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Aviation History
1992
1992 - 0297.PDF
AIR TRANSPORT Boeing forecasts six 777s a month Boeing plans to build up to 350 of its 777 airliners by the year 2000, according to Gerry King, Boeing Defense & Space group executive vice-president, speaking at American Institute of Aero nautics and Astronautics con ference in Irvine, California. The number, unconfirmed by the company's 777 divi sion, would mean a build rate of between five and six air craft a month between 1995 and the end of the century. King says that orders for the 777 have risen to 95, although publicly announced orders tally at 86. A forth coming order from Emirates Airlines, which has declared its intention to buy up to seven of the aircraft, would take orders to 93. Boeing has also confirmed a $1 billion order for ten 777s from Japan Airlines. D Hughes Aircraft buys HUD maker Hughes Aircraft has bought airliner head-up display manufacturer Flight Dynamics for $14.5 million, continuing its drive to diversify into commer cial avionics. The acquisition will strengthen Hughes' bid to develop an enhanced vision sys tem for Northwest Airlines Boe ing 747s and McDonnell Douglas DC-10s (Flight Interna tional, 5-11 February). Flight Dynamics is the only company producing a certifi cated head-up guidance system allowing manual landings in Category III visibility. The system is in service on Alaska Airlines Boeing 727s and will be fitted to the 737-400s and MD-83s on order. Alaskan regional subsidiary Horizon Air has ordered Flight Dyanmics head-up guidance systems for Dornier Do.328 twin-turboprops on order and the equipment is to be fitted as standard on Cana- dair's Regional Jet. The company will be known as Hughes Flight Dynamics, says Hughes. D Australian policy turnround BY PAUL PHELAN IN CAIRNS Amajor turnaround in Aus tralia's aviation policy, to be announced in an economic statement by prime minister Paul Keating on 28 February, is likely to see Qantas allowed to bid for equity in Australian Air lines, the creation of a single Australia/New Zealand aviation market, some international rights for Ansett and improved airport terminal access for new Australian carriers. Qantas would compete with other bidders for Australian against a background of the do mestic carrier's sale value being weakened by the new policy. The country's transport minis ter has already held extensive talks with Qantas, Australian and Ansett and senior ministers are reportedly planning to meet with Air New Zealand to discuss the proposals. The proposed reforms are likely to be phased in over two years and their definition is seen by potential bidders for equity in the two Government-owned car riers as essential. These are likely to include major moves to provide airport terminal space independent of incumbent carri ers, following the failure of Compass Airlines. Meanwhile, Compass' provi sional liquidator, Ferrier Hodgson, has been given an extension to 10 March to come up with a rescue package. The four leased Compass Airbus A300-600Rs taken back by Mon arch Airlines and Polaris are now at Gulf Aircraft Mainte nance in Abu Dhabi. Work being performed includes livery change, various checks and re configuration. The Federal Court was told by the Australian Securities Com mission (ASC), which is investi gating corporate aspects of the collapse, that it has "serious concerns" about former direc tors being involved with a resur rected Compass. The ASC, however, was re fused an application to be pro vided with weekly information on negotiations with possible investors in a revamped Com pass. The liquidator, who says that it is negotiating with three parties, believes that this might conflict with the discussions. • Shares plan for Continental creditors Unsecured creditors of Conti nental Airlines would be given shares in a newly created airline in exchange for "debt- forgiveness" under a restructur ing plan proposed by the bankrupt carrier. The plan covers Continental, its parent company and 51 sub sidiaries and would protect 43,000 jobs. In return, however, it requests the forgiveness of about $4.1 billion of debt and would leave long-term liabilities of some $1.7 billion. All existing common and pre ferred sto.ck, apparently includ ing SAS' holding, would be cancelled. Continental estimates that the shareholder equity of the new airline would be $550 million to $650 million. The carrier believes it would reduce its net interest and lease expense by about $270 million annually and would hold $325 million in cash or cash equiva lents after repaying debtor in possession loans and selling its Air Micronesia subsidiary. Continental believes that it could leave US Chapter 11 bank ruptcy protection as soon as 1 July if its plan is approved. The proposal needs court per mission and faces opposition from some creditors, including the largest — the US Pension Benefit Guaranty watchdog. Wall Street reacted initially with, in some cases, a grudging admission that Continental, which has a better image than other Chapter 11 victims, could conceivably recover; and in other cases, with scepticism. No major carrier has made the transition back successfully. • Dan-Air shanghais Cathay manager D an-Air's re covery plans continue with the announcement that it has head hunted the chief of Cathay Pa cific's European operations to be come its new group chief exec utive in April. The appoint ment of John Olsen completes the senior man agement changes foreshadowed by the restructuring announced in October 1991. One of Olsen's main tasks will be to strengthen scheduled oper ations, which the company-sees as the key to its recovery. A new scheduled route to Oslo is oper ating already, with Stockholm, Athens, Rome and Barcelona to be added by early May. Dan-Air to pension off BAe One-Eleven fleet The first phase of the fleet- modernisation programme is due to start on 20 February with the arrival of the first of five leased Boeing 737-300s and one -400s. Deliveries will be com plete by April. The number of aircraft types will be cut to two, as the airline acquires 20 new Boeing 737s, to replace its 727s, and 13 BAe One-Elevens. • FLIGHT INTERNATIONAL 12 - 18 February, 1992 11
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