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Aviation History
2003
2003 - 1252.PDF
BUSINESS EXHIBITIONS US Al A wants fewer shows in Europe US aerospace industry lobbying group the Aerospace Industries Association (AIA) is campaign ing against holding an international air show every year in Europe, and predicts that attendance at the Farnborough and Paris air shows will drop sig nificantly from 2004. "The aerospace industry thinks there is already too many air shows. If we could make Paris or Farnborough go away, we would. We would like one air show in either city every two years," says AIA vice-president of international affairs Joel Johnson. "Singapore and Dubai and the Chilean air shows are every two years.. .so you have three major regional shows in a two-year cycle, but Europe once a year." AIA says the largest US man ufacturers could cut their attendance at the European shows by up to 50% from 2004. ECONOMIES JACKSON FLORES / RIO DE JANEIRO Alianza Summa cuts deep to make $32.4 million savings After Avianca's US affiliate enters Chapter 11, alliance cuts capacity, sheds routes and staff fleet capacity, dropping loss-mak ing routes and shedding staff to achieve a $32.4 million reduction in annual operating costs. Avianca reached agreement to hand back in May two Boeing 767-30OERs, to Ansett and Pegasus, and two 757s to International Lease Finance and Pegasus. The carrier is expected to hammer out a deal to Alianza Summa, the corporate umbrella of Colombian airlines Avianca, ACES Colombia and SAM, is implementing measures aimed at restructuring the three carriers' alliance and improving its financial health after Avianca's US-based affiliate filed for Chapter 11 protec tion in March. The group is cutting 30% of its LAUNCHES Colombian start-ups move in Alianza Summa's management is particularly worried about the recently issued operating permits to two Bogota-based start-up carriers - Aerolineas Universal and Aerolineas Estelar. With operations scheduled to start in August, the latter will fly five Embraer EMB-120 Brasilias to 19 domestic destinations. Due to launch scheduled operations in late July, Aerolineas Universal will use Fokker 100s to serve 11 domestic destinations. The two start-up airlines have signalled their intention to fill the void that will be left behind by Alianza Summa as it reduces its domestic operations as part of its cost-cutting strategy. return its remaining 757s and its two Ansett-leased 767-200/300ERs, as well as three Ansett Boeing MD- 83s. ACES Colombia was expected to return three of its Airbus A320- 200s at the end of May. The fleet changes will mean domestic and international route network cuts and frequency reduc tions on services to a number of Latin American destinations includ ing Aruba, Curacao, Mexico City and Santo Domingo. To fit the fore cast downsizing of its operations, the three Alianza Summa carriers are expected to make around 2,300 employees redundant. Increases in insurance premi ums, fuel costs, the heavy devalua tion of the Colombian peso and US visa restrictions have taken their toll on the year-old alliance's finan cial performance. • Francois Planaud, formerly Snecma programme director for the Europrop International TP400, has been named execu tive vice-president (VP) of CFM International, replacing Denis Vercherin, who will become senior VP of Hispano-Suiza. • Roberto Macedo will succeed Manuel Guedes as president and chief executive of Varig. His main responsibility will be the forthcoming merger with Varig's fellow Brazilian carrier TAM. He was formerly VP commercial of Varig, which he left in October. • Northrop Grumman has pro moted three new VPs in its strategy and technology division. Mark Ureda will co-ordinate with the space technology and elec tronic systems divisions, Karin Flanagan will co-ordinate with information technology and mis sion systems and Larry Harrell will deal with the Newport News shipyards and ship systems and integrated systems sectors. RESTRUCTURING ALEXANDER CAMPBELL/ STOCKHOLM SAS questions its long-haul future Strong competition is putting the future of the Scandinavian Airlines (SAS) long-haul operation in doubt, says the airline's new chief operat ing officer Soren Belin. "It is a tricky question whether long-haul will be a sustainable business," says Belin, who joined SAS in February. "If plan C [the latest round of restructuring] delivers, all our plans will be sustainable on all routes - but it is still very tough to see when we can expand." While origin and destination traffic is holding up, Belin says SAS's location can be a disadvan tage for connecting traffic. "There is an oversupply...in connection traffic..for example to Seattle," he says, adding: "It is justifiable to question whether we can compete in the connection market." With long-haul expansion ruled out, the airline's Boeing 767-300ER fleet will be phased out this year following its replacement by Airbus A330-300s and A340-300s. "We do not plan to use [the 767s] for next winter...hopefully we will sell them somewhere," Belin says. While SAS's latest reorganisation will give the managers of its long- haul operation a freer hand, it will also impose new financial disci pline. The airline will be split into four semi-autonomous units, three running short-haul and domestic services from hubs at Copenhagen, Oslo and Stockholm Arlanda, and a fourth to operate long-haul services. Belin says that any subsidies to the long-haul operation, in the form of unprofitable services acting as "feeders", will have to end. The units "will have to pay each other to run the services they want, or fly them themselves", he insists. Belin rules out mainline fleet changes, saying the airline does not have the finances to "start exchanging the fleet", but says SAS Commuter may acquire a regional jet fleet. "We need a decision this Belin: doubts sustainability autumn to fly them by 2005," he says, but adds Star Alliance's insis tence on a common standard is delaying matters. The Bombardier Dash 8 Q400 turboprop fleet will move to secondary routes. 26 27 MAY - 2 JUNE 2003 FLIGHT INTERNATIONAL www.flightinternational.com
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