FINANCIALLY TROUBLED Air France has reached agreement with Boeing and Airbus on restructuring forthcoming aircraft deliveries.
In January, the airline threatened to cancel all its outstanding aircraft orders. Under a compromise deal with Boeing, orders for three 767-300ERs, three 737-500s and a 747-400 freighter have replaced an order for seven 767-300ERs and eight 737-500s, deliverable no earlier than 1999.
A single Boeing 767-300 - which was delivered in 1994, but has yet to enter service - will be resold by Boeing, and all outstanding options will lapse. Boeing has also agreed to waive the financial penalty, which would normally be incurred by such a delay, as long as the airline takes delivery of all outstanding aircraft before the end of 2001.
The value of the revised order is around $800 million, against $500 million originally. The stretched deliveries mean that Air France President Christian Blanc stands a better chance of reducing the airline's enormous debt.
Re-organisation measures have already succeeded in halving the Fr8 billion ($1.6 billion) losses in 1993, but reaching agreement on rationalising the fleet - two-thirds of which consists of Boeings - was crucial to further savings.
The airline has reached agreement with Airbus on the first part of a deal covering the delivery of A340s. Two long-range A340s already built will be delivered in the next four months. Air France will be allowed to return two A340-200s by the end of 1998.
Negotiations continue with Airbus Industrie on outstanding orders for five other long-range A340s due for delivery by 1997. Sources believe that it will probably defer, or cancel, the remaining five orders.
Source: Flight International
