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Aviation History
2004
2004-09 - 0976.PDF
HEADLINES AIR TRANSPORT NICHOLAS IONIDES / SINGAPORE AirAsia seeks up to 80 narrowbodies Malaysian carrier to replace Boeing 737-300s with one type Fast-growing Malaysian low-fare carrier AirAsia is preparing to issue a request for proposals (RFP) to Airbus and Boeing for new aircraft that is expected to lead to orders for up to 80 narrowbodies. Industry sources say the Kuala Lumpur-based airline is looking to place firm orders for 40 narrowbod ies and take options on another 40. The sources say AirAsia wants just one aircraft type to replace its Boeing 737-300 fleet. Next Generation 737s will be considered, as will Airbus A320-family aircraft. RFPs are due to be issued in the coming weeks and orders could be placed around the time of the group's initial public offering, which is targeted for September or October. AirAsia has said it hopes to raise around $200 million from the share offering. AirAsia and recently established associate carrier Thai AirAsia have a combined fleet of 18 737-300s, all but a handful of which are leased from several suppliers. Plans call for the fleet to be expanded to 24 air craft by October this year and to 36 by June 2005. Group chief executive Tony Fernandes has said the Malaysian and Thai operations could each be operating 30 aircraft within a few years, as they expand their respec tive domestic and fledgling inter national networks. The sources say AirAsia execu tives see significant potential for reducing the group's already low cost base with new aircraft. This is in part due to the fact that lease rates have been increasing and the carrier knows it will not be able to get the same rental deals on aircraft when current lease terms expire. It has until now been able to keep its costs down, in part because it signed many of its deals with suppliers soon after the September 2001 terrorist attacks in the USA, which forced down prices of air craft and other required assets. AirAsia was a loss-making full- service airline until new owners acquired it late in 2001 and re launched it as a strict low-cost, no- frills operator in January 2002. It is one of the fastest growing airlines in South-East Asia and is by far the most successful low-fare operator in the region, where that market segment remains in its infancy. BUSINESS AVIATION KATE SARSFIELD / LONDON Satire set to resume operations this month with new funding Satire Aircraft, pursuing development of the six-seat very light Satire jet, expects to close on the latest round of financing on 17 June and resume opera tions by 1 July, according to president and chief executive Camilo Salomon. The company was last week forced to "temporarily" suspend operations fol lowing a "severe cashflow" problem. "We had hoped to secure funding by the end of May," Salomon says, "but the [five] shareholders have a few details to iron out with the new Swiss private equity group's terms and conditions of funding." Of particular concern to the existing shareholders is the future ownership structure of Satire. "Overall control of the company will switch to the new investor," Salomon concedes, "but that is the price we have to pay if we want to continue with the programme." The funding, he says, should cover the cost of Satire Jet development through to certification. First flight of the aircraft was planned for the end of September, with deliver ies beginning in 2006. A delay to this schedule is now inevitable, Salomon says, "but not significant". By the end of last week Satire had received two cancellations following writ ten notification to its 400 customers of the temporary suspension. Briefing China Eastern A330 plan confirmed ORDER China's government has confirmed the expected Airbus A330-300 order for China Eastern Airlines to replace A300-600Rs. The 20-aircraft deal was signed on 11 June by China Aviation Supplies Import & Export Group during a state visit to France by Chinese vice-premier Zeng Peiyan. Deliveries will start in 2006, but an engine selection has yet to be made. Virgin USA to operate from San Francisco SELECTION Low-cost start-up Virgin USA has selected San Francisco airport as its operational base, but will retain New York for its corporate headquarters, following city- and state-funded deals worth at least $26 million. Virgin USA will be the first major low-cost operator at San Francisco since Southwest Airlines moved its services to Oakland in March 2001. The main operator at the airport is United Airlines, which has a hub there. Last month Virgin Group chief executive Richard Branson said the low-cost carrier will be launched early next year. The airline, however, has yet to sign a fleet order or file the necessary paperwork for an air operator's certificate. Pakistan buys MM7s ACQUISITION The Pakistan government has acquired 13 new Mil Mi-17 helicopters from Russia's Kazan Helicopter Plant under a $50.7 million deal. Twelve of the aircraft will be deployed by Pakistan's army, with deliveries to start later this year. Pakistan also plans to acquire about 120 other helicopters from the USA for the army's aviation wing. Royal Jordanian switches to Boeing DEAL Royal Jordanian Airlines has dealt a blow to Airbus, deciding to phase out its A320s and replace them with Boeing Next Generation 737s. The airline has concluded a deal for up to 10 737-800s, which will begin replacing its five A320s from September next year at the rate of about one a month. Boeing says that Royal Jordanian will purchase five 737s and lease the other five. The deal will also see Royal Jordanian phasing out its A310 passenger aircraft. Kaman/Rosoboronexport pull out of KMH WITHDRAWAL Kaman and Russia's Rosoboronexport armaments agency have dropped out of the competition to be the foreign manufacturing partner for the indigenous Korea Multirole Helicopter (KMH). AgustaWestland, Bell, Boeing, Eurocopter and Sikorsky still plan to submit proposals on 15 June to be the KMH programme's system integrator Each company has also been asked to give presentations on 16 June to a special evaluation team organised by South Korea's ministry of national defence, which is to select a winner later this year. Seven companies initially signed in March to receive the request for proposals, but Kaman and a consortium of Russian manufacturers led by Rosoboronexport have decided against submitting bids. Star Alliance adds new members E X PA N SIO N The Star Alliance has added Finland's Bluel, South African Airways (SAA) and TAP Air Portugal to its 15-strong membership. SAA and TAP are to formally join next year as full alliance members, while Scandinavian Airlines-owned Bluel will join later this year, becoming the first "regional member" - meaning its financial obligations to the grouping will be smaller than those of full partners and it will only be listed as a member in some markets. Star says that after the three new members join, its global network will comprise 833 destinations in 152 countries with more than 15,000 daily flights. JetBlue takes another 30 A320s ORDERS US low-cost carrier JetBlue Airways is to exercise options on 30 more International Aero Engines V2500-powered Airbus A320s, taking its firm order backlog for the type to 123. It also retains options for a further 50 aircraft. JetBlue intends to take delivery of up to 17 Airbus narrowbodies each year until 2012. It will take delivery of nine more aircraft this year. www.flightinternational.com FLIGHT INTERNATIONAL 15-21 JUNE 2004 5
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