Paul Lewis/SINGAPORE
Asiana Airlines is circulating a letter to rival international carriers offering newly ordered and existing aircraft for sale or lease. There appear to be few takers in Asia, though, with Malaysia Airlines (MAS) offering its Boeing 777 delivery positions in 1998 to Delta Air Lines and other struggling regional operators reviewing their fleet requirements.
The position of Asiana, South Korea's second national airline, is particularly serious, with some analysts even questioning its future survival. It is understood that the airline's entire team of some 30 senior managers has offered to resign, of which eight have so far been accepted, including Asiana's principal advisor, Yong Tae Park.
As a result of shrinking traffic and South Korea's bail-out by the International Monetary Fund leading to a credit squeeze, Asiana is having to advise manufacturers of its difficulty in taking new aircraft on order. Its offer of surplus equipment and production positions to other airlines includes three Boeing 767-300ERs and two 747-400s from its operating fleet, and two recently deferred new 777s.
The status of Asiana's Airbus commitments is less clear, though its lead A330 delivery had earlier been pushed back to 2000. The first three of 18 A321s on order are due for delivery this year. The airline signed purchase agreements in 1996 for 18 A330-200/300s, 18 A321s, 15 777-200/300s and five 747/767s, plus options.
Despite a projected $405 million net loss for 1997, the position of Hanjin Group-backed Korean Air (KAL) appears more secure. An "extensive restructuring", is planned, including a cut in the number of senior executives. A decision on ordering up to 40 new 180-seat narrowbodies has been delayed, but KAL says that it remains committed to the six 777-200/300s, six 747-400/400Fs and ten A330-200/300s due for delivery in 1998/9.
South-East Asia appears to be faring little better. MAS, under Government pressure to cut spending, is discussing selling or leasing to Delta its Rolls-Royce Trent-powered 777s due for delivery in 1998. The fifth 777 was delivered in January, another twinjet is due in March and three more by year-end.
Delta is keen to secure more 777s ahead of the first of its own to be delivered in August 1999 (also R-R-powered), to beat rival American Airlines into the market. American, due to take its first 777 in January 1999, is also looking for earlier 777 positions.
Malaysia's Saeaga Airlines has also confirmed that it has "deferred indefinitely" the lease of two A320s from Singapore Aircraft Leasing Enterprise, due for delivery in August and September this year. The aircraft, in turn, were a stand-in for a cancelled plan to order five of its own A320s.
Philippine Airlines has said that it is cancelling four Boeing 747-400s on order for 1999, Manila-based Pacific East Asia Cargo is deferring planned new leases and Garuda Indonesia has defaulted on lease payments for six A330-300s, in the face of 70% depreciation in the rupiah against the US dollar
Cathay Pacific Airways has moved ahead with the retrenchment of 800 staff worldwide, with more job losses in the pipeline for June. Even China is not immune to the downturn, with industry-wide load factors for last quarter of 1997 down by 15% for domestic traffic, 20% on flights to Hong Kong and 10% on international routes.
Source: Flight International
