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Aviation History
2002
2002 - 1729.PDF
BUSINESS RESCUE GRAHAM WARWICK / WASHINGTON DC Bombardier could build bigger 728 Talks enter "decisive phase" as manufacturer ponders converting Fairchild Dornier 70-seater into 100 to 105-seater Bombardier may decide to rescue has completed its technical evalua- bankrupt Fairchild Dornier's 728 regional jet programme in order to develop it into a 100 to 105-seat tion of the 728/928 family and has begun a commercial evaluation, says Bombardier chief executive airliner. The Canadian company Robert Brown. This includes talks ORDER Atlantic replaces 328 order with CRJ200s Fairchild Dornier's insolvency has prompted Atlantic Coast Airlines (ACA) to order 25 additional Bombardier CRJ200s to replace the 32 Fairchild Dornier 328JETs on order for its United Express operation. The US regional airline expects the 328JET order, and 80 options, to be formally terminated as part of Fairchild Dornier's insolvency proceedings. Fairchild Dornier says it "regrets this decision, since the 328JET would have been the better choice", but admits its current insolvency proceed ings mean that the 328JET order carried a "potential risk". The 30 328JETs in ACA's Delta Connection fleet are not affected. The air line says it could still take delivery of more aircraft if Delta Air Lines decides to expand the operation. Delta Connection is looking to replace seven Comair Embraer EMB-120s at Orlando - ACA is proposing 328JETs. Dulles, Virginia-based ACA has revised its agreement with United Airlines to reduce the number of regional jets required for its United Express operation from 128 to 121, reflecting the larger capacity of the 50-seat CRJ. As the CRJs are delivered over the year beginning April 2003, ACA will retire its remaining BAe Jetstream 41 turboprops, leaving the airline with an all-jet fleet by April 2004. with customers and suppliers, as well as the German and Bavarian governments. Bombardier declines to com ment on a German press report that it has agreed to continue 728 development and production at the Oberpfaffenhofen plant near Munich, while Fairchild Dornier confirms talks have entered a "decisive" phase. Both companies say a final deci sion will be taken after completion of the commercial evaluation, expected in July or August. "We're looking at the commer cial part now, to see if it makes any sense for us," says Brown. "1 think this could be potentially very com plementary." Bombardier is interested in the potential of using the five-abreast Fairchild Dornier design as the basis for a 100 to 105-seat aircraft to replace the BRJ-X project shelved two years ago. "This is the key," Brown says, acknowledging the company's CRJ family of four-abreast regional jets has been stretched to the limit with the 86-seat CRJ900. Bombardier is also interested in the 70-seat 728 jet, Brown says, because of the company's lack of success in penetrating the Euro pean market with its own CRJ700 regional airliner. "What we are trying to do is see if we can establish a programme that would allow us to create a family of aircraft, with a couple of aeroplanes that would have five- abreast seating and would be prof itable going forward," he says. "And that is the only basis on which we are looking." The biggest hurdle to be over come is funding. Brown estimates C$1.4 billion ($1 billion) will be required to bring the two aircraft to market - C$400 million to com plete development of the 728 and C$1 billion to develop the 928. The German and Bavarian authorities will be expected to pro vide grants or guarantees, but Brown says it is too early to talk about how much government money could be involved. "We have to determine whether this project makes sense first," Brown says. "There is much to do." RESULTS Czech Airlines joins profitable elite Czech Airlines (CSA) has joined the small group of European airlines which ended 2001 in the black, reporting a profit of around CKr260 million ($8 million), down from CKr408 million the year before. Apart from the terrorist attacks on New York and Washington, CSA blamed the fall in profits on lower CSA managed to stay in the black, although profits fell economic growth in the USA and western Europe, plus strengthening of the Czech koruna against the euro and the dollar. Average load factor increased to 70.8%, aided by the airline's membership of the SkyTeam alliance. CSA was less affected than other operators by 11 September as it operates a relatively low number of flights to North America. The num ber of passengers flown in 2001 totalled 2.87 million - up 16% compared to the year before - but freight transport decreased by about 2% to 16,000t. The airline says it does not plan to expand its fleet before the end of the current year after putting its 20th Boeing 737 into service at the end of May, increasing its fleet to 31 aircraft. STRIKE OVER Loss-making Aer Lingus has resolved the dispute with pilots and is seeking to minimise the impact of the one-day strike and subsequent four-day grounding of the fleet. Over the weekend of 1-2 June, the Irish carrier ham mered out a deal on duty and rest hours with its pilots, who are the last of the airline's employees to accept new working arrange ments set out in its survival plan. Aer Lingus is estimated to have lost €2 million ($1.8 million) a day as a result of the action and the decision to ground the fleet until a deal had been struck. Extra costs were incurred accommodating stranded passengers, and on overtime, replacing flights and air craft leases. The carrier fore casts a €27 million loss this year. www.flightinternational.com FLIGHT INTERNATIONAL 11-17 JUNE 2002 19
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