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Aviation History
1997
1997 - 1211.PDF
BUSINESS MAS targets Pelangi takeover PAUL LEWIS/KUALA LUMPUR MALAYSIA Airlines (MAS) is planning to take complete control of struggling third-tier operator Pelangi Air, absorbing its route network and aircraft. Under a proposal now before Pelangi's shareholders for ap proval, MAS would take a stake of to 70% in the local carrier. MAS' controlling parent company, Ma laysian Helicopter Services (MHS), already holds 18%. MAS refuses to disclose details of the discussions which are still taking place with Pelangi's share holders, but sources close to the talks say that MAS would also acquire the 45.5% held by the regional governments of Selangor, Perak and Melacca. Terengganu would reduce its holding from 36.5% to 12%. Tajudin Ramli, chairman of MAS and MHS, confirms that Tajudin: Pelangi will keep identity "...Pelangi will be integrated into our scheduling". He adds, howev er, that Pelangi will retain a sepa rate identity, with emphasis on lower cost domestic and regional operations. Several of MAS' existing domes tic services will be passed to Pelangi, along with some of its Boeing 737s, says Tajudin. The Maersk steers Estonian Air to profits in 1999 as traffic rises ANDREW DOYLE/TALUNN ESTONIAN AIR, now man aged by Denmark's Maersk Air following 1996's privatisation, is forecasting profits by 1999 on tbe back of a steady increase in passen ger traffic, helped by its new Western-built aircraft fleet and tbe development of regional routes from the Estonian capital, Tallinn. Borge Thornbech, who was sec onded by Maersk to take the helm at Estonian after the Danish com pany took a 49% stake and man agement control in the carrier in September, says that the first quar ter returns are already in line with the budget target of making a profit by 1999. He expects passenger numbers to rise by one-quarter, to 216,000 in 1997, while sales are forecast to jump by nearly 40% to EEK509 million ($37 million). Backing the increase is the fleet renewal which has seen Estonian phase out its 13 TupolevTu-134As, four Yakovlev Yak-40s and 12 Antonov An-2s inherited from Aeroflot. These have been replaced with two Boeing 737- 500s, leased from International Lease Finance, and two Fokker 50s from Maersk. Thornbech says tbat tbe airline is carrying more passengers with the four new aircraft than it did witb the Russian fleet. The airline's near-term objec tives are to sign codeshare agree ments with KLM and British Airways for flights between Tallinn and Amsterdam and London Gatwick, to add to an existing codeshare deal with Finnair. The KLM deal could be in place by tbe third-quarter, says the airline. Looking at long-term prospects, Thornbech says that replacing the Fokker 50s with regional jets will be considered, with the aim of opening up longer routes into Europe and tbe CIS which would not generate enough traffic to sup port 737s. The Baltic Cresco Investment Group owns 17% of the airline, while the Estonian Government retains a 34% stake. • move will allow MAS to cut costs on its domestic services, many of which are now losing money as the result of regulated air fares. The restructuring will also final ly clear the way for Pelangi to take delivery of the first of three new Bombardier de Havilland Dash 8- 300 turboprops in mid-May. It originally ordered six aircraft for delivery in 1996, but a lack of financing delayed the deal. A fourth aircraft is held on option. Pelangi's three Fokker 50s will be retained, along with one of its Fairchild Dornier 228s, while a second will be sold. • Meanwhile, MAS is looking at ways to take advantage of tbe new open-skies agreement reached with the USA. "We're looking at the US East Coast, as well as Can ada," says Tajudin. The airline is in codesharing discussion with sever al US carriers to gain more access to the North American market. • NEWS IN BRIEF • CAL PROFITS RISE China Airlines (CAL) made a higher-than-expected net profit of NTS1.59 billion ($57.4 million) in 1996. The result was helped by a three- point rise in load factors and increased non-operating in come. The airline has already reported a 6% increase in revenue to NT$52.8 billion. CAL had expected a profit of NT$1 billion. • MIKHAILOV UNSEATED Aviastar has elected a new general director to replace Viktor Mikhailov, who was ousted by a group of local investors in the Ulyanosk air craft factory. Gennadi Koradnev, formerly person nel director, has been elected as new general manager, although Mikhailov retains a non-executive directorship. FLIGHT INTERNATIONAL 7 - 13 May 1997 23
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