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Aviation History
2001
2001 - 2321.PDF
DEFENCE LEASING ANDREW DOYLE / PARIS Leasing market faces shake-up A slice of Debis AirFinance is for sale, while ILFC is poised to swoop down on Swissair's aircraft management unit A further round of consolidation in the aircraft leasing sector is loom ing following DaimlerChrysler's decision to put its 45% stake in subsidiary Debis AirFinance up for sale, and a move by financially troubled Swissair to offload major parts of its Flightlease portfolio. US giant International Lease Finance (ILFC), tipped to take over several Flightlease commitments, including Airbus A340-600s ear marked for Swissair, has meanwhile ordered an additional 110 aircraft from the European manufacturer. Industry sources say ILFC also approached Boeing to discuss a major follow-on order for 737s and 777s, but was rebuffed due to the manufacturer's concerns its leasing company backlog would have reached an unacceptably high level. The sources say Boeing is not prepared to allow the proportion of its backlog accounted for by leasing companies to exceed 40%, and subsequently failed to close a deal for a smaller number of 737s and 777s which it offered to ILFC. Boeing declines to comment on its discussions with ILFC other than to say that "we are still talking to them". ILFC was not available for comment. The Los Angeles-based firm announced an $8.7 billion order at last week's Paris air show for 110 aircraft for delivery from 2002. The deal includes 10 Airbus A380s, 21 A330-200S and*80 A320-family aircraft. The deal contributed heavily to Airbus's eclipsing of Boeing at Paris in terms of announced orders. ILFC is also purchasing a single A340 from Swissair's struggling Belgian affiliate Sabena. ILFC declined to reveal potential customers for the newly ordered aircraft, including five previously- announced A380 passenger models and five new orders for A380 freighters. ILFC has the right to convert some or all the A330s to a freighter version if it is launched. ILFC becomes the first leasing company to place firm orders for the 550-seat A380. "Our focus will be on existing Boeing 747 opera tors," says ILFC chairman Steve Udvar-Hazy. In a separate move, ILFC is dis cussing an imminent purchase of around 15 aircraft from Flightlease, possibly including the bulk of the nine A340-600s ordered for opera tion by Swissair. Industry sources suggest that Airbus is helping to broker a deal between ILFC, its biggest single customer, and the Swiss flag-carrier in an effort to protect one of the key launch orders it holds for the stretched, longer range A340. Swissair is believed to be aiming to conclude a deal by the end of June, so that the financial impact will be reflected in its first half balance sheet. ILFC ha^ already placed a pair of A340-600s with Swissair as part of an earlier deal. Swissair has also decided to sever ties with GATX of the USA, its part ner in the GATX-Flightlease joint venture, which currently has 58 air craft on order and option. The lat ter will be disbanded and the Swiss group will assume control only of those aircraft operated by Swissair and its regional subsidiary Crossair. GATX says it will "work closely with Flightlease to address the part nership structure and any issues regarding jointly owned and ordered aircraft." „ A full disposal of Flightlease is not being ruled out by Swissair. Meanwhile, DaimlerChrysler has reportedly retained Goldman Sachs to advise it on the sale of its 45% stake in Debis AirFinance, which has a portfolio of 220 jet and turbo prop aircraft. The bulk of the remaining shares are held by German banks. ILFC is seen as a potential suitor for Debis. News digest Boeing signs Russian regional jet MoU AIRCRAFT DEVELOPMENT Boeing has signed a memorandum of under standing (MoU) with Russian manufacturers Sukhoi and llyushin on a joint feasibility study for a new regional aircraft. The MoU follows co-operation talks in April between Boeing and Russian manufacturers (Flight International, 24-30 April). To be manufacturered in Russia, the aircraft will be designed to carry 50 to 90 passengers over 1,850km (1,000nm). Each company would have equal stakes in project development and marketing. Interim ruling continues Brazil-Canada row SUBSIDIES A new interim ruling by the World Trade Organisation (WTO) says Brazil's revised Proex export finance programme does not contravene international trade rules, but adds it is possible for Brazil to abuse the Proex programme so as to subsidise the sale of Embraer jets. The WTO has attached conditions for each loan: financing must be at market rates plus a premium for risk; loans must be for no longer than 10 years; and Proex loans must cover no more than 85% of the purchase price. In the latest stage in the long-running dispute between Canada and Brazil, Canadian manufacturer Bombardier says the WTO's decision does not change the current position. Bombardier adds that it will continue to seek Canadian Government financ ing to match Brazilian financing. Italy ponders Alitalia's options ALLIANCES The Italian Government is taking the next three months to con sider Alitalia's options for a strategic alliance with a major international airline. Talks are ongoing with Air France, which is believed to be pressing for a speedy decision, in addition to KLM and Swissair. There is speculation in Italy that Alitalia could take an interest in troubled Belgian carrier Sabena. Business jet market still 'hottest sector' FORECAST Business jets are "the hottest sector of the aviation industry" and, despite a sluggish US economy marked earlier this year by a number of order cancellations, around 6,900 business jets worth more than $94 billion are expected to be built between now and 2010, according to US-based Teal Group's annual forecast. The Fairfax, Virginia-based consultancy predicts that, over the next decade, Bombardier will lead its rivals with a 25.5% mar ket share, followed by Gulfstream, which this month added the Galaxy Aerospace mid-size aircraft portfolio to its product line, with 25.1 %. Dassault, Cessna and Raytheon are projected to garner 18.9%, 17.2% and 11.5% market share, respectively, over the coming decade. IAI wins Boeing 737 cargo conversion deal CONTRACTS The Bedek division of Israel Aircraft Industries (IAI) has won a $50 million contract to convert 15 Boeing 737-300s and -400s from passen ger to cargo configuration. The first converted aircraft are due for delivery in mid-2003. The contract includes maintenance of the converted aircraft and further aircraft options. Spanish regional Air Nostrum buys Binter ACQUISITION Spanish regional Air Nostrum has acquired fellow Iberia fran chise carrier Binter Mediterraneo. The long-expected move combines Binter Mediterraneo's Casa CN-235 operations from Spain's North African enclave Melilla to Malaga, Granada, Madrid and Valencia, with Air Nostrum's 65 routes to 37 cities in Spain and abroad. Aerolineas Argentinas files for protection BANKRUPTCY Saddled with debts totalling nearly $1 billion and an ongoing labour dispute opposing a radical restructuring plan, Aerolineas Argentinas filed for bankruptcy protection on 21 June. With losses reported to be up to $30 million a month, Spanish state holding company SEPI, 85% shareholder of the Buenos Aires-based airline, and the Argentine Government (5% owner) are refusing to provide any more money. www.flightinternational.com FLIGHT INTERNATIONAL 26 JU NE - 2 JULY 2001 5
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