U
P
D
A
T
E
Home | UPDATE | Latest Issue | Gallery | FR Inside | Datafiles

UPDATE 
Week ending May 28, 2000
+++ A3XX: Approval now in June? +++ United buys US Airways +++ Demands made by Germany endanger the Zurich hub +++ Summer 2000 ATC delays unacceptable +++ Shuttle leaves ISS +++ Lufthansa Technik sales up in 1999 +++ News in brief +++


A3XX: Approval now in June?
Airbus optimistisch für A3XX

Despite the cancellation of the supervisory board meeting on May 26, Airbus and its shareholders remain optimistic on the launch of the mega-airliner. At an informal meeting in Paris the Co-Chairmen designate of EADS, Manfred Bischoff and Jean-Luc Lagardère, as well as the future Co-Chief Executive Officers (CEOs) Philippe Camus and Rainer Hertrich, greeted the announced expression of interest of six airlines to place substantial orders for the A3XX. After a presentation by Airbus Industrie CEO Noel Forgeard, they expressed their confidence that further airlines will join the list of potential customers for this outstanding aircraft soon. Aerospatiale Matra and Dasa regard the positive market reaction as a confirmation of their strong intention to build the A3XX. The Supervisory Board of Airbus Industrie will meet in Berlin early June to take the final decision concerning the "Authorisation-to-Offer".

Back to the top of the page / Zurück zum Anfang der Seite


United buys US Airways
Mega-Fusion in den USA

On May 24, UAL Corporation and US Airways Group announced that their boards of directors have approved a definitive merger agreement pursuant to which US Airways will be acquired by United in an all-cash transaction valued at $4.3 billion (plus the assumption of $1.5 billion in net debt and $5.8 billion in aircraft operating leases). Under the agreement, each share of common stock of US Airways will be converted into the right to receive $60.00 in cash in a one-step merger transaction. In recognition of the competitive issues connected with this transaction, United also plans to divest significant assets to maintain and enhance airline competition on routes into and out of Washington, DC. In connection with this planned divestiture, United and US Airways have entered into a Memorandum of Understanding with Robert Johnson, under which Mr. Johnson would buy certain of US Airways' assets and create a new airline. This new carrier, to be called DC Air, will be the first significant new entrant at capacity-controlled Washington Reagan National Airport in over a decade.
The combination of United and US Airways will deliver significant benefits to millions of passengers and hundreds of communities throughout the United States. United plans to serve all cities now served by US Airways. United plans to also offer 64 new daily non-stop flights in the U.S. and 29 new daily international flights. Passengers will benefit from more non-stop domestic flights. Following the transaction, US Airways' facilities, routes, equipment and personnel will operate under the United Airlines name. The combined company would have approximately 145,000 employees worldwide. This combination would create a global airline with revenue in excess of $25 billion.

Back to the top of the page / Zurück zum Anfang der Seite


Demands made by Germany endanger the Zurich hub
Swissair worried on Zurich hub restrictions

The SAirGroup was greatly concerned to learn of the termination, effective May 31, 2001, of the "Regulations governing takeoffs and landings from/at Zurich Airport via German sovereign territory." The demands from Germany in relation to this agreement are restrictive to the point that Zurich would lose its standing as an intercontinental hub if they were met. Any such changes would largely effect Swissair and Crossair, but also many other international airlines. The demands made by the German Federal Ministry for Transport, Building and Housing would make it impossible to carry out as many flights as are currently operating out of and to Zurich Airport. Due to the airport's proximity to the German border a certain number of flights must fly over areas of Germany when approaching Zurich to land. The current concept protects the settlements in Germany from the more intense noise generated by aircraft on takeoff. This burden is primarily borne by communities and regions in Canton Zurich. Zurich Airport is Swissair's home base and also a major operations centre for Crossair. A flexible usage of this facility is necessary if the airlines are to remain economically viable. Reductions in noise and usage may not be any more restrictive than those previously defined by authorities for German airports.
The SAirGroup acknowledges that the need for peace and quiet also extends to those communities and areas along the approach route to Zurich Airport. Solutions leading to an improvement in this situation must now be negotiated. It must also be stressed that those areas near the airport profit from the strong economy of which the airport is a lynchpin. The SAirGroup expects negotiations on a solution acceptable for both sides, and one that considers the interest of both parties, to be taken up immediately. Any negotiations must take into account the protection of the heavily-settled areas near the airport.

Back to the top of the page / Zurück zum Anfang der Seite


Summer 2000 ATC delays unacceptable
IATA kritisiert Verspätungen

"The latest forecasts indicate that the very inadequate goals set on January 28 by Ministers of Transport of the 38 ECAC States will not even be met - causing passengers and airlines continued delays, frustration and increased costs" said IATA Director General Pierre J. Jeanniot. The situation is once again totally unacceptable. It is estimated that, cumulatively, flights will experience over 27 million minutes of delay in the year 2000 - and the cost of delays to airlines is huge: it could be at least Euro 4 billion for 2000. Government estimates put the financial cost to passenger to at least the same amount, bringing the estimated total cost to airlines and passengers to over Euro 8 billion. Despite valiant efforts by professional and dedicated air traffic controllers, many centres will not be able to cope with the governments' lack of foresight and planning. Many control centres are expected to cause delays and they will exceed the delay target value for summer 2000. These are Marseilles, Padua, Rheims, Geneva, Karlsruhe, Zurich, Maastricht and Prague. While forecasting to achieve better-than-target values, London will still face significant delays.
Governments can and must ensure that capacity is ahead of traffic, instead of consistently lagging behind demand. Traffic flow forecasts are published well in advance and capacity planning is agreed yearly. Countries that don't implement the plans make passengers and airlines across Europe suffer the consequences. Jeanniot added, "It is essential for air traffic service providers to stop doing too little, too late. The solutions are clear and possible - for the sake of the consumer, let's make it happen!"

Back to the top of the page / Zurück zum Anfang der Seite


Shuttle leaves ISS
Raumstation-Reparatur beendet

On May 26, the Space Shuttle Atlantis undocked from the International Space Station, after a successful maintenance mission. The ISS was also boosted into a higher orbit. Three separate burns were necessary to gain 50 km of altitude. Inside the ISS, the Shuttle astronauts replaced four solar-charged batteries that had failed or were failing. Outside the station, a pair of spacewalking astronauts fixed a wobbly crane, replaced a communications antenna and assembled a Russian construction boom. Voss and crew mate Jeffrey Williams spacewalked for 6 1/2-hours. The crew also finished moving supplies from the shuttle's pressurized cargo hold to the space station's storage racks. The supplies -- everything from an exercise treadmill to trash bags -- are for long-duration crews. The Shuttle is scheduled to make a nighttime landing at the Kennedy Space Centre in Florida early Monday after mission commander James Halsell brings the shuttle out of orbit.

Back to the top of the page / Zurück zum Anfang der Seite


Lufthansa Technik sales up in 1999
LHT veröffentlicht Jahresbilanz

In the fifth year of its existence as an independent company, Lufthansa Technik AG (LHT) has again achieved higher sales and profits. While its sales were up by nearly 300 million or 9.1 percent above their 1998 level to 3.5 billion DM, pretax profits rose by almost 29 percent to over 36 million DM (all figures per IAS - International Accounting Standards). Its sales to companies outside the Lufthansa Group increased disproportionately and now amount to almost 50 percent of the total. "We're suffering as a result of the high dollar exchange rate, especially in our purchases of materials and spare parts", said Chief Executive Finance Dr. Gerald Gallus at the Lufthansa Technik annual press conference in Hamburg on May 24th. "And we were unable to pass this increased expense along to our customers - or could do so only to a limited extent."
As reasons for LHT's higher sales to customers outside the Lufthansa Group, Gallus cited the strong demand in the engine market and for LHT's customized equipping of VIP and business aircraft. Sales of engine services were up by 15 percent, of aircraft overhauls by 13 percent. Sales of LHT's other two products, aircraft maintenance and components maintenance and overhaul, rose by nearly 12 and 8 percent, respectively. Somewhat steeper than the increase in its 1999 sales was the rise of the company's operating income by 10.9 percent to 3.89 billion DM.
In the first three months of the year 2000 the unfavorable exchange rate continued to make goods and services more expensive. An operating income of over 1 billion DM (up 20 percent from 1998) was offset by a nearly 24-percent increase in operating expenses due solely to the rising costs of materials including prices for purchased services.

Back to the top of the page / Zurück zum Anfang der Seite


NEWS IN BRIEF / KURZMELDUNGEN

Boeing has lowered the 717-200's take-off and landing weights, giving the airplane a new level of competitive performance that translates into improved operating economics for airlines. "We have essentially resized the airplane," said Rolf Sellge, director, 717 Product Marketing, Boeing Commercial Airplanes Group, during a news media teleconference today. Maximum take-off gross weight has decreased from 114,000 lb. (51,710 kg) to 110,000 lb. (49,895 kg), and maximum landing weight has declined from 102,000 lb. (46,265 kg) to 100,000 lb. (45,359 kg) - while increasing the airplane's original pre-flight test range by 50 nautical miles. "This was made possible by better airplane performance," Sellge said. The 717's fuel burn has declined eight percent from pre-flight test estimates, which equals 2,000 lb. (907 kg), and its empty weight has dropped 1,450 lb. (658 kg). Also, Boeing rules were changed to more accurately reflect 717-type short-range missions, reducing the operator item weight by 1,200 lb. (544 kg). Fuel saved from the lighter airplane has reduced another 550 lb. (249 kg). "Adding it all up, the 717 now is using 10 percent less fuel and is nearly 5,000 pounds (2,268 kg) lighter than originally predicted," Sellge said. "This results in a huge savings for airlines at today's fuel price of one dollar per gallon."
+++
Lineas Aereas Privadas Argentinas (LAPA) has purchased six Boeing Next-Generation 737-700 jetliners, valued at approximately $270 million at list prices. This order was accounted for in cumulative order totals published recently by Boeing. Until this announcement, the customer for the order was listed as "unidentified". LAPA has operated the 737-700 since July 1998, making it the first Latin American carrier to operate the Next-Generation model. LAPA is modeled after the no-frills Southwest Airlines of Dallas. LAPA's success has been significant since the airline began as a turboprop operation in 1977 and sustained growth to capture more than 35 percent of the market in the first quarter of 2000. LAPA now has more than 1400 employees and carries 2.5 million passengers annually.
+++
Atlas III, the newest rocket to fly from the historic Complex 36 launch site at Cape Canaveral, made its debut on May 24 in a dramatic liftoff powered by the new Russian RD-180 engine. The liftoff occurred at 7:10 p.m. Eastern Daylight Time, followed by successful separation of the W4 spacecraft and insertion into geosynchronous transfer orbit just under 29 minutes later. For ILS, the launch marks the 50th consecutive successful Atlas flight, a record of reliability that has become the standard in the commercial launch services industry. The successful flight proves the new hardware that will carry the Atlas launch vehicle family into the new millennium and bridge today's launch services to the future and the introduction of Atlas V. For EUTELSAT, the launch service provided orbital insertion for their 17th satellite. W4 will join SESAT at its 36 degrees East position. SESAT was launched on a Proton launcher on April 5. The two satellites will enable EUTELSAT to consolidate its position in Europe as a leading provider of capacity for television and data services. W4 was built by Alcatel Space.
+++
The Royal Navy's new EH101 Merlin Mk1 helicopter has returned from its latest series of trials having demonstrated once again that it is the most advanced system of its kind in the world today. Merlin Prime Contractor and Systems Integrator Lockheed Martin UK has announced that trials to test the submarine fighting capability of the Merlin System were highly successful and completed in less time than expected. The trials were conducted at the Atlantic Underwater Test and Evaluation Center (AUTEC) on Andros Island in the Bahamas. The US-managed facility provides the perfect deep-water instrumented environment in which to detect, hunt, locate and attack submarines. The trials involved three Merlin HM Mk1 aircraft supported by a team of up to 65 personnel including representatives from the RN and DERA as well as an industry team including staff from Lockheed Martin and their subcontractors. The largest contingent was EH101 manufacturer GKN Westland Helicopters of Yeovil. Three Merlin Operational Development Crews (MODC) seconded from the Flag Officer Naval Aviation (FONA) flew the aircraft during the trials. Six major tests and nearly 200 flight hours were completed during the AUTEC trials. Merlin achieved excellent reliability throughout, with a flying rate of 60 hours per aircraft over a 30 day period. Productivity and efficiency was also high, with aircraft achieving its data gathering objectives in 176 flying hours, 72% of the 245 hours it was predicted to take.
+++
Ericsson Saab Avionics AB has received an order from Saab AB in Linköping for electronics units for the Gripen batch 1 and 2 (140 planes). The order is worth approximately SEK 55 million. Deliveries to Saab will begin in 2002. The order was received by Ericsson Saab Avionics' division in Jönköping. The division has previously received orders for similar equipment for batch 3 (64 planes). The electronics unit, GECU, (General systems Electronic Control Unit) is a combined unit for controlling and monitoring the air, hydraulic and fuel systems and replaces the three separate units currently used in batches 1 and 2 of the plane. Updating with GECU involves the modernization of the electronics using compact construction technology and commercially available components, COTS.
+++
The Boeing X-32A Joint Strike Fighter concept demonstrator drew another step closer to first flight with the successful completion of initial low- and medium-speed taxi tests. The taxi tests verified function and integration of aircraft systems, including steering, braking, engine controls and flight-control surfaces when the airplane is in motion. "The engine and all on-board systems performed just as we had expected, based on the static tests we completed in April, " said Boeing X-32 flight test manager Ad Thompson. "The aircraft performed so well at 30 knots, that we were able to move directly to the medium-speed taxi test at 55 knots."Test engineers stayed in constant contact with the pilot while keeping close watch on the aircraft's instrumentation from their control room. "Acceleration, steering and braking were all smooth as the aircraft went through its paces," Thompson said. "While these taxi tests are clearly important milestones toward first flight, our focus is not on any one single flight, but on successfully completing the entire flight-test program," Thompson added. "We will fly when we're ready to move forward to execute the full flight-test program."
+++
Fuji Heavy Industries has concluded a deal with Bell for the manufacture of the fuselage of the 609 tiltrotor.
+++
German aerospace industries association BDLI has welcomed moves to reform the armed forces of the country. It urged to boost investments in new equipment form 18 to 30 per cent of the defence budget. This should happen in the short term with money not normaly available for defence, the BDLI thinks. Of course, pet projects like a new transport aircraft, a spy satellite and stanoff-weapons are high on the industries wish-list.
+++
Lufthansa, Iberia and Air France have decided to sell parts of their stakes in the reservation system company Amadeus. Each has 25 per cent of the class A shares in Amadeus. It is said that Lufthansa wants to offer 10,25 per cent, Iberia also 10,25 per cent and Air France 2,5 per cent. A date for the sale is not yet fixed.
+++

Back to the top of the page / Zurück zum Anfang der Seite


Previous updates are still available:
Die News der letzten Wochen sind weiter abrufbar:

*May 21, 2000 *May 14, 2000 *May 7, 2000

*April 30, 2000 *April 16, 2000 *April 9, 2000 *April 2, 2000

*January to March 2000 *January to December 1999 *January to December 1998 *January to December 1997 *September to December 1996

Home | UPDATE | Latest Issue | Gallery | FR Inside | Datafiles
Copyright 2000 by Motor-Presse Stuttgart. All rights reserved.
Last updated 20 May 2000
FLUG REVUE, Ubierstr. 83, 53173 Bonn, Germany