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Aviation History
1999
1999 - 0316.PDF
BUSINESS MERGERS ++ Lufthansa subsidiary Globe- Ground has agreed to buy US- based Hudson General in a move that should end a take-over battle for the airport services provider. The GlobeGround offer tops earlier bids from Ranger Aerospace, Ogden and a group of Hudson man agers. GlobeGround - which already owns 49% of Hudson affili ate Hudson General - will be allowed to match any subsequent third-party offers. ++ Fairchild, a leading aerospace and industrial fastener manufacturer, has acquired a 77.3% stake in SNEP of France, a manufacturer of preci sion-machined fasteners for the European aerospace, industrial and automotive markets. ++ Dallas, Texas-based TriStar Aero space has agreed to buy Standard Parts and Equipment, based at nearby Fort Worth, for $31.6 million. Both companies specialise in the distribution of aerospace fasteners, and TriStar says the acquisition of Standard should speed plans to expand into the business jet sector- especial ly with its newest customer, Cessna Aircraft. ++ Airtel ATN of Dublin, a communications soft ware developer for the aeronauti cal industry, has acquired Nat ional Avionics, also of Ireland, for an undisclosed sum. National Avionics specialises in navigation solutions for air traffic congestion problems. ++ Stowe Machine, a subsidiary of US aero-engine com ponents specialist Ladish, has agreed to buy Adco Manu facturing for an undisclosed sum. Ladish says the combination of Stowe and Connecticut-based Adco will create a "an outstanding finish turning and milling source for the jet engine industry". ++ The Florida-based HEICO group has acquired Radiant Power, a US subsidiary of Canada's Derlan Industries, for $6.5 million. Rad iant offers back-up power supplies and battery packs for a variety of aircraft systems, such as emer gency lighting. The business will be incorporated into HEICO's fast expanding Ground Support group. Fokker parts deal hit by legal action ANDREW DOYLE/MUNICH FOKKER SERVICES has launched legal action against the estate of bankrupt Fokker Aircraft in a row over new costs it claims have been imposed on its purchase of technical data and pro duction equipment for JetLine wing parts. A subsidiary of Stork, Fokker Services agreed to buy the assets - secured under the estate's settle ment with Bombardier's Shorts unit, which built wings for the Fokker 70 and 100s - from bank ruptcy trustees actingas "re-sellers". Sources close to the dispute claim that Shorts experienced problems in handing over the assets as scheduled, with the result that Fokker Services, say the trustees, is "...holding the estate liable for its inability to transfer the information in full". Fokker Services, Shorts and the trustees are holding "intensive talks" to broker a solution to limit the damage to other creditors, including Fokker operators. Stork adds that the supply of spares by Fokker Services is "defi nitely not in danger", while Shorts will say only that "...there was a dispute, but we believe we are very close to resolving it". Stork's planned purchase of Fokker's stake in Belgian mainte nance company SABCA-valued at NLG80 million ($40 million) - has been frozen, with Stork aiming to negotiate a lower price. • The Fokker trustees are disput ing a NLG140 million tax demand from the Dutch authorities, which believe that money raised from the liquidation should be treated as taxable income. NLG640 million payment to creditors has already been delayed by the row, but should go ahead in the next few weeks. • Iberia will scrap Aviaco brand when pilots agree to merger MAX KINGSLEY-JONES/MADRID IBERIA IS planning to absorb its Aviaco domestic subsidiary at the earliest opportunity, but will not take any action until pilots at the two airlines resolve union issues. Details of the move emerged as the Spanish flag carrier revealed a 117.5% increase in net profit last year, to Ptas37.2 billion ($250 million), with turnover up by 10% to Ptas667 billion. Iberia took full control of Aviaco a year ago, adding state holding company SEPI's 67% stake to its 33% share. John Wilkinson, Iberia's senior vice-president of marketing, says the two airlines are already operating as one commer cially, and plan a full merger "as soon as possible", depending ".. .on the pilot unions agreeing to be integrated" and resolving seniority issues. Wilkinson hopes the pilot issue will be resolved this year, allowing the Aviaco brand to be eliminated. A fleet revamp of the subsidiary is under way, with Iberia's 24 Boeing MD-87s to be transferred to Avia co over the next two years, re placing McDonnell Douglas DC- 9s. The MD-87s will operate alongside a fleet of 13 MD-88s. Iberia president Xabier de Irak, meanwhile, has outlined the Iberia logo may soon be on Aviaco fleet timetable for privatisation of the airline following the recent agree ment with British Airways and American Airlines on the sale of a 10% shareholding. A 30% stake will be sold to institutions such as banks "by the end of March", he says, with the remaining 54% (6% is already held by employees) float ed "during the summer" through an initial public offering. Irala says the partial flotation of the Amadeus computer reservation system, in which Iberia holds a 29.2% stake,has been delayed until later this year or early 2000. He blames the hold-up on the system's possible merger with Worldspan, which would boost its value. The price of the BA/American holding will in turn be affected by the value ofAmadeus. Q Air France's Wings talks'well advanced' NEGOTIATIONS OVER Air France's possible mem bership of the so-called "Wings" alliance are said to be "well advanced" following formal talks with Alitalia and KLM in Paris. The two European members of the emerging alliance, together with Northwest Airlines and Continental Airlines of the USA, are eager to accelerate the develop ment of the block to counter the challenge of its Star and oneworld rivals, while Air France must join an alliance soon so as not to lose out on the extra revenues that mem bership can bring. Wings members are also thought to be keen to bring Air China into the alliance as its main Asian partner, with Malaysian Airlines another potential recruit. The wooing of Air France by Wings threatens to leave its US partner Delta Air Lines out in the cold. Delta is the only non- European member of the much looser Atlantic Excellence alliance, the other members of which - led by Swissair - have previously branded as "incompatible" with membership a deepening of the US major's ties to the French carrier. • Air France shares rose by 29% on their first day of trading on the Paris Bourse following partial pri vatisation. Prices climbed from 14 to 18 euros ($15.8 to $20.3) before levelling out at 16.10 euros. • FLIGHT I NTERNATIONAL 3 - 9 March 1999
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