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Aviation History
1993
1993 - 0007.PDF
HEADLINES Saudis buy Raytheon Patriots Raytheon has received a $1.03 billion contract to supply new Patriot air-defence systems to Saudi Arabia. The additional contract covers 13 Patriot fire units and 761 missiles. The Saudi order "...is impor tant because it maintains a pro duction base for a system that is critical for the defence of the US and its allies", says William Swanson, senior vice-president and general manager of Ray theon's Missile Systems division. Raytheon was awarded a $513 million contract in 1990 to sup ply Saudi Arabia with eight Pa triot fire units and 300 missiles. A potential $2.5 billion Kuwaiti order is pending for six Patriot fire units and 450 missiles, plus six Hawk anti-aircraft batteries and 342 missiles. Swanson says that the Saudi order "...reinforces the Kingdom of Saudi Arabia's confidence in Patriot's multi-purpose air- defence capability and its ability to protect population centres and critical national assets". • McDonnell Douglas has re ceived a $122 million contract to begin work on 72 F-15XPs for Saudi Arabia. The money covers long-lead items for the initial batch of aircraft. The F-15XPs, sanitised F-15E strike fighters, will be delivered between 1995 and 1998. • BA plans fresh approach to USAir British Airways is considering new ways to form an alliance with USAir in the wake of its decision not to invest $750 mil lion in the US carrier. The UK airline claims that it has no "definite ideas" about how to build a new alliance with USAir, but says that it is "look ing to develop a new relation ship". As it considers US alternatives in its "global-airline" strategy, however, British Airways may also turn its attention to other Asian/Pacific opportunities, fol lowing its deal to acquire 25% of Australia's Qantas. Immediately before the Qantas bid, deputy chairman and chief executive Sir Colin Marshall was "in no hurry" to increase part nerships, but he acknowledged BA's need for an alliance in northern Asia with links to North America. "USAir will survive without The sun has not quite set on BA's all the $750 million BA invest ment," says the US airline's chairman Seth Scholfield. "Our steps...to reduce costs and strengthen [routes] have posi tioned us to take advantage of...favourable trends." USAir denies BA's assertion that it will run out of money in 1993. US credit-rating agencies are sus pending judgement until the carriers' plans become clearer. Two days before the 24 De cember deadline for agreement on a 25% voting rights and 49% equity stake in USAir, BA re treated before an expected rejec tion by US transportation secretary Andrew Card. The US Government would not approve the arrangement "without unwarranted unilateral [UK] concessions under the air- services agreement", says BA. By anticipating a negative ruling, BA has ensured that no formal US policy has been set. iance with USAir "The UK was unwilling to concede immedi ate unlimited ac cess to the UK and beyond to all US carriers, while the US market would continue to be restricted to US airlines," says the UK carrier. Card signals that future over seas investments will face tough scrutiny, the BA/USAir plan hav ing "...raised significant legal is sues. The most important question was [could we] create greater opportunity for foreign investment...by finding a basis for broadening the control test [that prevents foreign control of US airlines]". The outgoing US transporta tion secretary warns that future inward investment will be linked to US satisfaction with bilateral agreements — an area where the USA faces difficult negotiations with, at least, France, Japan and Germany in 1993. • GPA wins $6 billion reprieve Aircraft leasing group GPA has won agreement from manufacturers to reduce its firm-order commitment by more than $6 billion over the next eight years. Its $11.9 billion commit ment to firm orders up to the year 2000 has been cut by $3.2 billion, with a further $3.1 billion worth of orders tied to deliveries scheduled after 1994 which are now agreed to be "subject to cancellation", ac cording to a report in the London Financial Times. The newspaper quotes a prospectus filed with the US Securities and Exchange Com mission in early December. The prospectus says that "...the combination of cancel lation, deferral and rechar acterisation of orders is likely to result in penalties to GPA which may materially affect results of operations for fiscal 1993...and also affect results of operations for later years". The penalties are likely to be the loss of some of the $954 million of pre-delivery pay ments made to aircraft manu facturers by GPA at the end of March 1992, says the Financial Times. GPA has major out standing orders with Airbus Industrie, Boeing and McDon nell Douglas. • Micro burst caused Faro DC-10 crash Stormy weather and gusty crosswinds appeared to be a major factor in the Martinair McDonnell Douglas DC-10 (PH- MBH) crash at Faro, Portugal on 21 December, 1992. Martinair president Martin Schroder says the crash was caused by a micro burst. On landing, the right wingtip hit the ground, causing the air craft to leave the runway, break into three sections and burn. The Dutch charter flight was carrying a crew of 13 and 327 passengers. The deaths resulting from the crash are reported at 54, with others badly injured. Both pilots survived. The aircraft, a DC-10-30F (Convertible) built in 1975, was on its second approach to land when it crashed, its crew having abandoned the first attempt be cause of a storm. Weather in the region was reported as showing a significant development of cu mulonimbus clouds and electri cal storms, with general conditions at the airport at around 08.30 (local time) re ported as wind from the south west at 40km/h (21kt), gusting to 60km/h in heavy rain, with fair visibility. There was no emergency call from the crew or other indica tion of problems. The flight-data recorder and cockpit-voice re corder have been recovered. • FLIGHT INTERNATIONAL 6 - 12 January, 1993 5
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