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Aviation History
1986
1986 - 0108.PDF
AIR TRANSPORT PE buys midwest network NEWARK People Express (PE) is to buy Britt Airways, the third larg est regional carrier in the USA. The purchase will give PE a strong foothold in Britt's midwest heartland, where the regional carrier serves 29 cities, reports Bob Burk- hardt. , And PE boss Donald Burr has indicated that the low cost carrier is interested in buying more airlines with the $200 million kitty it has built up in the last 12 months. The Britt acquisition will add 24 new points to the PE network. Hubs at Chicago, Dayton, and St. Louis will also be valuable feeders for PE trunk services. A PE spokesman said: "It is just the expansion we have been looking for and Britt was perfectly situated". The terms of the purchase agreement have not been announced, but such an acqui sition will not have come cheaply. Although Britt is privately owned and does not have to release financial figures, it is known to have been a consistent profit earner during its 17-year history. Its 950 staff are non- unionised, another important consideration in PE's take over. In 1984 Britt carried 1,204,000 passengers and its fleet of 44 aircraft includes two BAe One-Elevens in addi tion to F.27s, Beech 99s, and Metros. Britt is the second airline to be a PE target in the past few months. In November the no- frills carrier beat Texas Air in a race to take over Denver- based Frontier Airlines. In an interview with the Wall Street Journal shortly after the Britt purchase was announced, Burr signalled that PE was looking round for more acqui sitions in a bid to meet the challenge from the major US carriers, many of which already have feeder links with the most successful commuter operators. Peru's muddled connections LIMA Government and airline industry officials have ex pressed optimism that a US- Peruvian bilateral commer cial aviation agreement might be reached within a few months, despite Peru's recent frontal attack on third, fourth, and fifth freedom rights of foreign airlines. Air transport relations between Peru and the USA have been severed since May 1984, the major point of disagreement being fifth freedom services by US carriers operating through Peru. Other route disputes have affected Lufthansa, Air France, Iberia, KLM, Viasa, and Aerolineas Argentinas as well as US airlines. The services in question were all to intermediate stops or points beyond Lima, including Panama, Bogota, Mexico City, La Paz, and Guayquil— all cities served by Peru's state airline, Aeroperu. They have officially been cancelled. The Peruvian Government explained its decision by saying that regional traffic should be flown by airlines from the countries involved. The flights were officially cancelled as of November 26, but service was allowed to continue, pending the airlines' appeals against the measures. In addition, Peruvian trans port authorities denied an appeal from the Colombian airline, Avianca, which wanted to resume its service from Lima to Santiago and Buenos Aires. Colombia has retaliated by cancelling Aero- peru's fifth freedom rights to Caracas. If Peru ratifies its decision, say industry executives, the result will be inconvenience for travellers, cutbacks in European tourism promotions for Peru, and the stranding of Peruvian export cargo, especially flowers and textiles. Industry observers in Lima believe that the Peruvian Government's actions were taken purely to help the state airline, and do not necessarily mean trouble for the negoti ations with the USA. New chief at JAL TOKYO An extraordinary share holders meeting has con firmed the appointment of Susumu Yamaji as the presi dent of Japan Air Lines. Yamaji succeeds Yasumoto Takagi, who tendered his resignation in the wake of August's 747SR crash, in which 520 people died. The meeting also confirmed Matsuo Toshimitsu as the new executive vice-president and Junji Ito as the vice- chairman. MARKET PLACE Jugoslovenski Aerotrans- port (JAT) has ordered three more Boeing 737-300s in a deal worth about $75 million. JAT has already taken deliv ery of four of the type to replace its McDonnell Douglas DC-9s. The latest three bring orders for the 737-300 to 414, and are scheduled for delivery in November and December. Lesotho Airways is about to take delivery of a 19-seat Dornier 228-201 for use on routes to Johannesburg, Swaziland, and Maputo. Another African carrier, Air Botswana, has clocked up 1,700 flight hours on a Do 228-100. Dornier is confident that other African customers will follow. Seattle-based Horizon Air has ordered a second Fokker F.28, a used aircraft which will be overhauled by Fokker before delivery in the summer. The 65-passenger F.28 is for use between the carrier's 24 destinations in five western states. Danish regional carrier Cim- ber Air has received the first of three ATR42s on order. The 46-seat aircraft will serve domestic and inter-Scandi navian routes, and the remaining two will enter service in January and August this year. The Frankfurt-based travel brokerage company, Air Charter Market, has ordered a second McDonnell Douglas MD-83. Both air craft, in single class 167-seat configuration, will be oper ated by German charter carrier Aero Lloyd on its tour services from Frankfurt, Munich, and Dusseldorf. RUNNING PERFECTLY? Now, yes! But what happens when a breakdown occurs? Will it rpean a serious budget shortfall? Not if you are covered by our unique Aircraft Engine Breakdown Insurance Policy. Contact us now- Hall and Clarke Insurance Consultants Ltd 67 Park Royal Road London NW10 7JJ Telephone: 01-965 8444 Telex: 945060 FLIGHT INTERNATIONAL, 11 January 1986
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