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Aviation History
1996
1996 - 2492.PDF
AIR TRANSPORT AOM and Air Liberte alliance in question JULIAN MOXON/PARIS THE FUTURE OF THE proposed alliance between French privately owned airlines Air Liberte and AOM hangs in the bal ance, with the planned next phase in the deal stalled. A strategic agreement signed at the end of June has still not borne fruit. This foresaw a commercial alliance, leading later to possible incorporation of AOM into Air Liberte. Workforce objections to the merger, however, have left AOM president Alexandre Cou- velaire struggling to remain in the post, with his replacement by Fernand Danand, a senior pilot with the airline, demanded by sev eral unions. The initial codesharing deal between the two carriers on routes between Paris and Marseilles/Nice is "working well", according to Air Liberte. The planned next stage, however — codesharing on routes to the French Caribbean, which are operated by both airlines—was expected to begin in September, but will not now be taking place "for at least a few months", says one airline source. Couvelaire has been attempting to win his workforce over to the merger idea, but in the face of loss es resulting from poor load factors on several internal routes, is said to be discussing "other ideas". In May, AOM concluded a deal with British Airways subsidiary TAT, also between Paris and Marseilles, but denied at the time any plans to extend the relationship. Air Liberte admits that it, too, is having a "difficult year", with only 11 of the 23 domestic and Euro pean routes which it planned to open in 1996 becoming opera tional since the plan was an nounced in January. "A lot of what we wanted to do has not been pos sible," says the airline. The lack of availability of slots at Paris Orly and Charles de Gaulle airports is blamed, but tough competition on fares, coupled with poor load fac tors, has also brought losses. "We are discussing what we might do," the carrier says. • Alitalia urges Air Europe and Eurofly to merge charters ALITALIA IS PUSHING for the charter operations of Air Europe Italy and Eurofly to be merged into a single airline, in an effort to prevent a damaging fare war between the two carriers. The move has been prompted by Eurofly's plans to enter long- range charter markets served by Air Europe, as the Italian flag carri er has an interest in both airlines. Alitalia president Fausto Cereti has confirmed that talks are taking place with Air Europe, although a merger has not yet been approved. It is understood that the most like ly option would involve Air Europe buying Eurofly — particularly as the cash-strapped Olivetti group, which owns 45% of Eurofly, is known to be keen to dispose of non-strategic assets. Building up a new charter airline through merger or acquisition is seen as sound, as the two airlines service different routes and can eas ily be combined, gaining a volume of traffic and revenue which could allow them to compete head to head with major European names. In 1995, Air Europe had a turnover of L275 billion ($181.6 million), 26% higher than for the previous year, while Eurofly posted a LI 17 billion turnover. Air Europe is owned by Finflight (56.9%), Alitalia (24%), and Sopaf (18%). Eurofly is owned by Alitalia (45%), Olivetti (45 %) and banking group San Paolo (10%). • BA aims to silence new UK noise rules ANDREW DOYLE/LONDON BRITISH AIRWAYS is prepar ing the way for a possible court challenge to new noise limits at the three major London airports, due to be imposed by the UK Govern ment from 1 January, 1997. The carrier expects to complete an internal review within the next few weeks of the cost implications of the limits, which it "conserva tively" estimates at around £800,000 ($1.24 million) annually at present charge levels. Such a challenge would place BA in a potentially embarrassing posi tion as it grapples with opposition from local authorities to the planned expansion with a fifth ter minal of London Heathrow. The carrier has yet to name an engine supplier for 14 Boeing 747-400s ordered recently and is considering dropping incumbent supplier Rolls-Royce in favour of US man ufacturers supplying quieter engines (Flight International, 4-10 September). The airline also has some technical reservations about the R-RRB.211-524 engine. The Government's move has astonished BA and other airlines which serve Heathrow with 747s, as they believe that the limits can not be met without payload restric tions on many long-haul flights. BA chief operating officer Alis- tair Cumming says that the carrier is "...assessing the situation and looking at the options. A judicial review is one thing we could ask for, but no decisions have been taken". The International Air Transport Association (LATA) says, mean while, that it"... opposes this move — which is discriminatory in its effect and which would have no impact on the overall perceptions of the aircraft noise experienced by people living close to the airports". It adds: "The UK's unilateral decision, without consultation with its air-trading partners, could have serious affects on foreign rela tions and on the pre-eminent posi tion of London's airports." LATA director-general Pierre Jeanniot has written to UK minis ter for aviation Lord Goschen "stronglyurging" the Government not to implement the new limits. His letter also highlights the fact that".. .British [RB.21 l]-powered 747-400s could be affected". The UK Department of Trans port claims that only 12 % of flights by Chapter 3-compliant 747s will infringe the new limits. • SL——— Air Pacific is first to bring 737-700 to Pacific-region routes AIR PACIFIC HAS become the launch customer for the new-generation Boeing 737 family in the Pacific region, with an order for three 737-700s. Deliveries of the new aircraft to the Fijian national airline will begin in the fourth quarter of 1998. Air Pacific's order follows a major review of its future fleet needs, which resulted in the airline deciding to cancel an existing com mitment for a General Electric CF6-80C2-powered Boeing 767- 300ER, which has been switched for the new 737-700 contract. The 737-700s will be used to Air Pacific colours will be seen on bigger, newer, 131s too increase frequencies on main re- all-leased Boeing fleet, including gional services, including that of two CFM-powered 737s, one 747- Fiji to Australia. The airline has an 200Banda767-300ER. • 12 FLIGHT INTERNATIONAL 18 - 24 September 1996
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