Bosses at Taiwan's sole aircraft manufacturer are hoping that a small commuter plane being jointly developed with a Czech company will be the salvation of the struggling firm.
The nine to 10-seat Ae-270 is due to hit the international aerospace market next year despite the global economic slowdown, according to the joint-venture company Ibis Aerospace Ltd.
Ibis has already received 51 orders for the plane after its prototype made an appearance at the 44th Paris Air Show in Le Bourget on June 17 and has forecast it will take up to 1,000 orders for Ae-270s over the next 20 years.
Ibis Aerospace is a 50-50 joint venture which was set up in 1997.
On the Taiwanese side, Aerospace Industrial Development Corp (AIDC, 漢翔航空) controls a 48.5 percent stake while a local aircraft part maker holds a marginal 1.5 percent.
Aero Vodochody, which makes fighters and helicopters, is the Czech partner.
AIDC, which also manufactures helicopters and jet fighters, is predicted to make an operating loss of NT$230 million (US$6.67 million) this year, compared with last year's loss of some US$2 billion.
Struggling to stay aloft, the firm has been forced to reduce staff levels to 3,500 from a peak of 6,700 in 1997.
Shaun Huang, the company's Far East area sales manager, said the joint venture was a "good bargain" that would help the company in its bid to turn around its fortunes.
"AIDC has been contracted to manufacture the wings, which need the most sophisticated technology in making the whole plane," he said.
"The project may eventually turn out to be one of the major profit contributors to AIDC," said an AIDC official who preferred not to be identified.
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