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MOU SIGNED BETWEEN BRITISH AEROSPACE AND TAIWAN AEROSPACE TO FORM A JOINT VENTURE ON REGIONAL JETS

 MOU SIGNED BETWEEN BRITISH AEROSPACE AND TAIWAN AEROSPACE
 TO FORM A JOINT VENTURE ON REGIONAL JETS
 WASHINGTON, Sept. 23 /PRNewswire/ -- British Aerospace (BAe) and Taiwan Aerospace (TAC) are pleased to announce the signing of an MOU setting out the details of a 50/50 joint venture (JV) for the 146/RJ aircraft.
 The JV will complete the $150 million development and certification program of the new RJ family and will be responsible for the subsequent production, marketing and support of the RJ70, 85, 100 and 115 aircraft. In addition, the JV will support the existing fleet of 146 aircraft, production of which will be superseded by the RJ. Deliveries of the RJ will commence in April 1993.
 Final assembly of the RJ will take place at Woodford in the United Kingdom and in Taiwan. A review is under way to establish whether changes of sourcing of RJ aerostructures and bought-out equipment would be cost-effective. Decisions in this regard by the JV will be made on the basis that both parties enter this new relationship with a commitment to profitable trading.
 It has also been agreed that during the course of 1993, the feasibility study will continue with regard to a possible new 120 seat development, the RJX. During this period, and prior to completion of the project definition, discussions will take place with the world's airlines to establish in detail their requirements for the end of this decade. Discussions with other potential equity and RJX risk sharing partners are also intended.
 Having signed the MOU, BAe and TAC are now finalizing the detailed business plan for the JV, with the intention of commencing trading on Jan. 1, 1993.
 Commenting on the agreement, Michael Turner, chairman and managing director of BAe Regional Aircraft Limited, said: "This is good news for the United Kingdom's aerospace industry. TAC brings to the British Aerospace RJ program financial strength, excellent access to the Asia-Pacific area, which is the world's fastest growing airline market, and the skills that have made Taiwan one of the most successful trading nations in the world today."
 Earle Ho, chairman of TAC, said: "We welcome the opportunity to participate in the regional aircraft business with the world's most experienced supplier, British Aerospace. The nature and extent of the RJ business is the most appropriate for the Taiwan Aero Industry. We are confident that the new RJ family, backed by the complimentary strengths of BAe and TAC, will enable our JV to sustain a position as the world's premier supplier of regional jet airliners. We look forward to this association."
 British Aerospace, Inc. is the U.S. subsidiary of British Aerospace plc, responsible for the interests in North and South America of the United Kingdom's largest manufacturing exporter. The company's principal businesses include commercial transport aircraft, Land Rover North America Inc., business jets, military aircraft and other defense equipment and Reflectone simulator systems.
 -0- 9/23/92
 /CONTACT: Mike Jolley of British Aerospace, 703-435-9100/ CO: British Aerospace; Taiwan Aerospace ST: District of Columbia IN: AIR SU: JVN


DC -- DC007 -- 2583 09/23/92 11:18 EDT
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Publication:PR Newswire
Date:Sep 23, 1992
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