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A R C H I V E S

WHAT'S IMPORTANT

OCTOBERFEST SERVES UP 50th
by Geoffrey Arend

     They had a little Oktoberfest by the banks of the beautiful (if recently overwhelming) Elbe River in Dresden, Germany as EADS/EFW hosted its friends and neighbors to celebrate the 50th Airbus freighter conversion for FedEx last week (Wed October 16th).
     The aircraft an A300-600 (MSN 358) will be delivered in January 2003.
     Jürgen Habermann, EFW’s vice president sales hosted a gala party held at the conversion facility in Dresden where he stood up and said:

Jürgen Habermann

      “It is a source of great pride and honor for EADS/ EFW that FedEx, which insists on the best, has always renewed its confidence in Airbus aircraft and in our conversion solution.
     “We thank FedEx for the confidence that this great company has shown in us.”
     Up to the minute, EADS has delivered 95 conversions from its big, four-bay facility at Dresden to 18 customers worldwide. Type aircraft that have been converted to all-cargo duties include 44 A310-200s, 37 A300B4s. 11 A310-300s, and 3 A300-600s.
     What’s ahead are 26 conversions on the books, that are yet to be accomplished at Dresden.
     Those numbers will rise in what will eventually become an avalanche of new orders for the conversion process, as world economies improve.
     Most analysts agree that as air cargo continues to outpace passenger growth, conversion of current front-line aircraft to all-cargo will comprise 70% of the expected 2000 plus freighters needed worldwide between now and 2020.
     But back when it all started for EADS/ EFW, there was a cargo show trade show that was held (interestingly enough) at Seattle in 1992.
     One evening, delegates were feted at a reception and dinner inside the Air Museum located at Seattle Tacoma International Airport.
     Any doubts that EADS/EFW had a red-hot product on their hands was dispelled instantly as guests arrived for the reception.
     Out on the hardstand in front of the hall as the sun set above the pine trees, sat a newly converted Airbus A310-200 in FedEx livery.
     The smell of the freshly painted, immaculately outfitted aircraft wafted above as the guests lined up to board and inspect the Airbus.
     No question that Airbus and specifically EADS/EFW, which at the time was known as Daimler/Chrysler Aerospace, stole the evening, even as a portrait of old Bill Boeing stared down from a wall at the dinner guests inside the museum.
     Outside, Karl-Ulrich Garnadt Lufthansa’s vice president European Network, said it for everybody as he walked away from the aircraft and exclaimed:
     “Maybe we shouldn’t have sold that airplane!”
     Well “Ja” to that, everybody within earshot of the executive said right away.
     In any event nobody has wondered about Airbus freighter conversions since then.
     “Ten years ago we looked at alternatives and determined the converted A310-200 was the most cost-effective aircraft for our medium range domestic market,” Thomas E. Bodimer managing director of aircraft conversions at FedEx told a packed audience in Dresden.
     “Our in service experience confirmed that A310-200 was the right choice. Today we operate A310-300 and A300- 600’s as well with excellent results.”

ATLAS TO PREVAIL

     Just when you thought it was safe to imagine a brighter sky.
     Charters, the season and the ever loving Asian market gives Atlas Air a lift from having to put up with some its fleet mothballed down in the desert.

Rich Shuyler

     Now the Purchase, New York outfit looks forward to some better numbers for its fourth quarter report and other positive news.
     Polar Air, the Atlas takeover some said, wouldn’t work, is now being viewed by almost everybody as a stroke of genius.
     Cost savings from certain synergies between the two including moving Polar HQ from the West coast to the East are gaining smiles all around, or at least a brief sigh of relief. After all, this is Post 9/11 as the airline tailspin continues in weighty 2002.
     So what could mess up these welcome bright spots for Atlas?
     Well, there is this accounting mess and resultant publicity including the need for Atlas to restate its earnings in a reaudit of 2001-2002.
     But the company will weather the cloud burst, said Atlas CEO Rick Shuyler.
     “We are not happy, but we are determined to fix the problem and move on. These are non cash adjustments which have nothing to do with the day-to-day operations of either Atlas or Polar.”
     Mr. Shuyler and company can take some solace for the speed in which they dumped the disgraced accounting firm of Arthur Andersen as that company was exposed for their Enron and other financial gymnastics.
     Before Arthur Andersen executives could press their $1000 suits and prepare to take a manacled perp walk out of Federal Court, Atlas took the initiative, hiring another accounting firm, Ernst & Young this past April. It’s not great news, what E&Y found, but probably no surprise, some numbers didn’t add up.
     Look for Security and Exchange Commission (SEC) to launch an investigation, although the Atlas money and activity here is chump change next to the slaughterhouse list of broken companies connected to accountants in 2002.
     So what will happen?
     Atlas will probably report profits for the fourth quarter and become one of only a few U.S. airline companies not bleeding red.
     Perhaps the company will have to endure a fine or a warning slap on the wrist from SEC that all things considered, is probably excessive.
     “None of this affects our cash position. We expect to prevail,” said Rick Shuyler.

VIRGIN'S BIG RED ONE

     It’s big, brother.
     It can fly 7,000 plus miles on a tank of gas.
     Right now, cities like Hong Kong are within easy reach from Great Britain. Flying from anyplace USA non-stop, to any corner of this whole world, is no problem.
     “Mine Is Bigger Than Yours” is an old school ground gotcha. But when Richard Branson’s folks painted that very phrase across the empennage of Virgin Atlantic’s A340-600 as the British flag carrier launched the aircraft type this past summer, it was more than just about length and size. Virgin Atlantic, the airline, wears its heart, its big red tail upon every airplane in the fleet.You see, despite all the gloom and bad news and challenges and lay- offs, we are once again reminded that the airline business is exciting, and can be eventful and fun. Airlines, if you look at them right are like no other enterprise.
     The Virgin A340-600’s paint scheme upon each engine cowling proclaims: “4 engines 4 long haul.” Some fun in a time of few laughs.
     Herb Kelleher is gone. So too, except for a few flights for the gamblers is Freddie Laker.
     Thank goodness for Richard Branson. Of all the hearts that ever pumped JetA through an industry’s vein, Sir Richard has the big red one.
     The Airbus A340-600 is the longest production aircraft in the world. It can carry a butt load of cargo as well.
     The first one, that flew July 22, named Cloud Nine was autographed by super-model Claudia Schiffer and renamed Claudia Nine (why not?) just before pushing off from Heathrow for a short hop to the Farnborough Air Show as the type’s first commercial flight.
     Like that old Fats Waller song ‘All That Meat And No Potatoes’ here was the longest airplane with the super range to fly anywhere, puddle-jumping about 20 miles to a tree top height “Take Off Fly Around,” as adoring aviation fans cheered on the ground and sipped champagne from above.
     Good Show, Virgin!