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Aviation History
1993
1993 - 0058.PDF
HEADLINES Iranian military returns to the UK BY ALAN GEORGE Iran has set up a military procurement agency in Lon don, specialising in aviation equipment, without the ap proval of the UK authorities. The agency is operating from the same National Iranian Oil Company (NIOC) offices in London from which the Iranian military was evicted over four years ago, following a break in diplomatic relations between the two countries. The agency, Aviation Tech nology Affairs (ATA), is a de fence ministry-related opera tion set up to scour the UK and other countries for aircraft spares and components for as sembly in Iran's defence and aerospace factories. The ATA began operating in early 1991, soon after London and Tehran restored diplo matic relations after an 18- month break. Tehran's military procurement offices in the NIOC building closed follow ing an Iranian attack on a UK tanker in the Gulf. The ATA's UK operation has been managed by Jamal Haj Esmaili, a former diplomat. Speculative reports claiming that the procurement office might have re-opened have ap peared during the past 18 months, but this is the first confirmation. Flight Interna tional has seen bid documents from UK companies to the ATA for the supply of military- related equipment. When the ATA arrived in the NIOC building, the Irani ans told the UK authorities that it would merely be tidying up the loose ends of contracts dating to the days of the Shah. Any formal Iranian request for permission to re-open the mili tary-procurement operation would almost certainly have been turned down. The UK Foreign Office says: "We have not given approval for the Iranian military pro curement office to be set up again. Any evidence of wrong doing would be urgently investigated." • Kuwait and Saudi Arabia strengthen air defences Kuwait and Saudi Arabia are spending billions of dollars expanding their ground-based air-defence capabilities in re sponse to renewed regional threats from Iraq and the grow ing power of Iran. The main beneficiary has been Raytheon which has received or ders valued at around $1.5 bil lion for its Patriot air-defence missile system. The US company announced a $327 million contract to sup ply Patriots to Kuwait on 12 January, in a deal which covers five fire units and 210 missiles. Deliveries will begin in mid-1995. Kuwait's original request was for an integrated Patriot/Hawk air- defence system which included six Raytheon Hawk anti-aircraft batteries, plus missiles. Ray theon says that Kuwait has de layed a decision on the Hawks until it has reviewed the condi tion of batteries captured by Iraq and returned after the Gulf War. In December, 1992, Hughes Air craft was contracted to build a ground-based early-warning sys tem to give the Kuwaitis the ability to survey aircraft entering its airspace. Neighbouring Saudi Arabia is also boosting air defences. In 1992 it signed a $675.7 million contract with Swiss arms manu facturer Oerlikon-Buhrle for the supply of air-defence systems, required to defend airfields. Industry officials indicate that the deal covers the supply of over 100 GDF-002/005 twin 35mm cannons, plus associated Skyguard fire-control radars, and add that some 5% of the funding also covers an option on Oer- likon's ADATS surface-to-air Kuwait's Raytheon Hawk purchase is in the shade for now missile system, already exported to the US and Canadian armies. Saudi Arabia ordered an addi tional 13 Patriot systems, worth $1.3 billion at the end of 1992, and will begin receiving its first batch of eight Patriot systems, ordered in 1990, later this year, says Raytheon. IATA again raises 1992 loss forecast The International Air Trans port Association (IATA) has increased its "forecast" for 1992 losses on international sched uled services to $2.7 billion. The original prediction was for $2 billion, but the loss figure in creased as the year progressed. As a result of the increase, 1ATA predicts a $10 billion loss during 1990-3. As yet, there has been no revision for an expected 1993 $600 million loss. Revealing the increase, new IATA director-general Pierre Jeanniot says that combined lib eralisation, over-ambitious ex pansion and deep, long reces sion has produced "commercial chaos". In his first major ad dress, to the Aviation Club of Great Britain, in London on 14 January, he said bankers and investors are wondering if "run ning airlines...makes people lose their minds". Jeanniot is calling on the world's airlines to demand real istic fares which reward everyone with a stake in the business — customers, tourism, world economy, society, manu facturers, employees and finan ciers — rather than being driven simply by consumerism. "Over the past two years [em- Jeanniot demands realism now ployees and financiers]...have not been particularly advan taged," says Jeanniot, although he acknowledges that airlines have spent money on new air craft and better equipment. He attributes airlines' "mal aise" to a "bargain-basement cul ture...nurtured by politicians, consumers and some airlines.... The belief has got around that [low fares on] high-density, high-load-factor opera tions...carry across to low- density, low-load-factor routes." Only consumers benefit, says Jeanniot. The other parties sub sidise them — a subsidy bill being paid now through "de ferred" orders, job losses, and delayed environmental improve ments, and in future, by con sumers through higher fares. Airlines must share the pro ceeds of greater efficiencies more equitably: "To be market- driven...also means to be driven by expectations of the financial market," the Jeanniot says. D See News Analysis, P 25 FLIGHT INTERNATIONAL 20 - 26 January, 1993
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