Walter gains contract for re-engining Dole agricultural aircraft fleet

Published: 5/21/1999

Czech press reports claim that Walter, the Czech engine company controlled by Aero Holdings, in which Boeing has a substantial stake, has announced a contract from the Dole fruit company for the overhaul of its fleet of agricultural aircraft. The Dole fruit company has the largest fleet of agricultural aircraft in the world. The contract is to refit five of the aircraft with Walter a.s. M601 turboprops, joining the two already using the engine. The reports do not reveal the aircraft type. Recently, Walter has been beset by problems, despite a steady 8% improvement in turnover in 1998. Debts of 770 million crowns at the end of 1998 and accumulated losses from previous years amounting to 1.6 billion crowns point to an urgent need to restructure the company. At an extraordinary general meeting in April 1999, the company outlined dramatic plans. Mr Ptacnik, Head of Marketing, said that: “Financial restructuring will include the land holdings, contributed by the parent company, Aero Holdings, the conversion of debt into equity and further investment from a new investor." The plan must be approved by the major creditor, Konsolidacni banka (KoB) of the Czech Republic, the government and the company"s shareholders. The first attempt to call an extraordinary meeting ended in a failure, allegedly owing to the unwillingness of Aero Holdings to recognise KoB"s shareholder rights at Walter, which prevented the bank from taking part in the meeting.

Article ID: 526