Taiwan deal may save BAe's regional arm
Denny Ko, president of the Taiwan Aerospace Corporation, said yesterday that he hoped to conclude talks with BAe this week, allowing an announcement to be made in a few days.
The Taiwanese are considering joining BAe in a pounds 200m programme to develop a new regional aircraft. BAe has said that it will not build another aircraft without partners, putting the future of the division at risk.
Dr Ko's comments, in an interview with Flight International, are the strongest indication yet that the two sides are close to a deal to rescue the division. Dr Ko visited the Farnborough Air Show earlier this week and is holding the talks in London.
BAe has been negotiating with the Taiwanese for months and is expected to make a formal announcement on the fate of the division when it reports its half-yearly results later this month.
Some industry sources remain sceptical that it will pull off a deal with Taiwan. The Taiwanese had planned to take a 40 per cent stake in the American aircraft manufacturer, McDonnell Douglas, but are now on the verge of pulling out, jeopardising McDonnell's plans to develop a new long-range jet, the MD-12.
BAe employs 12,000 in regional aircraft production at Hatfield in Hertfordshire, Woodford and Chadderton, Greater Manchester, and Prestwick in Ayrshire, manufacturing the BAe 146 'whispering' jet, Advanced Turbo Prop and the Jetstream range. Analysts believe that closing the business could cost BAe up to pounds 750m in provisions against redundancies and restructuring costs.
News of the talks with the Taiwanese came as Airbus, the four-nation aircraft manufacturer in which BAe has a 20 per cent stake, announced a pounds 300m order from the Philippines for its long-range A340-200 jet. Philippine Airlines has ordered six A340s, with options on a further four, making it the first Asia-Pacific carrier to operate the aircraft.
Airbus suffered a blow, however, when the US carrier Northwest Airlines confirmed it had delayed delivery of an order for 16 Airbus A330s from 1994 to 1996.
The US engine manufacturer Textron Lycoming signed a deal with the Russian aircraft company Yakolev Design Bureau to re-engine a range of regional jets. Textron will replace the three AN-25 engines powering the YAK-40 aircraft with two Lycoming LF500 engines - the same engines used on the BAe 146.
- 1 Crystal meth addict 'gouged out his eyes and ate them' while high on drug, Australian MP claims
- 2 Saudi Arabia 'seeking to head United Nations Human Rights Council'
- 3 Group of students refused entry to Leicester nightclub 'because they are black'
- 4 Irish people are travelling home from all over the world so they can vote to legalise gay marriage
- 5 Arsenal fan asks the Queen for tickets to the FA Cup final - gets a reply from Buckingham Palace
Ireland's same-sex marriage vote: Dublin in party mood ahead of historic poll result
Saudi Arabia 'seeking to head United Nations Human Rights Council'
The ten most unequal developed countries in the world
Toddler throws a tantrum at the White House – in front of Barack Obama
Irish people are travelling home from all over the world so they can vote to legalise gay marriage
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...