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Aviation History
1989
1989 - 0406.PDF
z salvage plan welcomed t**jfci 4% fPllNk^_^«W, Ten-nation carrier Air Afrique is $120 million in debt Air Afriqu* by Gilbert Sedbon A plan to save ailing African carrier Air Afrique calls for an $180 million cash injection, the sacking of 2,000 of the present 5,000-strong workforce, and restricting the traffic rights of other airlines serving the region. After a series of economic and financial crises, allegations of mis-management and politi cal dabbling, uncontrolled growth of competing charter flights, the debt-ridden ten- nation African airline is on the verge of bankruptcy. The rescue plan has been drawn up by Yves Roland- Billecart, head of France's aid agency Caisse Centrale de Co-operation Economique, and commissioned by the nations which jointly own the ailing African airline. The rescue plan could make life difficult for 15 major West European airlines operating in creasingly competitive African routes, including Air France, UTA, British Airways, KLM, Sabena, Swissair, and Iberia. Roland-Billecart, who is expected to succeed Auxence Ickonga of Congo as head of Air Afrique and become first non- African chairman and chief executive officer of the airline, headquartered in Abidjan, says that the reforms could lead to tighter restrictions on air traffic rights for foreign airlines. "Foreign companies will now have to negotiate routes under tougher conditions," says a senior African official, "and they will have to compete with a new management and a more efficient, streamlined airline." The Roland-Billecart rescue Malev se by Robert Rodwell in Budapest Hungarian national carrier, Malev is to join forces with a US airline to fly new transatlantic services to Hungary. Malev is negotiating with several US carriers to form a partnership and break into the North American market. Malev executive Dr Reszo Banyasz says that the agreement will be similar to those existing on routes from Budapest to Rome and Madrid, in which the services are flown by Malev but carry joint flight numbers and plan has been accepted by the heads of state of the Air Afrique member nations at a meeting in Ivory Coast's inland capital of Yamoussoukro. "After examin ing this plan and hearing the explanations given by Roland- Billecart, the heads of state reaffirmed their common will to save their company," says a joint statement. Air Afrique is owned by Ivory Coast, Benin, Burkina Faso, Central African Republic, Chad, Congo, Mauritania, Niger, Senegal, and Togo. Some of these nations, among the world's poorest, have con tributed to the carrier's heavy debt, estimated at more than $120 million, by falling behind in subscriptions and by allowing civil servants and personal friends to travel free. Arrears in subscriptions total almost $40 million. The airline has also been criticised for offering jobs and promotions for political reasons. Of the $180 million needed to rescue Air Afrique, the are marketed by Alitalia and Iberia. In the North American case, Banyasz says, the situation is likely to be reversed, and Malev would initially be the market ing, but non-flying, partner. Banyasz would like to see the agreement become operational as early as this summer. Malev's marketing plans for North America include an entry into the Canadian market, with the opening of a Toronto office in April. "We already have an office in New York, and believe the North American market has French Government has offered about two-thirds, pro vided the airline is soundly run. An estimated FFr750 million in aid from Paris could be made available, airline officials say. Roland-Billecart says he is prepared to lead Air Afrique only if the African states agree to his reforms, including tight financial control and the 2,000 layoffs. "If the conditions are not fulfilled, it is not 2,000 people who will lose their jobs, it is the 5,634 who are em ployed by the company today," says Roland-Billecart. Each of the African member states contributes 6 • 54 per cent of the capital, while the remain der (currently 28 per cent) is held by Sodetraf, the French- owned Societe pour le Devel- oppement du Transport Aerien en Afrique, grouping UTA, and other French companies. UTA has co-operation arrangements with Air Afrique, whose fleet includes three Airbus A300s, three DC-lOs, two DC-8s, and two chartered Boeing 727s. considerable potential among expatriate Hungarians and their descendants, whose ethnic loyalties could be relied upon to yield considerable traffic," Banyasz says. Currently, the only trans atlantic service out of Budapest is flown by Pan American World Airways. Banyasz says that Malev's success over the last four years, and potential growth for the future, have prompted an expansion programme designed to give the airline a higher profile worldwide. Laos plans new airline The Government of Laos says that it will launch a new airline, Lao-Pacific, operating domestic and international services, later this year. The country's only carrier at present is state-owned Lao Aviation. The official Khaosan Pathet Lao news agency says that the deal involves the Government and Lao-Brunei Company in a joint venture. Retired Thai general Nuan Chanti is reported to have signed the deal, "representing investors from 16 countries", but no details are given. Nuan has said he is acting for a company, VSS, which will seek capital to finance the airline. VSS is a trading company formed five months ago, which deals with scrap metal from the Sultanate of Brunei. VSS general manager Khunn Vichia Saiseng says that initial investment will be $21-3 million, with the Laotian Government holding a 20 per cent stage. Lao-Pacific intends to buy two Short 360s at the outset for domestic flights, he says. International services were planned for Vietnam, Burma, China, Singapore, Thailand, and France. NEWS IN BRIEF D African regional planned The three Mano River Union member states have agreed to establish a sub- regional airline called Air Manu. The states—Liberia, Sierra Leone, and Guinea- have agreed to provide $600,000 each to launch the first phase of the pro gramme. The balance of over $1 million is to be obtained from international funding agencies. A joint communique states that the airline will begin operating in June this year, and will fly within the West African States Economic Commu nity region. • Second Singapore airline Singapore Airlines' subsid iary, Tradewinds, this month becomes Singapore's second airline, with its inaugural flight to the Thai resort town of Pattaya. Since its forma tion in 1984, Tradewinds has operated as a charter airline. eks US link 12 FLIGHT INTERNATIONAL, 18 February 1989
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