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Old May 20th, 2005, 07:53 AM   #61
Cheese Mmmmmmmmmmmm
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Airlines Map Out Merger Plan

May 20 08:23
AFP

US Airways
, the troubled carrier trying to emerge from bankruptcy, announced plans on Thursday to merge with discount airline America West in a deal helped by financing from European plane maker Airbus.

The merger would "create the first full-service nationwide airline, with the consumer-friendly pricing structure of a low-fare carrier," a statement from the two companies said.

The deal, subject to approval by the US Bankruptcy Court overseeing US Airways' restructuring, would operate under the US Airways brand with the chief executive to be Doug Parker, currently chairman and CEO of America West.

The merger will establish "one of the industry's most financially stable players, with over $US10 billion in annual revenues and a strong balance sheet that includes approximately two billion dollars in total cash at closing," the statement said.

US Airways filed for Chapter 11 protection in September 2004, less than 18 months after emerging from its 2002 bankruptcy filing, after failing to win sufficient concessions from its unions. It hopes to emerge from court protection later this year.

The airline would be the sixth largest in the US market terms of traffic, according to the Wall Street Journal.

The carriers said they had a pledge of $US350 million of new equity commitments and would seek a $US150 million rights offering.

The new equity investors would include ACE Aviation Holdings, parent of Air Canada, which has committed $US75 million, and other investors.

In addition, the merged airline would receive cash infusions of over $US1.1 billion, mainly from partners and suppliers.

Another $US250 million will come from Airbus, the European aerospace consortium, in the form of a loan.

As part of the deal with Airbus, the companies have agreed that the merged company will be the launch customer for the Airbus A350, with deliveries scheduled from 2011 to 2013.

"Building upon two complementary networks with similar fleets, closely-aligned labor contracts and two outstanding teams of people, this merger creates the first nationwide full-service low-cost airline," Parker said.

"Through this combination, we are seizing the opportunity to strengthen our business rather than waiting for the industry environment to improve. A combined US Airways/America West places the new airline in a position of strength and future growth that neither of us could have achieved on our own."

US Airways president and CEO Bruce Lakefield added: "US Airways has a strong franchise and great employees that will be enhanced by America West's strengths and success in the low-fare, low-cost marketplace. That we have secured such an impressive slate of equity investors and partner support in a period of such industry uncertainty is a strong indication of the prospects and enthusiasm for this transaction."

The announcement came the same day a Standard & Poor's report indicated that US airline industry's slump, now in its fifth year, shows no sign of easing and could lead to a "tipping" point for some carriers.

The S&P semiannual survey of the airline industry concluded that some low-cost carriers are able to remain profitable but that "2005 could become a possible tipping point for giants such as US Airways and Delta Airlines."

S&P said the major carriers, hit by soaring fuel costs that have exacerbated the slump since the September 11, 2001 attacks in the US, "can no longer withstand the massive losses they have sustained over the past four years."

The report said that while the major carriers are taking drastic steps to survive, "the largely profitable low-cost carriers are rapidly gaining market share and may be poised to take over the lion's share of the industry in the future."
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Old May 21st, 2005, 08:19 AM   #62
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Boeing Is Big Loser In America West Deal [Op-Ed Piece]

Gerald R. Kleinfeld, Chandler - The Arizona Republic
May. 21, 2005 12:00 AM



If the America West Airlines merger took place in France, hundreds of thousands of Parisians would take to the streets in protest. The American Embassy would be stormed. In Germany, leading politicians would denounce foreign capitalist "locusts" for interfering in the domestic economy.

Why? It's Airbus vs. Boeing.

Airbus, European competitor of Boeing, hasn't sold a single A350, against 160 Boeing 787s. Airbus is in a huge battle with Boeing, which no longer manufactures a complete fleet and developed the 787 to stay in the business.

To defeat Boeing, Airbus needs to have a hit with the A350. Desperate for a first sale, Airbus puts up $250 million for the merger, and GE some of the rest. GE makes the engines for the A350. A few other A350 parts are also made in the United States, including the escape chute and the thrust-reversers in Phoenix. The merged airline must order 20 A350s. No planes, no merger.

US Airways, known for old aircraft, lost baggage and poor service, could not survive much longer after two bankruptcies. Even after cutbacks, it is a higher-cost carrier.

AWA faces problems, too - it is too small, but it is a more attractive takeover candidate because of low-cost operations. Both lines decided to risk the merger. About 8,000 employees will have to go, hopefully by attrition.

The merged airline will have to grow routes and find new customers to succeed. AWA's management thinks that it can make the new airline a winner.

Here is where the Airbus/Boeing battle comes in. AWA flies Airbus, and already has ordered a bunch of A330s, without money to pay for them.

However, the only way it can finance the merger is also to buy A350s and then find routes for them. They will "become the launch airline for the A350," according to the official statement. Airbus isn't selling the 350, it's giving it away.

This is a new page in the competition between Airbus and Boeing. Will Boeing now fund a merger between Malev (Hungarian) Airlines and Alitalia (Italian) Airlines in order to sell the 787? Money provided, of course, by Washington? Will the EU allow that? Will the new US Airways, bolstered by its heavy funding package, survive?

It's America West CEO Doug Parker's gamble, and some employees will lose out in order for the rest to hold on.

Phoenix may win. Boeing loses.
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Old May 21st, 2005, 09:09 AM   #63
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Airbus ‘in crisis’
Written by 7DAYS | Sunday, 15 May 2005


THE head of Airbus has admitted that the company is in crisis as a breakdown in relations between German and French shareholders blocked the appointment of his successor. Boardroom brinkmanship at Airbus’ parent company EADS has left both companies without permanent bosses and put the successful Franco-German alliance to an untimely test as France sets to vote on a new EU charter and arch-rival Boeing regains momentum.

Noel Forgeard, chief executiive of Airbus, wants to retain control over the France-based company as well as take on the co-CEO role at EADS, a move that would upset a delicate political power balance and has set alarm bells ringing among the group's shareholders. The secret of success for EADS so far has been to balance executive power, with a pair of chairmen, two CEOs and two main shareholders - in each case, one French and one German - and reporting lines that weave together the nationalities.

Forgeard, who is due to become co-chief executive at EADS, had wanted to continue running Airbus for a few weeks while a permanent successor was sought. But DaimlerChrysler, a German shareholder of Airbus, blocked the interim solution. “There was not enough trust from DaimlerChrysler to organise an interim solution of that sort,” M Forgeard said. Last, week, an EADS board meeting had been expected to confirm Forgeard and Thomas Enders, its chief of defence operations, as the group’s new joint chairmen. But their appointments were put on hold as discussions on a new management team ended in a stalemate.

"They have a case of nerves like never before," said Francis Tusa, editor of newsletter Defence Analysis, who believes Forgeard and ultimately EADS risk losing ground to Boeing if the dispute is not patched up quickly. "This is not the time for petty management fighting." Forgeard has been given until June 1 to sort out the mess. "We still want co-CEOs and to separate the management of Airbus and EADS," a source close to the German side said. "The overarching goal is to maintain a balance between the two sides of shareholders." Analysts speculate Forgeard may prevail or be forced out.

http://www.7days.ae/content/view/952/12/
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Old May 21st, 2005, 09:15 AM   #64
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United States warns of action on Airbus

Reuters

Washington :
The United States warned the European Union it would resume action at the World Trade Organisation if European governments provided loans to help Airbus develop a new aircraft.

"If additional subsidies are committed, we have said we will resume litigation through the WTO and that remains our position," a spokeswoman for the US Trade Representative's office said, responding to news that Airbus had requested loans from Britain to develop the twin-engine A350.

The United States and the EU suspended competing WTO cases over government aid for Airbus and Boeing in January in the hopes of reaching a negotiated settlement. However, they failed to achieve that by an April deadline.

Washington would still prefer to negotiate an agreement that eliminates aircraft subsidies, USTR spokeswoman Neena Moorjani said. In the meantime, "our position has been clear no new subsidies," she said.

"We're keen to get a decision by mid-June," Airbus UK spokesman Howard Berry said of the launch aid application to the UK government.

The aid decision would coincide with the Paris air show, where the rivalry between Airbus and Boeing usually takes centre stage. The EU said negotiations with the United States to avert a trade war were still under way.


http://www.gulf-news.com/Articles/Bu...ticleID=165796
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Old May 21st, 2005, 02:00 PM   #65
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Quote:
Originally Posted by Cheese Mmmmmmmmmmmm
Gerald R. Kleinfeld, Chandler - The Arizona Republic
May. 21, 2005 12:00 AM



If the America West Airlines merger took place in France, hundreds of thousands of Parisians would take to the streets in protest. The American Embassy would be stormed. In Germany, leading politicians would denounce foreign capitalist "locusts" for interfering in the domestic economy.

Why? It's Airbus vs. Boeing.

Airbus, European competitor of Boeing, hasn't sold a single A350, against 160 Boeing 787s. Airbus is in a huge battle with Boeing, which no longer manufactures a complete fleet and developed the 787 to stay in the business.

To defeat Boeing, Airbus needs to have a hit with the A350. Desperate for a first sale, Airbus puts up $250 million for the merger, and GE some of the rest. GE makes the engines for the A350. A few other A350 parts are also made in the United States, including the escape chute and the thrust-reversers in Phoenix. The merged airline must order 20 A350s. No planes, no merger.

US Airways, known for old aircraft, lost baggage and poor service, could not survive much longer after two bankruptcies. Even after cutbacks, it is a higher-cost carrier.

AWA faces problems, too - it is too small, but it is a more attractive takeover candidate because of low-cost operations. Both lines decided to risk the merger. About 8,000 employees will have to go, hopefully by attrition.

The merged airline will have to grow routes and find new customers to succeed. AWA's management thinks that it can make the new airline a winner.

Here is where the Airbus/Boeing battle comes in. AWA flies Airbus, and already has ordered a bunch of A330s, without money to pay for them.

However, the only way it can finance the merger is also to buy A350s and then find routes for them. They will "become the launch airline for the A350," according to the official statement. Airbus isn't selling the 350, it's giving it away.

This is a new page in the competition between Airbus and Boeing. Will Boeing now fund a merger between Malev (Hungarian) Airlines and Alitalia (Italian) Airlines in order to sell the 787? Money provided, of course, by Washington? Will the EU allow that? Will the new US Airways, bolstered by its heavy funding package, survive?

It's America West CEO Doug Parker's gamble, and some employees will lose out in order for the rest to hold on.

Phoenix may win. Boeing loses.
no, it's BOEING vs. AIRBUS.

why they think by airbus that they are stronger than boeing and made better airplanes?

that's not true.
as you see in the orders, there is no battle:
Airbus: 134 Orders
Boeing: 395 orders

and as you see at the orders of the a350 vs B787:
Airbus a350: 10 orders
BOEING 787: 255 orders

so, what is here the battle?
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Old May 21st, 2005, 07:52 PM   #66
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Yes, but why Boeing has only 65 firm orders? Does it mean that the companies don't really trust in this new aircraft, or maybe it's something else?

One thing is sure: the B787 is a brand new plane which should use a lots of innovations, whereas the A350 is just an A330 which will use the same innovations.

Anyway I flew yesterday on B737 in the morning and on A319 on the afternoon, and I'm really surpised by the superiority of the Airbus (comfort, noise...)
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Old May 21st, 2005, 10:21 PM   #67
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Quote:
Originally Posted by TipNTop
Yes, but why Boeing has only 65 firm orders? Does it mean that the companies don't really trust in this new aircraft, or maybe it's something else?

One thing is sure: the B787 is a brand new plane which should use a lots of innovations, whereas the A350 is just an A330 which will use the same innovations.

Anyway I flew yesterday on B737 in the morning and on A319 on the afternoon, and I'm really surpised by the superiority of the Airbus (comfort, noise...)
yes, the others are options, but options are gonna change in firm orders when the airliner that says.
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Old May 21st, 2005, 10:24 PM   #68
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Quote:
Originally Posted by TipNTop
Yes, but why Boeing has only 65 firm orders? Does it mean that the companies don't really trust in this new aircraft, or maybe it's something else?

One thing is sure: the B787 is a brand new plane which should use a lots of innovations, whereas the A350 is just an A330 which will use the same innovations.

Anyway I flew yesterday on B737 in the morning and on A319 on the afternoon, and I'm really surpised by the superiority of the Airbus (comfort, noise...)
yes, and i had flew 2 weeks ago from amsterdam to dubai with an boeing 777 and back from dubai to amsterdam in a a330. and that one of boeing is much better in the first class than by an a330
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Old May 22nd, 2005, 03:02 AM   #69
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^That's nothing to do with the aircraft... It has to do with the airline.
What was the airline? Emirates?
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Old May 22nd, 2005, 03:09 AM   #70
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Quote:
Originally Posted by TipNTop
One thing is sure: the B787 is a brand new plane which should use a lots of innovations, whereas the A350 is just an A330 which will use the same innovations.
The 350 was intended to be a 330 derivative, but that's no longer true.
Due to the fact that the 787 has been winning all the orders, airbus decided to make the 350 an all new aircraft. Obviously it's stilll on the early designs phase, so nobody knows exactly how it will be yet...
What's for sure is that it will have the same fuselage diameter as the 300/310/330/340's although it should have a thinner fuselage, so the interior is going to be slightly wider.

This is relatively recent news, because until a few days ago, the 350 was going to be a 330 derivative.
But some days ago airbus boss said it was going to be an all new plane.

It seems as the first delivery of the 350 will be in 2011... whereas the 787 first delivery will be in 2008.
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Old May 22nd, 2005, 06:20 AM   #71
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Quote:
Originally Posted by New York Yankee
yes, the others are options, but options are gonna change in firm orders when the airliner that says.
That could be years down the line, you can't count any options for any plane until they happen.
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Old May 22nd, 2005, 06:22 AM   #72
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Quote:
Originally Posted by Nephasto
The 350 was intended to be a 330 derivative, but that's no longer true.
Due to the fact that the 787 has been winning all the orders, airbus decided to make the 350 an all new aircraft. Obviously it's stilll on the early designs phase, so nobody knows exactly how it will be yet...
WOW this is EXCELLENT news! Can you find any official press releases regarding it?
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Old May 22nd, 2005, 06:26 AM   #73
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Quote:
Originally Posted by griftre
United States warns of action on Airbus
Thanks for posting this article griftre!

Boeing needs to shut its trap about these trade disputes and government funding. BOTH companies would lose out on massive funds if they take it to the WTO and they rule to cap all that cash.

Besides... why would Boeing complain? Their 787's whooping up right now, why do they care if an A350 is made?
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Old May 22nd, 2005, 06:38 AM   #74
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Quote:
Originally Posted by Cheese Mmmmmmmmmmmm
Thanks for posting this article griftre!

Boeing needs to shut its trap about these trade disputes and government funding. BOTH companies would lose out on massive funds if they take it to the WTO and they rule to cap all that cash.

Besides... why would Boeing complain? Their 787's whooping up right now, why do they care if an A350 is made?
Although both have things to lose, Boeing knows it has the edge over Airbus in this battle. While Airbus was focusing on the huge jumbos, Boeing focused on mid-to small planes. Now that the 787 is huge hit they don't want Airbus to be even able to produce a plane to compete with it, especially with government loans.

If you were in charge of Boeing you'd do the same thing to protect your business and make sure the other guy doesn't tap into your (potential) customer base. So I wouldn't complain about them getting angry over this if they feel it is that important to their survival.
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Old May 22nd, 2005, 07:38 AM   #75
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Quote:
Originally Posted by spyguy999
Although both have things to lose, Boeing knows it has the edge over Airbus in this battle. While Airbus was focusing on the huge jumbos, Boeing focused on mid-to small planes. Now that the 787 is huge hit they don't want Airbus to be even able to produce a plane to compete with it, especially with government loans.

If you were in charge of Boeing you'd do the same thing to protect your business and make sure the other guy doesn't tap into your (potential) customer base. So I wouldn't complain about them getting angry over this if they feel it is that important to their survival.
But the thing is, both have a LOT to lose if the WTO has a hand in this dispute, and we're talking tens of billions of dollars and euros in loans/subsidies/etc to both companies.

And Boeing isn't just "surviving" here either... they do quite well.
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Old May 22nd, 2005, 11:54 AM   #76
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Quote:
Originally Posted by spyguy999
Although both have things to lose, Boeing knows it has the edge over Airbus in this battle. While Airbus was focusing on the huge jumbos, Boeing focused on mid-to small planes. Now that the 787 is huge hit they don't want Airbus to be even able to produce a plane to compete with it, especially with government loans.

If you were in charge of Boeing you'd do the same thing to protect your business and make sure the other guy doesn't tap into your (potential) customer base. So I wouldn't complain about them getting angry over this if they feel it is that important to their survival.
I think Boeing is preparing a plane like the A380. But they don't want tell that (like they were working on the B787 when they pretend to prepare the sonic cruiser).
Since 10-15 years everybody know that the companies must use large hubs with large planes to win money, and I can't trust the rules of the game changed.
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Old May 22nd, 2005, 04:35 PM   #77
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Using lager planes is more profitable because the cost per seat is lower, and as we are talking about long-haul planes its no big deal to have 2 daily flights between london and tokyo with a big plane than 5 daily with smaller ones as nobody really cares to wait 6-9 hours for the next flight than just 3-5 hours.
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Old May 22nd, 2005, 06:39 PM   #78
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Quote:
(...)So does the 787 now face a more serious rival?

Analysts were skeptical of the "all-new" claim. But certainly a launch at the Paris Air Show next month seems inevitable.

Air Transport World, an industry publication, quoted Leahy as promising "triple digit" firm orders for the A350 at the air show.


"Since December, we improved width, range, seat costs, economics," Leahy was quoted as saying Wednesday to the aviation trade press in Toulouse, France, home of Airbus.

"We changed the aircraft three or four times in the past 90 days. We achieved an eight-ton weight reduction through the use of new technologies."

"This is an all-new aircraft," he said.

Previously, the A350 had been pitched as a derivative of the Airbus A330 — with the same fuselage but new wings and engines — up against the all-new 787.

Leahy's assertion that Airbus had increased the airplane's "width" briefly raised the possibility of a new fuselage, which would truly mean an entirely new airplane.

But later an Airbus spokesman punctured that idea. There is no new fuselage, the spokesman clarified — the A350 will have the same cross-section as the A330.

But the cabin "lining is now thinner, so the internal cabin width is improved a bit for passengers," the spokesman said.

Nevertheless, though the claims to newness may be exaggerated, Leahy must announce orders at the Paris show, less than four weeks away. It seems unlikely he is claiming more than he can then deliver.

Emirates is widely expected to take 50 A350s. An order from the new US Airways puts his triple-digit goal within reach.

"I could easily imagine that Leahy shows up in Paris with A350 commitments to at least 100," said Solon. "The A350 stands to be a serious program." (...)
Source: http://seattletimes.nwsource.com/htm..._airbus20.html
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Old May 22nd, 2005, 11:48 PM   #79
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Quote:
Originally Posted by TipNTop
Yes, but why Boeing has only 65 firm orders? Does it mean that the companies don't really trust in this new aircraft, or maybe it's something else?
Get your facts straight. Boeing has now 240 orders firmed for just this year with many more to come:

http://active.boeing.com/commercial/orders/index.cfm
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Old May 23rd, 2005, 08:09 AM   #80
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FABULOUS!!!

I'm so glad Airbus has realized the potential of this market (probably because Boeing's been shoveling in orders) and are really gearing up this A350 project!!! Things just got a LOT more exciting, I can't wait to see what they're cooking up!
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