PAUL LEWIS / WASHINGTON DC
Rival manufacturers in regional jet battle enlist government support as competition for European business intensifies
Bombardier and Embraer's battle to win a LOT Polish Airlines order for new large regional jets is heating up with suggestions of political pressure being applied on Warsaw by Brazil and Canada. At the same time, efforts by Embraer to export military aircraft have suffered a further setback, this time in the Dominican Republic, following a cancelled planned Colombian order.
LOT is due to decide shortly on an order for up to 21 regional jets, either the Bombardier CRJ700/900 or Embraer 170/190. The technical evaluation and commercial negotiations at airline level are being complicated by political lobbying by both manufacturers' governments, local sources say. The state of the US market means competition for European orders is fierce.
Canada is allegedly using economic aid and investment to swing the deal Bombardier's way. Ottawa already provides C$34 million ($21.5million) direct financial assistance mainly through non-government organisations and an unknown sum in direct aid, but Ottawa denies any link with aircraft sales. "Our embassy in Warsaw assists Bombardier, but this assistance takes the form of advice and advocacy," says Canada's Department of Foreign Affairs and International Trade.
Embraer, in response, has sought Brazilian government support, which is understood to have included a letter to Poland's President Aleksander Kwasniewski. The result of the political manoeuvring is that an anticipated end of year LOT decision may slip.
Meanwhile, the US Department of Defense denies pushing Colombia to cancel a $234 million order for 24 turboprop light strike aircraft in favour of upgrading US supplied-equipment. The Embraer EMB-314 Super Tucano was a front runner in the competition and, according to Brazilian reports, the aircraft has also been dropped from a planned Dominican Republic order under US pressure.
The Dominican Republic air force had chosen the EMB-314 to replace Cessna A-37Bs, and was negotiating for 10 aircraft plus five EMB-202 Ipanemas. Sources say talks foundered because of Embraer's "inflexible and severe" financial terms.
Another factor is likely to have been a 15% cut in 2003 defence expenditure to $267 million. The Dominican Republic will instead receive upgraded surplus US equipment including eight Bell Huey IIs and six Sikorsky SH-3Hs. The air force is discussing a Beech T-34C trainer acquisition.
Source: Flight International
