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Aviation History
1994
1994 - 2667.PDF
AIR TRANSPORT MDC talks prices in China MCDONNELL DOUGLAS (MDC) is negotiating with four Chinese airlines on the price and delivery dates of 25 MD- 80/90-30s to be acquired by China Aircraft Supplies (CASC) under the Sino-US TrunkLiner programme. CASC has already allocated nine twin-engine-powered MD- 90-30s to China Eastern Airlines and a further six MD-82s to China Northern Airlines. Talks are also being held with Shenzhen Airlines and start-up carrier Swan to take five MD-90s each. The TrunkLiner contract cov ers a total of 40MD-80/90-30s, of which CASC and McDonnell Douglas are responsible for plac ing 25 aircraft, while local manu facturer Shanghai Aviation Industrial (SAIC) directly markets the remaining 15. SAIC is scheduled to begin the assembly of 20 MD-90s in 1996, for delivery from late 1998 onwards. McDonnell Douglas plans to manufacture a further 14 MD-90s and six MD-82s for China at its Long Beach factory, but says that the mixture of MD- 90/80s could change depending on airline requirements. Further negotiations are needed to decide which of the 25 aircraft to be supplied to the four Chinese air lines will be produced in the USA. China Eastern has expressed con cern over the planned price of SAIC-built MD-90s, which it is understood will cost $5-6 million more per unit man diose produced at Long Beach. • SAS reveals SKrlOO million loss ANDRZEJ JEZIORSKI/MUNICH SCANDINAVIAN Airlines System (SAS) president and chief executive Jan Stenberg says that the airline cannot endure a continuation of strikes which have cost it about SKrlOO million ($13.7 million) since mid-year. The statement comes following a crisis meeting in Stockholm between Stenberg and 50 union representatives from Denmark, Norway and Sweden. The walkouts were sparked by SAS plans to save some SKr3 bil lion by the end of June 1995, lead ing to redundancies and restructuring of work schedules. To date, 1,300 flights have been can celled, affecting some 100,000 pas sengers who have had to transfer to other airlines, says SAS. The cost-cutting includes plans to shed 2,900 staff, an efficiency drive and restructuring of the fleet and route network. The airline esti mates that 80% of the redundan cies could be dealt with by early retirement or similar schemes. Stenberg says that SAS is now conducting a review of its future strategy with a view to entering into a major partnership with another airline. SAS says that among the possibilities under review is a strengthening of the European Quality Alliance, or an alliance with such carriers as British Airways or Lufthansa. • Iberia: management taking drastic measures for survival Iberia managers make bid to save the airline JULIAN MOXON/PARIS IBERIA'S management has pre sented a Draconian rescue plan to its unions in a last-minute attempt to save the airline, facing a mounting crisis over its debts. The Spanish flag carrier has also cancelled its order for eight Airbus A32 Is, worth Fr2.9 billion ($550 million),. Doubt is also being thrown over Iberia's intended purchase of eight Airbus A340s. The first four of these are now to be leased, with delivery of the remaining four delayed to at least the end of the century. Negotiations with Boeing on leasing, instead of buy ing, eight 757s have been con cluded. A further eight 757s will now be delivered in the year 2000. Losses reached Ptas69 billion ($550 million) in 1993, and are expected to be Ptas40-44 billion this year. Iberia's total debt has increased 2.5 times during the last five years, now totalling more than Ptas300 billion. Javier Salas, Iberia's president, is looking for 15% salary cuts between now and 1996, along with a 9% reduction in the work force of 24,500, coupled with a similar improvement in produc tivity. The workforce which remains is to be offered a 12% stake in the airline. If accepted, this would be the first step towards eventual privatisation. Salas also plans a recapitalisa tion of Ptasl30 billion, which would require European Commission approval. No re quest will be made, however, until agreement has been reached with the unions over the new measures. The airline last received an injec tion, amounting to Ptas 120 bil lion, in 1991. Iberia's difficulties stem partly from its attempt at the end of the 1980s to renew its fleet, which in 1988 had an average age of 18 years. Inflation in Spain over the last four years has reached 20%, during which time Iberia's turnover has increased by only 8%. On top of that the number of salaried workers has increased by 30%. Liberalisation has also exposed the carrier to competition. Iberia embarked on a cosdy expansion of its South American routes, with Aerolineas Argentinas, Viasa of Venezuela, and Ladeco of Chile. • Europe to start ground-handling talks THE EUROPEAN Com mission (EC) is to begin talks with ministers of governments which are still refusing to liber alise ground handling at their major airports. One example, which has been the subject of a concerted effort by a consortium of three airlines — Austrian, SAS and Swissair — and a Greek handling agent, Interplan, is a ruling which gave Olympic Airways a 50-year monopoly on ground handling at Greece's Athens airport, until the year 2006. Karel Van Miert, EC commis sioner for competition, admits that there is still disagreement within the EC's transport and competition directorates about which is the best way to go for ward, but says: "We're very near to a position." The EC is preparing guidelines for ground-handling liberalisation which provide for competition at airports, but ensure that they still meet their public-service obliga tions. "We think we can draw up an initial list of services that should be released onto the open market," says Van Miert. There should be no limits on self-handling, says Van Miert, "...although we should the avoid lower levels of service" which might result. He adds that, for ser vices open to competition, a tender system should be introduced, "with at least one contender from totally outside the airport". • Indian curb stays T HE INDIAN civil-aviation ministry says that the policy of putting a hold on aircraft imports will continue, even after air-taxi operators acquire full scheduled airline status this month. The ministry says that airline status has nothing to do with fleet expansion. As long as air- taxi operators meet the mini mum requirement of operating three aircraft, they will be grant ed the status. All Indian air-taxi operators have expansion re quests pending. • FLIGHT INTERNATIONAL 2 - 8 November 1994
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