up to $2 billion to acquire a maximum of 40%. If consummated, the deal will mark the first time foreign-based investors have taken a signifi cant ownership stake in a major US aerospace company. MDC and TAC will now enter "de tailed negotiations" on the struc ture of the proposed consor tium, with the intention of sign ing a definitive agreement by 31 January, 1992 — subject to gov ernment approvals. The MD-80, MD-90 and MD-11 will be transferred to the unnamed consortium. The key to the new company is the proposed MD-12 trijet, a rewinged derivative of the MD-11, and the first true chal lenger to Boeing's 747-400. Fi nancially troubled MDC was forced to look for partners to fund the estimated $4.5 billion - 5 billion launch costs, and concluded that manufacturers in NEWS IN BRIEF MIL "SHOT DOWN" A Union of Sovereign States Mil Mi-8 military helicopter which crashed in Azerbaijan on 20 November killing all 23 people on board, includ ing a delegation of senior government officials and mil itary officers on a fact-finding mission to the troubled re gion, is now thought to have been shot down. AIRLINE BAIL-OUT Kawasaki Leasing Interna tional has agreed to provide bankrupt America West with 4 FLIGHT INTERNATIONAL 27 November - 3 December, 1991
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