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Aviation History
1994
1994 - 0647.PDF
HEADLINES Augustine: Jailed to discourage rivals fully shifted its focus from combat aircraft to airborne- surveillance systems, defence electronics, commercial-aircraft structures and information sys tems. The company has 18,000 employees and had 1993 sales exceeding $3 billion. "Fiercely independent" Grumman is seen as a good fit for Maryland-based Martin Marietta, but concern has been expressed over the company's ability to absorb another large acquisition less than a year after it acquired GE Aerospace for $3.05 billion. Martin Marietta has also agreed to purchase General Dynamics' space-launch busi ness for $208 million. • Sequence of events on 9 March 17.07: First of eight IRA calls warning of "a large number of bombs" at Heathrow, saying "clear all runways, stop all flights" 17.15 -17.30: Police and airport secu rity staff search terminals and runways. Runways declared clear 17.57: Mortars fired from car park of Excelsior Hotel 18.07: Police identify mortars found in burning car 18.35: Police order runway closure 18.41: Runway closed aircraft departed in that period, with unlocated debris lying next to the runway. General secretary Chris Darke says that the union is not seeking to lay blame, but wants to discover whether security procedures can be improved. BALPA also wants a review of perimeter security and, if necessary, financial responsibil ity for improvements to be switched to the Government. On the second night, the southern runway was closed 5 min after the attack. • Air France faces fight over cuts BY GILBERT SEDBON IN PARIS on North Atlantic routes and Blanc plan calls for reduction in fleet size routes since 1990); • a freeze and, possibly, a reduction in salaries in ex- Air France chairman and chief executive Christian Blanc is facing a major con frontation with at least two of the airline's unions because of FrllO on European routes a re-structuring plan which calls for 5,000 job losses. The plan, revealed on 10 March, is seen as the final chance to rescue Air France from possible US- style Chapter 11 bankruptcy. Blanc has told the unions that the losses from the 40,000- strong workforce must be undertaken within three years, with 2,100 jobs to go by the In addition to the job losses, end of this year. the re-structure includes: Although almost all of the • a total re-organisation of the losses will be achieved through management; early retirement, the Commu- • new cuts in unprofitable nist-led CGT and Catholic-led routes (the airline has cut 65 CFDT unions have denounced as "blackmail" the French Gov ernment's link of the re structuring to the financing. The Government has agreed to pump Fr20 billion ($3.42 billion) into the airline, with the capital being put up in three tranches over the next three years. The first instal ment of Fr7.5 billion is de pendent on staff accepting the re-structure plan; the next two will depend on how far the plan is put into effect. Talks with the workforce are expected to start this week and Blanc says that all of the air line's 14 unions must accept the scheme. He says: "If 13 unions sign and one does not, I will throw up the plan." He has been encouraged by com ments from Force Ouvriere, the largest union at Air France, which says that job losses "...are inevitable in view of the airline's position". The latest rescue plan comes at a time of deepening financial problems for Air France, with total group debts now standing at some Fr37 billion. More than half of the Fr500 million monthly deficit is accounted change for employees taking for by debt financing. Operat- up to a 15% shareholding in ing costs are also untenable: a the airline; recent report notes that, for • a major effort to cut pur- every FrlOO paid by passen- chasing costs, excluding fuel, gers, the airline spends Frll7 by 16% over three years; • a reduction of the Air France fleet from 166 aircraft | to 149 by 1999. If Blanc risks con- g frontation with the | European Commis si sion, which must now decide whether to approve the French Government subsidy. One Brus sels source says, however: "We have little choice — either they get the money or they die." The recent report by the Comite des Sages on the future of the European airline industry ad vises that state subsidies should be allowed "one last time", but only on condition that the airline is thoroughly re-structured. D Additional reporting by Julian Moxon in Paris Product-liability compromise likely BY RAMON LOPEZ IN WASHINGTON DC Acompromise has cleared the way for passage of a US general-aviation product li ability Bill which would set limits on lawsuits against air craft makers. The general-aviation indus try has worked since the mid- 1980s to eliminate crash liability for aircraft more than 15 years old. Lawsuits have helped send the general- aviation industry into a tail- spin of falling orders and rising job losses. Part of the compromise raised the statute of repose from 15 to 18 years, but the deal allowed the measure to bypass the usually hostile Ju diciary Committee. The meas ure was offered as a Senate floor amendment to an unre lated piece of legislation on economic competitiveness by Republican Senator Nancy Kassenbaum, who represents Kansas — the home of Cessna, Beech and Learjet. She says that the Bill should soon come up for a final floor vote. The compromise bars a filibuster. It has between 48 and 51 backers among the 100 legislators in the US Senate raising the prospects for enact ment. "After eight long years of fighting this battle, it now looks like we will have, for the first time ever, a chance to pass this Bill in the Senate," Kassenbaum says. Supporters of the measure in the House of Representa tives also expect passage of the Bill, because between 274 and 280 House members back the law change. They are working to move the House version of the Bill to the House floor. • FLIGHT INTERNATIONAL 16 - 22 March, 1994 5
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