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Aviation History
2004
2004-09 - 1177.PDF
AIR TRANSPORT PRODUCTION VLADIMIR KARNOZOV / MOSCOW Russia finalises recovery blueprint Budget for manufacturers to be doubled and credits for leasing companies introduced in bid to stimulate market The Russian government has finalised a state-funded recovery plan for the country's aviation industry, which will use credits to leasing companies to stimulate the airline market. New prime minister Mikhail Fradkov approved a plan devised by his predecessor Mikhail Kasy- anov, under which the government expects to double its budget for Russian aircraft manufacturers, as part of a manufacturing and leas ing plan for 2005-8. Lufthansa Technik (LHT) is to start its first third-party installations of the Connexion by Boeing on board internet service this year, after securing a contract from Star Alliance partner Scandinavian Airlines (SAS), despite satellite cov erage restrictions in Sweden. LHT is to install its FlyNet soft ware, which provides passengers with internet access, on seven Airbus A340-300s and four Airbus A330-300s from the fourth quar ter. SAS will be using the same wireless local area network tech nology used by Lufthansa, and LHT says it expects to become the supplier of choice for all other Star Alliance carriers. Contracted work to equip All Nippon Airways air craft has not yet been scheduled. LHT received European Aviation Safety Agency certification in June for the Airbus A340-300 installa tion, and expects approval shortly The Soviet-era system of relying on government orders is being replaced by a state-sponsored air craft leasing system, under which the government will be supporting the buyer, not manufacturer. Yuri Koptev, head of the energy min istry's aviation department, says that by acting as investment guar antor, the government hopes to spur the market for airliners. "Saving the indigenous airliner manufacturing industry is a matter of the highest political and social for the A340-600 and A330-300, says Ulf Hallmann, LHT director of engineering services, speaking on the inaugural Connexion flight between Munich and Tokyo. Installations for all 11 SAS air craft will take place in Copen hagen. Current installation time of two weeks is expected to be cut to less than 10 days by year-end, and be halved eventually. LHT expects to equip around 50 air craft this year and up to a further 200 by the end of next year. Connexion by Boeing has cov erage problems in northern Sweden. Current satellite coverage extends up to 78° north through out most of the northern hemi sphere after the introduction of a new mechanically steered antenna and increased access to Ku-band satellite capability last month on polar routes. Full global coverage is expected over the next two years. importance," says Koptev. The Russian airline market is recovering. The transport ministry forecasts a requirement for over 500 aircraft by 2010, including 164 long- haul and 146 regional airliners. With the ageing Soviet-era fleet in need of replacement, Koptev says traffic will exceed the fleet capacity by 2006-7 if no action is taken. The plan covers the construction of 273 aircraft in 2005-8, focused primarily on production of the Antonov An-148 regional jet and The SAS Group has scaled back its plans for acquiring controlling stakes in its eastern European sub sidiaries, due to concerns about los ing air traffic rights to CIS destina tions. The Scandinavian airline group also says that it sees Poland as a strategic base for future growth. Jorgen Lindegaard, SAS group president and chief executive, says the carrier now defines its catch ment area as including Estonia, Finland, Latvia, Lithuania and Poland in addition to its home bases in Denmark, Norway and Sweden. Northern Germany and the Russian province of St Petersburg also feed traffic into its Copenhagen hub, he adds. "There is a market of around 100 million passengers and there are no high speed trains, so flying is a neces sity," says Lindegaard. SAS owns a 49% stake in Estonian Air and 47.2% of Latvia's AirBaltic, and has previously indi cated a desire to acquire the con trolling stake, as it has done with Finland's Bluel. Estonia and Latvia joined the European Union in June, clearing the way for SAS to increase its shareholdings past 49%. Hans Ollogren, SAS senior vice-president for public affairs, says these plans have been post poned as both airlines' lucrative the Ilyushin 11-96 widebody at the VASO plant; the Tupolev Tu-204 at Aviastar; and the Tu-214 and Tu- 334 at KAPO in Kazan. The project is worth Rb50 billion ($1.74 billion), of which the gov ernment plans to fund around 20%, with similar injections from private investors and the rest funded by airline deposits and commercial loans. Government funds will be provided to leasing companies in the form of state con tribution into their capital bases. routes to Moscow and Kiev in Ukraine, along with AirBaltic's flights to Belarussian capital Minsk, would be at risk if the governments of those countries followed through with a threat to strip air traffic rights from any airline not majority controlled by nationals of its base country. The European Commission has made tentative first steps towards negotiating a new air services agreement between the European Union and Russia, which could possibly be extended to cover the whole of the CIS, but insiders describe Moscow's position so far on scrapping nationality clauses as "unhelpful". Talks are expected to last several years, not least as the EC is linking the reduction of over flight charges into its demands. Such a delay could hamper SAS's plans to harmonise fleets and oper ations among its affiliate airlines, says Ollogren. Estonian Air has slimmed down to an all-Boeing 737-500 fleet, while AirBaltic flies four 737-500s, four BAE Systems Avro RJ70s and six Fokker 50s. SAS has signalled its intent to buy the 25% of LOT Polish Airlines formerly held by now-defunct Swissair, once the Polish govern ment clears it through national reg ulatory hurdles. Lufthansa Technik is working to halve the time taken for installation INTERNET ANDREW COSTERTON / TOKYO Lufthansa secures connection STRATEGY JUSTIN WASTNAGE/STOCKHOLM CIS rights snag spoils SAS acquisition plans 14 13-19 JULY 2004 FLIGHT INTERNATIONAL
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