KAREN WALKER AND STEVE NICHOLS
Boeing representatives at the show remained tight-lipped last night following suggestions that Boeing is to end its five-year simulator and training joint venture with FlightSafety, known as FlightSafetyBoeing (FSB).
Boeing would not comment on a possible split and said that FSB was an important part of its overall portfolio, although the venture had not avoided the industry downturn that has seen Boeing reduce its staff by more than 25,000. But industry sources say that a split could happen before the end of the year. Senior executives at both FlightSafety and Boeing are believed to have differing opinions on how to grow FSB in the wake of 11 September and the industry downturn.
Although FSB is a 50:50 joint venture financially, it is split 51:49 in favour of FlightSafety administratively. This gives the balance of decision-making to A L Ueltschi, chief executive of FSB and founder of FlightSafety.
Pressured
Sources say that Ueltschi, who launched the business in 1951, has become increasingly unhappy with sagging operating margins at FSB, which have been further pressured since 11 September as aircraft have been parked and flight crews furloughed, resulting in softening demand for commercial airline training. "Executives at both parents are talking about what's best going forward," says one industry source.
Former FSB president Gary Scott recently left the company to join rival simulator manufacturer and operator CAE, which has become the second largest provider of training after FlightSafety.
Pat Gaines was appointed in June as new president of FSB, running the joint venture's business performance and day-to-day operations. Mr Gaines was unavailable for comment at Farnborough yesterday.
FSB now has 70 full-flight simulators in 20 locations around the world. But increasingly those centres have little in the way of links with FlightSafety's own training operations, which now number more than 40. Only a handful of jointly-run training centres exist, including one at Manchester in the UK and another in Atlanta.
Boeing is a relative newcomer to the training industry, forging its deal with FlightSafety in 1997 as a way to diversify its business and become a closer, long-term training partner to its airline customers.
FSB, which specialises in flight and ground crew training for all aircraft of 100 seats or more, operates completely independently, so a break-up of the joint venture would likely have little impact on day-to-day operations at either company.
Source: Flight Daily News
