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Aviation History
2000
2000 - 0773.PDF
MUSJttZZ Argentina suspends law to block LanChile advance GUY NORRIS/LOS ANGELES THE ARGENTINIAN Gov ernment has suspended for six months a 1994 law allowing for eign ownership and control of Argentinian carriers. The move is apparently aimed at blocking a takeover of ailing Aerolineas Argentinas by Lan Chile, which had expressed an interest in taking a share in the Buenos Aires-based carrier. The action follows a recent deci sion by Spanish state holding company SEPI, the airline's part- owner, to assemble a rescue plan after proposals by American Airlines parent AMR were reject ed. LanChile, meanwhile, is reported to have filed papers in Santiago to form an operation called LanArgentina. Chilean plans to become involved in running Aerolineas, put forward when American was managing the Argentinian carrier, had earlier been thwarted when SEPI rejected die scheme. The picture is complicated by a bid for control of die airline by its own pilots' union, APLA. The group says it is close to a deal widi the Inter American Development Bank to secure financing for acqui sition of up to 51% of die airline. Employeesown 10% ofAerolineas under an arrangement orchestrat ed by SEPI. SEPI holds 42% of Andes Holding (Merrill Lynch control ling 49%, and Bankers Trust 9%), which in turn owns 80% of Inter- invest, 85% owner ofAerolineas. The remaining 15% is divided between the government, with 5 %, and the workforce, which holds the balance. The other Interinvest partners are Iberia and American, each with 10%. American has retained its share, despite die rejection of earli er rescue proposals. Details of the SEPI rescue pack age, which includes S70 million of fresh capital, are not now expected until next month, several weeks behind schedule, prompting speculation that the recent moves by LanChile and APLA have creat ed new complications. A teaming of the two is a possibility. ^) See Feature, PP40-43'. Asiana returns to profit after disastrous 1998 improved results were due to a national economic recovery, with foreign exchange gains and increased tourist traffic contribut ing factors. The public also lost confidence in flag carrier Korean Air after a spate of accidents, which helped Asiana. Asiana was listed on South Korea's secondary Kosdaq stock exchange late last year, raising over S300 million through an initial public offering, helping to cover debt payments. Internal figures, pre-flotation, suggest that it lost that amount in 1997, forcing it to cancel aircraft orders and route expansion plans. The carrier operates 50 aircraft, in a mix of Boeing 747s, 767s and 737s, plus diree Airbus A3 21 -100s. Two more 73 7-400s and two A321 s are due this year. Asiana plans to take additional widebodies next year and the airline is negotiating a deal with Boeing. The carrier is to begin operating two new services to mainland China - to Guilin and Xian - from April. European services remain . suspended. • Asiana wings towards profit turnaround aided by Korean Air woes ANDRZEJ JEZIORSKI/SINGAPORE SOUTH Korea's number two carrier, Asiana Airlines, has staged a spectacular turnaround in its 1999 financial performance, after a disastrous 1998 during which some observers doubted the airline's ability to survive. The carrier reports a 109.68 bil lion won (S9.7 million) net profit for the year, compared with a 141.46 billion won net loss for the previous 12 months. Revenues totalled 1.78 trillion won, com pared with 1.53 trillion. Asiana's 1998 results led analysts to judge that it was on the brink of collapse as it suffered the full impact of die economic downturn which took effect in late 1997. The carrier says that the MERGERS ++ Lockheed Martin Global Telecommunications expects to complete its merger with Comsat early in the third quarter, after the US Congress approved satellite communications reform legislation that clears the way for the privatisa tion of the Intelsat and Inmarsat satellite networks. The legislation allows US customers to bypass Comsat, which controls access to the networks. ++ US cabin and cargo equipment maintenance spe cialist Airbase Services is to merge with passenger-seat repair er Aircraft Interior Refurbish ment of the UK. ++ Airfield handling and fuellingfirmASIG of Florida is to acquire London Heathrow-based baggage tracing firm Aviation Consultancy Services. ++ TRACE Woridwide(TW), parent of TRACE Aircraft Completions, and Air Group Aviation (AGA) are to form a completions business, with TW's London Biggin Hill completion centre and AGA's Tyler, Texas, facil ity to be merged. AGA has taken a stake in the Biggin Hill business, with the merger to be completed by the second quarter. ++ Landmark Communications has completed the $120 million acquisition of weather data provider Weather Services International (WSI) from Litton Industries. Multimedia company Landmark owns The Weather Channel, and other broad casting and newspaper interests. ++ Anaren Microwave has acquired RF Power Components, a manufacturer of power resistors and attenuators, in a three-for-two stock split. Both firms are New York- based, with the sale strengthening Anaren"s microwave component line, serving the wireless and satel lite communications and defence- electronics markets. ++ US maintenance provider American Aircarriers Support has taken a stake in IT "e-procurement" spe cialist SupplyAccess via its new subsidiary, AAS Technologies. ++ Monchengladbach, Germany- based carrier European Air Express has confirmed the acqui sition of Rider Air Service. Rider operates four turboprops and runs a maintenance operation. FLIGHT INTERNATIONAL 21 - 27 March 2000 29
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