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Aviation History
2003
2003 - 1968.PDF
HEADLINES BUSINESS Alitalia bids to strengthen links with Air France Alitalia hopes to strengthen ties with Air France by signing agree ments on shared services. But the airline's management regards improving its financial position as a higher priority. Alitalia sources say the airline will soon sign partnership con tracts for long-haul routes and an agreement on a cargo joint venture with Air France. It is also believed to be discussing a simi lar deal with Dutch carrier KLM, with the eventual aim of joining the proposed Air France/KLM share-swap arrangement. However, Francesco Meng- ozzi, Alitalia's managing director, says the priority is to improve Alitalia's financial situation. He predicts that, without deep cost cuts, losses could reach €350 million ($386 million) in 2003 and €300 million in 2004. Alitalia made €128 million before tax in 2002, but warned that it was unlikely to break even this year. Mengozzi says the new busi ness plan should increase productivity 15-20% by 2006. Measures include more out sourcing, a significant increase of flight hours for cockpit and cabin crews, and job cuts. Despite union opposition, inter nal sources say 1,500-2,000 jobs are likely to go. DSEI 2003 STEWART PENNEY / LONDON Lockheed Martin recruits MFTS contest partners R-R and VT Aerospace join bid to become systems integrators for UK training programme Lockheed Martin has recruited Rolls-Royce and VT Aerospace as partners in a bid to become the inte grator for the UK's Military Flying Training System (MFTS). The train ing systems integrator will run the overall programme. MFTS will be a private finance initiative (PFI)-funded project to overhaul aircrew instruction for the Royal Air Force, Royal Navy and Army Air Corps, from ab initio training to operational conversion entry level. BAE Systems, Boeing and EADS are also expected to bid. James Keeler, Lockheed Martin MFTS project director, says R-R's and VT's participation is important as "we don't want to offer a US solution to the UK". R-R has pro ject management and PFI financ ing experience, while VT provides outsourced training services to UK and other armed forces. Keeler says Lockheed Martin trains more than 18,000 aircrew in the USA every year at under- and post-graduate levels - including the European NATO Joint Jet Pilot Training programme. The US com pany was recently selected, with Cranfield College of Aeronautics and Training Systems Technology, to study the balance in MFTS between real and synthetic training. Simon Withey, VT Partnerships managing director, says the com pany has around 35% of existing contracts that will become part of MFTS. The company is responsible for around 140 Shorts Tucano Tl basic trainers and provides a con tracted number of serviceable air craft daily. It also has around 100 Grob 115 Tutors used by the RAF. Withey says that VT teamed with Lockheed Martin because the pair are complementary and already co-operate in the Middle East, UK and USA. Keeler adds that MFTS is "partnership-based, which will include the Ministry of Defence. We already have a good relationship that should bode well for the future". An invitation to negotiate is due for release mid-2004. Contract sig nature is due in early 2006 with a phased service entry between April 2007 and April 2012. Initially the winning bidder will use the UK's existing training air craft. Hawker Siddeley Dominie Tl rear-crew and navigator trainers and the remaining BAe Jetstream Tl multi-engine trainers should be the first aircraft to be replaced. The recent decision to order BAE Systems Hawk 128s will not affect the team, says Keeler. "From the integrator's point of view, the Hawk is not unlike any other legacy aircraft. It's not an issue one way or another." SEE SHOW REPORT P25 Hawker Siddeley Dominie T1 s will be among the first aircraft to be replaced AIR TRANSPORT GERALD BUTT / SHARJAH IN BRI SAS PURCHASE Scandinavian Airlines (SAS) has paid SKr180 million ($21.8 million) for Maersk Air's 49% share in Estonian Air. SAS will acquire Maersk Air Maintenance Estonia and may buy Estonian bank Cresco's 17% holding in Estonian Air. SAS already owns the Finnish carrier Air Botnia and holds a 47% share of Latvian carrier AirBaltic. "Estonian Air will continue to operate as an independent air line," says SAS. Air Arabia plans rapid expansion Gulf low-fares start-up Air Arabia will begin flying at the end of October with two leased Airbus A320s, and has ambitious expan sion plans as it brings budget ser vices to the region for the first time. The airline, based at Sharjah in the United Arab Emirates (UAE), hopes to operate up to 14 A320s within five years Flight International, 19-25 August). Air Arabia, owned by the Sharjah government, is the UAE's third airline, after Dubai's Emirates and Gulf Air, which is one-third owned by Abu Dhabi. Air Arabia chief executive Adel All concedes that the region has too many airlines, but says the carrier is targeting a different market sector to the others. "We are aiming...for the 85% of people in the region who don't fly because it's too expensive," he says. The A320s, leased from International Lease Finance (ILFC), will be configured with 150 econ omy seats, and passengers will be charged for refreshments. The initial A320s will be replaced by new aircraft in February also leased from ILFC, and two more will be added next year. A further two are due in 2005, with subsequent expansion depending on perfor mance. Air Arabia will begin by serv ing Arab destinations with open skies agreements such as Bahrain; Beirut, Lebanon; Doha, Qatar; Kuwait and Muscat, Oman. Later the airline hopes to get approval to fly to Egypt, India, Saudi Arabia and Syria, but says countries might block it to protect their national airlines. 6 16-22 SEPTEMBER 2003 FLIGHT INTERNATIONAL www.flightinternational.com
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