Taiwan-US aircraft company to deliver first executive jet

Oct 29, 2006, 7:59 GMT

Taipei - A financially troubled Taiwan-US aircraft joint venture will deliver its first executive jet next month, raising hopes that the company still has a chance to survive, a newspaper said on Sunday.

The Sino Swearingen Aircraft Corporation (SSAC), based in San Antonio, Texas, will deliver its first SJ30-2 to Douglas Jaffe, a San Antonio resident, the Liberty Times quoted SSAC Chairman Kuo Ching-chiang as saying.

'We have received orders for 300 SJ30-2 worth 1.86 billion US dollars. The figure is even bigger if you include after-sale service,' he said.

After mass-production has begun, Kuo said, SSAC plans to hand over the manufacturing of some spare parts to Taiwan companies.

'The start of mass production will not only help us break even, but also allow us to share our experience with Taiwan and help develop Taiwan's aeronautics' industry,' he told the Libery Times.

SSAC is a joint venture between the Swearingen Aircraft Corporation and Taiwan's Sino Aerospace Investment Corporation, which holds nearly 90 per cent stake. Manufacturing takes place in West Virginia.

With the backing of the Taiwan government and US Senator Jay Rockefellor, SSAC was founded in 1995 to produce executive jets.

Taiwan hoped that transfer of technology from the US could help Taiwan's aerospace industry take off, but the Taiwan media suspected the deal was also politically motivated because Taipei wanted to build closer ties with the US.

In October last year, SSAC's seven-seat, twin-engine SJ30-2 was certified by the Federal Aviation Administration, clearing the way for the mass production of the 5.5-million-dollar jet.

The SJ30-2 has attracted worldwide attention from SSAC claims that it is the world's fastest and longest-range executive jet with a cruising speed of Mach 0.78 and a range of 4,500 kilometres.

But SSAC's delay in delivering the jets triggered speculation that the company had run into financial trouble and was seeking further financing from the Taiwan government.