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Aviation History
1988
1988 - 3539.PDF
Lakeup denies UTA new routes French sh by Gilbert Sedbon in Paris France has shaken up its air transport industry, rejecting a proposed merger between Air Inter and Air France, but also denying the independent UTA any new routes. The French Government is now encour aging greater co-operation between the two state-con trolled airlines, but has left UTA out in the cold. Air Inter will retain its virtual monopoly on domestic flights, but will be able to fly to new European destinations under the Air France banner. In return, Air France will fly some internal routes under the Air Inter banner. The two have already started co-operating on the Paris-Marseille and Paris- Madrid routes. Air Inter will now move from Paris Orly Airport to Air France's hub at Charles de Gaulle, to link inter national traffic with the domes tic network and thus benefit from the interline business. UTA, however, was even denied the right to fly to Newark, New Jersey, or to extend its services anywhere in North America, because it would increase competition ORDERBOOK Growing freight operator Connie Kalitta Services of Detroit, has bought a DC-8-73 through UK brokers DK Avi ation. The aircraft was owned by Handlingair Douglas, which is now in liquidation. GPA Fokker 100, the joint- venture company formed to market and lease the 100-seat twinjet, has exercised eight of its remaining options. The company has now placed 48 orders and holds 52 further options. The leasing company has placed 13 of the ordered aircraft with carriers, and has been given options on six more. Fokker now has 118 orders for the type and 88 options. Japan Air System has exer cised options on five addi tional McDonnell Douglas MD-81s, the first to be deliv ered in June 1991. The airline will take delivery of three more MD-87s and four MD- 81s by May 1990. The new with Air France. The Govern ment's decision, with its rela tively modest adjustments to the French air transport industry, has angered and disappointed UTA. "We will not be resigned to this decision," the airline says. "We are not taking it lying down. We will continue to press hard and demand what we consider a legitimate right." The Government's decision is significant in the light of the single European market due at the end of 1992, when com petition is expected to increase with the end of trade restrictions between European Community countries. Because the French decision does not reduce competition, the Government does not believe that the European Commission can actually reverse it. The Commission does have the power to review existing French airline regulations, and could determine that they are anti competitive and thus against Community rules. Commission officials have so far declined to comment. The French Transport Minister, Michel Delebarre, is understood to oppose direct competition between French MD-81s, powered by Pratt & Whitney JT8D-217A engines, will be used primarily for domestic flights in a single-class seating configuration. Air New Zealand has ordered two more Boeing 747-400s valued at about $250. Delivery will be in July 1990 and September 1992. ANZ had previously ordered one Rolls- Royce RB.211-524G-powered 747-400 for delivery in July 1989. When deliveries are carriers. The fear is that, if privately owned UTA was sold at some future date to a foreign carrier, after it had been given a network of routes, the French flag carrier would be at risk. Similarly, if UTA abandoned any new routes it was awarded and a foreign carrier took on the services, increased competition would threaten the French flag carrier. Delebarre points out that French airlines are still smaller than many foreign competitors: "We must therefore, above all, permit them to co-ordinate their efforts in the face of inter national competition", he says. "To add to that, a competition among the French themselves would impose a pointless extra handicap and create a risk for the future of the French fleet." UTA's chairman and chief executive, Rene Lapautre, insists that UTA is not for sale: "And we say no to any mono poly, whether for Air France on the world market or Air Inter on the domestic market". Jerome Seydoux, president of Chargeurs, majority share holders of UTA, recently said jokingly, but with an angry overtone: "If UTA is not complete, the airline's fleet will total eight aircraft, including five -200s and three -400s. Makung Airlines, a newly formed Taiwanese carrier, has ordered two new British Aero space Super 748 turboprop air liners the manufacturer holds in stock. The first was delivered recently. The aircraft will oper ate an intensive domestic sched ule linking Makung to impor tant city centres within Taiwan. The sale marks a breakthrough granted new destinations to develop itself, if it has no pros pects to motivate and mobilise its personnel fully, and if it should be confined to crisis- ridden Africa and marginal Pacific area, then we will have no other choice but to sell out to Air France." The French Government has boosted development of charter airlines in France as well as regional airline services. UTA's charter subsidiary, Aeromari- time, now has a greater oppor tunity to expand. Aeromaritime is 30 per cent cheaper all round than Air France and Air Inter, Lapautre says. UTA expects a 1988 net profit of FFr600-650 million ($100-110 million) on a turn over of FFr6 • 56 billion, "a record in the company's history," says Lapautre. Last year UTA posted a profit of FFr127 million i a turnover of FFr6-31 billion. Revenue from air transport activities, which fell in 1986 and 1987, is ex pected to increase by more than 5 per cent in 1988 to FFr4-41 billion. Lapautre says that the 1988 operating profit should be around FFr450 million, the highest ever achieved. for BAe into the expanding Taiwanese market, where Government deregulation of air transport has inspired the formation of several regional airlines. Tunis Air has placed a firm order for three Airbus A320s and has taken options on five more. Delivery will take place betwen 1990 and 1995. The airline plans to use the new . Airbuses as part of its expan sion programme. The A320s will be delivered in a 150-seat, three-class configuration, which can be altered for char ter operations to seat 174. Kenya Airways has taken delivery of its first Fokker 50 turboprop. The second air craft on order will follow at the end of this month. Both Fokker 50s will be put into service on the airline's domes tic network. Florida-based International Air Leases has sold a Lock heed L-100-20 Hercules aircraft to Transafrika. Columbia's national carrier, Avianca, is taking delivery of two Boeing 767-200ERs in December 1989 and mid-1990. The Pratt & Whitney PW4000-powered, extended-range aircraft will be used on its routes to Mexico and the'United States. Avianca already operates a fleet of Boeing 707s, 727s, and 747s FLIGHT INTERNATIONAL, 10 December 1988 13
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