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Aviation History
2000
2000 - 0020.PDF
BUSINESS Lido plans navigation breakthrough ANDREW DOYLE/MUNICH LUFTHANSA'S rapidly expanding flight planning sub sidiary Lido will launch a flight management system (FMS) navi gation database service in April and is forming an aeronautical charting joint venture company with SAS and Air France. The German company's entry into die FMS data market follows its abortive attempt to buy the existing database operated by BFGoodrich sits in US ejection driver seat BFGOODRICH has detailed a new strategy for its ejection seat business after stringing together a succession of deals to make it the USA's sole domestic producer in the sector. The company bought Boeing's ACES II ejection seat product line in November, following its 1998 acquisition of United Propulsion's Stencil seat line, and has agreed to buy IBP Aerospace, which is work ing with Russian manufacturer Zvezda to Westernise the K-36 ejection seat. BFG plans to consolidate ejec tion seat engineering at its Phoenix, Arizona-based Safety Systems division, and manufactur ing at its ALM crew seat unit in Boulder, Colorado. A plant set up by IBP in Hartford, Connecticut, to manu facture the K-36 seat will be retained, says Bill Walthall, Safety Systems vice-president. BFG's major competitor, the UK's Martin Baker, plans to estab lish a US plant, initially to upgrade its US Navy NACES seat, but later to produce seats for die US market. Both companies are competing to supply ejection seats for the 3,000- aircraft Joint Strike Fighter (JSF) programme, as well as for Northrop T-38 and F-5 upgrades. Walthall says BFG plans to offer Westernised K-36/3.5A seats for die JSF and T-38/F-5 and develop a "fourth-generation" ejection seat in two to diree years' time. 3 Swissair, which pulled out of the deal early in 1999 after Lido had performed due diligence. Lido managing director Ralf Cabos says die company is developing its own FMS database and soliciting cus tomers for an April launch. Lido has opened an office in Zurich, tak ing on former Swissair staff who had maintained that company's FMS database. Swissair Flight Support is responsible for supplying FMS data to Swissair, KLM, SAS and Air TNVESTORS, including British J-Airways and American Airlines, have finalised accords for taking stakes in Iberia after agreeing a value for the airline with the Spanish Government, clearing die way for its privatisation. The deal, signed on 15 December, followed several months of negotiations between the core investors and state holding company SEPI. Iberia's market value has been established at €2.73 billion ($2.73 billion), 21.6% less than the origi nal value set by SEPI. The new value reflects 1999 profits, which are expected to be about half origi nal estimates. The private share holders will take a 40% stake in Iberia, with BA controlling 9% and American 1%. France, which jointly own the Zurich database as the "KSSA" group, as well as to a large number of external customers. But Lido's plans have put KSSA's future in doubt, and Swissair has confirmed that talks have begun on its dissolu tion. SAS and Air France, and pos sibly KLM, may eventually join Lido to form the new FMS data joint venture company. Industry sources say Swissair Flight Support is no longer for sale and is instead pursuing co-opera- BA wins the right to appoint two directors to Iberia's board, and has named Roger Maynard, its direc tor of investments and joint ven tures, and former UK foreign minister Lord Garel-Jones, now with investment bankers Warburg Dillon Read. Institutional shareholders have also concluded agreements, with Caja Madrid, the BBV bank, Logistica, El Corte Ingles and Ahorro Corp together taking 30% and appointing four directors. About 6% of Iberia is held by employees, and the remaining 54% will be floated next year. Spanish industry minister Josep Pique says the stock market offer ing will not take place before leg islative elections next March. • tion with Lido rival and dominant market player Jeppesen, although Swissair says it no plans for "specific co-operation". Meanwhile, Lido, SAS Flight Support and Air France Aero nautical are to formalise their pre viously announced charting tie-up by establishing a standalone joint venture in April. The three currently operate as a "virtual company" through which they market and supply each odier's products. • BAE Systems and Lockheed Martin head KAI bids OVERSEAS CANDIDATES competing for a possible 30% stake in newly formed Korean Aerospace Industries (KAI) have submitted their bids, with the UK's BAE Systems and US giant Lockheed Martin - in partnership with Aerospatiale Matra - leading the way. The applications to become KAI's foreign direct investor were submitted to its financial adviser, Deutsche Bank, and were sched uled to be evaluated by the end of 1999. DaimlerChrysler Aerospace (Dasa) was thought to be planning to bid before its decision to team up with Aerospatiale Matra in European Aeronautic, Defense and Space (EADS), but has not submitted a proposal. The German company says its withdrawal relates to concerns about the number of international partnerships it is now pursuing, rather than its ties with Aerospatiale Matra. KAI - comprising the aerospace divisions of Samsung, Hyundai and Daewoo is understood to be close to official formation. Controversy was triggered recently when it was revealed that BAE Systems had simultaneously been in negotiations to acquire a controlling stake in Hyundai Space & Aircraft (Flight International, 8- 14 December). • Airline investors finalise Iberia shareholding Slices oflbaia will be distributed to investors 18 FLIGHT INTERNATIONAL 22 December 1999 - 3 January 2000
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