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Aviation History
1991
1991 - 1228.PDF
H EADLINES Icahn offers deal on junk bonds Trans World Airlines (TWA) owner Carl Icahn wants to buy a large part of the airline's estimated $1.2 billion debt, in a deal with the creditors which would give some of them only 13 cents in the dollar. A significant proportion of the debt is in the form of the high-risk/high-yield "junk bonds" which were financially fashionable when Icahn issued them on his arrival at TWA. Icahn himself holds nearly 16% of the debt. Icahn's offer, expected to be filed soon with the US Securities and Exchange Commission this week, is unusual and controver sial. He warns, however, that if creditors insist on TWA paying interest and principal on all its debts the airline will fail. Continental Airlines, under Chapter 11 bankruptcy protec tion, is currently offering its creditors shares in the airline in exchange for debt (see P 11). TWA has not sought protec tion from its creditors yet, but has warned that it is close to Chapter 11, despite its recent deal to sell American Airlines three of its London routes, for the same $445 million price originally agreed for six - of them. "I don't want to go into summer with these headaches," maintains Icahn, "and frankly there's no way the airline can pay the principal and interest and survive." • R-R considers new engine for future A340 versions BY GUY NORRIS AND JULIAN MOXON IN TOULOUSE Rolls-Royce (R-R) is consid ering launching a new fam ily of civil turbofans, following confirmation from Airbus that it is looking for new engines to power future versions of the A340. The engine will be based on the advanced civil core dem onstrator (ACCORD) pro gramme, funded by the UK Ministry of Defence (Flight In ternational, 3-9 April). Rolls-Royce director of civil engines Frank Turner says: "We're looking at a very ad vanced derivative of the RB.211- 535, for the moment called the -535E7." Turner adds that the engine "...will size around" the ACCORD core to suit the thrust requirement. "We're looking at the economics of the pro gramme ", he says, and R-R will launch "on one or more types." Other than that for the A340, R-R says potential programmes for the 180kN-plus (40,0001b- thrust) engine could include a stretched Airbus A321, the A322, or a re-engined develop ment of the Boeing 757. The company makes no specific fcsi- < vs_j CITATIONJET AIMS FOR CERTIFICATION Cessna embarked on a l,O00h, two-aircraft certification programme when its first Citationjet light business jet made its maiden flight on 2.9 April. Some 100 Williams-Ralls FJ44-powered Citationjets have already been sold, says Cessna, with deliveries beginning in November 1992 (Flight International, 8.14 May). Future versions of the A340 point to new engines mention of the proposed McDonnell Douglas MD-XX, which is in a similar category to the 757. Douglas says that "two geared turbofans" are under consideration for this aircraft. The ACCORD programme combines several new technolo gies, including the high-pres sure turbine developed for the Eurojet EJ200 engine destined for the European Fighter Air craft, into a high-pressure spool designed to cut specific fuel consumption by 10%. If launched, the ACCORD-based engine could be available on the A340 as early as 1997. Bernard Ziegler, engineering vice-president of Airbus Indus trie, confirms that the consor tium wants new engines for future versions of the four- engined A340, due for roll-out and first flight in October. The first A340, the 295- passenger, 12,500km-range (6,750nm) -300, is powered by the 137.5kN CFM56-5C2. CFM has guaranteed 150kN with a developed version of the -5C2, which will power the higher- gross-weight and stretched A340-200X, -300X and -400X. New engines would increase the range of the latter aircraft — which will seat 335 passengers but would have a reduced range of 10,900km on existing en gines — to beyond that of the original A340. "One day, for sure, we'll have new-generation engines for this aircraft," says Ziegler. Airbus managing director Jean Pierson tells Flight International that Rolls-Royce has made two pro posals for the A340, one based on the existing 535E4, the other on a more advanced engine. "We'll need something by 1997," he says (see P 22) Rolls-Royce confirms that it has held technical discussions with Airbus on a version of the RB.211-535E4 adapted for the A340. This would be 450kg lighter and be more 7% more fuel-efficient than the existing engine (Flight International 12- 18 September 1990). According to Ziegler, Airbus is also talking to Pratt & Whit ney (P&W) about the advanced ducted prop (ADP) engine — to be demonstrated next year. At Farnborough last year, P&W said it was talking with the European aircraft producer about a 160kN version of the PW2000, dubbed the PW2136, at that time not expected to use ADP technology. P&W says: "There are no details on a configuration for an ADP specifically for the A340 — but it certainly is one candi date [application]". Ziegler says: "We're not at the stage where we've had any firm offers, but we're working with data from all three engine man- FL1GHT INTERNATIONAL 15 - 21 May, 1991
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