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Aviation History
2001
2001 - 0742.PDF
BUSINESS Exostar woos new equity partner EMMA KELLY/LOS ANGELES AEROSPACE business-to-business exchange Exostar is in "active discussions" with a fifth potential aerospace equity partner and hopes to close a deal in the "next 60 days". The unidentified company would join BAE Systems, Boeing, Lockheed Martin and Raytheon as part-owner of the global aerospace/defence exchange, which went live last September. Exostar has been seeking more equity since it was unveiled last April. As well as the four aerospace giants, technology provider Commerce One has a stake. Newly appointed president and chief executive Andy Plyler says a sixth founding partner will be enough. Exostar had been keen to add EADS, having hoped to announce the European company as a partner at last year's Famborough Air Show in return for a S20 million investment, Flight International understands. EADS withdrew, however, apparently to focus on its own integration. It is continuing to monitor aerospace exchanges, with a decision expected later this year on whether to join one or establish its own, including other European companies - a number of which are concerned about US dominance of aerospace e-business. Another original target for Exostar, Northrop Grumman, has also shunned the major exchanges. "We considered getting involved from an ownership perspective in a number, but decided not to," says its e-business director Keith German. Exostar's platform for the pro curement of indirect goods and services - those not used for aero space products - is up and running, while the direct platform is due to be operational in the next 60 days. "A few hundred suppliers" are involved, but only the four founders are trading. The next step is to target operators, concedes Plyler, speaking at the First Conference's 'Eye For Aerospace' symposium in Los Angeles. Newly merged exchanges Air- Newco (airline-led with a $45 bil lion annual purchasing spend) and MyAircraft (comprising United Technologies, Honeywell and BFGoodrich) will launch services in April or May, with a name and branding to be revealed this month, says Pat Wildenburg, vice- president ofe-business at Delta Air Lines and co-chair of the venture's steering committee. Meanwhile, another Exostar rival, Aeropsan.com is adding cus tomers and developing functional ity to its marketplace, which went live last year. It has 90-plus cus tomers - 50 suppliers and the rest airlines - says CEO Duncan Alex ander, with around 50 of these firm. • Independent aerospace exchange Skyfish.com has filed for bankrupt cy. Funded by Back Aviation Sol utions, Onex and Sabre, its collapse comes as independent exchanges face increasing competition. • Cuts at Tarom as Zeevi plots Balkan rescue ANDREW DOYLE/MUNICH ARIEEGOZI/TELAVIV ROMANIA'S TAROM is to drop loss-making routes and shed 10% of its workforce as part of a cost-cutting drive after being handed an $11 million lifeline by the state-owned Exim bank. Zeevi group, 75% shareholder in grounded Balkan Bulgarian Airlines, has meanwhile presented a recovery plan to the Bulgarian Government. Tarom lost around $50 million last year, but hopes to save $12.3 million annually with the new plan. It has dropped flights to Chicago and will reduce frequencies to Dublin and Tripoli, while increas ing service to New York Kennedy. Around 300 jobs will also go. Plans to privatise the airline remain suspended pending the restructuring - aimed at making it more attractive to international investors, which have shown little interest-and Romania's Authority for Privatisation and Administra tion of State Ownership says no decision is due in the near term. New general manager Nicolae Demetriade says fleet renewal is a top priority, with Tarom's two Airbus A310-300s likely to be replaced by A3 30s, although a contract has yet to be signed. The first of eight Next Generation Boeing 737s ordered by Tarom is due to arrive in April. The current fleet features eight 737-300s and a pair of 737-500s, plus seven ATR 42-500 turbo- props, in addition to the A310s. Two 707-320Cs which are used for cargo flights are being with drawn from service and will be offered for sale. Zeevi's recovery plan for Balkan meanwhile demands that Bulgaria freezes the airline's debts until it achieves an operating profit, while injecting $15 million to compen sate for what it says was an initial over-valuation of the carrier. The Israeli group also wants fee hikes at Sofia airport to be shelved, and says it will deliver on promised invest ment of $100 million. Zeevi has simultaneously initiated bankrupt cy proceedings, should the govern ment fail to accept the plan. • GB counters low-fare opposition BRITISH Airways franchisee GB Airways is adjusting its strategy in reaction to the onslaught of low-cost airlines. The move could see the London Gatwick-based carrier revise its Airbus order to take extra A321s instead of smaller A320s. GB operates a scheduled net work to 21 destinations in the west ern Mediterranean and North Africa from Gatwick and Heathrow, and has an eight-year franchise deal with BA. GB oper ates mainly in the low-fare leisure sector, but claims a "high service standard" with a two-class product. "Last year we suffered as we felt the full brunt of the low-fare com petition," says managing director John Patterson. "We can't chase down those airlines and lower our standards, so we'll exploit the longer three to four hour sector routes where passengers expect a good level of service." The plan will see GB grow service to Morocco, Tunisia and the Canary Islands. GB has just taken the first two of three ordered 189-seat A321s. It also has a single 156-seat A320 in service, with six on order, but may change the order mix to five of each type in an effort to boost capacity. A decision is due by the year-end. The Airbus twinjets will replace GB's seven Boeing 737-300/400s. GB had aimed to grow by taking over BA routes after an anticipated shake-out of the major's European network, but Patterson says this is no longer central to his strategy.Q 22 FLIGHT INTERNATIONAL 6 - 12 March 2001
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