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Aviation History
1992
1992 - 0059.PDF
AIR TRANSPORT MD-95 delay caused by Chinese TrunkLiner BY GUY NORMS IN LOS ANGELES The launch of the McDonnell Douglas (MDC) MD-95 twin-jet will be delayed until the Chinese TrunkLiner programme is ratified. The MD-95, a shortened ver sion of the MD-87, was due to have been launched formally at the end of 1991, but continued uncertainty over the TrunkLiner has pushed it back until later in 1992 at the earliest. The two programmes are in extricably linked, as both will be built in China. "Without the TrunkLiner there will be no MD-95," says the company. In spite of being selected ahead of Boeing to proceed with "detailed negotiations" last April, Boeing has fought MDC every step of the way, offering various solutions to the Chinese requirement, including several models of the 737 and 757. As i result of a tighter Chinese Tnancial situation and counter- offensives by Boeing, MDC has yet to clinch the 150-aircraft programme officially with its MD-90-30T. In spite of the delays — MDC says that "...most people were hoping the TrunkLiner would be agreed by Christmas" — the company is still optimistic of confirming both programmes soon. MD-90 general manager Preston Henne says: "The intent is to get authority [from the MDC board] to proceed in the first quarter of 1992." As a sign of their continued progress on the MD-95, MDC and Rolls-Royce have signed a memorandum of understanding (MoU) covering the use of the Tay 670 engine on the aircraft. The 80kN (16,0001b)-thrust en gine will be certificated in 1994, and will be available for the aircraft which are to enter into service in 1996. The MoU is the fourth MD-95 agreement signed between MDC and other parties. The other three include an assembly MoU with CATIC (Chinese Aero- Technology Import and Export), MD-95: engine suppliers agreed but formal launch still awaited an engine agreement with Pratt & Whitney for the 73.4kN thrust JT8D-218, and definition with Northwest Airlines of the 105-seater. The MD-95 will be the small est of the MD-80 and MD-90 twins — 37.3m long, almost lm longer than a DC-9-30. It will be five frames shorter than an MD- 87 and will have the same 32.8m span as the MD-80. According to MDC, the MD-95 will have a range of 3,420km (l,850nm) with the Tay engines — 185km more than with the JT8D. If a launch decision is made within the next three or four months, MDC might still be able to achieve its goal of assembly in late 1993 and first flight in late 1994 to early 1995. New Compass business plan revealed BY PAUL PHELAN IN CAIRNS Ferrier Hodgson, provisional liquidator of failed Austra lian airline Compass, has de tailed- elements of a business plan based on the continuation of existing business, no obliga tion to existing creditors, and an introduction of A$45 million S34.6 million) of equity capital. Senior partner Ian Ferrier be lieves there is "a better than 50% hance" of finding a major new shareholder. The preferred op- ion is to continue the provi- ional liquidation, pending the successful rehabilitation of ".ompass. Ferrier says: "In our view, what is necessary is the intro duction not only of A$45 mil lion, but also of a new principal shareholder with a new chief executive. Bryan Grey has agreed to stand down as chief executive in this event." He adds that he has the assurance of Govern ment support through "reasona ble application" of foreign investment rules and improved airport terminal access. With 4 February set as the date for the liquidator to report to the Federal Court, Ferrier has dispatched details of the com pany's position to about 30 pos sible investors, including "every airline operating into Australia". The New South Wales-based National Roads & Motorists Ass ociation, which has assets of A$3 billion, is one potential equity partner, and foreign carri ers are interested. The new Compass business plan to June 1994, which will be made available to interested par ties, expects profits of A$56 million over the next two and a half years — free of tax, as Compass has tax losses esti mated at A$80 million. It pro jects (the introduction of a Government/business class, higher average ticket prices achieved by a reduction in dis counting rather than higher core fares, and a 20% increase of capacity with the introduction of a sixth Airbus. N Ferrier identifies Compass' main problems as failure to ap preciate likely start-up costs, the likely lack of co-ordination'-of resources and facilities for a liew business, and the response of its competitors. For future success, he says, it would need to con tinue with its existing routes, aircraft, staff, and fixed assets. D • Textron Lycoming will be come a sub-contractor on the Tay 670 programme, under an agreement signed with Rolls- Royce. The Connecticut-based engine company will participate in design and will supply com ponents. Other partners in the Rolls-Royce engine programme include BMW and Volvo. • Second Beech 1900 crashes ABeech 1900 operated by USAir Express regional air line CommutAir crashed on its approach to Saranac Lake Air port, New York, on 3 January, killing two of the four people on board the 19-seat twin-turborop. It was the second Beech 1900 accident in a week. On 28 De cember, 1991, a Business Ex press aircraft on a training flight came down in the sea off Block Island, Rhode Island, killing the three crew on board (Flight In ternational, 8-15 January). The CommutAir Airlines Beech 1900 (N55000, delivered in 1990) was on a final instru ment approach to Saranak Lake in the Adirondaks when it hit a hill at about 06.00 local time. According to the US National Transportation Safety Board, the accident occurred just below the crest of the the 2,390ft (730m) hill, at a point where the mini mum instrument landing system altitude is 3,600ft. The aircraft was on USAir Flight 4891, carrying two crew, one off-duty CommutAir em ployee and one fare-paying pas senger. The captain and the passenger survived. • See News Analysis P 17. FLIGHT INTERNATIONAL 15 - 21 January, 1992 9
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