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UPDATE
Week ending December 22, 1996
European Commission targets a new civil aviation authority +++ More Pressure on Airbus after the mega-merger +++ Swissair losses continue +++ British Airways to sell its stake in USAir +++ CFM56-7 gets FAA certificate +++ Delta-Continental merger talks stalled +++ News in brief +++

European Commission targets a new civil aviation authority
Die EU-Kommission will eine Flugsicherheitsbehörde schaffen

Europe takes civil aviation safety more serious. On the initiative of Neil Kinnock, Commissioner responsible for Transport, the European Commission proposed to the Council of Ministers to give it the mandate to negotiate the establishment of a European organisation responsible for civil aviation safety. To ensure high aviation safety standards, the Commission wants to convert the JAA (Joint Aviation Authorities) into a truly acting European organisation that will adopt necessary and fully binding regulations, monitor compliance with them by ist members and perform various certification tasks.
The European Association of Aerospace Industries fully approved the move. In a first comment the current shortcomings like the weak and inefficient structure of present cooperation between national authorities within the framework of the JAA are strongly critisized. Still AECMA has "some concerns over the Commission's proposal regarding the efficiency of the policy-making process and the administrative procedures".

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Dr. Lammert: More Pressure on Airbus, transatlantic cooperation still possible after the mega-merger
Dr. Lammert nach der Mega-Fusion: Mehr Druck auf Airbus, transatlantische Zusammenarbeit immer noch möglich

The Coordinator of German aerospace affairs for the Federal government, Dr. Norbert Lammert, comments the recent mega-merger of Boeing and McDonnell Douglas:
The survival of Airbus Industrie is depending on two conditions. First the consortium needs a complete new structure, because without this structural reorientation AI will loose ist competitiveness, This reorganisation for itself will not secure AI's position in the global market. So secondly, AI needs new products in those market segments where turnover and profits are generated. On the other hand I don't see success for this product without a new Airbus structure.
Nobody shall expect the money for developing the new A3XX will come from public budgets, because these funds are simply not available and at second thought the legal framework of international trade will not allow such a form of support.
The longer Airbus waits for the launch decision for the A3XX the sooner the window of opportunity will close. The merger of Boeing and McDonnell Douglas has put additional pressure on Airbus Industrie. But there still are possibilities for a transatlantic cooperation in all fields of aerospace affairs that make a lot of sense.

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Swissair losses continue
Weitere Verluste bei der Swissair

Swissair will likely make a loss for 1996, the second year in a row of negative results. This is due to lower operating profits and the possible write-down of its stake in Sabena. To reverse the unsatisfactory situation, Philippe Brugisser, who takes over as chief executive on January 1, announced a reorganisation of the group.
A new holding company, called SAirGroup, will be formed, which will own four operating divisions:
  • SAirLines (Swissair airline operations, with 9000 employees)
  • SAirServices (ground handling and other services)
  • SAirLogistics (cargo operations)
  • SAirRelations (catering, hotels and retail travel, with 15000 employees).
This new structure will give Swissair increased flexibility to enter strategic alliances or divest units. Analysts were disappointed with the move, as they think more radical measures need to be taken to ensure long-term profitabilty. Shares fell acordingly by five per cent.

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British Airways to sell its stake in USAir
BA verkauft USAir-Anteil

British Airways finally has decided to sell its 24,6 per cent stake in USAir. This will give it more freedom to pursue its alliance with American Airlines. The UK airline bought its stake in 1993 for 400 Million Dollars and will now offer it to USAir first. After 60 days it will become available on the open market.
Meanwhile, as a condition for approval of their planned global alliance, BritishAirways and American Airlines are being forced to sell off slots at London-Heathrow airport, British media reports say. By doing so, rival carriers could gain more access to Heathrow, the largest and one of the most congested airports in Europe. The proposed AA-BA pact would not be referred to the Monopolies and Mergers Commission if the two carriers agreed to conditions including the surrender of 168 slots a week, UK trade secretary Ian Lang was quoted. A slot sale could at least generate 380 million DM.

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CFM56-7 gets FAA certificate
FAA-Zulassung für CFM56-7

The CFM56-7, powering Boeings new 737 variants, has been jointly certified by teh US Federal Aviation Administartion and the French Direction Generale de l'Aviation Civile (DGAC) on December 18. To date, the CFM56-7 has completed more than 2300 hours of testing, including ground tests and a 100 hour flight test programme on GE's modified 747 flying testbed, in preparation of 737 flight tests which will begin in February. Certification comes later than expected, mainly because blade-off tests had to be repeated two times before a satisfactory result was achieved.

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Delta-Continental merger talks stalled
Continental hat Fusionsverhandlungen mit Delta Airlines abgebrochen

In the near future, Continental Airlines and Delta Airlines will not merge. According to media reports, Continental pulled out of all talks to Delta concerning a proposed merger that would have formed the world's largest carrier. Gordon Bethune, head of Continental, confirmed the reports in a newsletter adressed to employees. He did not give any explanation why the merger talks had stalled.

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NEWS IN BRIEF - KURZMELDUNGEN

Lufthansa CityLine has ordered an additional three Canadair RegonalJets for delivery in March 1997 and spring 1998. This will bring the RegionalJet fleet of the regional carrier to 31, with three more on option. The jets replace three Fokker 50 which will be moved to Contact Air.
+++
Tegel airport will get 18 million DM in 1997 to implement much needed renovations and modernisations to increase capacity until a new Berlin airport at Schönefeld comes on line.
+++
On December 18,Onur Air has signed up for another Airbus A321, adding to three ordered previously. The Istanbul-based carrier was the first airline to introduce the A321. He uses IAE V2500 turbofans and normally flies with a high-density configuration for 220 passengers.
+++
Since the beginning of December, Hauptmann Stéphane Rapaz is the first Swiss pilot to fly from an US aircraft carrier. Rapaz is on an exchange tour with the US Navy, organized in view of the Swiss purchase of F/A-18C/Ds. After his return from the States, he is expected to lead the first Hornet squadron of the Flugwaffe.
+++
On December 20, the ADAC (German automobile association) took delivery of their first Eurocopter EC 135 used for emergency medical services. The new helicopter will be stationed at Munich.
+++
Garuda Indonesia has taken delivery of its first Airbus A330-300. It has ordered nine of the Airbus widebodies, which will be in service by mid-1998.
+++
Condor has signed up for six A320s, which will be delivered from the first half of 1998. They are powered by CFM56 enignes.
+++
Lufthansa is now the largest customer for the Airbus A340, after ordering another aircraft on December 19. Currently 15 aircraft are in service, with three more to come. With 135 orders in total, Lufthansa is also the largest single Airbus customer so far.
+++
Lufthansa employees have taken two million shares in their company as part of the 1995 profit shares programme. According to the German flag carrier, over half of its workers opted for the shares in preference of cash.
+++

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Previous updates are still available:

LRI Fakten - News from the BDLI

The German Aerospace Industries Association (BDLI, Bundesverband der Deutschen Luft- und Raumfahrtindustrie e.V.) is publishing a monthly newsletter, which we are pleased to offer to our international readership online. Just klick here for the November/December issue of LRI Fakten.

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Copyright 1996 by Motor-Presse Stuttgart. All rights reserved.
Last updated December 20, 1996