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Aviation History
1986
1986 - 2488.PDF
WORLD NEWS Bermuda II clears way forBA LONDON ~ The UK Department of Transport has announced that British Airways will be privatised "in the early weeks of 1987". The latest hold-up was caused by uncertainty over the Bermuda II negotiations between the UK and the USA. This was resolved to the Government's satisfaction last Tuesday. Annex II covering capacity, the section of the treaty under discussion, has been renewed with built- in safeguards for British car riers which, the DoT says, will "prevent US airlines from dumping spare capacity on the North Atlantic". The new wording limits any one airline's capacity on the route to a set proportion of the total mounted by the com petition. It follows broadly the lines of the expired annex, but with the following changes, which apply to all UK and US airlines operating across the Atlantic: • Airlines are entitled to a daily transatlantic frequency as of right. • An airline on any route can operate up to 150 per cent of the subsonic frequencies of carriers on the other side. This should effectively keep a curb on frequency increases. • If there is no agreement on the 150 per cent rule, an auto matic fallback applies: each airline can add up to 30 flights to its summer schedule and 20 over the winter period. Under the old rules the limits were 20 and 15 respectively. • The agreement lasts at least three years and is subject to 12 months' notice of termi nation from either side. This provides the stability the UK Government was looking for, to encourage potential inves tors in BA. Bermuda II was the latest in a series of setbacks for British Airways. Earlier flotation dates were post poned because of pending anti-trust litigation over alleged malpractice by BA and other airlines when Laker Airways went out of business. BA was in danger of miss- BA should be launched on the stock exchange within months ing its slot in the Govern ment's privatisation pro gramme. It now has to follow British Gas, which is expected to be sold in November. It was vital to complete the sale of the airline before the next general election, which would be any time after the Budget, in March 1987. Spain fights for equality LONDON Spain has given the UK Government six months notice of the end of the bilat eral air services agreement after months of fruitless nego tiations. A new agreement will have to be drawn up by March next year, or flights between the two countries will be grounded. The Spanish have been complaining about the imbal ance in traffic between the two countries since March 1985. More than 80 per cent of passengers on UK-Spain routes are carried by UK airlines, Iberia says. The air services agreement (ASA) dates from the 1950s, and covers only scheduled flights, while the majority of pas sengers go by charter flights. Spain wants charter services to fall under the umbrella of the ASA, to reflect the actual market, and is seeking new legislation to go some way to restoring the balance. British charter airlines have seen trouble looming over charter rights for some time, and many of them have applied for and won scheduled licences as a safeguard. British Airways, British Caledonian, Air Europe, Britannia, Orion, and Dan- Air all have scheduled licences to Spain, although some are unused, whereas only Iberia flies scheduled services into the UK. Israel asks USA for Nato- type status TEL AVIV Israel will be able to bid for maintenance contracts for US Air Force and Army aircraft in Europe if it is successful in obtaining the status of a major non-Nato ally. Israeli Defence Minister Yizhak Rabin has discussed the change of status in his talks in Washington, which began on September 10, reports Arie Egozi. The US Administration told Rabin that it will seri ously consider Israel's request for a change of status. After meeting US Defence Sec retary Caspar Weinberger and Secretary of State George Schultz, Rabin said that he was not promised anything. Israel wants to ease the burden of its defence budget by being able to purchase US- made arms on the lower terms that are common within the Nato framework. In addition, Israel wants to be able to participate in bidding for the contracts issued by the US forces in Europe for aircraft maintenance. Rabin also asked the Pentagon to consider the lease of Bell AH-1 Super Cobra attack helicopters to Israel. MDC and Airbus speak in unison TOULOUSE McDonnell Douglas and Air bus co-operation is not dead yet (see page 4). The two have sent out simultaneous and identical telexes "to set the record straight", saying "dis cussions on possible cross- co-operation have, as yet, proved inconclusive". They add, interestingly, "McDon nell Douglas would like to par ticipate with Airbus on the A330". Up to now talk has been on a combined long-range aircraft, either the A340 or MD-11. "The major problem remains with the A330/A340 com bined strategy against the MD-11 family," the manufac turers add. FLIGHT INTERNATIONAL, 20 September 1986
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