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Aviation History
1996
1996 - 1641.PDF
HEADLINES United could be one source for DC-lOs as FedEx bolsters its fleet M- FedEx nears MD-10 decision GUY NORRIS/LOS ANGELES OVERNIGHT US freight giant FedEx is expected to make a decision by mid-July on the upgrade and conversion of a mas sive fleet of up to 80 McDonnell Douglas (MDC) DC-10s. The decision over die so-called "MD-10" programme involves upgrading FedEx's current 35- strong DC-10 fleet with an all-new digital cockpit similar to that of the MD-11, as well as die purchase of a furdier 50 tri-jets for conversion and upgrade to cargo configura tion. The bulk of die aircraft are expected to be bought from American Airlines and United Airlines, with the balance from other DC-10 users. Although MDC's Douglas Aircraft (DAC) division declines to comment on the status of tlie MD- 10 initiative, company sources say that a finalised proposal was expect ed to be put before DAC president Mike Sears by die end of June. It is believed that the proposal contains MDC's decision on the level of investment it is willing to put into die venture. The approval of DAC, and probably the main board of MDC, will be required before the proposal can be offered formally. Pending approval of the MD-10 project from DAC, FedEx is then expected to make a decision at a board meeting scheduled for 15 July on whether to go ahead. The MD-10 has been touted by DAC for more than a year, and was revealed when the Long Beach manufacturer announced its team ing on die project widi Alenia sub sidiary' Aeronavali in May 1995. The conversion is aimed mainly at FedEx, which has publicly com mitted itself to the DC-10/MD-11 for the bulk of its route require ments, and which could eventually operate a combined total of around 135 of the aircraft. If the full plan is approved, most of the work will involve passenger-to-freightmodi- fications which will cost up to $7.6 million per aircraft depending on condition and age. Conversion work is expected to take between 80 and 120 days per aircraft, with mod ifications likely to be undertaken by Aeronavali and, possibly, by Sabre- Tech (formerly DynaAir Tech). The new two-crew flightdeck would be based on the Honeywell- developed versatile integrated- avionics (VIA 2000) architecture adopted by DAC for all future com mercial cockpits. It would also include the electronic-resource and global-positioning systems and satellite-communications suite developed for a proposed United Airlines DC-10 upgrade pro gramme. General Electric is offer- ingupgrades of die CF6-50 engine, from C to C2 standard.FedEx has not commented on the deal vet. • Snag delays Aerospatiale/Dassault deal A GREEMENT ON THE in the holding company being I 1|1^/H%5' proposed merger between formed to manage it. Mk V France's two biggest airframe man ufacturers, Aerospatiale and Das sault, has been hampered by dis agreement over Serge Dassault's status in the resulting entity, and die way in which it will be managed. While it is virtually certain that the 30 June deadline for an accord set by president Jacques Chirac will not be met, there has been little doubt in recent weeks about a posi tive outcome (Flight International, 5-11 June). Sources say, however, that difficulties remain over the final shape of die alliance and, in particular, the role to be played by Dassault president Serge Dassault i g formed to manage it. There are also concerns within Dassault over the retention of its industrial independence in die face of a merger with the much larger Aerospatiale. "There is some con cern about how we will retain own ership of our industrial cap abilities," says a source. Driving the talks is the Government's threat to take over Dassault's share of the business by virtue of its 45.76% holding, and majority voting rights on 20% of > that stake. At the time of writing, it I appears likely that the Dassault i family will control between 2 5 % I and 3 3 % of die merged entity. 3 Dassault: still looking for a role Lockheed Martin cuts Orion price in last-ditch RAF bid ALAST-MINUTE bid to over turn a UKMinistry of Defence procurement recommendation in favour of the British Aerospace Nimrod 2000 has resulted in Lockheed Martin cutting up to 15% from the price of its Orion 2000 bid for the Royal Air Force's £2 billion (S3 billion) replacement maritime-patrol-aircraft project. Lockheed Martin, which is teamed with GEC, submitted a revised costing to the UKMinistry of Defence in the wake of the Equipment Approval Committee recommendation in favour of the Nimrod 2000. In its revised bid, Lockheed Martin is understood to be arguing that it can use Loral's UK resources in cuttingcosts. It ac quired Loral, which had itself offered updated secondhand P-3s in die competition, this year. • EC to focus on airline competition issues THE EUROPEAN Com mission (EC) will increasingly turn its attention to airline-compe tition issues such as access to new routes, airport slots and computer reservation systems (CRS) EC Transport Commissioner Neil Ennock has pledged. Kinnock acknowledges that the EC has so far been pre-occupied with the issue of state aid, but believes diat this will be resolved by the end of the decade as airlines increasingly become "normal com mercially funded" businesses. Instead, he says that the EC's responsibility for anti-trust issues will come to the fore. "State-aid aspects of the role will naturally recede and anti-trust issues are likely to gain increasing importance," he said in London on 2 7June, at a briefing for UK politi cians and policymakers. Kinnock highlights powers to stop "abuse of power" by dominant carriers in specific routes or mar kets, as well as anti-trust issues from mergers and alliances. "Anti-competitive use" of CRS systems and slot-allocation policy are under review. • FLIGHT INTERNATIONAL 3 - 9 July 1996 5
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