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Aviation History
1999
1999 - 0954.PDF
•JUZJUZDZ PEOPLE ++ US charter and wet-lease spe cialist World Airways has ap pointed former Air Canada, Continental Airlines and Delta Air Lines high flyer Hollis Harris as its new chairman, president and chief executive. ++ Pratt & Whitney president Karl Krapek is set to move to parent company United Technologies as chief operating officer, according to press reports, with Louis Chenevert tipped to succeed him. Krapek had once been linked with a move to Boeing. ++ Former Boeing executive vice- president Harry Arnold hasjoined BFGoodrich Aerospace as vice- president, systems integration. Arnold was chief engineer on the Next Generation 737 family, but left after the sacking of former commercial chief Ron Woodard. ++ Russian flag carrier Aeroflot has appointed Yuriy Mnatsak- anov as commercial director and deputy general director and Felix Bateyev as deputy general direc tor, finance and planning, following an exodus of managers connected with magnate Boris Berezovsky. ++ Dallas-based Southwest Airlines has promoted director of quality, Jim Sokol, to vice-president, maintenance and engineering. ++ LucasVarity chief executive Victor Rice is set to leave the UK aero space and automotive group, fol lowing its take-over by TRW. Rice was due to become vice-chair of the US giant, but is now likely to accept a $6.4 million pay-off amid rumours of personality clashes.++ Defence training and simulation specialist Cubic Defense Systems has named Joseph Bartel, once of General Dynamics, as new vice- president of contracts. ++ The UK has appointed an 18-strong Aerospace Committee to advise ministers on competitiveness issues. Companies represented include Smiths Industries, Cob- ham, Marconi Avionics, Lucas Aerospace and British Aerospace. ++ Takashi Nishioka, executive vice-president and general manag er of the aircraft and special vehi cles division of Mitsubishi Heavy Industries, has been made presi dent of the whole group. Cityjet will add two more Saab 2000s to its fleet following a take-over by Air Foyle Air Foyle consortium takes controlling stake in CityJet CHRIS JASPER/LONDON ACONSORTIUM led by UK cargo carrier Air Foyle has purchased a controlling stake in Irish independent airline Cityjet for a sum in excess of Ir£5 million ($6.8 million). Sources close to the deal say that it should stabilise Dublin-based Cityjet and allow it develop its bur geoning relationship with Air France, while granting Air Foyle access to an Irish air operators cer tificate. Though both airlines are British Aerospace 146 operators, it is understood that fleet commonality was a minor factor in the transac tion and that the two do not plan to share aircraft or combine services. Cityjet's main attraction is its ties to the French flag carrier. Cityjet's agreement with Lon don Luton Airport-based Air Foyle brings to a close a difficult chapter in the history of the Irish airline, which, until recently, was involved in negotiations with Australian regional carrier National Jet Systems (NTS). NTS had hoped that an investment in Cityjet would form the basis for the launch of a British Airways franchise oper ation in Italy, but the deal fell apart, leaving Cityjet desperately in need of funds (Flight International, 10-16 February). Industry sources say that Cityjet shareholders, including Yeoman International (40%) and Standard Life (20%), will see their stakes diluted, with themselves also injecting new capital. The sources add that an Ir£3.5 million figure quoted in connec tion with the NJS talks "seriously undervalued Cityjet", and that "the price of majority control would be in excess of Ir£5 million". They also say "the significant funds injected are sufficient to see the airline through its business expansion plan, based on it contin uing to develop its own network under the Cityjet brand, together with franchise and wet-lease activ ities involving Air France". The latter strategy is reflected in Cityjet's summer operations, with its two year old Dublin-Paris code- share service transformed into a risk-bearing franchise operation. The airline is continuing its Air France wet-lease service on Paris- London City, while adding new Nice-Toulouse, Nice-Madrid and Paris-Florence routes and operat ing a London City-Strasbourg ser vice directly for the French carrier. Cityjet has also expanded own- brand services with flights between the Irish capital and Malaga and Faro, in addition to services to London City and East Midlands. Cityjet will have seven BAe 146s by July, plus two Saab 2000s, and two more due next winter, with a leased BAG One-Eleven and a BAe ATP. Air Foyle, which sources say will now have "an opportunity to undertake activity under the Irish licensing regime", operates eight 146s on services for TNT. • Air Namibia to slash workforce AIR NAMIBIA plans to lay off between 100 and ISO employ ees - up to 30% of its workforce - by the end of this month as part of a restructuring plan that will cost up to NS10 million ($ 1.6 million), but which should ultimately reverse the downward trend in its financial performance. Managing director Jaafar Ahmad says that operations will be streamlined across all departments, with some likely to be closed. "Losses are higher than is sustain able, and without these cuts the air line may have to close down," he warns. The workforce has until 2 6 April to apply for voluntary redundancy, after which enforced job cuts will be implemented. The costs of restructuring could have an impact on Air Namibia for a further 18 months. -I Big profits at FiatAvio FIATAVIO, the aerospace divi sion of the Italian conglomer ate, saw net profits more than quadruple to LI52 billion ($85 million) last year against L34 bil lion 1997, with turnover rising 8% to L2,63 5 billion. Overall, says Turin-based Fiat, the division "performed exception ally well" last year, with its operat ing margin up from 4.5 % to 5.1 %. ' Fiat adds that all elements of the division were profitable. • 30 FLIGHT INTERNATIONAL 14 - 20 April 1999
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