L e t's f u t u r e in h a n d s o f c r e d i t o r

ANDREW DOYLE/ MUNI CH

GRAHAM WARWICK/WASHINGTON DC
L
ET KUNOVICE'S largest
creditor is to decide this week
whether to file a bankruptcy peti-
tion against the cash-strapped
Czech aircraft manufacturer,
which has been forced to cease pro-
duction due to financial problems.
The Ayres-owned company
owes the Konsolidacni Banka
(KoB) around 2 billion Czech
crowns ($50 million), and cannot
meet interest payments. One sav-
iour might be BAE Systems, which
could place offset work with Let as
NEWS IN BRIEF
CORRECTION
Due to a production error,
the last sentence of the
News Analysis, "Global
Hawk to partner U-2 " (Flight
International, 29 August-4
September) was not printed.
The last sentence should
read: The Sensor Craft would
be the aircraft component of a
fully integrated intelligence
surveillance and reconnais-
sance system to also include
ground-based space assets.
LOCKHEED-NASA ALLIANCE
Lockheed Martin and NASA
plan to establish a joint Prop-
ulsion, Thermal and Metro-
logy Center at NASA's John
Stennis Space Center, Missis-
sippi, next year. The centre
will produce propulsion sys-
tems for thrusters, thermal
control systems and calibrate
test equipment and tools.
part of its campaign to sell Saab
Gripens to the Czech air force.
KoB demanded that adequate
financing be secured by 4
September if Let was to continue
as a going concern, and insisted that
Ayres install a new board at Let's 31
August annual general meeting - a
meeting Ayres cancelled, KoB says,
claiming mere were "no new can-
didates" for the board.
"If the two conditions are not
fulfilled and the company is not put
back on track, more than likely die
bank will be forced to take serious
measures, one of which could be
filing a petition for bankruptcy,"
KoB warns. "Ayres has not suc-
ceeded in stabilising die company
nor in securing financing."
Ayres admits it "quit putting
money into Let" in July, when KoB
cancelled a standstill agreement on
debt repayment, and is "not clear
what will happen". The US com-
pany plans to build its Loadmaster
at Let, but production of the cargo
aircraft is a year away, while sales of
Let's L-410 commuter aircraft can-
not support die factory.
"Let cannot exist on sales of the
410. Loadmaster is essential for
Let to survive," says chairman Fred
Ayres, who is prepared to transfer
production to Poland or Romania.
BAE is negotiating with KoB on
Ayres' behalf, but rules out finan-
cial involvement. "We're working
with die odier parties to see i f mere
is a way of finding a solution," it
says. An offset deal for Gripen
could provide a way out, and KoB
says it "considers BAE a suitable
partner" and is negotiating "on its
participation".
Ayres says Israel Aircraft
Industries (IAI) is interested in
Loadmaster work, and hence Let,
"but not Let by itself. KoB met
with IAI last mondi. Ayres plans to
meet with IAI again this week. J
Au s t r a l i a ' s Ai r 8 7 c o m p e t i t i o n s l i p s t o M a r c h
R
E-LAUNCH OF Australia's
Air 87 armed reconnaissance
helicopter competition could slip
to March as the requirement is
reconsidered as part of an ongoing
defence policy review.
The Department of Defence
had planned to restart the project
with the release of new tenders on
30 June, but missed the deadline.
The Australian Government
shelved the*initial competition in
January after a successful appeal
against die shortlist by Bell.
The Air 87 project office
requested permission from
defence minister John Moore in
mid-June to restart the bidding,
but this was deferred for possible
consideration by the cabinet in
early August. The plan was also
dropped pending the outcome of
die defence white paper.
In late June, head of rotary wing
and missile profects in die Defence
The A129 is competing for the AirSl order
Material Organisation, Gunnar
Tuisk, wrote to Agusta, Bell, Boeing
and Eurocopter advising that the
new tenderwas potentially delayed
for up to three weeks. Redrafting
could take at least two months, say
Australian analysts.
The decision to defer the tender
release until after the white paper
is published raises the possibility of
significant requirement changes
leading to a further reworking of
the documentation.
Prior to the Bell appeal,
Australia shortlisted the Agusta
A129I Scorpion, Boeing AH-64
Apache and Eurocopter Tiger for
the 25-30 aircraft requirement.
U K a n d Au s t r a l i a c o n t i n u e t a l k s w i t h U SA o v e r e x p o r t e x e m p t i o n s
U
S ARMS EXPORT control
reforms to improve interop-
erability with NATO allies took
effect on 1 September as negotia-
tions continue with the UK
and Australia on more sweeping
exemptions designed to promote
closer military and industrial
co-operation.
The first reforms to take effect
are new types of licences which
"reduce the number of times an
exporter has to touch the US
Government for authorisation",
says Greg Suchan, principal deputy
assistant secretary of the State
Department's bureau of political-
military affairs.
Also taking effect are new rules
which allow US companies to pro-
vide deeper in-country mainte-
nance and training. All the new
measures apply to the NATO
allies, Japan and Australia.
The UK and Australia are the
first to be offered an exemption
from export controls similar to diat
already granted to Canada. Other
countries are likely to follow, says a
senior state department official.
Congress has moved to restrict the
granting of such exemptions, but
' the official believes the agreements
eventually reached with Australia
and the UK will comply with
Congressional guidelines.
FLIGHT INTERNATIONAL 5 - 11 September 2000 5