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Aviation History
2004
2004-09 - 0130.PDF
AIR TRANSPORT EVALUATION NICHOLAS IONIDES / TOULOUSE & LEITHEN FRANCIS / SINGAPORE China starts study into 150-seater Government commissions research but Airbus doubts whether there is room in the market for a third manufacturer China has taken a first step towards large-aircraft manufacturing with the launch of a study into the feasi bility of developing a 150-seat air liner. However, one of its potential rivals - Airbus - is questioning whether there would be enough room in the market. China's state council has asked the country's two major aircraft manufacturing conglomerates - Aviation Industry Corporation I and II (AVIC I and II) - to examine whether it is feasible to develop larger commercial aircraft, which would have at least 150 seats. The move has been confirmed by Shanghai-based AVIC I Commercial Aircraft Company (ACAC) vice-president Tao Zhi Hui. He says that the year 2020 has been suggested as a possible deadline for producing the first aircraft in this category, but points out that the authorities have yet to decide whether the country will embark on building larger aircraft. Airbus China president Laurence Barron is pessimistic that any new player would be able to compete in the 150-seat market against the might of Airbus and Boeing. "One has to wonder whether there would be room for three manufac turers, given that over the years the others have pulled out one by one or been absorbed," says Barron. "Our own history is an example of how much time and money it takes...to get to world status," says Barron. "Is there room for a third manufacturer to do the same? Historically the answer has been no." But China appears undaunted by the challenge. AVIC I is develop ing the 85- to 105-seat ARJ21 regional jet family, the first of which should be certificated in October 2007. "If we can make the ARJ21 a success then we would like to also take on larger aircraft in future," says AVIC I's Tao. Despite linking with China for the abortive AE31X 80- to 100- seater project in the 1990s, Airbus has effectively ruled out another tie-up in the latest studies. "I don't think we have the resources to get involved in what I would see as a competitive programme," says Barron. He adds, however: "It's something we will be watching to see how it evolves." MERGER Belgian pair to combine The owners of Belgian carriers Virgin Express and SN Brussels Airlines have begun formal merger talks. A deal is expected to be finalised by the end of the year, writes Herman De Wulf. Virgin Express shareholder VSIL and SN Brussels Airlines' majority shareholder SN Airholding signed a non-binding letter of intent on the deal, which would leave SN Airholding with 70.1 % of the merged airline. The formal signing of the deal will fol low regulatory approval of the merger, Virgin Express says. SN Brussels chairman Rob Kuijpers says that the two airlines would continue to be managed separately as each addresses a different market. SN is a full ser vice carrier while Virgin Express is low-cost. SN Airholding will be given an option to buy out Virgin Express holding company VEX's share at will for €100 million ($124 mil lion) by the end of 2006; VEX will also have the option to force SN Airholding to buy the stake for €64 million before the same deadline. If SN Airholding itself then sells out, VEX will receive a 20-29.9% share of the pro ceeds, with the exact amount depending on the sale date. INAUGURATION ANDREW DOYLE / WARSAW Delayed 170 enters service with LOT Polish flag carrier LOT on 17 March became the first airline to place the Embraer 170 into revenue service as it prepares to revamp its European fleet and make a decision on phasing out its Boeing 767 widebodies by the end of this year. The 170 was originally due to enter service in December 2002, but certification was delayed sev eral times by problems in develop ment of the aircraft's Honeywell Primus Epic avionics, and more recently software verification for the Honeywell-developed fly-by- wire flight-control system. LOT is due to receive a total of six 70-seat 170s in 2004 - the first four of which are being leased from GE Capital Aviation Services - and another four next year. It holds options on a further 11 aircraft that can be swapped for any model in the four-member 170/190 family 18 months before delivery. "There will be some [98-seat] 190s in our fleet, but the propor tion depends on how the network develops," says LOT network man ager Marek Serafin. LOT is launching two routes in the next two months from Warsaw - to Venice and Dublin - with the 170. Other probable 170 routes include business destinations such as Amsterdam, Brussels, Paris, Rome and Stockholm, and Bucharest, Sofia and St Petersburg in eastern Europe. Four 737-500s on operating lease will leave LOT's fleet during the first half of 2004, and three of its 14 ERJ-145s will leave next year, as 170s are progressively added. LOT chief executive Marek Grabarek says the Polish flag carrier aims to introduce a replacement for its two 767-200ERs and three -300ERs in 2006, adding that sec- TRIALS ondhand aircraft are under consid eration. The airline plans to partici pate in a joint evaluation of the 7E7 with its Star Alliance partners, suggesting that used aircraft could serve as an interim solution until the new Boeing product becomes available in 2008. The Airbus A330 is also being studied. Whether an order is placed this year "will depend on the financial standing of the company", says Grabarek. Embraer 190 takes to the air for 2h 45min on first flight Embraer flew the 190 regional jet for the first time on 12 March from its Sao Jose dos Campos headquarters. The 98- to 108-seat aircraft - a stretched, rewinged version of the 70- to 78-seat 170 that entered service with LOT on 17 March - flew for 2h 45min. A range of systems validation tests were per formed during the flight. Further flight tests will be conducted at Embraer's Gaviao Peixoto centre in Sao Paulo state. Type certification of the General Electric CF34-1 OE-powered 190 is due in the third quarter of 2005, followed by first delivery to JetBlue Airways. Firm orders stand at 110. 8 23-29 MARCH 2004 FLIGHT INTERNATIONAL www.flightinternational.com
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