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Aviation History
1984
1984 - 0435.PDF
BUSINESS AVIATION production order scheme. The manufacturer made arrange ments to re-purchase the machine on "favourable commercial terms". The order position a year ago was three airships sold and lease agree ments held for a further two. A Skyship 500 and two 600s were the subject of purchase agreements (effectively payment upon delivery, according to AI) with Adver tising Blimp Corporation (ABC) and Interport Aero- marine, respectively. The two customers were newly formed companies associated with Interport Marine Agencies, the UK agent for several ship ping companies. The lease arrangements covered the US Navy/Coast Guard trial of 500-04, and the proposed use of Skyship 500 by a subsidiary of Golden Nugget. Last month AI reported that it had initiated nego tiations with ABC to convert the purchase into a lease. The new arrangement was expected to run for a minimum of 12 months, and to involve (possibly) other parties. Delays had caused the Golden Nugget contract to lapse. The 600s for Inter national Aeromarine had been scheduled for delivery in the next financial year. In December 1983 Airship Industries signed a Memo randum of Understanding with Japan Air Lines. JAL intended to operate three airships by the end of 1986. This has been followed by a £1-5 million contract with JAL subsidiary Nikko Trading to buy a Skyship 500. Bni Test pilot Cdr Nick Bennett says that the first Skyship 600 flight was a "copybook operation" This machine will be leased to LTA Japan, described by AI as "an airship company recen tly formed by civil aviation experts". Delivery is expected in early May. Following last year's three- month trial, the US Coast Guard has requested further operational evaluation of the Skyship 500. This will include training for six pilots and three ground-crew chiefs. The successful first flight of the Skyship 600, the approach of full passenger-transport certification for the 500, and Bond Corporation's under writing of the new rights issue will no doubt encourage many existing (and indeed prospec tive) shareholders. The price of AI shares has fallen from the 1983 high of 147p to some 56p last week. Bond has the right to require AI to grant an exclusive licence to manu facture, assemble, and to sell Skyships in Australia, the Western Pacific, and the Far East (subject to an existing agreement with AI's Japanese agent). It also has the option for six months from the completion of the rights issue to buy a Skyship 600 "at the then current market price". AI chairman Andrew Millar told shareholders at the end of 1983 that, without this major refinancing, the directors felt that the company's achieve ments would be vulnerable when viability had never been closer "despite the continuing risks". Shareholders, for their part, have until March 22 to decide whether to stay aboard. Given the speculative nature of the investment many may well remain with the ship. Airship Industries says that its Skyship operation is now viable. The inverted Union standard on the "tail fin" is not to be taken as a sign of distress SIC VCMIfl 4* ^%*% ittfRMf! \FLIGHT International, 17 March 1984 673
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