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UPDATE 
Week ending August 27, 2000
+++ LTU and Rewe to form Germany's second-largest tourism group +++ NTSB sees explosion in TWA 747 crash +++ Greece orders Mirage 2000 fighters +++ PW6000 makes first flight +++ Rolls-Royce shares plunge +++ Lufthansa revises profit expectations upwards +++ News in brief +++

LTU and Rewe to form Germany's second-largest tourism group
Rewe steigt bei LTU ein

The SAirGroup has successfully concluded negotiations on finding a partner for LTU, the holiday and tourism company. As of January 1, 2001 the Cologne-based Rewe Touristik will purchase LTU Touristik GmbH outright while taking a 40-per-cent stake in the LTU airline, in which the SAirGroup holds a 49.9-per-cent stake and the West LB banking house holds a 10.1-per-cent interest. Together, Rewe Touristik and LTU Touristik will form Germany's second-largest tourism group, having revenue volume of DEM 14.7 billion.
The comprehensive plan to return LTU to sound fiscal health, which the SAirGroup and LTU group management initiated in April in conjunction with the unions, works councils and staff association representatives, placed great significance on finding an ideal partner for LTU's tourism segment. The strategic merger with Rewe Touristik means there will be a second strong player in Germany's vast tourism market and achieves the goal of binding the LTU group to a comprehensive tourism concept, ensuring long-term capacity for the LTU airline. This move remains subject to the approval of the companies' executive bodies and the responsible competition authorities. The political and economic powers in the state of North Rhine-Westphalia have already voiced support.

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NTSB sees explosion in TWA 747 crash
Untersuchungsbericht zum TWA Flight 800

The National Transportation Safety Board has determined that the probable cause of the TWA flight 800 accident was an explosion of the center wing fuel tank (CWT) resulting from ignition of the flammable fuel/air mixture in the tank. The source of ignition energy for the explosion could not be determined with certainty but, of the sources evaluated by the investigation, the most likely was a short circuit outside of the center wing tank that allowed explosive voltage to enter it through electrical wiring associated with the fuel quantity indication system.
Contributing factors to the accident were: (1) the design and certification concept that fuel tank explosions could be prevented solely by precluding all ignition sources; and (2) the design and certification of the Boeing 747 with heat sources located beneath the center wing tank with no means to reduce the heat transferred into the center wing tank or to render the fuel vapors in the tank nonflammable.
As a result of the investigation of the TWA flight 800 accident, the National Transportation Safety Board makes the following recommendations to the Federal Aviation Administration (FAA): 1. Examine manufacturers' design practices with regard to bonding of components inside fuel tanks and require changes in those practices, as necessary, to eliminate potential ignition hazards. 2. Review the design specifications for aircraft wiring systems of all U.S.-certified aircraft and (1) identify which systems are critical to safety and (2) require revisions, as necessary, to ensure that adequate separation is provided for the wiring related to those critical systems. 3. Require the development and implementation of corrective actions to eliminate the ignition risk posed by silver-sulfide deposits on fuel quantity indication system components inside fuel tanks. 4. Regardless of the scope of the Aging Transport Systems Rulemaking Advisory Committee's eventual recommendations, address (through rulemaking or other means) all of the issues identified in the Aging Transport Non-Structural Systems Plan, including: the need for improved training to maintenance personnel to ensure adequate recognition and repair of potentially unsafe wiring conditions; the need for improved documentation and reporting of potentially unsafe electrical wiring conditions; and the need to incorporate the use of new technology, such as arc-fault circuit breakers and automated wire test equipment.

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Greece orders Mirage 2000 fighters
Mirage 2000-Auftrag mit Griechenland unterzeichnet

The French companies Dassault Aviation, Thomson-CSF Detexis, SNECMA Moteurs and Matra BAe Dynamics France have announced in Athens the signing of contracts with the Greek Defence Ministry for the provision of 15 Mirage 2000-5 Mark 2 aircraft, and the upgrade to the same standard of the current Greek fleet of 10 Mirage 2000 aircraft. The contracts include the supply of defence systems for the Mirage 2000-5. The upgrade of Greece's 10 Mirage 2000 aircraft to the new Mark 2 standard will be carried out in Greece by HAI (Hellenic Aerospace Industry), as part of strategic cooperation both with HAI and with Greek industry in general. The contracts reinforce the development of more than 30 years of Franco-Greek relations, between respective Air Forces as well as the two countries' defence aerospace industries. These relations are expected to continue to develop further in the future. According to wire service reports from Athens, the contract is worth 1.63 billion euros, and in addition to the new and upgraded fighters (worth 1.167 billion euros) also includes 200 MICA air-to-air missiles and 56 SCALP air-launched cruise missiles (worth 424 million euros). Options cover the purchase of 50 additional MICAs and of three new fighters, as well as the upgrade of five additional fighters. New aircraft deliveries will begin within 35 months, and deliveries of upgraded aircraft will begin in 45 months. Hellenic Aerospace Industries' share of the contract is worth $176.2 million)

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PW6000 makes first flight
Erstflug des PW6000-Triebwerks

Pratt & Whitney's newest engine, the PW6000, took to the air for the first time, successfully completing a one hour and 20 minute flight. "The engine performed beautifully throughout the flight," said Bob Leduc, Pratt & Whitney executive vice president. "We met all our objectives and the engine ran as well in the air as it has been doing in our ground-based tests. The program is right on track." During the flight, which followed a series of high-speed taxi tests, engineers checked out engine in-flight handling, test and data gathering equipment and performed air starts. This first series of flight tests will last about 50 hours and will validate in flight much of the development data already collected in nearly 1,000 hours of engine ground testing. Two more series of tests aboard the 720 are planned for next year before the engine makes its first flight on the A318 in early 2002. The A318/PW6000 combination will complete its certification and enter service in late 2002. Seven of the nine A318 customers have specified the PW6000 for the 100 aircraft they have on firm order.

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Rolls-Royce shares plunge
Gewinnwarnung von Rolls-Royce

Shares in aerospace-engine maker Rolls-Royce plunged 19% after it reported reduced half-year profits and warned earnings for 2001 were expected to be flat. Profits before tax for the six months to June 30 fell 76% to 38 million, against 159 million in the comparable period last year, largely as a result of a one-off cost of 120 million spent developing new emissions technologies. And a warning that earnings in 2001 were set to be flat caused brokers to downgrade the company and its shares to slide. Rolls-Royce said earnings would be affected by the impact of stronger sales of original equipment in the civil aerospace division, leading to slower sales of spares and the removal from service of a number of mature engines. Group sales for the six months rose 33% to 2.80 billion, from 2.10 billionand Rolls-Royce. The company added earnings in 2001 would also be affected by delays in sales from the energy side of the business due to of the development of the new emissions technology and the ongoing cost of restructuring the business. The company shed 3,000 jobs worldwide this year and expected to lose a further 2,000 during 2001, half of which will come through natural wastage, said Mr Rose. He expected the restructuring operation to cost 50 million a year for the next three years.

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Lufthansa revises profit expectations upwards
Positive Prognosen von Lufthansa

In the first six months of this year the Lufthansa Group strongly reinforced its leading position in the airline industry and as a result has revised its profit expectations upwards. The integrated aviation group extended its market position with an interim operating result of DM 683 million (Euro 349 million). This was 17.9 per cent higher than last year's comparable figure. "With this result we remain the European leader in the airline industry," commented Lufthansa's Chairman Jürgen Weber. For the rest of the year Lufthansa anticipates a continuation of this favourable trend. The buoyant momentum of the world economy is boosting the demand for air transportation services and so will have a positive impact on earnings. Consequently, the aviation group has now upwardly adjusted its profit expectations for the full year. Whereas Lufthansa had originally envisaged raising the operating result by 10 per cent compared with 1999, it is now aiming to lift year-on-year earnings by 15 per cent. "Our goal was and is to be well prepared for the economic upturn and for the New Economy," said Jürgen Weber. "Our dual strategy - providing a full range of services to the customer as an all-round aviation group and leading our industry in the field of e-business - are paying off".

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NEWS IN BRIEF / KURZMELDUNGEN

The Aerospace Division of Grob Werke recently celebrated completion of aircraft number 50 for the Royal Air Force pilot's training. In total, the contract covers 99 G 115E aircraft. They are opeated and maintained by VT-Aerospace who are based in Bournemouth, Dorset.
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Rolls-Royce has celebrated production of the 1000th AE 3007 turbofan engine at its Indianapolis facilities. The engine has been shipped to Brazilian aircraft manufacturer Embraer to support the ERJ 135/140/145 regional jet aircraft powered by Rolls-Royce. The AE 3007 engine is part of the Rolls-Royce AE common core family of engines that includes the AE 1107 turboshaft, powering the V-22 Osprey tilt- rotor aircraft, and the AE 2100 turboprop, which powers the C-130J Hercules and C-27J Spartan military airlifters, and the US-1A Kai amphibious search and rescue aircraft. The knowledge and maturity gained through the development of the common core approach enables Rolls-Royce to back the AE 3007 with industry-leading warranties and guarantees, ensuring excellent economic performance. The first AE 3007-engined Citation X was delivered in August, 1996, and the engine entered revenue service on the ERJ 145 in April, 1997, with North American launch customer Continental Express. To date, the fleet has accumulated more than 1.6 million flight hours.
+++
NASA has awarded four small businesses 90-day contracts totaling $902,000 to develop concepts and requirements to provide access to the International Space Station on emerging launch systems. These studies could uncover a potential backup capability, augmenting the station's primary resupply vehicles - the U.S. Space Shuttle, Russian Progress, European Space Agency Automated Transfer Vehicle and the Japanese H-II Transfer Vehicles. "Alternate access to Space Station is a potential market opportunity for emerging or established U.S. launch companies," said Dan Dumbacher, manager of the 2nd Generation Reusable Launch Vehicle Program Office at NASA's Marshall Space Flight Center, Huntsville, AL. "These companies will develop concepts for alternate access to the Space Station, determine what a launch service needs to do to meet the requirements, and offer suggestions on specific development risk-reduction activities, such as technology development or business planning, that we need to perform." Companies selected are: Andrews Space and Technology of El Segundo, CA, $195,000; Microcosm, Inc. of El Segundo, CA, $198,000; HMX Ltd. of Reno, NV, $245,000; Kistler Aerospace Corp. of Kirkland, WA, $264,000.
+++
Boeing has received a $10.4 million contract to begin low-rate initial production for the U.S. Navy of its Joint Helmet Mounted Cueing System (JHMCS). The Navy will receive 37 of the systems by 2002 for use on its Boeing-built F/A-18E/F Super Hornet aircraft. The U.S. Air Force is also expected to have follow-on production contracts of JHMCS, which will be used on its F-15, F-16 and F-22 aircraft. The JHMCS Joint Program Office, based at Wright Patterson Air Force Base in Ohio, manages the program for all customers. The lightweight JHMCS combines a magnetic head tracker with a display projected onto the pilot's visor, allowing the pilot to aim sensors and weapons wherever he or she is looking. The pilot will be able to aim radar, air-to-air missiles, infrared sensors, and air-to-ground weapons by looking at the target and pressing a switch. Additionally, the pilot will be able to view data such as airspeed and altitude without having to look at displays in the cockpit.
+++
On August 16, the first C-130J for the Italian Air Force departed the Lockheed Martin facility in Marietta. The aircraft was ferried to its new base in Pisa, where it will be operated by the Aeronautica Militare Italiana's (AMI - the Italian Air Force) 46th Air Brigade. This is the first of 22 C-130Js on order for the AMI. The second aircraft will be ferried this Thursday, with four further aircraft being delivered to Pisa this year. A joint AMI/Lockheed Martin crew ferried the first aircraft to Pisa via the Azores. The Italian C-130Js have already been type certified, and crews will begin operational flying as soon as the aircraft arrive in Pisa. The aircraft will initially be used to conduct logistic supply, maximum payload, and tactical missions. Clearance for paratroop, airdrop, assault landings on unprepared fields, and maximum alternate weights missions is anticipated by the end of this year.
+++
Ansett Australia and Air New Zealand Engineering Services (ANNZES) have selected GE Aircraft Engines' new Inventory Management program to manage all GE and CFM International aircraft engine parts used during engine overhaul. GE Inventory Management assumes responsibility for parts inventory at all levels, including the supply of new parts, the overhaul of selected components, paperwork, storage, transportation and packaging. The program is designed to save airline customers the expense of maintaining inventory and to assist in the reduction of the total time taken to conduct an engine overhaul. ANNZES, the first customer of this program, signed a five-year agreement.
+++
On August 19, the Harbin Aircraft Industry Group Corp produced its 200th fuselage, for the five- seater EC 120 helicopter -- a joint program between China, France and Singapore. The EC120 helicopter program started in 1993 and it was the first time China had shared investment and risks with a foreign partner in helicopter production, Zhang Yanzhong, general manager of China Aviation Industry Corp II, mother of the Harbin company, was quoted as saying by today's China Daily. By now, the Harbin company had received 256 orders for EC120 helicopter by the end of June this year, of which 110 were delivered.
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A data-gathering, simulated payload was successfully placed into orbit on August 23 aboard a Boeing Delta III rocket. The launch vehicle lifted off at 7:05 a.m. EDT. Instruments aboard the 9,480-pound satellite will provide information to further validate Boeing baseline data on launch vehicle performance. Engineers will begin tracking the payload for satellite studies by the U.S. Air Force and the University of Colorado. "Today, Delta III flew the same flight profile as the mission last year, allowing us to compare data from both flights on an event-by-event basis," said Gale Schluter, vice president-general manager of Boeing Expendable Launch Systems. "This success confirms our confidence in Delta III." Designated DM-F3 for Delta Mission-Flight 3, the payload was designed to match the mass and frequency characteristics of common commercial communication satellites sized for Delta III. Thus, the interaction during flight between an actual payload and the Delta III was accurately duplicated. Boeing modified the payload to assist U.S. Air Force engineers in the calibration and testing of electro-optical space imaging systems. Reflective surfaces on the simulated satellite also provide laser cross-section targets at both visible and infrared wavelengths.
+++
Teal Group Corporation announced completion of its first Commercial Imaging Satellite Forecast for 2001-2010, during the 14th Annual AIAA/USU Conference on Small Satellites taking place at Utah State University. "At an estimated 43 commercial imaging satellites forecast to be built and launched worldwide during 2001-2010, you're simply not talking huge numbers," said Marco Caceres, senior space analyst for Teal Group's "World Space Systems Briefing," the monthly-updated service in which the new forecast has been published. Teal analysts believe commercial imaging satellites will account for only about 3% of all satellites in the next 10 years, in terms of units. At an estimated value of $3.62 billion, these satellites will also make up only about 3% of the total value of all satellites. While there have been an average of 1.8 commercial imaging satellites launched annually during the past 10 years, Teal analysts believe this average should jump to 4.3 per year in the coming decade. "So even though commercial imaging satellites do not represent a large market in relative terms," said Caceres, "this is clearly a growth market for satellite industry watchers."
+++
MSANV LLC, a U.S./International consortium and developer of a new $400 million aircraft maintenance and cargo/logistics facility located on 105 acres at McCarran International Airport in Las Vegas (LAS) has selected Lufthansa Consulting to provide technical support to the project. Lufthansa Consulting is a subsidiary of the Lufthansa Group, which includes, amongst others, Lufthansa Cargo AG, the largest international air cargo carrier in the world. To meet the global demand for its products and services, Lufthansa Consulting moved to establish a new office in Los Angeles last year to be more responsive to the American marketplace. The office is staffed with both senior U.S. and German aviation experts and offers a full array of products and services to airline and airport management. The planned 300,000 square foot cargo/logistics facility will initially handle up to 200,000 tons of cargo per year with growth anticipated to 500,000 tons over the next 10 years. With both dry and cold storage available, plus the necessary material handling systems to accommodate high volume traffic, it should meet the growing high demand for fresh products being driven by the city's hotel-casinos. McCarran is the 10th busiest airport in the U.S. and the 17th busiest in the world. Currently an average of 250,000 people occupies Las Vegas hotel rooms daily.
+++
With its broad spectrum of aircraft MRO services, Lufthansa Technik AG (LHT) is widening its foothold in Japan. After signing its first agreement for engine servicing there last February, LHT has now been awarded a Total Components Support (TCS) contract under which it will be supplying components for the Canadair Regional Jets of the young Japanese airline The Fair. It will thus be providing repair services to two of the three newly founded Japanese airlines serving the country's domestic market.
+++
The presidium of the Supervisory Board of LSG Lufthansa Service Holding AG (LSG) will propose the appointment of Hanns R. Rech as company chairman with effect from 1 January 2001 at the next Supervisory Board meeting on 30 August 2000. Rech will replace Helmut Woelki, whose contract expires on 27 November 2000. Woelki will go on to act as a consultant to international companies and will also be available in this capacity for the Lufthansa Group. Hanns R. Rech has held the post of General Manager of the express service DHL Worldwide Express GmbH in Germany since May 1998. Before joining the logistics services provider Rech gained wide top-level managerial experience in the food industry. From 1991- 1996 he was General Manager of Tchibo International GmbH, Hamburg, and from 1996 -1998 General Manager of Oetker International GmbH, Bielefeld.
+++
The SAirGroup achieved a balanced result in the first semester of 2000 in spite of the massive rise in fuel prices and negative currency influences. Operating revenue amounted to CHF 7.5 billion (+34 %) while the operating result was CHF 143 million (-33 %). Net profit was CHF 3 million. Cash flow from operations was CHF 741 million (+33 %). The success of the Group's airline-related activities was only partially able to compensate for the high costs currently plaguing the air transport sector. The airline business has been subject to tremendous strains in the first half of 2000. The severe upturn in fuel prices led to additional costs of CHF 170 million. Costs stemming from delays in international air travel and at the Group's home base of Zurich had a further negative impact of CHF 50 million on the bottom-line result. While the SAirLines division, containing the Swissair, Crossair and Balair airlines, posted a negative EBIT figure of CHF 155 million for the first half of the year, the air cargo business produced stellar figures, greatly contributing to the excellent result of the Group's SAirLogistics division. The SAirServices companies continued the positive development established last year. SR Technics focussed on organic growth and acquisition to markedly raise operating revenue while Swissport, the Group's ground handling company, almost doubled operating revenue thanks to various acquisitions.
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SAirGroup has signed a declaration of intent on collaboration in developing and building up the electronic marketplace "AirNewco." SAirGroup will hold, together with American Airlines, Air France, British Airways, Delta Air Lines, United Airlines, Continental Airlines, Iberia, Qantas Airways and UPS, the status of a founding member, participate in the share capital, and hold a seat in the administrative board. "AirNewco" will support airlines in optimizing buying and procurement procedures. The Internet-based platform will offer complete solutions for the categories kerosine, airplane maintenance, ground services, catering and general procurement, from the actual buying to accounting and payment, storage control, mutual product and process information on to performance evaluation and data analysis.
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An Airbus A320 operated by Gulf Air has crashed while approaching Bahrain. The aircraft was operating a scheduled service, flight GF072, from Cairo, Egypt to Bahrain. Unconfirmed reports state that there were 143 passengers and crew on board, all being killed. The aircraft involved in the accident, with registration A40-EK, was MSN 481, which was delivered to Gulf Air from the production line in September 1994. The aircraft had accumulated approximately 17,177 flight hours in some 13,848 flights. It was powered by CFM56-5 enginesof CFM International.
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Cessna Aircraft Company has completed customer delivery of the 100th Citation Excel. This important milestone comes only two years after the first Excel customer delivery. The Citation Excel was introduced at the 1994 NBAA Convention and granted FAA type certification in April 1998. More than 200 firm customer orders had been taken for the Excel prior to first customer delivery.
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The Cluster quartet, Salsa, Samba, Rumba and Tango, now flying in their final orbit around the Earth in tetrahedral formation, are ready to enter the scientific commissioning and operation phase. Thus Cluster is at last joining the SOHO spacecraft and making the first cornerstone of ESA's "Horizons 2000" programme a reality. The final activity ushering in the new phase of the existence of Cluster was performed last week, with the successful deployment of the antenna and experiment booms, three altogether on each spacecraft. This was done through careful manoeuvring, under the control of the ESOC operations team in Darmstadt. Over the next few months all scientific instruments onboard the spacecraft will be gradually brought to life. The same instrument on each spacecraft will be switched on, one after another. Over a period of three months the instruments will undergo a series of health and calibration checks. By early December all 44 instruments on the four spacecraft will be operational and ready to start the scientific mission.
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Previous updates are still available:
Die News der letzten Wochen sind weiter abrufbar:

*August 20, 2000 *August 13, 2000 *August 6, 2000

*July 30, 2000 *July 23, 2000 *July 16, 2000 *July 9, 2000

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

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