A last-minute offer from Swissair for LTU's fleet of four Boeing MD-11s has blocked Gemini Air Cargo's attempt to acquire the aircraft for use as freighters.
William Stockbridge, president of US supplemental cargo carrier Gemini, says that his failure to secure the aircraft is "very disappointing". On 17 October, Gemini signed a letter of intent with LTU for the purchase of the four aircraft, which was subject to respective board and shareholder approvals by both parties by "not later than 15 November", he says.
Stockbridge adds that Gemini had approved the decision on 12 November, but two days later, just before the board meeting at LTU, Swissair put in a higher bid. Sources close to the deal have confirmed that the acquisition price for the package of four aircraft and related equipment, is $275 million.
Swissair, which operates 15 Pratt & Whitney PW4000-powered MD-11s, with a further aircraft on order, will take the four similarly powered LTU machines in the last quarter of 1998 for entry into service in early 1999. Swissair will utilise them as an interim replacement for its five Boeing 747-300s, allowing their withdrawal earlier than originally planned.
Swissair's decision to add to its MD-11 fleet is surprising, particularly in view of the fact that the carrier plans to acquire at least nine A340-600s from 2002 to replace its 747s, and also holds orders for nine long-range A330-200s. Swissair may have been prompted by FedEx, however, which is known to have had a keen interest in the four LTU aircraft for future acquisition. The US freight airline has acquired Swissair's entire fleet of Airbus A310-200s, and there is mounting speculation that the two parties already have an agreement in place for the sale all of Swissair's MD-11s following the introduction of the new A340s.
Source: Flight International
