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Aviation History
1991
1991 - 0115.PDF
HEADLINES Pan Am bidders gather as finances falter Pan Am sends up distress signals as cash run BY KIERAN DALY IN WASHINGTON DC US aviation interests are queuing up to take control of all or part of Pan American as the beleaguered carrier faces the task of restructuring under Chapter 11 bankruptcy pro tection. At a stormy 7h bankruptcy court hearing in New York on 10 January Pan Am said that, without an immediate cash in jection, it might not last another week. Creditors, including the big gest unsecured creditor, the Pension Benefit Guaranty Fund, pressed for time to get higher prices for the London Heathrow routes than those agreed in the deal with United Airlines. The US Department of Trans portation approved the $400 million sale of Pan Am's Lon don routes and other assets to United unusually quickly, in recognition of Pan Am's crisis. Pan Am World Airways had assets of some $1.6 billion at the end of the third quarter and liabilities totalling more than $2.6 billion. United agreed to provide $50 million in immediate finance, together with $100 million from Bankers Trust. The money, pro vided on a debtor-in-possession basis, which gives first call on repayment if Pan Am collapses, intends to only support the Tornado v Fulcrum A n RAF Tornado squadron has flown against German, Soviet-built, air-defence equip ment and aircraft of the types used by Iraq. The aircraft, understood to be GR.ls, flew attack patterns against the equipment and MiG-29 Fulcrums in Germany shortly before Christmas. The exercise was carried out to evaluate possible Gulf tactics against ground and air assets supplied to Iraq by the Soviet Union before it invaded Kuwait. The RAF tests follow a series of evaluation flights by the Luft waffe's test and evaluation unit, Erprobungsstelle 61. • airline until later in January. TWA stiM: wants to buy Pan Am but is being rebuffed, and Delta, which tried unsuccess fully to delay the United deal, is now offering $50 million for just Pan Am's Los Angeles- London authority even if it has to operate to Gatwick. At the bankruptcy hearing, a new bidder, financier Kirk Kerkorian's Tracinda Corpora tion backed by the Air Line Pilots Association and three other unions representing me chanics and flight attendants, BY GILBERT SEDBON IN PARIS The multinational NH90 tac tical helicopter project has finally been given the go-ahead following the signing of a mem orandum of understanding (MoU) by the four partners. The long-awaited MoU was secured only after France in creased its share to take a 43.4% stake in the NH90 development programme. Italy is to take a 26.4% share in the $1.9 billion development programme, Germany will have 23.6% and the Netherlands 6.6%. Following the early with drawal of the UK, France and Italy were to take 35% each, Germany 25% and the Nether lands 5%. Last year, Germany threat ened to quit unless its share was cut to 21% and Italy followed suit owing to its financial offered to match the $150 mil lion in interim support and eventually a complete buyout. Kerkorian made a union-backed offer to buy the carrier in 1987. Pan Am says its East coast shuttle is still for sale and it was last week negotiating a price of around $150 million with Ore gon-based PacifiCorp, which would result in Northwest Air lines operating the route. Investment group Iowa Ac quisition, led by a Pan Am pilot, is making a similar offer but there are doubts about the difficulties with other helicopter programmes. During 1990, negotiations held between France and the Netherlands saved the pro gramme from foundering when each raised its share. Germany signed the MoU late last year and Italy finally signed the agreement on 9 January. The decision to go ahead with the full-scale design and devel opment phase is expected to trigger the formation of the Aerospatiale/Deutsche Aero space Eurocopter joint venture in April. All current and future French and German helicopter programmes will be handled by the company, in which Aerqspa- tiale holds 60% and DASA. holds the balance. Voting decisions will be made on a 50/50 basis. Under the redefined NH90 workshare arrangements, Aero spatiale will be responsible for rotors, a naval helicopter ver- group's financing arrangements. Airbus Industrie has changed the leases on the 12 A300B4s and nine A310s it provides to Pan Am to monthly terms. The current agreement expires on 20 January but the manufacturer says it is prepared to continue if payments are met. British Aerospace, which has delivered ten Jetstream Super 31s to Pan Am Express and is due to deliver ten Jetstream 41s, says payments are up to date. Sale of the London routes and shuttle would leave the carrier with 27 domestic destinations and a growing network to Cen tral and South America and the Caribbean, virtually all centred on its Miami hub, together with about 30 European destinations plus Nairobi, Ankara, Bombay, Delhi and Karachi. Pan Am Express links 26 US cities and eight in Germany, Norway and Denmark. The restructuring plan is not yet formulated but Pan Am blames its use of Chapter 11 on rising fuel prices coupled with heavy losses. • id on NH90 sion's mission equipment, in dustrial engineering and cost management. Agusta is in charge of general design, trans missions, integration of engine installations and the auxiliary power unit and core avionics. Fokker will handle basic airframe equipment systems, cockpit and cabin installations and integrated logistics support. MBB is responsible for struc tures, overall equipment sys tems management and integra tion, flight control definition and transport helicopter version mission equipment and systems. First flight of the Rolls-Royce Turbomeca RTM322-powered NH90 is scheduled for 1993 with first deliveries in 1998. The current combined require ment is 584 helicopters. Devel opment and production costs for the first 160 NH90s will total Fr24 billion ($4.6 billion) at 1990 values. • Europeans confirm go-ahe; FLIGHT INTERNATIONAL 16 - 22 January, 1991
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