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Aviation History
2001
2001 - 2322.PDF
HEADLINES AIRPORTS f AEA slams EC's new slot allocation definitions The Association of European Airlines (AEA), members of which include Europe's major carriers, has reacted angrily to the European Com mission's (EC) just-published "redefinition" of airport slot allocation, accusing it of pre judging "the question of the nature of the rights of airlines to the slots they hold". The EC argues it has simply provided a legal definition for the first time. Slots, it says, are "entitlements to use the air port infrastructure for the purpose of landing and taking off at specific times of the day during a scheduling season". The Commission is also promising stricter rules on the "use-it-or-lose-it" principle for under-used or "abused" slots, giving "new-entrant" carriers priority on newly created slots or those returned to the pool. This should encourage air lines to improve runway usage by efficient slot exchanges. The EC has not said how it would administer this. The AEA is also unhappy with the EC's use of the term new-entrant carriers without considering how the market develops in the real world. It insists the EC should study traffic development between city pairs rather than focusing on airport pairs, pointing out the success of the low fare carriers despite congestion at the major hub airports. The EC emphasises that the "grandfather rights" prin ciple is not under attack, but that there will be a second, more fundamental phase of its slot usage study, examin ing the introduction of "a market mechanism for alloca tion which will allow for more flexibility and mobility in their use and further enhance mar ket entry possibilities for air OWNERSHIP PAUL PHELAN / CAIRNS ANZ wants SIA as owner Flag carrier is pressurising the government to change legislation on ownership Air New Zealand (ANZ) has stymied Qantas Airways' bid to buy a major stake in the Air New Zealand-Ansett group. It has asked the New Zealand Government to increase the stake a foreign airline may own in ANZ to allow its 25% owner, Singapore Airlines (SIA) to increase its equity. In late May, Qantas submitted a surprise bid for a major stake in ANZ, but ANZ is now seeking to up the 25% maximum stake a foreign airline may own and the 35% aggregate foreign ownership cap, believing that increased ownership by SIA is its best way forward. Acting ANZ chairman Dr Jim Farmer confirmed on 19 June that the board had endorsed the SIA option, subject to government and regulatory approvals on both sides of the Tasman Sea, after its man agement and consultants Solomon Smith Barney had developed and analysed "about eight" alternative options for review by the board and its independent committee of directors. "We are firmly of the view that it is in the best interests of the company and indeed of New Zealand, that we strengthen the Air New Zealand Ansett Australia group as an integrated presence, and that Singapore Airlines has a significantly increased stake." If the plan proceeds, ANZ would seek to raise interim funding. "Dr Cheong [SIA deputy chairman and chief executive officer] has advised us that once all the required approvals and agreements are obtained, SIA will take up a place ment of additional shares in the company and support a subse quent capital raising programme. One of the options is a rights issue," Farmer says. ANZ will immediately begin negotiations with both govern ments on foreign ownership limits, consumer competition and air service agreements, while it also prepares a detailed strategic plan to present to its board in September. Qantas has reacted angrily, with chief executive Geoff Dixon saying: "This is an attempt by SIA to take an unprecedented level of influ ence over the competitiveness and structure of the aviation industry on both sides of the Tasman." He adds: "This is a move to con trol the Ansett Group by the back door, which would not have been the intention of the Australian authorities when they allowed the sale of Ansett to Air New Zealand. This will give Singapore Airlines major influence over the future of Air New Zealand, Ansett and Ansett International, in addition to their 49% stake in Virgin Atlantic." Gary Toomey, Dixon's former Qantas executive management col league and now ANZ chief execu tive, insists that SIA control is not possible. "It is not permitted by our constitution or government policy, and would lead to issues about bilateral rights," he says. LEASING Boeing talks 717 leases with airlines Boeing is in discussions with around 20 airlines regarding the creation of a leasing arm to provide 717s. The plan, dubbed "Airplanes Plus", could signal the creation of a GE Capital Aviation Services (GECAS) style lessor which would buy all the models in Boeing's product line for onward lease. "We are looking at setting up a pool of 25 to 50 717s which we will offer on power-by-the-hour leases," says Mike Bair, president of Boeing's Commercial Airplane Services divi sion. "We are in active discussions with airlines about what the lease package would look like." Sources suggest the project could be given the go-ahead within six months. Bair says that Boeing would build a standardised version of the slow-selling aircraft which would be typically offered on leases of three to five years, "or even shorter". The aircraft are expected to be managed within the Boeing Boeing's leasing plan is designed to boost sales for the slow-selling 717 Capital portfolio, although 717 lessors Bavaria and Pembroke could also be included in the programme. If the project goes ahead, the portfolio could expand into "a sub stantial fleet within a year or two", says Bair, and include used aircraft acquired through sale and lease back deals. The move would effectively pro vide Boeing with a transparent equipment leasing division similar to the GECAS arm of General Electric. It comes as part of a drive by the US manufacturer to expand its share of the aircraft services sec tor as it looks for ways to grow and diversify its global business. 6 26 JUNE - 2 JULY 2001 FLIGHT INTERNATIONAL www.flightinternational.com
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