If, as expected, the long-awaited alliance between ATR and British Aerospace's Jetstream division goes ahead, the deal should provide the spark for the rationalisation of the entire European regional aircraft industry.
At presstime, there were strong indications an agreement would be signed before the end of January. One senior BAe official believes the deal will 'almost certainly go ahead.' But officially, the UK manufacturer and Aérospatiale, the French half of the Franco-Italian ATR consortium, are refusing comment besides acknowledging that talks are taking place. Italy's Alenia is more specific: 'There are no discussions with BAe for the merging of industrial activities with ATR, but there are talks to examine the possibilities in commercial and marketing activities,' says a spokesman.
A merger of the sales and marketing operations is the most likely initial step, with Airbus-style joint design and production some way down the line. Any new product launch would be a joint venture.
The Jetstream 61, formerly the ATP, will probably emerge as the sole casualty of a combined product range, but BAe has long been prepared for such an eventuality, says one London-based analyst. 'I don't think [BAe] is worried about closing the J61 production down at all. It has been writing off working capital on that for the past two years in anticipation of such a venture.'
The addition of BAe's Avro regional jet division to the marketing joint venture is also understood to be under consideration. This would give the resulting sales company the only comprehensive range of regional aircraft in the world.
The initial venture with ATR could be seen as an attempt to add impetus to discussions among all European manufacturers which have been dragging on for over a year. BAe is understood to be keen to get Daimler-Benz Aerospace on board and Spain's Casa may well join the venture.
One London analyst supports the view that the BAe-ATR joint venture 'would form the nucleus of a European consortium', with Casa, Daimler and Saab coming on board at a later date. But another analyst disagrees, pointing out that the more parties are brought into the venture the higher the unit costs.
If Daimler cannot be persuaded to follow BAe's and ATR's lead, a fierce battle could ensue. The German conglomerate, committed to playing a central role in the European regional aircraft industry, failed to put a turboprop deal together with ATR in 1993 and is now looking to build up a European consortium around its Fokker subsidiary.
If Daimler cannot be persuaded to follow BAe's and ATR's lead, a fierce battle could ensue. The German conglomerate, committed to playing a central role in the European regional aircraft industry, failed to put a turboprop deal together with ATR in 1993 and is now looking to build up a European consortium around its Fokker subsidiary.
Source: Airline Business
