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Aviation History
2003
2003 - 2572.PDF
AIR TRANSPORT PROCUREMENT NICHOLAS IONIDES AND LEITHEN FRANCIS / SINGAPORE China set to place large Boeing order Purchase announcement for up to 30 737s expected to coincide with December visit to USA by country's premier China is preparing to place a major aircraft order with Boeing in a politically timed move aimed at reducing its trade deficit with the USA and easing tensions over cur rency values. The country's senior leaders have been indicating to their US counterparts in recent weeks that a billion-dollar deal for Boeing air craft is imminent, and industry sources in China say orders for up to 30 737-700/800/900S are expected to be announced soon. The order announcement is likely to be made during or shortly before a planned early December New European Union limits on nitro gen oxides (NOx) pollution may not block expansion of London Heathrow, says airport operator BAA. The "eco nomic and social case" for building another runway at Heathrow is far stronger than the case for expanding visit to the USA by Chinese premier Wen Jiabao, add the sources. China typically times large orders for foreign goods around high-level political visits. Several Chinese carriers are known to have been seeking government approval to add new narrowbody aircraft to their fleets, among them Air China, Shandong Airlines and Shenzhen Airlines. Reports also say that Xiamen Airlines is expected to be allocated aircraft from the order. Air China has received govern ment approval to take five 737- 700s from 2005, while Shandong has said it wants to order 737- London Stansted, BAA says. However, European limits on atmospheric NOx will come into force in 2010, and due to nearby motorways "the area around Heathrow would break the limits regardless of Heathrow itself", BAA says. The 700/800s. Shenzhen Airlines earlier this year signed a memorandum of understanding to order 737-900s (Flight International, 11-17 March) and if firmed up it will represent Boeing's first sale in China of the highest-capacity 737 variant. In recent months the USA has stepped up complaints against China's policy of pegging its cur rency to the US dollar at what many lawmakers have claimed is an artificially weak level to boost exports, in turn hurting US goods manufacturers. There have been growing calls from the USA for Chinese authori- Italian investment fund Seven Group, owner of AzzurraAir, is to take over Air Littoral and invest €15 million ($17 million) in the insolvent French carrier. Seven will continue to develop Mediterranean routes and aims to cut costs by 20% by reducing staff, rationalising the fleet and route network, and raising aircraft utilisation by 20%. Seven Group will make an immediate investment of €11 mil lion into Air Littoral and invest a further €4 million over the next six months. It will maintain the air line's two hubs in Nice and Montpellier and its headquarters in Montpellier, and will also retain current management, including managing director Jean Durand. Under the new owner's restruc turing plan, Air Littoral's fleet will be cut from 32 aircraft to 17, with only Bombardier CRJIOOs retained. The 10 ATR 42-500s and five sparser population and cleaner air around Stansted would make a new runway less likely to break the limits. If BAA were allowed to impose tolls on traffic using the Heathrow approach roads, it could reduce vehicle pollution and partly offset the effect of another ties to revalue its yuan, in part to reduce a trade deficit that exceeded $100 billion last year, although Chinese officials have repeatedly rejected such calls. China's last confirmed order for Boeing aircraft was announced in September, covering five 757-200s for Shanghai Airlines, while in April China agreed to order 30 nar rowbody and widebody aircraft from Airbus on behalf of five carri ers. The last bulk order for Boeing aircraft was placed in October 2001, when the Chinese govern ment ordered 25 737-800s and five 737-700s on behalf of five airlines. Fokker 70s will no longer be oper ated and may be transferred to other operators. Routes from Nice to Barcelona, Madrid and Florence will also be cut. Codeshare agreements with Air Algerie, Royal Air Maroc, Tunisair and Air One are also maintained, as are the marketing agreement with Lufthansa and Air Littoral's mem bership of Lufthansa's frequent flyer programme. Mario Palmonella, chairman of the Seven Group, says: "Our objec tive is now to set up a top-ranking European regional airline to serve the Mediterranean region based on synergies between AzzurraAir and Air Littoral." He forecasts 2005 turnover for Air Littoral of €190 mil lion carrying 1.5 million passengers. In 2002 Air Littoral had turnover of €180 million, but lost €42 million. It carried 1.3 million passengers (FlightInternational, 2-8 September). runway, says BAA. The revenue from the tolls would also help compensate people living nearby for the high levels of pollution. But the European Commission says it is "unlikely" BAA would be allowed to pay its way around pollution control laws in this way. MANUFACTURING A380 port wing set for wiring m* mm t_4_ m rig TAKEOVER CHRISTINA MACKENZIE / PARIS Seven buys Air Littoral Two production staff look on as the port wing for the first Airbus A380 is removed from its jig at Broughton, UK, after a five-month assembly. The 30,000kg (66,0001b) structure measures 45m (148ft) long, 11m wide and almost 3m deep at the root. The wing will be transferred to one of three equipping bays where hydraulic and fuel systems and wiring will be installed, before being shipped with its starboard sibling to Toulouse in April. Last week Airbus transported mock-ups of the A380 wings and fuselage sections on the specially adapted road from Langon to Toulouse to check clearances along the route. AIRPORT EXPANSION Heathrow congestion charge could clean air and pay for runway 8 11-17 NOVEMBER 2003 FLIGHT INTERNATIONAL www.flightinternational.com
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