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Aviation History
2001
2001 - 0745.PDF
BUSINESS Airlines close on stake in NATS after EADS drops out ANDREW DOYLE/MUNICH CAROL REED/SWANWICK EADS has dropped plans to take a 10% equity stake in the Serco-led Nimbus consortium, which had been one of two short listed bidders for 46% of the UK's state-owned National Air Traffic Services. The European aerospace com pany declines to comment on the reasons for its decision. But UK sources involved in transforming NATS into a public-private part nership say the company's board was not satisfied that the invest ment would give an adequate return to shareholders, given the perceived level of risk and die lack of time to analyse the financial con sequences of its involvement. The rival Airline Group, formed by the UK's leading carriers, has described as "ridiculous" media reports that it pressured EADS to pull out because die bid would have put the manufacturer in direct competition with its customers. EADS, drafted into Nimbus at the end of January after die withdraw al of UK investment firm PPM Ventures, will continue to provide technical support for the Serco bid, which is opposed by UK air traffic controllers. The Novares group, linking Lockheed Martin and Airways Corp, New Zealand's state-owned air traffic control provider, was excluded from the UK Depart ment of die Environment, Trans port and the Regions' shordist, but retains "reserve" status. Sources close to the privatisation say the government is nevertheless wary about putting control of UK airspace into foreign hands. Long delays in the development of the UK's new air traffic control centre at S wanwick - now due to go 'live' in June next year - may also have damaged Lockheed Martin's credibility, the US company being the prime contractor on the pro ject. The successful bidder for NATS will be chosen later this month, with the government retaining a 49% holding and employees receiving 5 %. • Finmeccanica warned over transport sale THE ITALIAN Government has indicated its reservations about the Finmeccanica group's new strategy of leaving certain business areas to concentrate on aerospace and defence (FlightInter national 27 February - 5 March). Senior Finmeccanica managers have told Flight International that the conglomerate wants to sell its energy and railway activities, which offer poor returns, and use the cash to grow its aerospace/ defence activities. But a govern ment minister and several Italian political parties have warned that the sale of the transport activities must not be rushed. With a general election due in mid-May, the politically sensitive break-up of Finmeccanica will require the new administration's approval. Potential buyers are understood to have emerged for the energy activities. • Incheon backs down on airport charges SEOUL'S Incheon International Airport (IIAC) has comprom ised in its dispute with the Inter national Air Transport Association, setting user charges 20% above those at the South Korean capital's former Gimpo gateway, rather than 40% higher, as proposed. Incheon opens on 29 March, after which Gimpo will be down graded to a domestic facility. The operator says the landing charge fora395tBoeing 747-400 with312 passengers, including parking for 2h, will be $2,800, and that passen ger aircraft charges will be re viewed after a yeanf ees for similar sized cargo aircraft will be $2,675, fixed for three years. A 25% dis count will be offered to freighter flights between 23:00 and 05:30. IIAC says the charges were set after talks with LATA failed to find a compromise, and that IATAi pre ferred rate of 13 % above Gimpo was not "a realistic benchmark", given that Ale old airport was debt- free. It adds that the charges will still be 31% rower than Osaka Kansai and 52% lower than Shanghai Pudong. • Losses prompt Luxair to re-focus on Europe HERMAN DE WULF/BRUSSELS LUXAIR is tofcfocus on short-haul rdutes serving the European business community, ruling out further forays into the long-haul market and calling into question the future of its leisure routes and those serving destina tions beyond Europe. The Luxembourg-carrier's new president and chief executive Christian Heinzmann says it will concentrate on regional services linking the banking centre with key European cities. Heinzmann - formerly of Belgian-based airline VLM - was brought in to run Luxair on 2 January, and says its "future policy will be to steer away from lq»g- haul services" with the aim of restoring profitability this year. "We can't compete with the many more important hubs that surround Luxembourg," he says. "Instead we should concentrate on our core business which is in Europe. Luxair has to make more efficient use of its aircraft, and we are therefore looking again at our destinations and evaluating them Luxair plans to steer away from long-haul flights after a $4 million loss carefully. We may abandon some and we may add others." Luxair launched a daily long- haul service to New York in 1999 with a Boeing 767 wet-leased from CityBird, but abandoned it the same year after losing money on the route. The carrier's longest remaining sectors are to the Canary Islands and the Red Sea resort of Hurghada in Egypt - destinations clearly non-core given its new strategy. Luxair took an LFrl90 million ($4.28 million) loss last year on sales of LFrlO billion after rising fuel costs and exchange rate changes took a major toll. The air line carried 1.1 million passengers, with a load factor of just 56.9%. Luxair Group was nevertheless profitable thanks to the contribu tion of Cargoloux, in which it has a 35% stake. Luxair serves 37 destinations with an 18-aircraft fleet, compris ing four 50-seat Fokker 50 turbo- props, nine 49-seat Embraer ERJ-145 jets, two Boeing 73 7-400s andtwo737-500s. • FLIGHT INTERNATIONAL 6 - 12 March 2001 25
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