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Aviation History
2001
2001 - 0592.PDF
BUSINESS MERGERS ++ Alliant Techsystems (ATK) is to buy Alcoa's Thiokol propulsion business for $685 million. Thiokol, which makes rocket engines for space launch vehicles, became part of aluminium giant Alcoa with the acquisition of Cordant Technologies in May 2000. It had sales last year of $570 million. The transaction should close by the end of the second quarter. Minnesota-based ATK is a $1.1 bil lion aerospace and defence com pany producing munitions propulsion systems and compos ite structures. ++ Iberia, majority shareholder in Spanish turboprop operator BinterMediterraneo. is to merge the carrier into the 'Iberia Regional' brand after agreeing the move with Iberia Regional/Air Nostrum, which holds the fran chise. ++ Raytheon has bought Boeing's Australian aircraft modi fication operations, based at Avalon, Victoria. The site already performs subcontracting work to Raytheon on Australia's Sea Sentinel P-3C refurbishment pro gramme. ++ Austrian Airlines shareholders have approved the purchase of Rheintalflug, cur rently owned by Rolf Seewald. The regional has a share capital of ATS13.8 million ($0.9 million). ++ Cobham of the UK has bought South African satellite antennas specialist Omnipless for $38 mil lion, following the purchase in the last few months of Salies (£3 mil- lion/$4.3 million) and Team (£7.7 million for 80%), both of France, and of the Transco antenna line of Daytron Systems (£2.5 million). ++ Peacock Financial of Calif ornia has bought Florida-based air craft modification specialist Genesis ModWorks. ++ US sim ulation specialist Evans & Suth erland has divested its German subsidiary via a management buy out and established a new busi ness unit in Germany to support its visual systems customers. ++ Aviant group has bought smaller aerospace staffing specialist ETS. Aviant, formerly McDonnell Douglas Technical Services, was spun-off by Boeing via a manage ment buy-out in 1999. Airbus ups bid to add Japan to A380 team and foil Boeing CHRIS JASPER/LONDON ANDRZEJ JEZIORSKI/SINGAPORE AIRBUS HAS stepped up its campaign to recruit Japanese companies as contractors and risk- sharing partners on the A3 80 pro ject, following Boeing's rival offer of full wing construction for the 747X. Boeing president Phil Condit, meanwhile, tells Flight International that, while Japanese industry could act as a supplier on both projects, "you can be a part ner with only one person". Airbus confirms it is in talks with all of Japan's key aerospace manufacturers - Fuji Heavy Industries (FHI)', Japan Aircraft Manufacturing, Kawasaki Heavy Industries (KHI), Mitsubishi Heavy Industries (MHI) and ShinMaywa - over work packages and risk-sharing on the A3 80. While contracting deals can help offset manufacturing costs, a risk-sharing agreement represents a much bigger prize. Boeing is understood to have offered Japanese industry20% ofthe 747X programme, corresponding to an investment of $1 billion out of development costs the airframer says will be "around $4 billion". Having previously offered Japan 747X wing subassemblies and the centre torque box, Boeing apparently upped the ante by offer ing full wing production, currently undertaken at its Everett plant, prompting a backlash from the machinists union. % V3 V w* 'vfe. KHI is a contractor on Boeing's 777 Despite union difficulties, potential Japanese funding - half of which could come in "soft loans" from the Japanese Ministry of International Trade and Industry - is such that Boeing is unlikely to modify its offer. The wing is the key departure in the 747 stretch, and therefore perhaps the only pro duction element able to satisfy Japanese demands that investment should deliver new technologies. Airbus is thought to have offered Japan 8-10% of A380 production, including spoilers and ribs for the wing, plus cargo doors and panels. All five Japanese companies approached are Boeing sub contractors, while KHI and key player MHI produce Airbus com ponents. The latter is examining the effect of Airbus' offer on its relationship with Boeing. Condit acknowledges that Japanese companies "have been partners with us and they have been great partners". He adds that "you can be a supplier to both", but not a partner to both. Mike Turner, chief operating officer of Airbus 20% shareholder BAE Systems, confirms that the airframer will shortly launch an Airbus Japan unit to promote sales and links with industry there. He adds that, while risk-sharing remains a goal, a simple sub contracting deal is also desirable, and would help sell the A3 80. "Whatever deal you come to on manufacturing helps them order aircraft," he says. "Boeing has a strong relationship with the Japanese, and has been leaning on them to go down the 747X route. They've been trying to convince them that it will be a civil leader, but we've seen lots of A3 80 orders so they're looking for them to be a leader on the freighter side. But the Japanese will want the A3 80 when it starts flying into Tokyo." Japan Airlines, the country's biggest carrier and the world's largest 747 operator, has an all- Boeing fleet, hence Airbus' attempt to establish a bridgehead by offering two A3 20s for lease by its JAL Express subsidiary, although there may be political pressure to stick with Boeing due to Japan's US trade imbalance. • Additional reporting by Paul Lewis BAE sells former Reflectone to Canada's CAE HARD ON THE heels of the divestiture of its Canadian commercial avionics operation, UK defence giant BAE Systems has agreed to sell its US-based flight simulation subsidiary to leading simulator manufacturer CAE of Canada. CAE will buy Tampa, Florida-based BAE Systems Flight Simulation and Training, formerly Reflectone, for $80 million. BAE and CAE will also "explore a strategic relationship addressing military training opportunities globally". The purchase of the BAE unit, which specialises in sim ulators for military helicopters and the Lockheed Martin C-130, will give CAE increased access to the US defence market. The unit had revenues of $80 million last year. CAE has set aggressive profit goals, and has already launched several new initiatives in the com mercial flight simulation market, including entering the airline flight-training business. The new buy and strategic relationship with BAE will boost its military unit. • FLIGHT INTERNATIONAL 20 - 26 February 2001
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