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UPDATE
Week ending January 19, 1997
+++ MoU on Airbus restructuring signed +++ Aérospatiale tests the Cassini antenna +++ Deutsche BA: new routes, new fare structure +++ Resolution of Eurofighter financing problem in sight +++ Delta Air Lines to shed up to 800 jobs in Frankfurt +++ Delta II self-destructs at the Cape +++ Low flying hours for Luftwaffe crew +++ Raytheon takes Hughes Aircraft +++ News in Brief +++

MoU on Airbus restructuring signed
Airbus wird eigenständiges Unternehmen

On January 13, the four partners of Airbus Industrie (Aerospatiale, Daimler-Benz Aerospace, British Aerospace, CASA) signed a memorandum of understanding to restructure Airbus Industrie into a limited liability company by 1999. The establishment of Airbus Industrie as a single corporate entity (SCE) is viewed as an important initial step in the consolidation of the aerospace industry within Europe.
According to Airbus, the SCE will have a single management structure controlling engineering, testing, production, procurement and customer service, in addition to the functions currently held by the consortium (marketing, sales, and product support). The transfer of assets from the partner companies of Airbus Industrie to the SCE will depend on how essential the function is. Detailed valuations should be completed by the end of 1997. The four partner companies will hold shares in the SCE in line with their holdings in the current Airbus GIE.
The restructuring is aimed at the continuing improvement in overall operational efficiency, the introduction of new international strategic partnerships, and longer term opportunities for external financial participation in Airbus. The company needs fresh money for its planned new products, which include an aircraft in the 100 seat category, with Alenia of Italy in co-operation with AVIC of China and Singapore Aerospace; derivatives of the successful four-engine A340, the A340-500 with a range of more than 8,300 nautical miles and the A340-600 with close to 400 seats; the A3XX, in the high capacity, long haul market; and the FLA, a military transport aircraft.

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Aérospatiale tests the Cassini antenna
Aérospatiale testet die Antennen für Cassini

French satellite manufacturer inrecent tests has checked out the antenna for the Cassini space probe that is to be launched in October by a Titan IV at Cape Canaveral, Florida. This antenna has a diameter of about four meters and will enable the probe to communicate with earth during the Huygens/Cassini mission. The test were supervised by the customers (Alenia Spazio, NASA's Jet Propulsion Laboratory and the Italian Space Agency).
Cassini is tasked to study the Saturnian system, where it will arrive after a seven year voyage. Huygens, developed by a Aérospatiale led European team, will land on Saturn's largest moon Titan also in 2004. The ESA managed Huygens/Cassini programme is a joint venture with NASA.

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Deutsche BA: new routes, new fare structure
Die Deutsche BA will mit neuen Strecken und neuem Preissystem expandieren

On Monday, January 20th, British Airways affiliate Deutsche BA launched two new domestic services from Munich to Cologne/Bonn and Munich - Hamburg. The new routes will be served eight times a day in each direction. Deutsche BA also introduced a new domestic fare structure with tickets starting at DM 190,-. On board, a single class system has replaced the former business-/economy-class system. On all its services, breakfast or snacks will be served. The move is regarded as a step to extend the market share and to attract passengers from arch rival Lufthansa. According to its technical director Adrian Hunt, Deutsche BA from its very beginning in 1992 up to now has achieved a 38 percent market share. As a special offer, a limited number of return tickets is available for DM 99,- each for all destinations in the domestic network. These tickets are valid from 14th to 16th of February only.

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Resolution of Eurofighter financing problem in sight
EF2000-Finanzierung: Lösung rückt näher

According to unconfirmed reports, financing of the Eurofighter production investment phase by Germany will be handled through a mix of Ministry of Defence and Ministry of Finance funds. 500 million DM of the estimated one billion that are necessary in the next four years will come from Mr. Waigels coffers, it is said. Still, complications could arise if there are new measures to block budget overruns this year. The negotiations between Defence Ministry and industry on the EF2000 price seem to be nearly finished, with a figure of 125 million DM per aircraft being mentioned of late.

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Delta Air Lines to shed up to 800 jobs in Frankfurt
Streicht Delta Air Lines in Frankfurt bis zu 800 Arbeitsplätze?

In a major reorganisation of its European operations, US carrier Delta Air Lines plans to shed a number of jobs at its Frankfurt hub. Delta will stop intra-European services from Frankfurt to Athens, Bucarest, Istanbul, Warsaw, Moscow and St. Petersburg in the summer. According to unions, the Delta management has definitely decided to shed 500 jobs. Another 300 are believed to be in danger. Trade union speakers said they believe the reorganisation is caused by Delta's new alliance with Air France. They fear Paris-Charles de Gaulle will instead of Frankfurt become Delta's European hub.
Delta will take a 60 million US-Dollar charge to cover the restructuring. Apart from Frankfurt, the airline will add a daily flight from Stuttgart to Atlanta and a second daily flight from Atlanta to Zurich. New nonstop-services from New York to Madrid, Manchester and Istanbul will also be added.

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Delta II self-destructs at the Cape
Delta II Rakete zerstört sich selbst

Only 12 seconds after liftoff a Delta II with a military navigation satellite for the Pentagon's GPS system self-destructed, when an anomaly occured. The exact cause has not been determined yet. Nobody was injured, no infrastructure was destroyed when parts of the rocket fell on down on Complex 17-A at Cape Canaveral's Air Force Station. The next Delta launch scheduled next week at Vandenberg AFB, California, has been postponed until the cause of the accident has been determined.

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Low flying hours for Luftwaffe crews
Luftwaffe-Piloten fliegen weniger

It is not inconceivable that the Luftwaffe will have to declare different proficiency standards for its pilots if further budget cuts lead to even less flying hours as today. According to sources in the Ministry of Defence, even today Tornado crews are at the lower limit of what is deemed accectable. 150 hours in 110 sorties per year are the average now. The situation at the Phantom squadrons is even worse, with just 130 hours flying time on average. The Transall transport units are also affected, so much so that there seems to be discontent among the crews which seek early retirement to work for civil airlines. Other air forces are not very much better off: last year, the Armeée de l'Air has stopped non-essential flying on December 12 for lack of funds.

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Raytheon takes Hughes Aircraft
Neue Fusion in USA: Lenkwaffengigant entsteht

On January 16, Raytheon announced that it has entered into definitive agreements with Hughes Electronics Corporation to bring about the merger of the Hughes Electronics defense operations (Hughes Aircraft) and Raytheon. The combined company will be called Raytheon Company.
The transaction is valued at $9.5 billion, comprised of approximately $5.1 billion in common stock and $4.4 billion in debt. On a 1996 pro-forma basis, the combined company will have revenues of approximately $21 billion, over $13 billion of which will be in defense electronics, according to Raytheon. The current backlog for the combined company will be approximately $23 billion, with defense electronics accounting for $18 billion. The transaction is expected to close by mid-year, according to Raytheon.
Dennis J. Picard, Raytheon's chairman and chief executive officer, said, "The people of Raytheon have always had the greatest respect for the technical expertise and management skills of the Hughes defense team. The combination of the Hughes and Raytheon defense businesses will create a unique technology company and a world leader in defense electronics."

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NEWS IN BRIEF / KURZMELDUNGEN

On January 14, the German government approved a bill for the full privatisation of Lufthansa late this year. The 35,68 per cent stake still in state hands could be worth up to 3 billion DM. According to Transport Minister Matthias Wissmann, the draft legislation will ensure that German investors will own a majority in the carrier.
+++
After its merger with the DLR, the German space agency Dara will stay in Bonn and not move to Oberpaffenhofen near Munich. Demands in this regard, voiced by Bavarian prime minister Edmund Stoiber, were rejected by German research minister Jürgen Rüttgers.
+++
Lufthansa Technik AG has taken a majority stake in Airmotive Ireland, a subisidiary of Aer Lingus. The company is involved in engine overhauls.
+++
GE American Communications and GE Capital Services acquired a 17.25% stake in Nahuelsat's capital, estimated at US$100 million. Nahuelsat will launch the first Argentinean satellite. It started its activities in 1993 through a US$20 million capital divided by Daimler-Benz Aerospace, Aerospatiale and Alenia Spazio. In 1995 other partners joined the company, such as IFC, Telecom, Antel (Uruguay), BISA (Bemberg group) and Banco de la Provincia de Buenos Aires. It has also signed a partnership agreement with Embratel,from Brazil.
+++
The Boeing Company has been authorized by the U.S. Air Force, NATO, and the United Kingdom to begin production of radar enhancements to their fleets of E-3 Airborne Warning and Control System (AWACS) aircraft. Valued at $482 million, the production program is the latest step under the Radar System Improvement Program (RSIP), a multinational cooperative effort. RSIP will improve the E-3's radar by increasing the sensitivity of the pulse Doppler radar so the aircraft can detect and track smaller stealthy targets over a longer range. It also will improve the radar's electronics counter-countermeasures capability. RSIP kits will be installed by Air Force personnel at Tinker Air Base, Okla. Daimler-Benz (Dasa) will handle retrofit for NATO and British Aerospace will retrofit the U.K. AWACS aircraft
+++
On January 17, the Australian Government Department of Defence has notified Kaman Aerospace , that it has been selected as the "preferred tenderer" in the competition to supply a new generation of maritime helicopters for the Royal Australian Navy (RAN). Kaman proposed the SH-2G "Super Seasprite." The contract requirement is for 11 multi-mission helicopters to go aboard RAN ANZAC frigates. Formal contract negotiations will commence shortly.
+++
After three years, the Lufthansa City Center travel bureau chain is in the black for the first time. With a turnover of 2,4 billion DM, the 307 agencies returned a profit of "solidly six digits".
+++
Snecma, the French state-controlled engine maker, has reduced its losses for 1996 by half to below 500 million Francs. Turnover was up four per cent at 18 billion Francs. For this year, a return to profits is forecast.
+++

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Previous updates are still available:

LRI Fakten - News from the BDLI

The German Aerospace Industries Association (BDLI, Bundesverband der Deutschen Luft- und Raumfahrtindustrie e.V.) is publishing a monthly newsletter, which we are pleased to offer to our international readership online. Just klick here for the November/December issue of LRI Fakten.

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Copyright 1997 by Motor-Presse Stuttgart. All rights reserved.
Last updated January 20, 1997