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Aviation History
2001
2001 - 1950.PDF
HEADLINES US giants back new FedEx-style service UNITED AIRLINES and American Airlines are back ing the new cargo transportation joint venture, Integres Global Logistics, which will offer small- and medium-size shippers with a FedEx-style service featuring door-to-door delivery and on-line tracking as an alternative to more traditional air- freight forwarding. Integres claims it provides a turnkey solution to the cargo needs of small businesses, with pick-up and placement on one of the joint venture's participating carriers, electronic tracking and delivery. "Pricing is geared to providing small shippers with the feel of being a Fortune 500 shipper," says Integres president Jim Hartigan. American and United have joined forces with G-Log, Roadway Express, Unisys and UTi Worldwide to form Integres. Del iveries will bear the carrier or ground delivery agent's label and undercut the fragmented freight- forwarding market by 30-35%. "We're not unique to American and United, and are in discussions with other carriers. We'll be announcing in the next few weeks the signing up of additional trans port companies to access capacity beyond American, Roadway and United. They could be both equity investors or users," says Hartigan, formerly a United Airlines cargo vice president. The Rancho Cordova, Cali fornia-based firm hopes to make an initial public offering within 24-26 months. Integres has not revealed the size of American or United's holding or investment. Operations will start this summer. • Qantas and SIA offer deal to troubled Air New Zealand PAUL PHELAN/CAIRNS ASURPRISE BID by Qantas Airways to acquire a major stake in Air New Zealand (ANZ), involving the sale of Ansett to Singapore Airlines (SIA), has prompted ANZ to dampen down speculation of a fire sale. Analysts predict operating losses for ANZ of at least NZ$180 mil lion ($74 million) for the year to June, worsened by two groundings of part of Ansett's Boeing 767s and the carrier's failure to deliver expected profits. On 29 May Qantas formally declared interest in acquiring a "significant" shareholding in ANZ from the two main shareholders, 30% owner Brierley Investments and 2 5 % owner SIA. Under the proposal, SIA would buy Ansett Holdings, which the Singaporean carrier has long want ed. Ansett Holdings owns all of AnsettAustraliaand49% of Ansett International. ANZ's board says it will consider the proposal and its ramifications, and other options expected from an already-commissioned Salomon Smith Barney study of Ansett re- fleeting funding options, due to be presented in mid-June. Acknowledging that ANZ had considered approaching the New Zealand Government for bridging funds, ANZ-Ansett group chief executive Gary Toomey said the Qantas proposal was just one option available to the group, which he claims will have NZ$1 billion in cash available by the end of June. "We're in good shape to meet current requirements," he SIA may finally clinch ownership of Ansett if Qantas gets ANZ says, adding that the Qantas pro posal was in its infancy as regulato ry and other key questions remain to be addressed. The deal must survive the scruti ny of New Zealand's Commerce Commission and the Australian Consumer and Competition Commission, as well as regulators charged with preserving interna tional bilaterals. It will also require a change in New Zealand policy limiting ownership by a single for eign carrier to 25%. Qantas chief executive Geoff Dixon insists, however, that the deal is "do-able". Dixon says Qantas and ANZ would stay independent operations and brands. ANZ would continue to be New Zealand-owned with a majority of nationals on its board and a New Zealander as chairman. Its management, offices and prin cipal hub would stay in Auckland. "At no time has Qantas suggest ed it wanted to merge with Air New Zealand, or to seek outright con trol," Dixon said after the carrier received a cool response to the deal from New Zealand's government and opposition politicians. He acknowledges, however, that the deal cannot proceed without the Ansett Group commencing significant operations on the^i Tasman and some other competi tive routes; and starting a domestic airline within New Zealand. "Our preliminary discussions with Singapore Airlines canvassed all these issues," he adds. • General Electric faces European hurdle in Honeywell merger bid GENERAL ELECTRIC has been defending its proposed $41 billion merger with Honeywell in hearings at the European Com mission in Brussels on 29/30 May. The deal has been given the go- ahead by the USA conditional on minor concessions in its helicopter engine businesses, leaving Euro pean approval as the last hurdle. Thales, Rockwell Collins, Rolls- Royce, United Technologies and Lufthansa were among those giving presentations to the EC. The prime battleground for GE and the EC centres on European concerns over the possible anti competitive impact of bundling products by the merged compa nies. Overlap in the regional engines market is also an issue. 'Bundling' refers to a wide-rang ing package of services which diversified companies can offer. The EC fears a combined GE- Honeywell would offer 'bundles' of aerospace goods and services, including financing, which could squeeze out potential competitors. Prior to the hearings EC sources indicated that GE could find it "difficult to find ways to remedy the bundling issues identified by the EC. GE believes it could be set tled by behavioural arrangements, for example by pricing each ele ment in a package separately, and have been trying to win the support of their customers for this approach.This will not eliminate our worries as an overall frame work remains in place." Brussels will rule on the merger by 12 July. • 6 FLIGHT INTERNATIONAL 5 - 11 June 2001
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