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Bae/Atr Join Forces

Aerospatiale, Alenia (partners in the ATR consortium) and British Aerospace have announced they intend to create a European regional aircraft joint venture to be owned in equal proportion by the three parties. The deal covers BAe’s Jetstream 31 and 41 regional turboprops plus the Avro RJ range of jets as well as the ATR 42 and 72 turboprops. This will give the new consortium a range of regional airliners with seating capacities from 20 to 115.

A casualty of the arrangement will be BAe’s slow selling ATP/Jetstream 61 70 seat turboprop, which will be phased out of production this year. The ATP competes in the same market segment as the much more successful ATR 72. The closure of the ATP/J61 line will immediately reduce losses in BAe’s commercial aircraft operation, which reached £79m (about $A165m) in the first half of 1994. A similar result is expected for the second half of the year. BAe continues to rationalise its commercial aircraft interests with another 1000 jobs expected to go.

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