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UPDATE 
Week ending March 12, 2000
+++ Greece confirms Eurofighter selection +++ Dasa goes into EADS with record results +++ UAE orders F-16 at last +++ Turkey rejects Tiger and AH-64 +++ Bold ideas shortlisted for future ESA science projects +++ Swissair results down after difficult year +++ News in brief +++

Greece confirms Eurofighter selection
Eurofighter-Auftrag aus Griechenland rückt näher

At a meeting in Athens on March 8, 2000, the Greek National Security Council (KYSEA) decided to procure 60 Eurofighter aircraft for the Hellenic Air Force to be delivered between 2005 and 2009. The program also includes an option for 30 additional aircraft. The Greek government originally announced a selection decision in favor of Eurofighter in Feb. 1999. This latest official announcement will allow the procurement process to move forward to formal contract signature. Recent discussions have focused on technical, operational and commercial details that include aspects between the Greek procurement authorities and the management agency responsible for the Eurofighter, NATO Eurofighter and Tornado Management Agency (NETMA). As part of the program Greece will be invited to become a member of the NATO Eurofighter Management Organization (NEFMO).

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Dasa goes into EADS with record results
Rekordergebnis für die Dasa

The last full fiscal year of DaimlerChrysler Aerospace AG (Dasa, Munich) was also the most successful. On the eve of the company's merger with Aerospatiale Matra and CASA to form the European Aeronautic Defence and Space Company (EADS), Dasa President and CEO Dr. Manfred Bischoff presented record results for 1999. Revenues and operating profit eclipsed the record figures for 1998 with operating profit showing a stronger rise than revenues. "We have continued to generate profitable growth in 1999 and profitability ranks with the best in our sector", commented Manfred Bischoff. Revenues at Dasa grew by five percent in 1999 to EUR 9.2 billion (1998: EUR 8.8 bn). Operating profit jumped by an impressive 17 percent to the new record figure of EUR 730 million (1998: EUR 623 mill). Dasa continued to expand its backlog of orders for the fourth consecutive year, this time rising by nine percent to reach EUR 23.9 billion (1998: EUR 21.9 billion). In line with expectations, with a value of EUR 9.9 billion the orders received in 1999 were down on 1998 (EUR 13.9 bn). This was primarily because Dasa had booked a number of special large orders for Airbus in 1998, as well as the order for the first batch of Eurofighter aircraft.
Expenditure on research and development was EUR 2.0 billion for 1999, or 22 percent of revenues. This was in line with the high level of expenditure in the preceding years. "Our company is making an outstanding contribution to maintaining German competitiveness in a highly technological global economy", said Bischoff. "We are a piece of our country's - and of Europe's - future."
The Commercial Aircraft business unit achieved revenues of EUR 3.34 billion (1998: EUR 2.96 billion). A total of 121 A319 and A321 Airbus models were delivered by the final assembly plant in Hamburg over the past year. From the year 2001, the final assembly facility will have a monthly production capability of 15 jets. Eurocopter continued to develop its position as the world's largest helicopter manufacturer for the fourth successive year, achieving a 45 percent market share. The consolidated share of the revenues contributed by Eurocopter to Dasa was EUR 705 million (1998: EUR 680 million).
The Military Aircraft business unit launched production for the Eurofighter in 1999 and passed all milestones on schedule in the run-up to series production. Revenues went up by 13 percent to EUR 1.1 billion (1998: EUR 957 million). The Space Infrastructure business unit increased revenues by two percent to EUR 592 million (1998: EUR 582 million). Ariane launchers and the European Columbus space lab are the main sources of revenue. Dasa has a stake of 11 percent in the American space company Spacelab Inc. Structural changes meant revenues of EUR 458 million for the Satellites business unit remained below the level for 1998(EUR 645 million). Global developments in the market held back investment in satellites and led to delays in the planned new constellation programs for telecommunications.
Cuts in the German defense budget led to roughly 850 job losses in the Defense and Civil Systems business unit. Revenues for the business unit remain stable at EUR 1.7 billion. The business unit continued to dispose of subsidiaries in the ongoing drive to focus on core business. A case in point here was Elekluft. MTU München upped its revenues by five percent to EUR 1.74 billion (1998: EUR 1.66 billion). Joint ventures in North America and Asia allowed MTU to expand its position as the biggest engine maintenance company not tied to a specific manufacturer.

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UAE orders F-16 at last
F-16-Bestellung aus den Vereinigten Arabischen Emiraten

Officials of the United Arab Emirates (U.A.E.) and Lockheed Martin have signed contractual agreements providing for the U.A.E.'s purchase of 80 F-16 aircraft and associated equipment for an estimated $6.4 billion. Pending U.S. Congressional approval, the aircraft will be produced by Lockheed Martin Aeronautics Company of Fort Worth, Tex., in the new F-16 "Block 60'' configuration that incorporates advanced capabilities. U.A.E. Armed Forces Col. Obaid Al Ketbi, director of general purchasing, and Dain M. Hancock, president of Lockheed Martin Aeronautics Company, announced the contract signing at a news conference held in conjunction with the Tridex 2000 Defense Exhibition in Abu Dhabi. The U.A.E.'s particular version of the F-16 is named the Desert Falcon. Its equipment package consists of conformal fuel tanks for extended range, new cockpit displays, a new internal sensor suite, a new mission computer, and other advanced features including the Northrop Grumman Agile Beam Radar (ABR) for improved tracking of multiple targets. Special aircraft equipment will include a new Integrated Electronic Warfare System (IEWS) supplied by Northrop Grumman. Northrop Grumman also supplies the internal forward-looking infrared and targeting system (IFTS) for the aircraft.
The 80 aircraft for the U.A.E. will be delivered from 2004 through 2007. Their development and production will result in the creation of over 100,000 man-years of direct employment in many different companies across 40 states.

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Turkey rejects Tiger and AH-64
Tiger und AH-64 nicht mehr im Wettbewerb

After the keenly awaited session of the Turkish Government on March 6, Prime Minister Bulent Ecevit announced that Eurocopter Tiger and surprisingly the Boeing AH-64 Apache had been eliminated from the competition to build 145 attack helicopters for Turkey's armed forces. "Eurocopter and Boeing have been eliminated from the tender because the information they provided was found to be unsatisfactory," Ecevit told reporters. This leaves Agusta (A 129), Bell Helicopter Textron (Cobra) Kamov-A of Russia (Erdogan) in the race for the $4.5 billion contract. Turkey wants to co-produce the chosen helicopter in a factory near Ankara which until recently made F-16 fighters. The extent of domestic production is one of the key factors being taken into consideration in deciding the winner of the contract. The contract is to be awarded in three stages with 45 helicopters being built in the first stage and 50 each in the second and third stages of production.

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Bold ideas shortlisted for future ESA science projects
Kühne Ideen in der engeren Wahl für künftige ESA-Forschungen

Six proposals, ranging from a visit to the Asteroid Belt to amazingly sensitive gyroscopes, will undergo close examination during the next six months, as the European Space Agency's science advisors move towards the selection of flexi-missions for launch between 2005 and 2009. Science working groups and the Space Science Advisory Committee have chosen them from 49 ideas submitted in response to a call for proposals last October. ESA's science programme introduced flexi-missions in 1997, to achieve greater flexibility. They replace the medium-scale projects, of which Huygens (Titan lander) and Integral (gamma-ray astronomy) are current examples. The aim is to have two flexi-missions for the price of one medium mission. Mars Express, already under construction for launch in 2003, is the first flexi-mission, or F1. Now under consideration are F2 and F3, each with a cost to ESA of no more than 176 million Euros at 1999 prices.
The frontrunner in the astronomy field for one of these slots is European participation with NASA in the Next Generation Space Telescope, successor to the NASA-ESA Hubble Space Telescope. Although a formal decision will not be taken until later this year, much European effort has already gone into preparing for this NGST project, due for launch in 2008. STORMS is a scheme to use three spacecraft to investigate a source of big trouble for technological systems, after solar eruptions. The "ring current" of energetic charged particles circulates around the equator at altitudes of several times the Earth's radius. Three identical spacecraft, orbiting out to 50,000 kilometres and equally spaced around the equator, could clear up several remaining mysteries of the ring current - and also provide real-time monitoring of magnetic storms.
SOLAR ORBITER would fly on an extended orbit taking it at intervals to within about 30 million kilometres of the Sun - much closer than the innermost planet, Mercury. Besides giving unprecedented close-up views of the solar surface and atmosphere, the orbiter would directly sense the related behaviour of the solar wind and energetic particles in the Sun's vicinity. MASTER would adapt the Mars Express spacecraft for a flyby of Mars and especially a flyby of large asteroids in the Main Belt beyond Mars. There it would examine one or more asteroids with instruments developed for ESA's Rosetta comet mission and SMART-1 lunar mission. The proposers offer alternative scenarios and target asteroids for launches in 2005, 2007 and 2009. Two proposals concern fundamental physics, which is a new theme in ESA's science programme. There will be a short-term selection between these two proposals, so that only one will go for the full assessment study. HYPER would test new kinds of atomic gyroscopes and motion sensors of unprecedented precision, exploiting the quantum effect that makes even whole atoms behave as if they were waves instead of particles. Such sensors promise to be as revolutionary as atomic clocks in timekeeping. CASIMIR would probe the fundamental nature of empty space. Finally, one of the proposed projects is astronomical. EDDINGTON would take up a station far from the Earth and use a 1-meter telescope with a wide field of view to examine stars for oscillations and passing planets. In addition to the above mentioned proposals, SSAC recommended to study three proposals for accommodation on the International Space Station (ISS): EUSO, study of the cosmic neutrinos and extremely high energy cosmic rays, LOBSTER, an imaging all-sky X-Ray monitor; MOSS, studying the physics of superconducting ultra-stable microwave oscillators.

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Swissair results down after difficult year
Gewinneinbruch bei Swissair

Results for 1999 for the SAirGroup failed to match the excellent prior-year levels; but the Group was largely satisfied with its performance for the year, given the industrywide revenue declines in the air transport sector. Group earnings before interest and taxes amounted to CHF 643 million (an 8.1-per-cent decline on 1998), while cash flow totalled CHF 1 423 million (7.4 per cent below prior-year levels). Net profit for the year stood at CHF 273 million (compared with CHF 361 million for 1998). Airline-related activities made a substantial contribution to these results, helping offset the adverse impact of the downturn in the airline cycle.
The air transport sector, which is the prime concern of the Group's SAirLines and SairLogistics divisions, felt the joint adverse impact of a cyclical downturn, high fuel prices, yield erosion and extraordinary influences that included the Kosovo conflict and increased delays, all of which combined to raise costs and reduce revenues by a triple-digit million amount. Results for Swissair were below budgeted objectives, despite extensive efforts from all concerned. The vacation travel business of Balair/CTA Leisure felt the additional impact of the strength of the US dollar, and results also fell short of budgeted expectations. Crossair posted an impressive set of results in a difficult business environment, albeit with a reduced net profit for the year; and Sabena sustained a slight net loss as reserves were set aside for restructuring measures.

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NEWS IN BRIEF / KURZMELDUNGEN

Emery Worldwide has signed a block space partnership agreement with Swisscargo. The new partnership affords Emery access to the Swisscargo network, enabling the company to provide consistent, reliable air cargo services from all the European markets Emery serves to the Indian subcontinent, and more specifically, the key markets of New Delhi, Mumbai (Bombay) and Chennai (Madras). The new agreement offers Emery's customers increased daily cargo capacity from the whole of Europe using the Swisscargo network through its gateways in Brussels, Belgium, and Basel and Zurich, Switzerland. The agreement is structured in Euro enabling Emery to provide pricing transparency to customers sourcing from multiple European origins. Swisscargo currently markets the capacity of two DC-10 and one 747 freighters per week, which supplement the belly space from Swissair and Sabena passenger flights, and plans to increase capacity to 20 flights per week beginning in July 2000.
+++
Boeing has received a formal disclosure from an approved supplier that some fasteners do not meet specification. The parts are used on all Boeing commercial airplane models, except for Long Beach products. The supplier has identified the parts, the dates they were shipped and to whom. The problem has been corrected at the supplier. About 20 in-service airplanes may be affected, including 737s, 757s and 777 models. We are working with affected airline customers to develop an inspection plan. We currently are assessing the situation daily to understand the impact, if any, on deliveries, Boeing said.
+++
Arianespace is looking to beef up its Washington management staff by bringing aboard former Iridium LLC executive Leo Mondale to become a executive vice president. Mondale, 40, will work closely with Doug Heydon, 71, who has been president for the past 13 years of Arianespace Inc., the U.S.-based unit of Arianespace.
+++
Raytheon has received two contract awards totaling more than $667 million for the production of the AN/APG-73 radar to be installed in U.S. Navy, U. S. Marine Corps and Royal Australian Air Force (RAAF) F/A-18 aircraft. One award, which was received from the Boeing Company and totals approximately $467.2 million, is to support F/A-18 E/F Super Hornet aircraft production in fiscal years 2000 through 2004. The other award, which was received from the U.S. Navy's Naval Air Systems Command and totals approximately $200.2 million, is for the production of radar and retrofit kits to upgrade existing RAAF, U.S. Navy and U.S. Marine Corps F/A-18 aircraft. Approximately 222 radars will be built for Boeing over a five-year period, starting with a fiscal year 2000 purchase totaling $72.9 million. Seventy-one complete radars will be built for the RAAF to replace APG-65 radars onboard their F/A-18 A/B aircraft.
+++
On March 6, Pratt & Whitney Military Engines delivered the JSF119-614 flight test engine that will be used in the Boeing X-32 JSF CTOL Flight Test Program. Meanwhile, its counterpart engine -- the JSF119-611 that powers the Lockheed Martin X-35 JSF -- has also been delivered and is ready to go. "With the delivery of both of these flight-test engines, we are ready to support the JSF CTOL flight test program," said Pratt & Whitney Joint Strike Fighter Program Director Bob Cea. Cea explained that the Pratt JSF119 engine teams supporting both weapon system contractors have successfully addressed aggressive technical and schedule requirements. Pratt established an industry standard when it brought four JSF119 variant engines to test -- two CTOL versions and two STOVL version engines for both the X-32 and X-35 -- within 23 months of receiving a contract for the program, and delivered flight hardware within 36 months.
+++
The 100th booster built in this southeastern Colorado facility for Boeing Delta rockets is being readied for delivery to Cape Canaveral Air Station, Fla. Located between launch complexes at Cape Canaveral Air Station, Fla., and Vandenberg Air Force Base, Calif., the Boeing facility is part of Pueblo's Memorial Airport Industrial Complex. Its primary function is assembly, integration and test of the Delta II and Delta III first, second and interstages, payload attach fittings, spintable and fairings, as well as the upper stage and four-meter fairing for the Delta IV Medium.
+++
Boeing has confirmed that Kenya Airways has ordered three enhanced Boeing 767-400ERs and two Boeing Next-Generation 737-700s, completing its fleet expansion and upgrade plan. Kenya Airways thus becomes one of the first airlines to place an order for the longer-range Boeing767-400ER that is in development. Deliveries of the new 767-400ERs are expected to begin in May 2004. Deliveries of the airline's first Boeing Next-Generation 737-700s are expected in December 2002.
+++
The Lockheed Martin F-22 Raptor 4003, the newest addition to the Air Force's test fleet of next-generation air dominance fighters, took off on its inaugural flight at Dobbins AFB (Marietta, Georgia) on March 6. With Boeing test pilot Chuck Killberg at the controls, Raptor 4003 flew to 30,000 feet at 500 mph during its 80-minute maiden voyage. Raptor 4003 will make several more flights from here before joining the F-22 Combined Test Force at Edwards Air Force Base, Calif., later in March.
+++
The latest report on Airport Connectivity from IATA, with Hague Consulting Group, provides a unique insight into the passenger route network available from major airports. Latest results for 100 of the world's major airports show significant increases in the level of passenger connectivity between 1998 and 1999. Airports with the highest current hub connectivity in these regions were: North America: Chicago, Dallas, Denver, Atlanta, Minneapolis Europe: Frankfurt, Amsterdam, Paris (CDG), London Heathrow, Zurich Asia/Pacific: Sydney, Seoul, Kuala Lumpur, Singapore, Melbourne. The publication provides an up to date marketing index to measure the overall network performance for airports and airlines. Benchmark data on direct, indirect and hub connectivity is displayed for 100 major airports around the world, with nearly 100 pages of charts, tables and analyses now provided.
+++
The Cormorant Search and Rescue helicopter, built for the Canadian Air Forces, made its first flight at Agusta's facility in Vergiate, Italy. The flight was flawless. The aircraft is powered by three GE T700/T6A1 turboshaft engines that each produce 2145 shaft horsepower. The Cormorant, built to replace the retiring fleet of Labrador helicopters, flew for 15 minutes and completed a fly-by at a speed of 110 knots for an assembled delegation of the Canadian Program Management Office. The Cormorant contract is for 15 Search and Rescue helicopters.
+++
Civil aviation is determined to guarantee access to protected radio frequency spectrum, an essential element of safe and efficient air transport operations. Airlines, airports, pilots, controllers, regulators, tourism organisations and other key members of the industry meeting in London on 9-10 March formed a coalition and initiated an action plan to protect vital radio frequencies today and in the future. Civil aviation is an essential part of the world's economy, but its future operations could be in jeopardy if the radio frequencies currently allocated to it are reallocated by States at the World Radio Conference (WRC) 2000 meeting in Istanbul starting on 8 May 2000. Aviation relies on new technologies such as satellite-based communications, which have the potential to increase safety and reduce both air traffic control delays and aviation's impact on the environment. The industry needs the assurance of accessibility to crucial interference-free radio frequency bands to continue current operations and implement the supporting technologies.
+++
Lufthansahas taken delivery of their 25th Airbus Industrie four-engined A340 intercontinental long-range aircraft. With this latest addition, Lufthansa is not only Airbus Industrie's largest A340 operator, but it also confirms the airline's position as the largest A340 customer, with orders for a total of 49 aircraft. Lufthansa was a launch customer for the original A340-200 and -300 versions when it committed to initially acquiring up to 30 aircraft in February 1987. It has since placed several repeat orders for the A340 including ten for the latest -600 version, for which it was also a launch customer in December 1997.
+++
The first of two operationally flexible Airbus Corporate Jetliners (ACJs) firmly ordered by the Italian Ministry of Defense was presented in Rome to a delegation led by the Italian Prime Minister, Dr. Massimo D'Alema. The presentation ceremony, also attended by Deputy Prime Ministers Mr. Enrico Micheli and Mr. Marco Minniti, Italian Air Force Chief of Staff General Mario Arpino, and Airbus Industrie Chief Operating Officer Dr. Dietrich Russell, provided an opportunity for the Italian Prime Minister to witness the ACJ's unparalleled operational characteristics.
+++
Aerospatiale Matras key financial highlights for the year ended December 31, 1999 were revenues of EUR 12,9 billion (FRF 84,6 billion), an increase of nearly 5% over 1998. Airbus made a particularly strong contribution with an increase of 25,4%. EUR 15,5 billion (FRF 101,5 billion) in new orders booked and an order book worth EUR 38,4 billion (FRF 251,9 billion) at year end 1999 (70% export), a rise of nearly 9% over year end 1998 and representing three years of business. Orders booked during the year included 476 Airbus airliners, 30 ATR aircraft, 382 helicopters (including 160 Tiger helicopters), PAAMS, Storm Shadow missiles for Italy (to equip Eurofighter and Tornado aircraft), Rapier Mark 2 missiles and 20 Ariane 5 launchers and firm orders for 28 Rafale out of a total of 48. Operating income remained stable at EUR 480 million (FRF 3.147 billion), compared with EUR 494 million for 1998. This was achieved despite the transition pursued for the defense business (missiles systems and combat aircraft) and technical difficulties encountered in the satellite segment, which were rapidly resolved, but had a negative impact on operating income of EUR 40 million (FRF 265 million). This confirms that the Group is on target for achieving its objective of doubling its operating margin in 2003. Net income Group share was in line with forecasts, standing at EUR 30 million (FRF 200 million) versus EUR 436 million (FRF 2.860 billion) for 1998. This decline was due to an exceptional loss of EUR 256 million (FRF 1.68 billion) in 1999 (corresponding primarily to restructuring of currency hedging instruments and privatization costs), compared with exceptional income of EUR 142 million (FRF 932 million) in 1998 (primarily from the sale of satellite operations).
+++
Lufthansa Technik AG, the maintenance and engineering subsidiary of the Lufthansa Group, and Malév Hungarian Airlines jointly announced that they have signed an agreement, which will result in the setting up of a new company specialising in the overhaul of narrowbody aircraft in Budapest, Hungary. The new company, which will be named Lufthansa Technik Budapest Kft., will be 85%-owned by Lufthansa Technik, with 15% being owned by Malév, and will operate out of one of the two hangar buildings currently occupied by Aeroplex of Central Europe Ltd., which is 100% owned by Malév. The investment will cover the refurbishment and upgrade of the existing hangar facility to the latest EU and aviation industry standards, including the installation of the latest information systems already developed by Lufthansa Technik at its other overhaul facilities around the world. Operations are expected to commence in early 2001.
+++
On March 1, NH Industries presented its fifth and last prototype of the NH90 (PT5) at the Agusta Cascina Costa facility in Italy. The ceremony was attended by senior military representatives. Total NH90 flight hours are now over 620.
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Austrian Airlines has warned taht 1999 pre-tax profits will be much lower than expected, at about 36,3 million Euro. The airline blamed weaker demand towards the end of the year, pricing pressure, high fuel costs and weaker earnings at subsidiaries.
+++
Last year, the so called Task Force of the German certification authority LBA (Luftfahrt-Bundesamt) has inspected 1031 foreign airliners at German airports. 75 of them had deficiencies which just allwed them to fly out with certain restrictions, while 15 had to be grounded right away because of various deficiencies. The Task Force has been estabslished in 1996 after the Birgenair crash.
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Previous updates are still available:
Die News der letzten Wochen sind weiter abrufbar:

*March 5, 2000

*February 27, 2000 *February 20, 2000 *February 13, 2000 *February 6, 2000

*January 30, 2000 *January 23, 2000 *January 16, 2000 *January 9, 2000

*January to December 1999 *January to December 1998 *January to December 1997 *September to December 1996

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