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Aviation History
1981
1981 - 0128.PDF
118 FLIGHT International, 17 January 1981 W rid news BA to borrow more as £100 million loss looms BRITAIN'S new Trade Secretary John Biffen has announced that British Air ways will be allowed to borrow a further £85 million up to March 31, the end of BA's financial year. The extra loan is to help cover an expected £400 million revenue shortfall and a possible £100 million loss for the whole 12 months. In a Parliamentary reply, Biffen explains that the Govern ment is allowing BA to raise its 1980- 81 external financing limit (EFL) from £219 million to £304 million because steps taken by the BA board to cut costs and to raise additional funds by disposing of assets have been "insufficient" to meet the 1980-81 shortfall. The £400 million is the differ ence between BA's planned revenue Small world .,. NEW British Defence Secretary John Nott took office on January 12, replac ing Francis Pym. The former Trade Secretary inherits a massive overspend in the 1980 UK defence budget and a £200 million cut in 1981 funding imposed by the Treasury. Nott has a reputation as a budget-cutter, and the effect of his appointment will be most obvious when the 1981 defence estimates are published in February or March. THE US National Transportation Safety Board alleges poor quality control by wheel manufacturer B. F. Goodrich, maker of a wheel which failed in the Saudia TriStar accident on December 23 (Flight, last week, page 53). After take off from Dhahran a wheel rim failed at 29,000ft and was driven through the pressure hull by the rapidly deflating tyre. Two children were sucked out of the air craft through the resulting hole. The NTSB has told the Federal Aviation Administration that it should issue an immediate airworthiness directive to all TriStar operators requiring wheel inspections at the next tyre change or within 20 land ings, whichever occurs sooner. In addition, the FAA should initiate an immediate survey of Goodrich's manu facturing facilities to ensure com pliance with Federal airworthiness regulations. Goodrich service bulletins are also criticised for errors which could mis lead carriers into using wheel and tyre combinations which are in appropriate for particular TriStar models with differing gross weights. (as budgeted for early last year), and actual revenue expected up to the end of March. BA's £1,000 million statutory borrowing limit remains unaltered. This relates to the airline's cumulative borrowing's over the years. The EFL is an annual ceiling. In the nine months to December 31, BA recorded a £40 million pre-tax loss (after reporting a £2 million loss for the April-September high season). Press reports have put the expected full-year loss to £60 million, although Flight understands that BA expects the figure to run close to £100 million. BA chief executive Roy Watts says "this is the most serious financial situation we have ever faced." BA is cutting its planned £400 million capital PRATT & Whitney's $25 million con tract with the Danish Industri Syndi- kat (Disa) to make FT6 parts for European General Dynamics F-16s is to be terminated. The contract for F-100 engine central gearboxes will be withdrawn because, according to Pratt & Whitney, Disa has not been able to meet schedule or cost dead lines. The exact date of termination it not yet known as US Air Force approval is needed before the con- Heavier variants use wheels of the same diameter but with thicker, stronger rims. Possible but unestablished factors under investigation are tyre overheat ing caused by extensive or high-speed taxiing before take off and an incorrect wheel/tyre combination. Flight is informed that some wheel debris which may have been part of the wheel in question has been found on Dhahran \s runway. expenditure for 1980-81 by one third. Despite the severity of BA's losses, the official line on staff reductions remains one of voluntary redundancies and "natural wastage." At the end of December, BA had 54,600 staff, com pared with 58,200 in August 1979. The plan is to continue staff reductions and the number should be below 50,000 by 1982. BA is currently trying * to persuade its staff to accept a volun tary three-month pay freeze. This is being resisted, especially by unions representing 15,000 manual workers. These have threatened a one-day strike next week on January 23. BA is taking the line that its current gentle policy on staff reductions depends on staff co-operation. tract can end. The US company is now "anxiously seeking" another European manufacturer to pick up the contract. New contractors will be subject to Pentagon approval. • Danish Defence Minister Poul Soegaard denies reports that Denmark will postpone payment for its F-16s but has confirmed that the price to Denmark is now nearly double the contract figure. The exchange rate and inflation have pushed the Danish F-16 price up by 27-8 per cent over the last year. The F-16 payments will now be over a longer period than planned. KC-10 refuels drogue-style A US Air Force Cessna A-37B Dragon fly has been refuelled by a McDonnell Douglas KC-10 Extender using the probe and drogue method. During the test the KC-10 passed 650 gallons of fuel to the A-37. The Extender, first tanker aircraft with both the hose/ drogue and boom system, then made 61 boom contacts with a B-52 receiver on the same mission. MBB's F-I04G control-configured vehicle (CCV) seen in the marginally stable El layout with destabilising canard but with forward ballast. A second flight to check the handling using the mechanical backup flight-control system has followed the November 20 initial sortie. The CCV primary flight-control system is quadruplex fly-by-wire Wheelmaker criticised over Saudia tyreburst P&W terminate Danish F-16 offset
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