Potential investors in FLS Aerospace (FLSA) maintenance operations have walked away from taking a stake in the company after the 11 September terrorist attacks triggered airline capacity cuts and the collapse of the market. The breakdown in talks came to light as the company announced a major restructuring plan last week.
Negotiations between Europe's largest third-party maintenance provider and an unnamed investor were almost complete after months of talks when the terrorists struck . The Danish-owned company admits: "We were very close until 11 September. The investor is not looking to invest now."
Now, faced with a potentially large reduction in heavy maintenance business, FLSA is closing its Manchester, UK-based facility for all but A-checks and line maintenance work. Up to 620 jobs are at risk. In Dublin, the company is to reduce its overhaul business by about 25% with the loss of around 150 jobs. Further redundancies are expected among support staff at the site.
With Aer Lingus its single largest customer in Dublin, the company is watching anxiously as the Irish flag carrier struggles to survive the slump in transatlantic air travel. One prospect for new work is an offset agreement with helicopter maker Sikorsky to modify up to 12 Boeing 767s to cargo configuration in the event the US company wins a competition to supply helicopters to the Irish Government.
Company wide, FLSA says the jobs of 900 of its 3,600 employees are at risk. The cuts are expected to be completed by the second quarter of next year.
There are no plans to cut aircraft overhaul at the company's main base at Stansted near London. FLSA says the strong showing of low-cost operators based at the airport has helped offset downturns elsewhere.
Source: Flight International
