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Aviation History
1982
1982 - 0005.PDF
Air transport Laker's stake in Laker will reduce McDONNELL DOUGLAS may convert some loans to Laker Airways into shares in the carrier, to overcome the airline's intractable loan rescheduling and cash flow problems (Flight, Dec ember 26, page 1880). This would dilute Sir Freddie Laker's 90 per cent holding in his airline. Laker's banker, Samuel Montagu, says "Laker is pleased to announce that, following discussions with Samuel Montagu & Co, with its major bankers, and with the aircraft manufacturers, the prospects are en couraging that a basis of agreement will be arrived at to secure a satis factory restructuring of its finances. A further announcement will be made in due course." With a UK Government mandate, the Bank of England has been lead ing discussions among Laker, the European and US banking consortia supplying his loans, and manufac turers Airbus and McDonnell Douglas which have supplied the aircraft for which the loans were raised. It now seems certain that the three Euro pean banks which are refusing to ap prove loan rescheduling will not be persuaded that Laker is a viable air line without major restructuring of its finances and operations. And without their approval, both European and US loan agreements collapse in the face of Laker's inability to meet principal repayments due about now. The only remaining solution to en sure Laker's survival is a cash injec tion, and the only organisations that have an interest in making such an injection are Airbus and McDonnell Douglas (MD). Following Bank of England pressure, it seems that MD may take shares in Laker. The manu facturer's alternatives would be to buy back the five DC-lOs and sell them—if it could find a buyer—at a huge loss; or to wait in the queue for a share of the liquidated airline. Airbus' possible courses of action would seem to be the same, but the three A300s Laker is operating now are at least more easily saleable than the DC-lOs. Airbus, however, is taking a harder line. It does not want Laker shares, nor to exceed its original agreement to guarantee 75 per cent of the A300 new price; the manufacturer will simply help the airline to sell the aircraft. Airbus tells Flight "We are not an airline, nor a bank." Obviously Laker's orders for seven more A300s are dead. Though MD is obviously considering a buy-and-lease back deal for some aircraft, Airbus currently shows no interest in the idea. Not all of the sales are likely to take place for some months, because if the lenders are to get anything back they must let Laker carry through his summer contracts, which will make money. And another move which will almost certainly take place soon is that Laker will be commanded to raise his scheduled fares by about 15 per cent. The hope is that compet ing carriers would rapidly, and with sighs of relief, follow suit. Shorts confirms Boeing 7-7 discussions SHORTS chairman Sir George Leitch confirms that his company is discus sing with Boeing a share in the 7-7 project, as first reported in Flight (December 12, page 1736). Asked whether this would require UK in vestment which the Government might think should be concentrated on the Airbus A320, Leitch tells Flight: "We don't see any conflict. We build the F.28 wings and the 146 engine nacel les. The country, like our company should have a broad product base. Politicians may see a conflict, but I don't." The 360 development programme has been accelerated, says Leitch, with certification scheduled for Sep tember, but "production awaits a Government decision, which is ex pected shortly". Shorts' two-year lead over Saab-Fairchild, Embraer and de Havilland is "very important to us". He admits that the commuter market has been hit both by recession and by high US interest rates, and 360 mar keting is not being pressed at the moment, "although we find a lot of interest". Shorts took orders for 26 330s in 1981, of which 22 were delivered. The aircraft will be made and sold ait a rate of about two a month through out 1982, according to managing director Sir Philip Foreman. Skyvan production continues, with 150 sold and about five to deliver this year. "Every time we think of closing the line we get more orders," says Fore man. Air France engineers strike over 737 crewing AIR FRANCE has gone ahead with its internal controversy-generating pro posal to buy Boeing 737s for regional services. The carrier has placed a $180 million order for 12 737200s, with deliveries beginning in January 1983 and continuing through till August of that year. The airline had been trying to place the order for several years, but its plans always foundered because of bitter pilot and flight engineer union opposition to the 737s being operated by two-man crews. The order for the two-crew 737s has now gone ahead because the larger of Air France's two aircrew unions withdrew its op position a few months ago, realising that the obsolete Caravelles and the leased aircraft the airline was being forced to operate on its short-haul routes were making it uncompetitive and losing it money. But the airline's other flightcrew union, which represents Air France's flight engineers rather than its pilots, has maintained its objections, and conducted a two-day strike on Dec ember 22 and 23 to protest the order. The strike had little effect on Air France's long-haul operations on those days, but about 70 per cent of its regional schedules were cancelled. Air France becomes the 108th customer for the 737, and the second largest Boeing customer outside the USA, after Lufthansa. The French flag carrier has ordered 110 Boeing aircraft since its first purchase in December 1955. The 737200s will be fitted out in 115-seat layout, and will be powered by JT8D-15A engines rated at 15,5001b thrust. Short hauls ... Delta Air Lines carried 2-8 million passengers in October. Revenue pas senger miles flown for the tenth month were just under 1,900 million, a 7 per cent drop on the 2,036 million rpm flown by the airline in October 1980. Summit Airlines, a Philadelphia- based all-cargo carrier, has added two Alabama cities—Huntsville and Mont gomery—and the Georgia cities of Macon and Columbus to its existing network. Summit will operate to the new destinations six days a week. The carrier now serves 34 US cities. FLIGHT International, 2 January 1982 3
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