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Aviation History
2004
2004-09 - 2627.PDF
HEADLINES AIR TRANSPORT GUY NORRIS / LOS ANGELES RRJ threatened by Brazilian deal Governments said to have reached agreement on establishing 'Russianised' Embraer170 production line The future of the Sukhoi Russian Regional Jet (RRJ) has been unex pectedly cast into doubt by a provi sional agreement between the Brazilian and Russian governments involving the potential sale of Sukhoi Su-35 fighters in apparent exchange for the setting up of a "Russianised" Embraer regional air liner production line in Russia. The deal was partially hatched by Russian president Vladimir Putin during a recent visit to Brazil, where talks were held with presi dent Lula da Silva, according to Russian financial documents seen by Flight International. As part of the negotiations Brazil is also offer ing Embraer 170 regional airliners, previously earmarked for troubled US Airways, to Aeroflot at a signifi cant discount. If confirmed, the Embraer 170 sale, covering up to 50 aircraft, would probably be tied to the pro jected establishment of a Russian Embraer Jet (REJ) assembly line at Komsomolsk-on-Amur Aviation Production Association (KnAAPO), effectively killing the RRJ project. According to the financial report, the Russian government is prepar ing to negotiate its way out of the RRJ by offering the partners (includ ing engine maker Snecma) a slice of what it is describing as the "Russian- Brazilian regional airplane". Negotiations with the Europeans were expected to start late last week during Russian prime minister Mikhail Fradkov's visit to France. The talks were expected to detail proposals to several companies including Snecma and Thales Avionics on potential packages for the new Russian-Brazilian aircraft. In bare outline the report proposes a hybrid solution that will see Embraer design the airframe and major components, with systems coming from the RRJ project. Production would be aimed at the original 2007-8 timeframe of the RRJ. Initial assembly would be based on the ERJ-145, but could be extended to a "Russianised" deriva tive of the RRJ-sized Embraer 170. Embraer declines to comment. The deal appears ultimately con tingent on the sale of Su-35s to Brazil for a fighter competition that has been delayed several times. According to the report, Putin's del egation discussed delivery of the first batch of 12 aircraft to Brazil in 2008, with further batches of up to 50 more aircraft up to 2012. The decision on the fighter selec tion has recently been slipped to the first quarter of 2005. Officially this was tied to the recent dismissal of Brazilian defence minister Jose Viehos Filho, but sources indicate the delay is tied to extended nego tiations over the new Russian deal. Aeroflot officials have dismissed comments by Anatoly Gusarov, dir ector general of Belarus carrier Bel- avia, that both airlines were to order Embraer aircraft for 2006 delivery. BUSINESS MURDO MORRISON / LONDON Succession spat reveals EADS disharmony A row between the French and German arms of EADS over who succeeds co-chief executives Philippe Camus and Rainer Hertrich shows every sign of deepening. The spat throws doubt on claims that, since its formation four and a half years ago, Europe's biggest aerospace company has buried its national divisions and become a unified global business. It could also threaten EADS's hopes of breaking into the US defence market. The rift erupted last week when Hertrich confirmed that he plans to stand down when his contract expires in July. It followed his com ments in a German newspaper that French moves to install Airbus chief executive Noel Forgeard as joint or single head of EADS were driven by BUSINESS Rift over who will succeed co-chief executives Hertrich (left) and Camus exposes national divisions within EADS "personal ambition". President Jacques Chirac is reported to want a single French chief executive. EADS's 30% German shareholder DaimlerChrysler is understood to be insisting on retaining two chief executives and will replace Hertrich with Thomas Enders, head of EADS defence and security systems divi sion. Camus has not revealed his intentions, but it is thought he also will not seek to renew his contract. MBDA/LFK merger ultimatum delivered If MBDA does not seal its long-delayed merger with German missile manufacturer LFK by the end of the year, the whole deal is likely to be scrapped. According to a source close to the negotiations, a deal has been agreed and - barring a last-minute complication - will be announced before 24 December. "If it does not hap pen by Christmas, it never happens," says the source. An acquisition of LFK by MBDA - in which EADS and BAE Systems each have a 37.5% stake and Finmeccanica 25% - has been mooted since MBDA's formation in 2001 but the main block has been the price MBDA's UK and Italian owners have been willing to pay. MBDA already owns 18% of the German company. MBDA chief executive Marwan Lahoud said in Paris last week that it is "obvious we need to finish the job...we need to consolidate LFK". By convention, French heads of EADS divisions such as Forgeard and Eurocopter chief executive Fabrice Bregier report to Hertrich, while Germans such as Enders and chief finance officer Hans Peter Ring have Camus as their boss. Last week, French finance minis ter Herve Gaymard conceded there was a "management problem invol ving people" at EADS and added: "It is not good for the company". A German source within EADS says this is the first time tensions between France and Germany have emerged. "For five years, we have had no problem. Now it is coming from their side," the source says. 4 14-20 DECEMBER 2004 FLIGHT INTERNATIONAL www.fliqhtinternational.com
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