Hilka Birns/CAPE TOWN
South African Airways (SAA) has agreed with Boeing to swap its outstanding orders and options for up to seven 777s for two whitetail 747-400s originally built for Philippines Airlines.
Two General Electric CF6-80C2-powered 747-400s were delivered at the end of 1998 after nearly three years of negotiations. SAA originally ordered four 777s plus three options, and two 747-400s in November 1995 and lodged a $60 million deposit.
The second of these 747-400s (both Rolls-Royce RB211-powered) was delivered to SAA in mid-December, and the two more recent deliveries bring the airline's 747-400 fleet to eight. The carrier also operates 13 747 Classics.
A management change in early 1996 saw the 777 deal put on ice. Although this was formally put down to indecision over engine selection, it was later acknowledged that the new executive wanted to review SAA's fleet requirement. It also transpired that the deal had stalled because the Department of Trade & Industry, which was still formulating an industrial participation policy, was unhappy with the offset package.
Rolls-Royce, which ousted Pratt & Whitney as SAA's engine supplier on its 747-400s, had hoped to secure Trent orders from SAA for the 777s. As part of its campaign, the UK engine builder placed a contract with Denel for RB211-535 accessory gearboxes in return for a risk share on the Trent programme. It also earmarked the Eastern Cape as a location for substantial industrial investment.
A DTI source recently said Rolls-Royce could probably use its proposed offset against government selection of the Adour engine for the 24 Hawk Lead-In Fighter Trainers it intends to order from British Aerospace.
The new 747s will initially be deployed on routes to London because frequencies between South Africa and the UK are being increased.
Source: Flight International
