FLUG REVUE update: Week ending December 24, 2000

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Week ending December 24, 2000

+++ Airbus launches A380 alias A3XX +++ Navy variant of X-35 takes flight +++ EADS and Finmeccanica: EMAC in the spring +++ Pilatus sold to Swiss investors +++ Northrop Grumman acquires Litton +++ Ariane 5 launches two satellites +++ First lift off of the pre-production Tiger +++ News in brief +++

Airbus launches A380 alias A3XX
A3XX-Programm offiziell gestartet

The Airbus supervisory board has approved the launch of the A3XX (now A380) on December 19. "The A380 is set to become the flagship of Europe's aerospace industry. We are now doing another step beyond by offering the largest and most up-to-date passenger aircraft in the world," explained the two Chairmen of the EADS Board Manfred Bischoff and Jean-Luc Lagardère in support of the decision. "The extremely positive reactions on the markets show that the A380 meets the customers' needs in an optimal manner." The Co-Chief Executive Officers of EADS, Philippe Camus and Rainer Hertrich, stated: "EADS is the indispensable prerequisite for the promising A380 business case. By integrating the franco-german-spanish national champions in aerospace into EADS we have achieved the technological and financial basis for such a challenging programme. We are fully committed to make A380 a success. It will help leading EADS into a new dimension of profitable growth."
Airbus CEO Noël Forgeard stressed the significance of the programme for the range of products offered by Airbus: "With the launch of the A380 we are now closing the final large gap in our product spectrum. We are now able to offer aircraft in all the categories from single-aisle via widebody to megaliner and can therefore fulfil all the wishes our customers may have."
The A380 is to be offered in five passenger versions with capacities ranging from 481 to 656 seats and a freighter version with a 150 tonnes payload capability. Up to now, 50 firm commitments have been received from six airlines with options on a further 40 aircraft. Final assembly of the A380 is to take place at Toulouse and Hamburg where entire fitting-out of the interior and application of the paintwork are to be carried out. The maiden flight is planned for the year 2004, with the first production aircraft entering service early in 2006.

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Navy variant of X-35 takes flight
Erstflug der Lockheed Martin X-35C

The United States Navy version of the Lockheed Martin Joint Strike Fighter (JSF) demonstrator took to the skies on Saturday, Dec. 16, initiating a flight-test program that will focus on carrier-suitable flying qualities and aircraft performance. At 9:23 a.m. PST, test pilot Joe Sweeney launched the X-35C carrier variant (CV) from the Lockheed Martin Aeronautics plant in Palmdale, Calif., and flew the plane for 27 minutes before touching down at Edwards Air Force Base. The aircraft climbed to 10,000 feet and accelerated to 250 knots (288 miles per hour). Sweeney, a former Navy attack pilot, cycled the landing gear and performed aircraft flying-qualities evaluations including rolls, sideslips and overall systems checks.
While the Navy variant is similar to the X-35A, which completed testing in November, the X-35C has special characteristics to meet the demanding requirements of carrier operations, with no compromise. Its specifications include a larger wing and control surfaces, the addition of ailerons and a special structure to absorb high-impact landings.The X-35C's flight-test program will include a series of field carrier landing practice (FCLP) tests to evaluate the aircraft's handling qualities and performance during carrier approaches and landings at an airfield. Also planned are up-and-away handling-quality tests and engine transients at varying speeds and altitudes.

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EADS and Finmeccanica: EMAC in the spring
EMAC soll nun bis Frühjahr stehen

EADS European Aeronautics Defence and Space Company and Finmeccanica expect the signing of the joint venture agreement to form the European Military Aircraft Company as early as in the first quarter of 2001. The preparations for this joint venture company, which will be the largest in the European military aircraft and aerostructures area, are progressing quickly with the business analysis, valuation and due diligence process currently being underway. Following a recent review of the status of implementation of the company, both EADS and Finmeccanica have reconfirmed their full commitment to the new venture.
In the context of a joint review of their space interests, both companies have also reaffirmed their full dedication to support the major space programs presently being jointly pursued by their respective space companies, Astrium, which is majority owned by EADS, and Alenia Spazio, Finmeccanica's fully owned space subsidiary. The programs include, among others, the International Space Station and the Galileo global navigation satellite system being developed by the European Union. The companies are committed to extend their extensive collaborations in the field of satellite and space infrastructure development to enhance the opportunity for future joint programs in Europe and worldwide.
In the course of the same review, EADS in consultation with BAE SYSTEMS (25 per cent shareholder of Astrium) and Finmeccanica have also decided to suspend further discussions on the opportunity to merge Astrium and Alenia Spazio at this time, as the premises of the 1998 Heads of Agreement, signed by Finmeccanica, Marconi Electronic Systems, Lagardère SCA and former DaimlerChrysler Aerospace (Dasa), have been substantially altered as the result of the merger of some of the signatories and subsequent reorganization of their space related activities.

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Pilatus sold to Swiss investors
Schweizer Investoren kaufen Pilatus

Pilatus Aircraft announce herewith that a predominantly Swiss Investor Group has signed a contract for the take-over of the full share - capital of Pilatus Aircraft Ltd. The transaction is expected to be completed by the end of January 2001. The intention of the investors is to further develop Pilatus as an independent company and to be ready for an IPO within 3 - 4 years. Oscar J. Schwenk, the Delegate of the Board of Directors and CEO states with pleasure that the long search for an optimal solution has paid off. The interests of the customers, employees and the region could be fully considered. The new investors believe in the workplace Stans and are convinced that Pilatus continues to compete successfully in the international markets. The current company management board headed by Oscar J. Schwenk will lead Pilatus also in the future. Peter Küpfer and Oscar J. Schwenk will continue as Chairman of the Board and Delegate of the Board respectively.
The Investor Group consisting of: Dr. Joerg Burkart, Zurich Mr. Hilmar Hilmarsson, Greppen
IHAG Holding AG, Zurich Pension Fund of F. Hoffmann-La Roche AG, Basel With the sale of Pilatus Aircraft Ltd. UNAXIS has taken another step towards the declared new orientation of the former industry conglomerate. The management of the Pilatus is confident that there will be room for rapid development of the company.

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Northrop Grumman acquires Litton
Neue Rüstungs-Fusion in USA

On 21 December Northrop Grumman Corporation and Litton Industries Inc. (NYSE: LIT) jointly announced that they have signed a definitive agreement under which Northrop Grumman will acquire for cash all of the outstanding shares of Litton for $80 per common share and $35 per Series B Preferred share. The transaction is valued at approximately $5.1 billion, which includes the assumption of Litton's $1.3 billion in net debt. Northrop Grumman's and Litton's boards of directors have unanimously approved the transaction.
Litton is a leading supplier of advanced electronics and information systems to the U.S. government and international customers and is the premier designer and builder of non-nuclear surface combatant ships for U.S. and foreign navies. The company reported sales of $5.6 billion and net income of $218 million for the 2000 fiscal year ended July 31. Litton had $8.2 billion in fully funded backlog at the end of its first quarter, October 31, 2000. Kent Kresa, Northrop Grumman's chairman, president and chief executive officer said, "We are very pleased with our strategic acquisition of Litton, which we believe brings tremendous value to the shareholders, employees and customers of both companies. With projected combined pro forma revenues of more than $15 billion in 2001, growing to $18 billion by 2003, this acquisition solidly places Northrop Grumman among the world's top-tier defense companies and strengthens our commitment to systems integration, defense electronics and information technology."

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Ariane 5 launches two satellites
Zwei Satelliten von Ariane 5 gestartet

On December 19, 2000, Arianespace Flight 138 placed two communications satellites into orbit: Astra 2D for the Société Européenne des Satellites and GE-8/Aurora III for American operator GE Americom. Ariane 5 also deployed the LDREX experimental reflector for the Japanese Space Agency, using the ASAP 5 platform for auxiliary payloads. The renewed success of the Ariane 5 - performing the fifth mission since last December - confirms the technical and operational maturity of the European launcher. Astra 2D is the seventh spacecraft orbited by the European launcher for the Société Européenne des Satellites. Today's launch was performed under a contact between the Luxemburg operator and Boeing Space Systems. GE-8/Aurora III is the 14th satellite orbited by Ariane for GE Americom, following after the series of G-Star, Spacenet, Satcom and GE spacecraft. With the launch of LDREX, Arianespace marked its first mission for the Japanese Space Agency, NASDA.
With 12 launches in the 12 months of 2000, Arianespace will have had the busiest year of operations during its entire history. After Flight 138, Arianespace's backlog stands at 45 launch service contracts (36 satellites and 9 ATV missions). Arianespace is preparing to launch Flight 137 (an Ariane 44P) in the first half of January.

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First lift off of the pre-production Tiger
Kampfhubschrauber Tiger: PS1 fliegt

The pre-production HAP version (PS1) of the Franco-German Tiger combat helicopter completed its first flight at Marignane. During this flight, the PS1 confirmed its capability to meet its contractual performance requirements. Unlike the prototypes that were assembled with development tooling, the PS1 was manufactured and assembled by the production assembly process. This marks a key step in the Tiger program. Indeed Eurocopter and its partners have demonstrated that the Tiger production tooling fully complies with all the performance criteria and with the quality standards required for the manufacture of the Tiger modules and for their assembly on the final production lines.
Two other noteworthy events must be cited, in addition to the achievement of the important first flight milestone. The first event is the completion of the qualification tests of the HAP weapon systems, including the Mistral air-to-air missiles, the rockets and the GIAT 30-mm gun turret. Mainly conducted with the PT2R2 prototype, these trials provided proof of the outstanding performance of the gun system with the turret and the various fire control sights. Flights crews from Eurocopter, the DGA Flight Test Center and the French Army Air Corps (STAT) fired at 5-meter diameter targets from a range of 1,000 and of 1,500 meters. The firing trials involved stationary and moving targets in the air-to-ground mode, and then in the air-to-air mode.

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NEWS IN BRIEF / KURZMELDUNGEN

The new Eurocopter EC 145 (BK 117C-2) has received its German LBA type certificate on December 20. This is about three years after the manufacturer first submitted details of the project to the authority. First flight of the EC 145 was on 12. June 1999, and in the meantime four prototypes are in action in Germany and at Kawasaki in Japan. The new variant of the BK 117 features a new, larger cabin and nose section as well as advanced avionics. It has been ordered by the French security forces.
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The French-Italian consortium ATR has selected Aeronavali, a Finmeccanica Company, as its exclusive outfitter for its ATR 42 and ATR 72 cargo modifications. ATR launched its cargo conversion programme at the Farnborough Air Show in July 2000. The combined expertise of Aeronavali and ATR positions the ATR cargo version as a new standard in the 4 to 9 ton category. Alenia Aerospazio and Aeronavali confirm that the cargo conversion programme for the ATR 42 and ATR 72 aircraft is in an advanced phase of development. The first full conversion with a new Large Cargo Door (116" x 71") is scheduled to be certified by the end of 2001.
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Crossair is continuing its fleet renewal plan: Initially eight Airbus A320 aircraft will replace Boeing MD-80 from 2002 onwards. Options have been taken four additional A320s. The early sales of the older aircraft will mean a reduction in seat capacity and the load factor increased. This decision was taken by the Crossair Administrative Board on December 13. Both the A320 and the Boeing 737-800 were evaluated. The two aircraft were neck and neck in the competition, with neither aircraft showing decisive advantages or disadvantages. The European Airbus was selected as providing synergy within the SAirGroup. In addition, Airbus, with the A321 offers greater growth potential in seat capacity. Due to the fact that the consolidation programme in the Swiss charter market is still incomplete, this purchase has been restricted to eight aircraft. The MD-80 fleet will in any case be reduced from the current twelve to eight units by end-March 2001 as a result of changes in the route network. The first A320s are scheduled for delivery in Spring 2002 whilst the last MD-80 will be retired in Autumn 2003. The new aircraft be on long-term lease from an existing order placed by the SAirGroup with GATX Leasing In addition to the collective working contract for the pilots, which will progressively increase salaries by an average of 20 percent over the next five years, together with improved working conditions, the Administrative Board had approved salary adjustments for other personnel, effective 2001. For the management a bonus system, based on personal performance and business results, will replace the existing profit-sharing plan. Ground personnel will receive a full 13th month salary, instead of 50%, which represents a general salary increase of 4.2 percent. For the cabin personnel, a collective working contract is to be introduced for the first time. Discussions begin in January. Because of poor business results, there will be no profit-sharing for the year 2000.
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Europe and Russia are extending their cooperation in aerospace. On December 18, in the presence of the Prime Ministers of France and Russia, Lionel Jospin and Mikhail Kasyanov, Philippe Camus and Rainer Hertrich, Co-CEOs of EADS European Aeronautic Defence and Space Company, and Yury Koptev, General Director of the Russian Aerospace Agency Rossaviacosmos, signed a Memorandum of Agreement. This agreement provides for expansion of European-Russian programs already operated by EADS. It also provides for new joint ventures. "EADS is Russia's main partner for joint aerospace ventures in Europe", Yury Koptev commented on the occasion of the signing of the agreement. The two partners will work towards facilitating entry of the other partner into their respective domestic markets and creating positive framework conditions for the sale of products. "The Russian industry has a great tradition and is an important partner if we are to master the challenges of the future", stated Camus and Hertrich. "We will pursue many of the activities begun by our three founding companies but in a wider framework with maximum commitment."
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Boeing has completed major upgrades on the United Kingdom and French Airborne Warning and Control System (AWACS) fleets. They were finished within budget and ahead of schedule. Contract value of the upgrades is $274 million. The seven United Kingdom AWACS aircraft were retrofitted with Radar System Improvement Program (RSIP) kits. Along with the RSIP upgrade was installation of the Global Positioning System/Inertial Navigation Systems (GINS) which dramatically improve positioning accuracy. BAE Systems, under subcontract to Boeing, installed the RSIP and GINS kits at the Royal Air Force Base in Waddington, England. The RSIP kit, built by Northrop Grumman's Electronic Sensors and Systems Sector, consists of a new radar computer, a radar control maintenance panel, electrical and mechanical hardware and software.
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Boeing has announced it has signed a contract with Federal Express to modify 19 MD-11 passenger airplanes to freighters. As part of the agreement, Boeing Airplane Services will perform the engineering and parts procurement, in addition to completing the modification. Modification work is expected to begin on the first airplane in third quarter 2002 and the final airplane is projected to be completed in the fourth quarter of 2006. The facility where the conversions will take place has not yet been determined.
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NASA announced on December 19 that the agency is seeking proposals from principal investigators and institutions around the world to develop the first mission to Pluto. This Announcement of Opportunity marks the first time the Office of Space Science has solicited proposals for a mission to an outer planet, such as Jupiter, Saturn, Uranus, Neptune and Pluto, to be selected on a competitive basis similar to the agency's Discovery Program. That program features lower cost highly focused missions with rapid development of the scientific spacecraft. The proposals are due to NASA Headquarters by March 19, 2001.
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On December 19, Boeing signed a contract with the Commonwealth of Australia for the development and acquisition of Project Wedgetail, an airborne early warning & control (AEW&C) program. The contract is worth more than $2 billion Australian (more than $1 billion U.S.). A Boeing-led team, including Northrop Grumman's Electronic Sensors and Systems Sector, Boeing Australia Limited and BAE SYSTEMS Australia, will provide four 737 AEW&C systems plus options for up to three additional systems. The contract also provides for ground-based support segments for flight and mission crew training, a mission support segment and other system support facilities and spare parts. During the next several months, efforts will be focused on the preliminary design reviews for the radar, communications system and the aircraft subsystem. The first two aircraft are expected to be delivered to the Commonwealth in 2006.
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Hapag-Lloyd Flug, the German holiday airline, has exercised options to purchase three additional Boeing Next-Generation 737-800 jetliners. These are existing orders that have been accounted for in cumulative totals published by Boeing. Until today, however, the customer for the order was unidentified. Boeing is scheduled to deliver the three airplanes to Hapag-Lloyd Flug in 2002. The carrier will use the new 737s on routes throughout Europe and the Mediterranean. Hapag-Lloyd Flug, the airline that launched the Boeing 737-800 program in 1994, already has ordered 25 737-800s - in addition to these three. Of those, 21 have been delivered. The carrier is using the new 737-800 models to replace the older 737-400s and 737-500s in its fleet.
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On December 19, the Boeing Joint Strike Fighter X-32A concept demonstrator aircraft successfully completed its first aerial refueling. Flying at 20,000 feet and 235 knots, the X-32A maneuvered into the refueling drogue and effortlessly maintained its position below the KC-10 tanker. U.S. Navy Cmdr. Philip "Rowdy" Yates, the U.S. government's lead test pilot for the Boeing JSF program, said the successful flight validated the handling qualities required for the Navy air-refueling task. "The reliability and 'flyability' of the X-32A is impressive and has allowed us to step very quickly through these X-32A test objectives," Yates said. Following refueling, the X-32A continued to expand the flight envelope. As of today, the X-32A has made 45 flights.
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A California firm has been selected by the NASA Office of Earth Sciences, Washington, DC, to implement a next-generation satellite package that could improve weather forecasting two- fold and help in the research of global climate change. Gencorp Aerojet, based in Azusa, CA, was selected to build the Advanced Technology Microwave Sounder (ATMS). The space-borne atmospheric instrument will measure microwave energy emitted and scattered by the atmosphere. ATMS will work alongside an infrared sounder instrument to produce daily global atmospheric temperature, humidity and pressure profiles. These profiles are essential to accurate weather forecasting and long-term climate research. The contract is worth $206.6 million, with the majority of the work to be performed in Azusa, CA. NASA's Goddard Space Flight Center, Greenbelt, MD, will be responsible for the oversight of the award.
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Transavia, the Amsterdam-based charter and scheduled airline, has exercised an option to purchase two additional Boeing Next-Generation 737-800 jetliners. Including today's announcement, Transavia will have 21 Next-Generation 737 airplanes in operation by summer 2003. In total, 11 new Boeing Next Generation 737s will be added to Transavia's fleet in the next three years: three in spring 2001, five in 2002 (including the two announced today) and three in 2003. Including this order for two, Transavia's order for Next-Generation 737s totals 14 firm plus 10 options. In addition, Transavia has committed to seven more new 737-700s and -800s from outside leasing companies.
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The Comanche team, on Dec. 18 capped off a year of successful flight testing with the first flight of a new empennage on RAH-66 Comanche Prototype No. 1. In addition to the new empennage, Prototype No. 1 flew its "full up" configuration, with lowered exhaust doors, alternate main rotor pylon, main rotor hub fairing and the Comanche fire control radar aerodummy. Comanche test pilots Rus Stiles and Reggie Murrell flew the Comanche with the new empennage for 1.4 hours at speeds up to 165 knots true air speed, performing 45-degree banks and various controllability checks. After the flight, test engineers began evaluating data to measure the new tail's performance. Further flights will provide additional data. The new Comanche empennage design consists of vertical and horizontal stabilizers and new vertical endplates on the horizontal structure. The new tail structure, which was mounted atop the RAH-66 FANTAIL shrouded tail rotor earlier this month, is a reconfigurable unit that permits adjustments of tail components to validate and optimize a final tail design for production.
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After the successful commissioning of the Greek Merchant Marine's four AS 332 C1 Super Pumas, this country's Air Force, who operates these helicopters, has decided to purchase four helicopters of the same type to perform its search and rescue (SAR) and Combat, Search and Rescue (CSAR) missions. This contract, signed in Athens in the presence of Mr. Dimitris Apostolakis, Greek Deputy Minister of Defence and Mr. Jean-Maurice Ripert, Ambassador of France, has a value of approximately 100 million Euros, including provision for an option for another 2 helicopters. It comprises also a 100% offset commitment to the benefit of the Greek industry. The first two helicopters will be delivered within 2 years. The AS 332 C1 is the short version of the twin-engine, medium-lift helicopter equipped with Turbomeca Makila 1A1 engines, each of which has a power rating of 1877 shp (1400 kW).
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Future control of the Franco-German military helicopter Tiger will be performed from the ground by advanced electronic support systems of EADS, the European Aeronautic Defence and Space Company. The Federal Procurement Office (BWB) awarded the order for the delivery of mission support systems for the UH Tiger weapon system to Dornier GmbH - a group company of EADS. The first of four phases of this contract has a volume of more than 11 million euros. The order will be implemented by the EADS Defence Electronics and Telecommunications Business Unit. This was reported by Dornier GmbH on Wednesday in Friedrichshafen. Dr. Stefan Zoller, CEO of Dornier GmbH and Head of the Defence Electronics and Telecommunications Business Unit: "After intensive preparatory work, this order made it possible to the Airborne Systems unit to embark on the significant field of mobile mission support of flying units of the German armed forces. It is assumed that the total order will be completed by 2006. In the long run, this ensures highly qualified jobs and, in particular, our leading position in know-how." Modern aircraft, such as the Tiger, are equipped with a number of computers with high and quickly changing information needs during operation. The mission support system has been designed to satisfy these requirements via data carrier, to accompany the mission with voice and data communication and to perform the evaluation. The new system, which is installed in a mobile container, supports almost all mission requirements. Thus, the mission support system provides flight-specific, tactical and technical preparation also for large operations involving many aircraft. With the help of the mission support system, the modern weapon systems can be made ready for operation within a few minutes.
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Six months after the company's formation, EADS European Aeronautic Defence and Space Company is starting on the integration of its French and German defence businesses within its Defence and Civil Systems (DCS) division. It has developed a plan to stop losses and build the basis for profitable growth. All activities are to be rapidly combined within cross-border structures, EADS announced in Amsterdam on Thursday. From this restructuring will emerge the defence industry's first multinational and fully integrated industrial unit. "We are determined to expand the defence business but in a focused manner. Only a healthy mix of civil and military activities can provide for long-term profitable growth of EADS," commented Philippe Camus and Rainer Hertrich, the EADS Co-Chief Executive Officers (CEOs). "The new, fully integrated structure of the division, combined with various business improvement programmes, is a prerequisite for an economic turnaround and for sustained growth and profitability in the future."
To adjust its portfolio, DCS will adopt a strategy of both acquisitions and new partnerships as well as divestments. The stagnant or even shrinking defence expenditures in the German and French markets will make further reductions in the workforce necessary, going beyond the approximately 1500 people who have already left the division in the last 12 months. EADS estimates that it will have to reduce the workforce by at least another 1500 people if the market situation does not improve. This could lead to a reduction of approximately 550 employees on the German side and 950 on the French side. In addition, the new Defence Electronics unit is considering outsourcing up to 700 central functions. Site closures are also under study.
For Enders, the root cause of the current situation of the EADS Defence and Civil Systems division is clear: "Our business, and especially our defence electronics activities, are overly dependent on our home markets in France and Germany. The conclusion is clear: we need to expand our international business significantly and we will do this through acquisitions, joint ventures and other means." The pillars of cross-border integration within the Defence and Civil Systems Division are four new business units:
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SpaceDev, Inc., the world's first publicly traded commercial space exploration and development company, announced that their $5 million CHIPSat spacecraft project has been officially confirmed by NASA Headquarters. Reflecting on this milestone achievement, Stan Dubyn, SpaceDev's president and chief operating officer commented, "The CHIPSat Confirmation by NASA is a major vote of confidence and a testament to SpaceDev's ability to provide high quality and affordable flight systems, and is instrumental in further providing the groundwork for our future development of space. Each and every shareholder and employee should take pride in this very significant accomplishment, and I salute the hard work of our UC Berkeley and SpaceDev CHIPSat development team." CHIPSat, the first University Explorer mission funded by the NASA Explorers Office is a low-earth orbiting science mission managed by the University of California Berkeley's Space Sciences Laboratory (http://ssl.berkeley.edu). SpaceDev is under contract to design and build the spacecraft, integrate the science payload, integrate the flight system to the launch vehicle, and operate the CHIPSat Observatory for one year. CHIPSat http://www.spacedev.com/missions/chipsat.htm) will be launched as a secondary payload on a Boeing Delta-II GPS replacement launch mission planned for early 2002.
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The Vega Small Launcher Development programme and the P80 Advanced Solid Propulsion Stage Demonstrator programme were formally approved on 15 December by the participating States. Belgium, Italy, the Netherlands, Sweden and Switzerland (Spain's decision still pending) have decided to proceed with full development of the Vega small launcher. Developed and manufactured by European industry, Vega will complete the range of European launch services and offer the international market a competitive vehicle for small payloads of up to 1500 kg (polar earth orbit missions at 700 km). Belgium, France, Italy and the Netherlands have decided to finance the P80 advanced solid propulsion stage demonstrator. This development programme is designed to meet two objectives: demonstrate most of the technologies required to improve Ariane 5 solid-propellant booster performance and competitiveness, develop and ground-qualify an advanced-technology first stage for the Vega launcher.The development milestones for the P80 are consistent with the schedule for developing Vega, whose maiden flight is plannedin end-2005.

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Evans & Sutherland Computer Corp. has announced that it has completed the restructuring of its operations in Germany. The restructuring included the divestiture of the company's former German subsidiary via a management-led buyout and the establishment of a new E&S business unit for continuing E&S business in Germany. The former subsidiary, which was called Evans & Sutherland Computer GmbH, will become employee-owned and operate under a new name. The divested company has no remaining connection with E&S. Evans & Sutherland will continue to operate in Germany and throughout Europe under its own name, providing marketing, sales, and support for the company's growing visual systems business and traditional customer base. "We made this decision to allow the former employees of our German subsidiary to pursue their own business model and independent growth plan, which calls for them to act as a prime contractor for certain kinds of simulation and training systems," said James R. Oyler, E&S president and chief executive officer.
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A decision made by NASA to exercise an existing contract option to launch the Mars Exploration Rover 2 aboard a Boeing Delta II rocket in 2003 capped a banner year for the Boeing Delta program. The spacecraft is scheduled for launch on a Delta II during a 21-day window that opens on June 27, 2003. The option being exercised is part of the NASA Launch Services (NLS) contract awarded to Boeing in June. The contract includes three firm launches and five options for launch services, along with a 10-year Indefinite Delivery/Indefinite Quantity (ID/IQ) contract for Delta II, Delta III or Delta IV launch services. This is the first of the five options to be exercised. The 40th year of operation for the Boeing Delta team was full of major milestones for the entire Boeing Delta family.
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Raytheon Company has been awarded a $43 million firm fixed-price contract for low rate initial production (LRIP) of the AIM-9X next generation Sidewinder missile. This Lot 1 award includes 103 all-up-round missiles, 39 captive air training missiles, and other associated components. The initial aircraft to deploy the missile will be the F-15C and the F/A-18C/D. The Department of Defense plans to procure 10,097 missiles (5097 for the Air Force, 5000 for the Navy) during an 18-year production run. "We at Raytheon Missile Systems are committed to deliver a high performance, affordable AIM-9X to our warfighters," said Charles D. Anderson, Raytheon vice president for Air-to-Air Missiles. "This commitment includes fixed price options for low rate production along with a price procurement commitment through Lot 7. We understand the urgent need for this weapon and will deliver on our commitments."
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The VIP Center at the Lufthansa base in Hamburg has delivered the world's first Boeing 777 with an entirely customized cabin interior. Completed under a contract from the customer, the "triple seven" had been flown to Hamburg in November 1999 directly from the Boeing plant in Seattle. When it landed in Hamburg, its interior was bare and unfinished. For Lufthansa Technik AG (LHT), too, delivery of this aircraft type represents a world first. Having already converted all the commoner Boeing and Airbus models into VIP jets, LHT's engineers brought their vast experience to bear on this latest widebody from the Boeing stable. In Hamburg they not only installed its customized VIP cabin interior, but they also designed and produced it. One of the highlights of LHT's performance was that they were able to complete the job substantially ahead of schedule. The Boeing 777 left the hangars of the VIP Center exactly 41 days in advance of the stipulated delivery date. Lufthansa Technik thus demonstrated once again its primacy in this segment of the aircraft-manufacturing market. In addition to meeting all the customer's requirements with regard to exceptional quality and optimal reliability, LHT built into the aircraft intelligent solutions that will minimize subsequent maintenance and overhaul costs.
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By the end of the year 2001 the German air force will be flying a total of four modified A310s as multi-role transports. These four aircraft will be subsequently equipped to function as aerial tankers. The German defense ministry has placed an order to this effect with the Hamburg consortium that specializes in such aircraft modifications. Consisting of EADS Airbus GmbH and Lufthansa Technik AG, the consortium has already converted two Airbus A310s into multi-role transports (MRTs) and delivered them to the air force. A number of other countries have shown an interest in multi-role transports of this type, which are particularly well-suited for humanitarian flights of various kinds. Under a further order from the defense ministry a fourth function will be built into the four A310 multi-role transports during the period from 2002 to 2004. Extra fuel tanks will be installed below deck with refueling hoses extendable from both wings and with an operator's station behind the cockpit. The converted A310s will then be able to do in-flight refueling of other aircraft such as Tornados and thereby greatly increase their range. The first A310 MRTT tankers will be delivered to the air force starting in late 2003.
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