Air Transport World

BAe and Taiwan Aerospace team up. (British Aerospace)

British Aerospace's announced 294 million [pound] ($500 million) joint venture with Taiwan Aerospace to produce a family of regional jets is viewed by industry observers as a painful but necessary first step to return the manufacturer to profitability.

With first-half losses approaching 129 million [pound] ($220 million), military business profits were eroded by losses in the regional aircraft division. BAe had little choice but to align a sizable portion of its money-losing division with someone.

The agreement calls for British Aerospace and Taiwan Aerospace to set up parallel assembly lines in Woodford, England and Taiwan, where an initial investment of nearly 147 million [pound] ($250 million) will be required.

Part of the deal calls for the joint venture to complete the 68 million [pound] ($115 million) development and certification of the four aircraft in the RJ family, the RJ70, 85, 100 and 115. …

Log in to your account to read this article – and millions more.