FlightGlobal.com
Home
Premium
Archive
Video
Images
Forum
Atlas
Blogs
Jobs
Shop
RSS
Email Newsletters
You are in:
Home
Aviation History
1997
1997 - 1752.PDF
CZECH REPUBLIC In 1994, SAS and BIUSA were asked by the Latvian Government to draw up a plan for a sin gle Latvian national airline with mixed state and private ownership. SAS was operating frequent services to Riga and had 50 years' experience in tri-national ownership shared between the state and private sectors, and looked a promising partner. Negotiations with the Latvian authorities dragged out over a year, during which time the Government tried to privatise Latavio. "It would be difficult to describe the disrup tive impact of this move," says Daniel Solon, BIUSAi vice-president Europe. SAS refused to have anything to do with the privatisation, for fear that it would "taint" its own project, now known as airBaltic. The privatisation failed dismally. Latavio folded, and airBaltic finally began to operate in October 1995. The airline was launched under SAS management, with 51% of shares in Government hands, 28.5% with SAS, 8% with BIUSA and 6.2% each held by Swedish and Danish funds. After initially planning to operate a fleet of ex-SAS DC-9s, airBaltic has opted instead for a leased fleet of three Avro RJ 70 regional jets and one Saab 340 turboprop. The airline now plans to replace one of the RJ 70s with a larger RJ 85 within the next 18 months, and may acquire a second RJ 85 later. A second Saab 340 or a 2000 is also being considered. The company hopes to break even this year, despite the introduction of a new $12 per-pas- senger airport departure tax which threatens to keep airBaltic in the red a little longer (Flight International, 18-2 4 June). Baltic International Airlines still exists as a dormant shell company in the hands of BIUS A, with the right to operate both passenger charter and cargo flights. WHAT ABOUT THE NEIGHBOURS? airBaltic's US shareholder also placed a bid in the privatisation of Estonian Air, when the Tallinn Government decided to offer 66% of the national airline to private buyers, allowing 49% foreign ownership. In the end, however, the Estonian privatisation agency decided to select Maersk Air, together with its partner Cresco International, which is an Estonian investment company. Maersk now owns 49% of the airline, Cresco has 17% and the Estonian Government retains 34%. Solon believes that Maersk was chosen partly because of an unspoken desire in Estonia to spread foreign investment beyond already substantial Swedish and Finnish interests in the country, while the Danish carrier's unquestion able operational expertise and financial strength clinched the deal. Estonian Air has changed beyond recogni tion from its original exr Aeroflot fleet of 13 Tu- 134s, four Yakovlev Yak-40s and 12 Antonov An-2s, to its current, somewhat smaller fleet of two leased Boeing 737-500s and two Fokker 50s. The airline claims it now carries more pas sengers on these four aircraft than it did with its entire Soviet-built fleet, and it predicts that it will be in profit by 1999 as passenger numbers and sales continue to climb (Flight International, 7-13 May). Estonian is also looking at new codeshare deals with KLM and British Airways to add to existing co-operation with Finnair. POLES APART One Central European carrier which has oper ated with some success and no strategic part nerships up to now is Poland's LOT. The carrier was modestly profitable until last year, when it was badly hit by exchange rates and operating cost increases (Flight Intel-national, 18-24 June).Revenues are still growing, however, and it is about to transfer its regional operations to a lower-cost subsidiary called EuroLOT, which was due to be launched at the beginning of July. Since 1992, the company has slashed its workforce from about 5,500 to about 4,000, says Jacek Tomaszewski, LOT's senior commercial officer for strategic planning and network development. Productivity has climbed steadi ly, and activities not directly related to air trans port operations - such as catering, ground handling and fuelling-have been transferred to new sister companies and subsidiaries. The airline has revised its route strategy, dropping unprofitable services and focusing on West European destinations. The company has also made efforts to improve its image. "If we are going to find our place in tough competition, we must not settle for being perceived as an airline located on the sidelines of Europe, utilising obsolete technol ogy and carrying the very cheapest portion of traffic only," says Tomaszewski. LOT now operates an all-Western fleet of Boeing 767s and 7 3 7s, and ATR 72 turboprops, which are now being handed over to EuroLOT. The company has struck code-share deals with Air France, Alitalia, American Airlines, Austrian Airlines, Lufthansa and Swissair. The Polish flag carrier says that it is in talks with an unnamed potential strategic partner - probably American Airlines, say sources in the industry - but it is too early to tell what form such a partnership could take, or indeed whether it will go ahead. Sources in the airline say that there is concern in Poland that a joint-venture partner could try to absorb LOT completely, turning it into a feeder, and these fears have to be allayed before a deal can be struck. There is certain to be no decision on a partnership of this sort before the Government gives the go-ahead for privatisa tion of the airline, which is still 100% -owned by the state treasury. No progress can be expected on privatisation now until after the parliamentary elections are held in September, say airline sources. LOT therefore seems to be facing at least another year on its own. • All eyes on ALCA The new L-159 ALCA could save Czech military- aircraft production ANDRZEJ JEZIORSKI/PRAGUE A MILITARY BAND played the fanfare from Jems Christ Superstar as the L-159 - the first new Central European combat aircraft prototype since the fall of Communism - was officially rolled out at Aero Vodochody's factory near Prague, on 12 June. The choice of music seemed odd, but then it could be said that the Czech aerospace industry really has awaited this roll-out with near-reli gious fervour. All the Republic's hopes for future indigenous military-aircraft production are pinned on this programme, and the manu facturer will have to export more than double the domestic requirement to break even, so marketing is critical. The red, white and blue machine was chris tened the Advanced Light Combat Aircraft (ALCA). It is intended to become the mainstay of the Czech air force, which needs 72 units to fulfil close air support, tactical reconnaissance, air-defence and border-patrol duties. As the crowd of guests gathered for a closer 40 FLIGHT INTERNATIONAL 2 • 8 July 1997
Sign up to
Flight Digital Magazine
Flight Print Magazine
Airline Business Magazine
E-newsletters
RSS
Events
