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Aviation History
2000
2000 - 0707.PDF
Swissair in the hunt for Thai following codeshare move CHRIS JASPER/ZURICH SWISSAIR IS launching a code-share deal with Thai Airways International in a move that casts doubt over Thai's long-term future within the Star Alliance. The Asian carrier is due to be partially privatised through the sale of a 23% stake-with 14% going to a foreign airline partner. Although Swissair parent SAirGroup says tiiat it is too early to say whether it will bid, airline sources suggest that an investment would be strategi cally desirable. Thai president Thamnoon Wanglee has indicated that he is unhappy with the entry into Star of rival Singapore Airlines (SIA) from next month. Although the carrier later pledged its allegiance to the group, it is known to fear a major loss of revenue as partner carriers begin codesharing with SIA. The deal with Swissair will see Thai codeshare on 14 weekly re turn flights between Zurich and Bangkok from 26 March, with each operating seven of the services. Swissair chief executive Jeffrey Katz, meanwhile, says a merger be tween S Air subsidiaries Air Europe and Volare of Italy is under discus sion. SAir sources also confirm that talks continue over the merger of its French subsidiary, AOM, with British Airways' Air Liberte. Katz says the sticking point in Italy is that although SAir holds a 49% stake in bodi carriers, each is controlled by a different majority owner. On Air Liberte, die source says "there has been wide-ranging contact over the last month", although "there is nothing to an nounce at die moment". The source adds that "a codeshare would be one possibility, then rang ing up from there to a merger". SIA's arrival in Star could yet see Thai leave the alliance Katz expects the French and Italian domestic and regional mar kets to undergo "major consolida tion" in the next year and says Swissair and the associated Quali- flyer group are determined not to miss out. A bid for Italy's up-for- sale Meridiana "is a possibility". Katz adds that Swissair is happy to remain outside a major global alliance and, although he concedes that the carrier has had "lots of con tact with BA", he says any loss of autonomy would be unacceptable. SAir aims instead to strengthen its hand through developing its diversified non-airline subsid iaries, expanding Crossair and Sabena and its Zurich hub, devel oping the Qualiflyer group and building more route-specific alliances such as that with Thai. In Portugal, Katz says, TAP Air Portugal and Portugalia will stay separate, partly because of union opposition to a merger, with die lat ter being developed "as a Crossair to Air Portugal's Swissair". SAir announced poor results for 1999, when it says it was hard-hit by general market overcapacity, which damaged yields. Fuel price rises were also a factor. While SAir saw sales rise to SFrl3 billion ($7.8 billion), 15% up on 1998, profit before interest and taxes fell 8% to SFr643 million and net profit by nearly a quarter to SFr273 million. The SAirLines and SAirLogistics divisions performed badly, but SAirServices and SAirRelations helped to offset the decline. J Dasa allies with Grintek on electronic warfare DAIMLERCIIRYSLER Aero space (Dasa) is to form an electronic warfare systems alliance with South African defence elec tronics specialist Grintek System Technologies (GST), under the brand name MRCM Products (Monitoring, Reconnaissance, Countermeasures). To help the alliance, Dasa will spin off its electronic warfare activ ities into a new wholly owned sub sidiary, to be called Ewation. The new entity brings together Dasa business units engaged in signal intelligence (SIGINT) activities. Dasa says Ewation and GST - a division of Pretoria-based Grintek Group-will together create one of the world's largest suppliers of sophisticated SIGINT systems. Grintek is 49%-owned by Celsius, which is merging witii Saab. The joint venture will have a combined workforce of 500 people and annual revenues of about € 12 5 million (SI 20 million). • PEOPLE ++ John Ferrie is to head Smiths Industries Aerospace, succeed ing Norman Barber who is retiring. Ferrie joins the UK company as executive director on 10 April and takes over aerospace responsibili ties from 31 July. He was previously executive vice-president (VP) busi ness operations for Rolls-Royce. ++ Newly formed Lockheed Martin Aeronautics has completed its senior management team under president Dain Hancock. Four VPs have been appointed: Tom Bur- bage - customer requirements; Robert Elrod- programmes; John McCarthy - finance and Ralph Heath - operations. ++ Former European competition commission er Karel Van Miert has been appointed to the SAirGroup advisory board. ++ Jean-Luc Engerand has has joined transmissions specialist Hispano-Suiza as chairman and chief executive (CEO) from Snecma group sister company Messier- Bugatti. ++ Michael O'Sullivan is the new business systems director of UK charter carrier JMC Airlines, responsible for meeting systems needs. The appointment follows his management of the integration of Hying Colours and Caledonian Air ways. ++ President Edward Kiley and chief financial officer Richard Orzechowski of Advanced Tech nical Products (ATP) subsidiary Alcore have had their employment terminated. ATP is investigating possible irregularities in company books. Alan Baldwin, ATP board member and previous CEO and chairman of Lunn Industries, is the new president of the composites manufacturer. ++ British Airways' London Gatwick-based subsidiary, CityFlyer Express, has named Paul Roberts financial controller. He replaces Chris Simpson. ++ aviationX, a US Internet start-up linking airlines with suppliers, has appointed MarkTedone VP product and network development. He was previously VP of Sabre Technology Solutions. ++ Stan Dubyn is to join commercial space exploration company SpaceDev as chief oper ating officer (COO) and president. He was previously COO and senior VP at Spectrum Astro. FLIGHT INTERNATIONAL 14 - 20 March 2000 21
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