Re: FOKKER BANKRUPTCY?

From:         roger@concord-world-travel.co.uk (Roger Chung-Wee)
Date:         23 Jan 1996 21:40:31 -0800
Organization: Concord World Travel
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tshepherd@med-med1.bu.edu (Thornton Shepherd), in article "FOKKER
BANKRUPTCY?" on 22 Jan 1996 14:55:14 -0800, wrote:

>[[[ cross-posted to s.a.a by RNA, m.t.a-i comoderator ]]]

>I caught a very brief news flash on the BBC World Service this morning that
>mentioned a bankruptcy at Fokker Aircraft of the Netherlands.  This was a
>surprise to me because I had noticed a dramatic rise in orders for Fokker
>aircraft over the last few months.  I had also read about Daimler Benz' recent
>pledges of support for its ailing subsidiary.  Does anyone know the real story?
>What's going on?

Fokker NV has been plunged into crisis after Daimler Benz, its main
shareholder, withdrew its financial support.  (DB itself is in a poor
situation.)  Its shares have been suspended and the latest news is
that Fokker is to seek court protection from its creditors.  The court
order would apply to three aircraft units.  The company's 7,800+ jobs
must be at risk, not to mention another 1,500 at Belfast-based Shorts
(which makes wings for Fokker) plus up to another 1,500 jobs in
Germany.

It is already apparent that suppliers such as Rolls Royce will not
help out, and I also understand that the Netherlands government will
not bail out Fokker.  The writing looks on the wall for this
76-year-old company.

Fokker has been in the very competitive regional jet market and its
prospects have been further damaged by the weak US dollar.  

On a related subject, it now looks most unlikely that Fokker will be
in a position to tender for BA's 60 short and medium-haul jets, an
order worth over $1bn.  This leaves Boeing, McDonnell Douglas, Airbus
and Avro in the running.

Roger Chung-Wee <roger@concord-world-travel.co.uk>
Concord World Travel,
278 Wightman Road, Hornsey, London N8 0LX.
Tel: +44(0)181-342 8400  Fax: +44(0)181-348 0822
*** Long-haul and Caribbean Specialist ***