FlightGlobal.com
Home
Premium
Archive
Video
Images
Forum
Atlas
Blogs
Jobs
Shop
RSS
Email Newsletters
You are in:
Home
Aviation History
2003
2003 - 0831.PDF
HEADLINES AIR TRANSPORT NICHOLAS IONIDES / SINGAPORE Asian airlines facing 'worst' crisis Continued spread of SARS virus also hitting manufacturers as carrier fleet expansion plans are put on hold The Association of Asia Pacific Airlines (AAPA) has issued a dire warning that its member carriers are facing their worst crisis ever and is seeking urgent relief from airports, air traffic service providers and suppliers. As the Severe Acute Respiratory Syndrome (SARS) outbreak contin ued to spread last week, more Asian carriers announced drastic cuts fol lowing a severe drop in demand. Aircraft manufacturers and other suppliers are also starting to feel the effects, as airlines put expan sion plans on hold. Cathay Pacific was considering orders for the Airbus A380 and other types, but has frozen all acquisition studies. Singapore Airlines (SIA) is another that has deferred fleet modernisation plans, having grounded its three remaining BUSINESS American in union deal American Airlines has escaped bankruptcy by the skin of its teeth after persuading its major union groups to accept new contracts that will save the airline $1.8 billion annually. The white-knuckle ride to stay out of Chapter 11 came to an end last week when American's flight attendants, represented by the APFA union, acquiesced in a sec ond vote that was nervously permitted when the first vote rejected a concessions deal by just 533 votes. In securing cheaper labour agreements, American succeed ed where US Airways and United Airlines failed. Chief executive Don Carry convinced employees that the deals on offer were better than those that would be offered from Chapter 11 bankruptcy pro tection. He made clear he would not play a waiting game, issuing an ultimatum that all three major unions - APA, TWU and APFA - had to ratify the new contracts or he would file for Chapter 11. Airbus A340-300s, which are being acquired by Boeing, and in June will take its nine Airbus A310-300s out of service - five months earlier than planned. "The spread of SARS has created the worst-ever situation faced by the airlines of the Asia-Pacific region," says AAPA director-general Richard Stirland. "Unlike a war situation or an economic downturn, the malaise is very focused on certain countries and cities and the airlines operat ing from and to those destinations are suffering disproportionately." The AAPA's member airlines have together cut around 650 weekly flights in April. Some in SARS-affected areas, such as Hong Kong-based Cathay and Dragonair, and SIA, are suffering particularly badly. Cathay has cut more than The Czech Republic has sought data on used UK Royal Air Force Panavia Tornado F3s as part of the country's studies of potential replacements for its fighters. Prague cancelled a deal for 24 Saab/BAE Systems Gripens in Nov ember and has been evaluating offers of used fighters, including Lockheed Martin F-16s from Belgium, Israel and Turkey and Canadian Forces' Boeing CF-18s 40% of its passenger services, Dragonair around 50% and SIA 20% as demand has plummeted since the middle of March. Cathay and SIA have reported sharp drops in load factor for March and warn that April traffic results will be far worse, although they say cargo demand remains healthy. Asia has been hardest hit by travel fears and government advi sories calling on their nationals to avoid visiting affected areas. The AAPA, which represents 17 airlines in Asia-Pacific, says it is "vital to the survival of the existing air transport industry" that charges are reduced. It also wants suppliers "to take a realistic look at prices and payment terms in the light of the catastrophic situation". Senior Airbus executives are play ing down the seriousness of the Flight International, 17-24 Dec ember 2002). The UK Defence Export Services Organisation (DESO) says the Czech government has approached Lon don seeking information on the F3, but it adds there have been "no offers" and talks are at a very early stage. The F3 is due to be phased out later this decade and 24 leased to Italy were recently returned. Defence sources in Prague say a virus, with chief executive Noel Forgeard saying that it is "extremely overstated by the media". Executive vice-president cus tomer affairs John Leahy believes the impact "will be relatively short term - it's mass hysteria". Last week Cathay, which earlier this month issued its first-ever profit warning, was forced to deny reports that it may have to ground all its aircraft if daily passenger numbers continue to fall. SEE AIR TRANSPORT PIO DESO team was in the Czech Republic last week, but DESO declines to comment. A Czech defence ministry source quoted in the local newspaper Prdvo said: "We see this as a solution that would quickly help us protect our airspace at a moment when the country's politicians are unable to agree on a purchase of new aircraft." The source adds that leasing or pay ing for aircraft in installments will be significantly cheaper than new aircraft, and that the "cost would moreover be covered solely" by the air force, "although it's not a solu tion for the next 30 years". Other reports quote deputy defence minister Jan Vana saying the F3 is "one of the most likely possibilities" and that only the UK offer is "at a more advanced stage". Prague seeks 14 fighters. The new aircraft requirement was for multi- role fighters, but the air force's near- term focus is air defence, a role to which the F3 is dedicated. The Czech government has sought information on the Tornado F3 DEFENCE LUBOMIR SEDLAK/ PRAGUE & STEWART PENNEY/LONDON Czech Republic adds RAF Tornados to list in secondhand fighter search 4 22-28 APRIL 2003 FLIGHT INTERNATIONAL www.fliqhtinternational.com
Sign up to
Flight Digital Magazine
Flight Print Magazine
Airline Business Magazine
E-newsletters
RSS
Events
