Todays News — 19/6/2003

[u]Ghana airways seeks divine intervention[/u]

The staff of Ghana Airways have now turned to God to keep the airline in the skies after trying every management trick in the MBA curriculum.

Last week the management and staff held a three-hour prayer session where they sought celestial intervention in the desperate affairs of one of Africa’s first national carriers.

They sang, prayed and cited the scriptures under the direction of a Ghanaian evangelist who flew in from London.

Ghana Airways owes more than $160m to a variety of creditors.

It is unable to keep up with payments and the government, which wholly owns it, says it cannot bail her out.

The money is wanted elsewhere.

A wing and a prayer

Ghana airways owns five aircraft, but only one is in the air.

It is a DC 10 which does the long haul flights to Europe and America.

But it has no in-flight entertainment.

The airline has a stronger presence in West Africa where a lease aircraft hops to national capitals – from Lagos to Dakar.

Yet it is notorious for not flying on time or not flying at all.

Sometimes there is no money to pay for fuel.

Still, it employs nearly 1,500 people. It has more drivers than it has vehicles and more typists than keyboards.

Every few months there is a new management and a board chairman, but none of them have managed to keep Ghana Airways from its free fall.

Now that it has run out of options, Ghana airways hopes to take off on a wing and a prayer.

http://news.bbc.co.uk/2/hi/africa/2978026.stm
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[u]Air Asia in RM380m aircraft deal[/u]

AIR ASIA entered into leasing and purchasing agreements worth some US$100mil (RM380mil) yesterday to increase its fleet by 11 aircraft.

Air Asia chief executive officer Tony Fernandes said Asia’s first and only low-fare, no-frills airline company would have 18 aircraft when delivery was completed by the middle of next year, against the current seven.

The company will lease seven Boeing 737-300 aircraft and acquire four of the same model from GE Capital Aviation Services. Delivery of the first aircraft is expected to take place before October this year, with the last arriving by June next year.

Fernandes told reporters after the agreement signing in Subang that the increase in Air Asia’s fleet would underpin the airline’s growth and expansion plans and provide the company with the ability to expand its service through increased flights to existing destinations and opening new routes.

“These 11 aircraft will enable Air Asia to meet the huge demand for more low fares in Malaysia. It will help us to further reduce our current unit cost of 2.5 sen per average seat per km, already the lowest in the world.

“Our customers are already enjoying unprecedented low fares and this next step in our expansion will enable even more Malaysians and visitors to Malaysia to experience our great service,” he said.

The lease and purchase of the aircraft will be financed by Air Asia’s own cashflow.

Fernandes also said Air Asia, apart from placing out some of its shares to three unidentified international investors for more than US$30mil, was also considering tapping the debt market to raise about RM150mil to fund its expansion programme.

He said the company was deciding between an Islamic bond issue and a loan from Exim Bank.

Asked if Air Asia would expedite its regional expansion with the newly acquired aircraft – originally scheduled for next year – Fernandes said AirAsia planned to expand its domestic reach first before reaching out to the region.

But, he said, the company had already obtained landing rights for cities in Indonesia, Thailand and the Philippines.

He also said the company was not concerned by news that some other bigger airlines were planning to go into the low-fare airline business.

“The market for low fare is huge in Asia and there’s room for other players. We are open to competition and more players as long as the competition is done in a fair manner,” Fernandes said.

Tony Fernandes (right) exchanging agreements with GE Capital Aviation Services managing director for Asia Pacific Michael Jones, witnessed by AirAsia stewardesses.

http://biz.thestar.com.my/news/story.asp?file=/2003/6/19/business/twair&sec=business
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New player in the airline world: Bulgaria Air

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AirTran Is likely to make a decision by the end of the summer on what new type of aircraft it will order. AirTran will need as many as 100 aircraft and is considering the Airbus A319 and Boeing 737. The airline will likely order 50 aircraft on a firm basis and 50 options.
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Air China The airline’s 1st Boeing 737-700 departed Boeing Field for Beijing yesterday. The aircraft will enter service from Beijing to Chengdu, Shanghai and other domestic destinations. Air China already operates 11 B737-800s.

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Air New Zealand Is shopping for 12 new long-range aircraft. ANZ is expected to finalize its choice for either the Airbus A340 or Boeing 777-200ER by Nov03.
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