Subscribe free to our newsletters via your
. Space Industry and Business News .

Chilean deal with EADS falling through
by Staff Writers
Santiago, Chile (UPI) Sep 5, 2012

disclaimer: image is for illustration purposes only

Talks on business collaboration between Chilean state aviation company Enaer and European manufacturer EADS are stalled over legal technicalities that may prove to be the undoing of draft contracts known to be under negotiation.

Chile has been aiming to modernize and expand its defense industry and began talks with EADS as part of a plan to boost Enaer's manufacturing potential.

Empresa Nacional de Aeronautica de Chile, the state-controlled national aeronautics enterprise also known as Enaer, was said to be one of the lead negotiators in the deal.

Enaer dates to the 1930s and in 1984 it incorporated the older Maestranza Central de Aviacion, the Chilean air force's aircraft maintenance wing.

Enaer hasn't had much headway in bilateral or collaborative defense contracts but it did manage to assemble the Dakota aircraft through other partners, ran aeronautical clubs and produced the Piper Archer and Warrior aircraft before upgrading to T-35 Pillan military trainer.

The EADS deal promised to give Enaer entry into a higher level of aviation industry development in the country. However, officials and experts say any alliance between Enaer and EADS and Airbus Military combined is unlikely to be workable.

Enaer supplies part of the fuselage for the Airbus Military CN-235 and C-295 transports and part of the empennage for the Embraer ERJ-145 Legacy family.

The reasons for a potential failure of the deal are legal and political rather than diplomatic, analysts said.

Enaer already has an aviation-related manufacturing contract with Brazilian aircraft maker Embraer, which has headquarters in Sao Paulo, Brazil, but numerous connections in Chile and other countries in Latin America.

The Embraer link potentially prevents Enaer from entering into an EADS deal unless Enaer agrees to cease all operations except military maintenance before giving way to a jointly owned new company.

An added problem is that Chilean law requires all aviation operations to be under the direct and sole control of the state of Chile and its armed forces. A joint company would make that impossible.

The major attractions of an EADS partnership have been the promise of a cash injection, transfer of new technology, access to human expertise and the prospect of raising Enaer's international profile.

The proposed partnership was fiercely opposed by Enaer works. Employee representatives said an EADS partnership could cost them jobs, despite guarantees of employment in a newly formed company.

Meanwhile, the future of Enaer is also of interest to Embraer which has invested in the relationship and depends on Enaer for components.

Enaer was forced to suspend production in the aftermath of Chile's 8.8 magnitude earthquake in February 2010. The company said the disruption was temporary and most production resumed soon afterward.


Related Links
Aerospace News at

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Australia buys Growler systems for Hornets
Canberra, Australia (UPI) Aug 31, 2012
Australia has confirmed it will acquire Growler electronic warfare systems for its Super Hornet aircraft through the United States Foreign Military Sales process. The Growler upgrades and systems will allow the Australian air force to jam the electronics systems of enemy aircraft and land-based radar and communication systems, Australian Defense Materiel Organization said. Austra ... read more

Mobile gadget gamers take lead in US: NPD

Microsoft, Nokia step up arsenal in smartphone wars

UCF researchers record world record laser pulse

Miner Lynas gets Malaysia rare earths plant approval

Intelsat General Awarded Contract in US Government's New Custom SATCOM Solutions Program

Smartphone App Can Track Objects On the Battlefield as Well as On the Sports Field

Lockheed Martin Wins Role on Defense Information Systems Agency Program

Raytheon unveils cross domain strategy to securely access information via mobile devices

First-Stage Fuel Loaded; Launch Weather Forecast Improves

NASA launches mission to explore radiation belts

ISRO to score 100 with a cooperative mission Sep 9

NASA Administrator Announces New Commercial Crew And Cargo Milestones

Northrop Grumman to Supply Bridge Navigation Systems for Swire Group's Dry Cargo Ships

Mobile users wary of privacy invasion by apps: survey

CTrack Launches Lone Worker Device To Boost Protection And Peace Of Mind

Spirent Redefines Leadership in Location Testing with Solution for Hybrid Location Technology

'Sideways' aircraft for supersonic speed?

Chilean deal with EADS falling through

Arrest after China flight threat: state media

Airbus says Chinese-built planes to be sold only in China

More than 70 percent of electronic waste management is uncontrolled

Researchers measure photonic interactions at the atomic level

Wayne State's new flexible electronics technology may lead to new medical uses

Magnetic Vortex Reveals Key to Spintronic Speed Limit

Suomi NPP Captures Smoke Plume Images from Russian and African Fires

Remote Sensing Satellite Sends First Earth Imagery

Proba-2's espresso-cup microcamera snaps Hurricane Isaac

$3.7 Billion Reasons Why GIS Technology is The Future

Chemical use inflicts mounting bill on poor countries: UN

Philippine gold mine struggles to plug waste spill

Oil spilling from Turkish bulk carrier wreck off Cape Town

Wind concentrates pollutants with unexpected order in an urban environment

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement