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Aviation History
1984
1984 - 0971.PDF
AIR TRANSPORT lata chief warns against optimism PARIS lata member airlines could achieve a combined net profit on international services this year, according to the association's director-general, Knut Hammarskjold. But the lata chief has warned member airlines not to be tempted by the gradually improving world economy to increase capacity quickly, otherwise their strenuous cost containment efforts could be negated. Speaking to a conference organised by the Institut du Transport Aerien in Paris, Hammarskjold said that lata carriers could show an overall $250 million profit after interest on their inter national schedules during 1984. He pointed out, however, that this would not be nearly good enough a result to satisfy the airlines' own acccepted business performance standards. A $250 million net profit on international scheduled oper ations would represent a return of only 0 • 5 per cent on revenues; according to Hammarskjold, the lata members look for 7 • 5 per cent to satisfy shareholders and to finance investment needs. The lata chief added that this slender profit could even now be in jeopardy. He said: "If the improving economic climate encourages carriers to relax their individual capacity discipline, I fear we may find the current more positive financial prospects evapo rating before our eyes". Although the member airlines' international traffic is growing—this summer's North Atlantic traffic is look ing particularly good—capa city appears to be growing faster. lata estimates that its members will add 4 per cent more capacity worldwide in 1984. On the highly important North Atlantic routes, capac ity is expected to go up by 9 per cent. This figure does not take into account extra capacity introduced by carriers such as People Express, Virgin Atlantic, and the charter airlines; so lata does not expect to have much idea until -*•, JPMiP * A tit?" Ethiopian Airlines has just taken delivery of this Boeing 767-200ER, the first high-gross-weight ER to be produced. The delivery schedule called for a flight leaving Washington D.C. on May 31 and arriving in Addis Ababa on June I—the longest non-stop flight (well over 6,000 miles) yet made by a twin-engined airliner July of the probable North Atlantic performance of its members. Last year the lata carriers' combined results were much better than originally expec ted. The association attri butes this largely to the fact that capacity increases were kept below rises in traffic. In 1983 the airlines' traffic went up by 5 per cent, but only 2 per cent extra capacity was intro duced. Even in the middle of the year, the lata carriers' combined forecasts indicated a $1,200 million loss after interest on a combined oper ating surplus of $500 million. In the event the airlines reported an overall $400 million net loss after achiev ing a $1,200 million operating surplus. ATR 42 tests progress TOULOUSE ~ With the first flight of the Aeritalia/Aerospatiale ATR 42 scheduled for this summer, a variety of tests are currently being performed on the first prototype in Toulouse. Tests on air-conditioning, autopilot, communications, fire detection, flight control, fuel de-icing, lighting, navigation equipment, and engines have started at the French plant, where final assembly is taking place. The first two aircraft are dedicated to flight-testing, while the third ATR 42 airframe is to be used for static tests. Airframe No 4 will become the third flying ATR 42-the first to be delivered to a customer—while fatigue tests will be carried out on the fifth airframe at Aeritalia's Naples facility. Certification is hoped for by the third quarter of 1985, with the first delivery to Air Littoral in the fourth quarter. The second ATR 42 is due to make its maiden flight in October 1984. Aerospatiale and Aeritalia are planning to produce four aircraft a month during 1985 and 1986. Power to the independents LONDON ~ Air UK and British Midland Airways should have some of British Airways' domestic routes. The two carriers have made this proposal to the Civil Aviation Authority, which is studying the future pattern of UK air transport policy. Air UK and BMA ob serve that BA's dominant position in the industry, and the predatory power this gives to the national carrier, are not in the users' best interests. The two independents are prepared to allow BA to retain its domestic trunk routes from London Heathrow to Glasgow, Edinburgh, Belfast, and Manchester. The CAA has, during the last 18 months, allowed BMA on to the first three of these routes in competition with BA. But, the proposal says, the remainder of BA's domestic network should be open for takeover by other airlines—and this includes BA's Scottish High lands and Islands network. In addition to this the independents want other UK airlines to be allowed to compete with BA on routes from Heathrow to Scandinavia, Switzerland, Austria, and Italy. SHORT HAULS Thai Airways Inter national is seeking approval to add Zurich to its existing European network using the Boeing 747-200 it is currently operating on the Bangkok-Frankfurt run. Services to Zurich would enable TAI to "offer better services and retain Bangkok's position as the regional aviation centre", an air line spokesman said. If approved, the service will compete with Lufthansa and Cathay Pacific's joint services between Hong Kong and Frankfurt. British Airways' financial advisor Hill Samuel and Company has appointed Casenove and Company and Wood, MacKenzie and Company as joint brokers to act for them in connection with the UK State-owned airline's privatisation. FLIGHT International, 2 June 1984 1483
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