Heliport
21st Aug 2001, 16:32
Source: Irish Times
US group United Technologies is thought to be near agreement to place a large, shared-service contract with the Irish operation of Dell Computer.
The deal, expected next week, will be conditional on the Government awarding an (pounds) 85 million (E108 million) to (pounds) 100 million tender for four or five Aer Corps helicopters to United's subsidiary, Sikorsky.
United has already signed a memorandum of understanding to place (pounds) 60 million in aircraft conversion contracts with FLS Aerospace, the former TEAM Aer Lingus, if it secures the business.
That arrangement could be finalised as part of a takeover by United of FLS, which employs about 1,500 people at Dublin airport.
The president of FLS, Mr Stephen Henderson, has said its parent will sell the company if a suitable bid emerged.
United is known to have discussed investing in the company earlier this year and it is considered by some informed observers to be a "warm favourite" for a takeover.
The sale process is separate to the agreements designed to secure the Government's backing for the Sikorsky helicopter bid.
The Cabinet is expected to award the helicopter contracts next month.
Formal tenders have also been received from the French firm Eurocopter, and two British groups, Agusta Westland (EH Industries) and CHL Scotia.
These are being assessed by a Defence Forces working group. The value of the contracts is considerable.
The Aer Corps wants to acquire two or three search-and-rescue helicopters, with another two for general military purposes. The helicopters will be priced at about (pounds) 15 million each.
But because maintenance and running costs of such helicopters are very high, the ultimate expenditure by the Government could amount to three times the purchase price.
This means the helicopter contracts will rank among the largest investments in military equipment by the State.
Other "industrial co-operation" arrangements related to the undertaking by United are thought likely to emerge soon.
General Electric (GE), which supplies engines to Sikorsky, is believed to be considering an agreement to place further aircraft conversion work with FLS if the Sikorsky bid is successful.
Such work would involve the conversion of passenger craft for use as cargo carriers.
United's agreement with FLS would see it place business for the conversion of nine Boeing 767 aircraft from 2002.
It is thought that AIB has been approached to provide a financing facility of $250 million (E273 million) to fund the acquisition of six of those aircraft.
If GE signs an undertaking, it will place conversion contracts for Boeing 737 carriers and others owned by its leasing division.
The potential deal with Dell would see United place contracts to manage its management information services for its European operation with Dell's Irish division.
The computer group, which employs more than 5,000 people at plants in Co Limerick and at Bray, Co Wicklow, is a major supplier of information technology to United.
It is thought that IDA Ireland may also be linked to the potential deal, which has been under discussion for some time.
It is not known whether the Aer Corps's fleet of French-made Dauphin helicopters will be taken out of service.
The Government has specified that it wants the helicopters to be capable of round-trip missions of 200 miles, with an additional 45 minutes hovering time.
The Dauphin craft have round-trip capacity of 100 miles.
US group United Technologies is thought to be near agreement to place a large, shared-service contract with the Irish operation of Dell Computer.
The deal, expected next week, will be conditional on the Government awarding an (pounds) 85 million (E108 million) to (pounds) 100 million tender for four or five Aer Corps helicopters to United's subsidiary, Sikorsky.
United has already signed a memorandum of understanding to place (pounds) 60 million in aircraft conversion contracts with FLS Aerospace, the former TEAM Aer Lingus, if it secures the business.
That arrangement could be finalised as part of a takeover by United of FLS, which employs about 1,500 people at Dublin airport.
The president of FLS, Mr Stephen Henderson, has said its parent will sell the company if a suitable bid emerged.
United is known to have discussed investing in the company earlier this year and it is considered by some informed observers to be a "warm favourite" for a takeover.
The sale process is separate to the agreements designed to secure the Government's backing for the Sikorsky helicopter bid.
The Cabinet is expected to award the helicopter contracts next month.
Formal tenders have also been received from the French firm Eurocopter, and two British groups, Agusta Westland (EH Industries) and CHL Scotia.
These are being assessed by a Defence Forces working group. The value of the contracts is considerable.
The Aer Corps wants to acquire two or three search-and-rescue helicopters, with another two for general military purposes. The helicopters will be priced at about (pounds) 15 million each.
But because maintenance and running costs of such helicopters are very high, the ultimate expenditure by the Government could amount to three times the purchase price.
This means the helicopter contracts will rank among the largest investments in military equipment by the State.
Other "industrial co-operation" arrangements related to the undertaking by United are thought likely to emerge soon.
General Electric (GE), which supplies engines to Sikorsky, is believed to be considering an agreement to place further aircraft conversion work with FLS if the Sikorsky bid is successful.
Such work would involve the conversion of passenger craft for use as cargo carriers.
United's agreement with FLS would see it place business for the conversion of nine Boeing 767 aircraft from 2002.
It is thought that AIB has been approached to provide a financing facility of $250 million (E273 million) to fund the acquisition of six of those aircraft.
If GE signs an undertaking, it will place conversion contracts for Boeing 737 carriers and others owned by its leasing division.
The potential deal with Dell would see United place contracts to manage its management information services for its European operation with Dell's Irish division.
The computer group, which employs more than 5,000 people at plants in Co Limerick and at Bray, Co Wicklow, is a major supplier of information technology to United.
It is thought that IDA Ireland may also be linked to the potential deal, which has been under discussion for some time.
It is not known whether the Aer Corps's fleet of French-made Dauphin helicopters will be taken out of service.
The Government has specified that it wants the helicopters to be capable of round-trip missions of 200 miles, with an additional 45 minutes hovering time.
The Dauphin craft have round-trip capacity of 100 miles.