Ramon Lopez/WASHINGTONDC
US Airways has moved closer to finalising its long-standing commitment for up to 400 Airbus A320 family aircraft, with the selection of CFM International CFM56 engines, and an agreement over the delivery schedule for the first 30 aircraft.
Some of the early delivery positions are to be freed up by a side deal between GE Aircraft Engines, along with its sister leasing company within General Electric.
The US Air Line Pilots Association (ALPA) agreed to unlock the way to a deal by speeding up the vote on a new tentative contract, but only provided that the airline could get Airbus to accommodate the early delivery of the single-aisle aircraft. The finalising of the order is dependent upon this agreement.
US Airways has reached agreement with Airbus for delivery of its first six A319s in the fourth quarter of 1998, with 13 additional A319s and two A320s following during 1999. GE is a joint partner with Scene in the CFMI consortium and, to ease the deal, its leasing arm, GE Capital Aviation Services, agreed to transfer delivery positions it held for nine aircraft - two A319s and three A320s due in 1999 and four A319s due in 2000.
The firm component of the order includes 120 aircraft, with a further 120 reconfirmable orders and 160 options. CFM International says that the deal to supply CFM56 engines for the 120 firm orders is worth some $1.4 billion.
US Airways concluded the $14 billion, 400-aircraft transaction with Airbus in November 1996. The purchase was dependent, however, on new labour contracts providing major concessions. A tentative deal was hammered out between the airline and the union on 30 September - moments before the Airbus offer was due to expire.
The original timetable had called for deliveries to begin in 1997, but that plan was scrapped in January because the US carrier was not in a position to confirm the order. US Airways says that it will now begin discussions for purchase of an undisclosed number of Boeing 777s or Airbus A330s for long-haul services.
Company pilots are expected to approve the tentative offer by the end of October, and negotiations with other unionised workers are expected to produce similar cost-cutting contracts.
Source: Flight International
