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Aviation History
1996
1996 - 0067.PDF
Finmeccanica and Fiat in engine merger talks ANDREA SPINELU/GENOA STATE-OWNED Finmec canica is negotiating a possible rationalisation of the Italian aero engine business with the Fiat Group. A successful outcome to the talks would see Fiat Avio merge with the smaller Finmeccanica operation at Alfa Romeo Avio. Previous attempts to marry the two businesses have been unfruit ful, most notably in 1987, when a proposed barter deal swapping Alfa Romeo Avio for Fiat's train-build ing business was scuttled, mainly because of union opposition. This time, the talks are under stood to have started around the premise of a jointly owned com pany, but their objective has recently switched to the idea of Fiat offering cash for die complete acquisition of Alfa Romeo Avio. RB.199 contributes to Fiat success Finmeccanica owns 77.5% of the company, widi die remainder held by national airline Alitalia — widi which Alfa Romeo Avio has a long-term agreement for engine overhaul. The engine business is no longer considered a core aero space activity at Finmeccanica. Because all of its other major aero space activities (die company owns virtually all the major elements of the Italian industry) are in serious need of funds, a straight sale is seen as the best response. Analysts believe diat die Alfa Avio business, with a turnover of slighdy more than L370 billion ($230 million), is wordi around LI80-200 billion. The company's main activities centre on die pro duction of components and en gines resulting from a string of deals widi General Electric. By contrast, Fiat Avio has an aerospace turnover of more than of LI,000 billion, gained from pro grammes such as die Turbo-Union RB.199 and Eurojet EJ2000, the International Aero Engines V2S00 and General Electric GE90. It is also an acknowledged leader in gearbox design. • KLM aims suit at Northwest KLM HAS FILED a lawsuit against Nordiwest and its directors over the US carrier's move to introduce a "poison pilP'preventing a single investor from gaining a controlling stake in Northwest (plight International, 22-29 November, 1995). The Dutch carrier alleges that Northwest's action was designed to keep KLM from exercising an option to increase its holding in Northwest from 19% to 24%. The US carrier says that its intent is only to protect Nordiwest stock holders from hostile take-overs. Northwest claims diat, over the past two years, KLM has represent ed "a creeping control threat". It warns that die Dutch partner could attempt to gain a "disproportionate" share of benefits from the transat lantic alliance if it gained greater control over the US airline. • ANZ takes control at Air Nelson ANZ strengthens regional links with take-over of Air Nelson AIR NEW ZEALAND (ANZ) has acquired full control of regional scheduled-service opera tor Air Nelson. ANZ previously held a 50% shareholding in die carrier. The move further tightens ANZ's hold on the local regional market in the wake of its deal to acquire a 25% stake in Australian carrier Ansett (ANZ's main rival in New Zealand) through Ansett New Zealand. The flag carrier also wholly owns Mount Cook Airlines and Eagle Air. Jim McCrea, ANZ managing director, says diat Air Nelson will remain independent of ANZ's own domestic operations. Some analysts have interpreted the tie- up as a protective move against the possible launch by Qantas of a New Zealand operation. Air Nelson operates services on provincial routes previously oper ated by ANZ. It flies under the Air New Zealand Link name serv ing cities such as Hokitika, Rot- orua, Nelson and Tauranga. The bulk of the fleet is made up of Saab 340s and Swearingen Metro Ills. • a u z> J J jjz^j £i Brazil plans $2.4 investment in new airports BRIAN HOMEWOOD/RIO DE JANEIRO BRAZIL INTENDS to invest $2.4 billion in airports between now and die year 2000, and wants to encourage private investment, says airports authority Infraero. One-third of the investment will be in Brazil's north-east because of its increasing importance as a tourist region. Infraero says that die invest ments include construction of new airports in Rio Blanco, capital of the Amazonian state of Acre, and Fortaleze and Natal, both in die north-east. The audiority forecasts that, by 2000, 100 million passen gers and 4 million tonnes of cargo a year will pass through Brazil's air- ports.The projects will be financed joindy by Infraero and die local and state governments. Infraero says that auxiliary services will be passed to private enterprise, but there are no plans to hand over the operational side. "It requires large investments, profits are small or non-existent and would not be feasi ble, as most airports are shared with the military," the audiority says. Infraero has already approached pension funds as potential in vestors, and says diat diere are no restrictions on foreign participa tion in projects. • EBA takes control of French tour firm BELGIAN AIRLINE EBA has taken a majority share in French tour company Look Voyages of France. The French company owns regional-charter operator Star Europe. The EBA move is aimed at speeding up its activities in France, where it recent ly acquired French subsidiary Air Provence is based. Look Voyages had a Fr2 billion ($400 million) turnover in 1995, an increase of 22%, and handled over 1 million customers. EBA is Belgium's second largest airline (after Sabena) with a 1995 turnover of BFr5 billion ($170 mil lion) a 51 % growth on 1994. • FLIGHT INTERNATIONAL 10 -16 January 1996 13
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