Newsdesk – Commercial Aviation

Boeing-Mdc Megamerger?

Speculation has been rife that Boeing and McDonnell Douglas have been exploring the options open to them on merging and thus creating the world’s largest aerospace company. A full merger would create a group with annual sales of $US35bn, some 50% more than the current biggest, Lockheed Martin. It should be emphasised that reports on the subject are almost entirely speculative, and whether the companies are discussing a full or partial merger is unclear. There could be antitrust problems with the commercial aircraft side of things with MDC’s MD-80/90 series in direct competition with Boeing’s 737 family. It is likely, therefore, that MDC’s valuable military aircraft business is of much greater interest to Boeing, as could be its helicopter business. Brazilian regional/domestic airline TAM has ordered 10 Fokker 50s to replace its F27s and an additional eight Fokker 100s. TAM is Brazil’s fastest growing airline.

Take It Or Else?

Indonesian domestic operator Merpati Nusantara (a subsidiary of flag carrier Garuda) will go ahead with the lease of 16 CN-235 45 seat turboprop airliners built by state owned IPTN, despite doubts about its cost. As reported in last month’s Newsdesk, Merpati president Ridwan Fatarudin was sacked, partly because of his refusal to lease the aircraft on the grounds they are too expensive. His views were considered politically dangerous and his removal was reportedly ordered by the Indonesian transport minister. To put this into context, IPTN is run by the Minister for Science and Technology, Dr Bacharuddin Habibie, while the leasing company which will handle the deal has President Soeharto’s son as one of its principals. A former president of Garuda, Wage Mulyono, has come out in defence of Mr Fatarudin, saying that his opposition to the CN-235 deal was a managerially correct and professional decision. According to Mr Mulyono: “The Indonesian state owned IPTN company has failed to market its CN-235 even on the domestic market because the aircraft’s operations are not profitable. Many private companies refuse to use that aircraft. Thorough studies should be carried out to ascertain the reasons behind the gross inefficiency of the CN-235 aircraft”. Developed jointly by IPTN and Spain’s CASA, the CN-235 has features more normally associated with military transports, including a rear loading ramp.

Long Range A330 Launched

Airbus Industrie has launched an extended range and shorter fuselage version of its A330 widebody twin. The A330-200 will carry 256 passengers (in three classes) over 6400nm (11,850km) or 293 passengers in two classes for regional operations. By comparison, the existing A330 can carry 335 passengers (two classes) over a range of 4500nm (8330km). The new variant will be 5.33m (17ft 6in) or ten fuselage frames shorter than the standard model. Development costs are put at $US450m and entry to service is planned for 1998. Airbus sees a market for 3000 aircraft in the 250 to 300 seat category over the next 20 years.

Rolls-Royce/Eds Agreement

Rolls-Royce Aerospace and global information services and management consultant company EDS, have signed a 10 year agreement which will see EDS assume responsibility for Rolls-Royce’s information technology infrastructure, systems and applications. EDS will also apply its expertise to realising increased performance in core business functions throughout Rolls-Royce. EDS will be a risk and revenue sharing partner in the venture, based on improved results. Approximately 750 Rolls-Royce staff will transfer to EDS and