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Aviation History
1996
1996 - 0416.PDF
NEWS IN BRIEF • LUCAS AID Lucas Industries is establish ing a precision-machining joint venture in Indonesia, to support the country's indige nous aerospace industry. Lu cas will hold a 51% stake, with Indonesia's PT Pindad and PT Metinca Dirgantara taking 34% and 15%. • VISUAL ACQUISITION US visual-simulation special ist Evans & Sutherland has signed a letter of intent to acquire Terabit Computer Specialty, a Salt Lake City, Utah-based maker of simu lated instruments and dis plays for flight simulators. • KAMAN PROFITS Kaman returned to profit in 1995, after a $13.2 million loss in 1994, with net earn ings of $19.6 million on rev enues of almost $900 million. Its Diversified Technologies segment almost doubled operating profits. Hawker aerospace arms head for Fleet CANADA'S FLEET Aerospace has agreed to purchase the aerospace businesses of Hawker Siddeley Canada for $27 million. The businesses, which had 1995 sales of almost $93 million, include Hawker Siddeley's Orenda division, which is developing a new range of high-power piston engines for gen eral-aviation aircraft. The businesses will be acquired by NewEleet, a new parent compa ny which is to be in place by April. The acquisition, for which New- Fleet has yet to raise financing, is expected to be completed in May. The businesses, including A-R Technologies and Middleton Aero space, will be an affiliate of Fleet. Orenda management and em ployees will be retained, says New- Fleet. The delayed first flight of the Orenda-series engine is due in March, in a re-engined Raytheon Beech King Air, and certification is planned for the end of 1995. • Five fiims show interest in Thomson-CSF link-up JULIAN MOXON/PARIS FOUR FRENCH companies and one from the UK have indicated to the French Gov ernment their interest in forming some type of alliance with Thom- son-CSF's defence business, once a decision on the structure of the firm is taken. Dassault, Matra, Alcatel and, surprisingly, state-owned Aero spatiale, along with the UK's GEC, have all made clear their interest, leaving the Government with the difficult decision as to what its next step should be. The five firms have expressed a desire to buy or co-operate with all or part of the Thomson-CSF de fence empire, which straddles air borne and ground radar, defence electronics and systems integration. If it opts for a rapid privatisation, the Government risks major oppo sition from the defence ministry, concerned about the possible loss of key strategic capability. The move to secure Thomson- CSF's future is one of several key restructuring decisions facing the French defence industry as the Government looks for ways of re ducing defence spending and mak ing the industry more competitive. Recent statements by defence minister Charles Millon asking for serious co-operation talks between Dassault and its old rival, Aero spatiale, have added to speculation about the future of the industry. Studies carried out by Gov ernment comites strategiques over the past few months have touched virtually every segment of the defence industry, from the annual budget, to the structure of the armed forces and which weapons tfrey will require. On 13 February Millon revealed that he sees the future defence industry centred around four "poles", comprising aeronautics, electronics, electromechanical and nuclear, consisting of groups of companies with sufficient critical mass "...to ensure they are in posi tion to negotiate alliances with European companies". Industrial reconstruction is already under way, with several companies fighting to reduce costs through major workforce reduc tions and improvements in produc tivity. Many companies seem unlikely to escape, however, from a spate of mergers and acquisitions similar to those which has taken place in the USA. • Lockheed L-1011 maintenance costs marred BWIA's recovery BWIA recovery stumbles BWIA INTERNATIONAL Air lines says a poor fourth quarter has "temporarily derailed" the Caribbean carrier's financial recov er)' following privatisation in Feb ruary 1995. Despite this, the airline has posted a reduced operating loss for 1995 of $3.6 million, down from $9.4 million in 1994. President Edward Wegel blamed BWIA's poor fourth quar ter on "...uncontrollable factors such as weather-related cancella tions, which affected revenues, and unbudgeted schedule-related can cellations, which increased our costs". BWIA's ageing Lockheed L-101 Is incurred higher mainte nance costs, he says. Wegel says that he plans to "...streamline the organisation and institute high-cost controls to return the airline to sustained prof itability". He expects revenues to increase when new Airbus A3 20s and A340s enter service, beginning in June. Edward Acker, who led the con sortium which privatised BWIA, has stepped down after one year as chairman and chief executive of the Caribbean airline. • Wolf begins USAir team building STEPHEN WOLF, USAIR'S newly appointed chairman, has begun to build his top-manage ment team with the appointment of old confidants Rakesh Gangwal and Lawrence Nagin. Gangwal, who joins the USAir board as president and chief operat ing officer, comes from Air France, where he was executive vice-presi dent for planning and develop ment. He succeeds Frank Salizonni, who announced his retirement soon after Wolfs appointment. Gangwal, an Indian-born engi neer, had spent 11 years at United Airlines, rising to senior vice-presi dent for planning under Wolf's chairmanship. Nagin has taken the post of exec utive vice-president corporate affairs/general counsel at USAir. He succeeds James Lloyd, who ser ved as general counsel for nine years. Nagin served as the top law yer at United from 1988-94. • 12 FLIGHT INTERNATIONAL 21 - 27 February 1996
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