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UPDATE
Week ending January 14, 2001

+++ Russia and Germany sign MIG-29 accord +++ American takes bankrupt TWA +++ EADS and BAE announce formation of the new Airbus company +++ Sixty A300-600F for UPS +++ Arianespace in the red +++ SPACEHAB and Astrium strengthen partnership +++ News in brief +++


Russia and Germany sign MIG-29 accord
MiG-29: Zusammenarbeit bei Modernisierung

Russian Deputy Defense Minister Mikhail Dmitriyev and German Ambassador to Russia Ernst Studnetz, have signed an accord to establish a single network for maintenance, modernization and other technical support of MiG-29 planes in the European region. A Russian-German joint venture, based in Manching, is expected to help extend the service life of MiG-29 jets, considerably cutting the maintenance expenditure of the countries with MiG-29 in their armies. According to Dmitriyev, there are about 120 MiG-29 fighters in Central and Eastern Europe, including the countries of Poland, Hungary, Slovakia, Bulgaria and Romania. "Everyone acknowledges the airplanes are good... but they need repairs and modernization," he said. Russia and Germany have put forward the most advantageous and economically expedient choices to modernize those jets, which will also make them adapt to NATO standards, Dmitriyev said. The agreement, which has been under planning since 1996, has an effective term of three years and might be extended for another three years on mutual wish. It is "rather general" and will be made more specific "by the military-technical commission and groups of experts," Dmitriyev noted.

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American takes bankrupt TWA
Konzentration in der US Airlineindustrie

AMR Corporation and its wholly owned subsidiary, American Airlines, announced three transactions that dramatically increase the scope, efficiency and desirability of American's domestic network, creating broader customer choice and providing exciting growth and transfer opportunities for American's employees:
  • American has agreed to purchase substantially all the assets of Trans World Airlines Inc. for approximately $500 million in cash and the assumption of aircraft operating leases. TWA will be integrated into American with continued opportunities for its employees and a continued hub operation in St. Louis. As part of the transaction, American will acquire up to 190 aircraft, 175 gates and 173 slots. The combination with TWA will also provide American with an important new hub in St. Louis, improving its position as an east/west carrier. TWA passengers who are AAdvantage members will soon be able to accrue AAdvantage miles on TWA flights. More details regarding additional frequent flyer benefits will be forthcoming. This transaction, which excludes certain TWA contracts, is contingent on bankruptcy court approval.
  • American also announced that it has agreed to acquire certain key strategic US Airways assets, including 14 gates, 36 slots, 66 owned aircraft and an additional 20 leased aircraft, as well as to lease the gates and slots necessary for American to operate half of the northeast Shuttle with United Airlines. Under the terms of the agreement, American has agreed to pay $1.2 billion in cash to United Airlines and assume approximately $300 million in aircraft operating leases. The consummation of this transaction is contingent on the closing of the proposed merger between United Airlines and US Airways.
  • In addition, American has agreed to acquire a 49 percent stake in, and to enter into an exclusive marketing agreement with, DC Air, the first significant new entrant at Ronald Reagan Washington National Airport in over a decade. American has agreed to pay approximately $82 million in cash to DC Air. Under the marketing agreement, DC Air will participate in American's frequent flyer program. American has also agreed to provide to DC Air eleven F100 aircraft in a wet lease arrangement, which means that American personnel will be flying and maintaining American aircraft marketed as DC Air service. American Airlines will also have a right of first refusal on the acquisition of the remaining 51percent of DC Air.
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EADS and BAE announce formation of the new Airbus company
Airbus bald eigenständige Firma

EADS European Aeronautic Defence and Space Company and BAE SYSTEMS announced that all conditions precedent (including regulatory approvals) required for the Airbus deal to close have been fulfilled and agreement on common decisions, including the future Airbus Business Plan has been reached. The Airbus Company will be formally established by the end of February 2001 (with effect from 1 January 2001). Airbus is now operating as an integrated enterprise. Airbus will be owned 80% by EADS and 20% by BAE SYSTEMS. The new company had proforma 1999 consolidated turnover of EUR 15.7 billion and employs some 40.000 people in France, Germany, Spain and United Kingdom. The integration of all Airbus assets in the joint Airbus company is expected to generate synergies of at least EUR 350 million p.a. by 2004. EADS and BAE SYSTEMS have now provided their Airbus aircraft activities with an optimised industrial organisation at world-class level to better serve its customers and to successfully meet the challenges of the aerospace industry. Airbus is now in a position to further enhance its competitive position by concentrating purchasing power, removing duplication and overheads. In particular, customers will benefit from a fully integrated customer support organisation.

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Sixty A300-600F for UPS
UPS bestellt A300-600 Frachter

On January 9, UPS announced a firm order for an additional 60 A300-600 freighters from Airbus Industrie to handle long-term growth in its air business and provide increased flexibility in managing its air operations on a global basis. reviously, UPS placed a firm order for 30 A300-600 freighters in late 1998 for service within the continental United States. The first seven of those aircraft were delivered last fall and another 13 are scheduled for delivery this year. The new order for 60 A300-600's supersedes options for 30 aircraft taken in 1998 and carries a list price of $6 billion. The latest order also includes options for an additional 50 aircraft, making it the largest single aircraft deal in UPS's history.
The order for additional planes was driven by a forecasted need for more wide-body, shorter-haul jet freighters that can operate economically on varied regional routes outside the United States. Several new and used aircraft types were considered, but the A300-600 was judged to provide the best combination of operating characteristics and extended acquisition economics. The acquisition of the A300-600's will be spread over a nine-year period. The aircraft is being added to a UPS fleet of 238 jets that includes 231 Boeing 727, 757, 767 and 747 aircraft and McDonnell Douglas DC-8's. In November, UPS announced a decision to add the MD-11 to its fleet starting in late 2001 by acquiring at least 13 converted MD-11 freighters from Boeing.

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Arianespace in the red
Verlustjahr für Arianespace

In his annual New Year's briefing for international journalists, Arianespace Chairman and CEO Jean-Marie Luton said Arianespace will maintain its launch services leadership through steps that include investments to improve the Ariane 5's performance and boost its production rate, as well as upgrading the ground infrastructure at Europe's Spaceport in French Guiana. He He reported that the company's 2000 revenue was about 1.1 billion euros, which was generated by the year's 12
launches with 16 satellites. For earnings, Arianespace projects a loss of about 200 million euros.
The Arianespace chairman and CEO cited several reasons for the losses last year:
  • Arianespace is launching Ariane 5s from the first production batch - which was ordered more than five years ago and does not yet reflect the lower costs that traditionally come with higher-rate production and manufacturing experience.
  • While Ariane 4 continues its exemplary technical performance, this workhorse family of vehicles is used less frequently for dual launches because of the increasing weight of satellite payloads. As a result, its operation is no longer as profitable as it was.
  • The simultaneous operation of Ariane 4 and Ariane 5 results in increased operating costs. This parallel operation was decided by Arianespace to ensure continuity with Ariane 4 while the new Ariane 5 was introduced into service.
  • Arianespace has spent considerable amounts of money in recent years to gear up for Ariane 5 operations. These investments were made on the production side to support a launch rate of eight Ariane 5s per year, as well as for construction of the massive new S5 satellite preparation building at the Spaceport to handle the large new satellite payloads. While these investments are now nearly complete, they still weigh against the 2000 earnings.
"We will do everything in our power to break even in 2001, and this will require a major effort by everyone involved in the Ariane system," Luton told reporters. "We will need the continued support of European governments for development programs and financing the launch site in Kourou, French Guiana: there must be no letup in this effort, especially with increasingly fierce competition looming ahead. This support must be comparable to that provided by governments to other operators around the world - particularly in the U.S. -- if we are to operate on a level playing field. He said efforts to decrease production and operating costs continue to show results, and the ongoing restructuring of the European space industry will further contribute to rationalizing production and lowing manufacturing costs.
During his presentation, the Arianespace Chairman and CEO announced a new batch of commercial contracts signed in 2000 - bringing the company's backlog of payloads awaiting launch to 49. This backlog represents a combined orderbook value of approximately 4.45 billion euros (the equivalent of about $4.22 billion at current exchange rates), and is equivalent to three years' launch activity. All four of the new satellites are from repeat Arianespace customers: DirecTV-4S from U.S. operator DirecTV, Insat 3A and 3E from the Indian Space Research Organisation (ISRO), and Amos 2 from Israel Aircraft Industries. "During 2000, we signed launch contracts covering a total of 25 payloads: 15 communications satellites, one Earth observation spacecraft and nine ATV service missions to the International Space Station," Luton said. "According to our calculations, the 15 telecom satellite contracts accounted for over half of all orders signed for such spacecraft worldwide in the last 12 months."

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SPACEHAB and Astrium strengthen partnership
Astrium und SPACEHAB erweitern Zusammenarbeit

SPACEHAB, a leading provider of commercial space services, today announced that Astrium GmbH of Bremen, Germany, is significantly expanding its strategic partnership with the company through a sale-leaseback agreement for SPACEHAB's Integrated Cargo Carrier (ICC) program worth $15.4 million in cash and services to SPACEHAB. Under the agreement, SPACEHAB and Astrium have agreed to expand the ICC program to offer new versions of this flight-proven unpressurized payload carrier, which is designed to fly in the cargo bay of NASA's Space Shuttle. New variations of ICC services will include deployable and vertical cargo carriers. Future enhancements may also include an EXPRESS carrier, a propulsion pallet and a cryogenic carrier. The partners will continue to provide the basic ICC, which SPACEHAB has already flown on three Shuttle missions devoted to resupply of the International Space Station (ISS).Formerly DaimlerChrysler Aerospace, Astrium purchased an 11.5 percent equity stake in SPACEHAB in fall 1999. With this latest investment in the ICC program, Astrium further augments the European company's strategic partnership with SPACEHAB: Astrium acquires equity in the ICC program, and SPACEHAB continues to manage the ICC program while increasing its cash flow.

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NEWS IN BRIEF / KURZMELDUNGEN

After a few months of foggy vision, NASA's Stardust mission team has improved the spacecraft's navigation-camera resolution to nearly normal, just as Stardust is preparing to make a close flyby of the Earth. By heating the camera's optical path, the Stardust team was able to help its nearsighted spacecraft boil away contaminants that had been deposited on optical surfaces. One year ago, the imaging team took pictures of a small lamp inside the optical path of the camera. The camera will be used to navigate Stardust to its 2004 encounter with Comet Wild 2. Apparent contamination of the navigation- camera prevented a clear test-image of the squiggly line of the lamp's filament, and the lens seemed to be covered with a veil of light-scattering material that produced a blurry image.
+++
The Boeing X-32B Joint Strike Fighter concept demonstrator moved closer to first flight with the successful completion of initial low- and medium-speed taxi tests to verify function and integration of crucial aircraft systems. The X-32B will demonstrate the company's direct-lift approach to the short-take-off-and-vertical-landing (STOVL) requirements of the U.S. Marine Corps and the United Kingdom's Royal Navy and Royal Air Force."The propulsion and on-board systems met our expectations, which were based on X-32B static tests and our experience on the X-32A," said Frank Statkus, Boeing vice president and JSF general manager. "The high level of commonality built into the X-32A and -B is paying off. Just like the X-32A, the -B performed well at 30 knots and again at the medium-speed taxi test at 60 knots."
+++
The Preston Group, a wholly owned subsidiary of The Boeing Company, has sold five Total Airspace & Airport Modeller (TAAM) licenses to EUROCONTROL. TAAM is a fast-time gate-to-gate simulation tool used by civil aviation authorities, aviation research establishments, airlines and airports worldwide to analyze operations, redesign airspace, optimize the use of existing facilities and plan for the future. The TAAM licenses will be used both at the Airport Operations unit of EUROCONTROL's headquarters in Brussels and at the Bretigny Experimental Center near Paris, which carries out research and development in air traffic management and air safety. Future plans include its availability at the Central European Air Traffic Services Research and Development Center in Budapest. According to EUROCONTROL Simulation Service Manager Nigel Sylvester-Thorne, "TAAM will become an integral part of a comprehensive modeling environment to meet the needs of EUROCONTROL's ATM 2000+ strategy."
+++
On January 10, China launched the "Shenzhou II," carrying animals and microbial cells, from Jiuquan in northwestern China aboard the latest version of the Long March rocket. It will spend several days in space. The official China Daily quoted a spokesman at the space centre as saying the country's first batch of astronauts were undergoing intensive training. "China will test several unmanned spacecraft and when its manned space flight technology is mature, it will launch people into space," the spokesman was quoted as saying. Last month, state media said China aimed to put an astronaut into space within five years, setting an official timetable for the first time. The new launch follows a mission in November 1999 by "Shenzhou I," China's first unmanned spaceship, which circled the Earth 14 times before returning safely 21 hours later.
+++
The U.S. Navy has authorized Boeing Satellite Systems Inc. (BSS) to begin production of the 11th in a series of UHF Follow-On (UFO) satellites, which provide global communications for the armed forces. The agreement amends an existing $1.9 billion contract under which BSS has built and launched 10 UFO satellites. The satellite will be launched in 2003. The Navy began replacing and upgrading its ultra-high frequency (UHF) satellite communications network during the 1990s with a constellation of Boeing 601 spacecraft known as the UHF Follow-On (UFO) series. In 1999, the Navy's Space and Naval Warfare Systems Command granted BSS initial funding for long-lead parts procurement and related activities on UFO F-11. With this authorization to proceed with F-11's construction, the Navy is moving to sustain the UFO constellation into the latter part of this decade.
+++
Shares of BAE Systems PLC fell sharply Wednesday after the U.K.'s largest defense and aerospace group revealed losses arising from a major military contract and warned of a slowdown in defense orders. BAE will take a pretax charge of 300 million sterling ($450 million) in 2000 from its delayed contract to upgrade Nimrod aircraft for the Royal Air Force. "The full cost of delivering the Nimrod development and production contract will exceed the contract value," BAE Systems said. BAE said its military programs division will be hit by lower-than-expected orders from the U.K. Ministry of Defense and falling export orders for its Hawk aircraft. The short-term outlook for the programs business is expected to remain "difficult" and capacity will be reduced, BAE said. The company will also take an exceptional charge of 110 million sterling in 2000 and 115 million sterling in 2001.
+++
IAE International Aero Engines AG announced that Stephen N. Heath will be the next President and CEO of IAE, effective February 5, 2001. Mr. Heath joins IAE from Pratt & Whitney where he is currently Vice President, Customer Service. Steve's affiliation with IAE goes back to 1984 when he was one of the original members of the IAE Program Management organization. He also served as Pratt & Whitney, Vice President Sales and Service for the Americas and in 1995 was Pratt & Whitney, Vice President and General Manager V2500 Program. Mike Terrett, IAE's President since November 1998, is returning to Rolls-Royce to take up an executive position within the Rolls-Royce civil aerospace business. In his new assignment, Mr. Terrett will maintain a close involvement with the V2500 program.
+++
On January 10, the Czech Republic launched the tender for new supersonic aircraft for the air force. The new aircraft would replace aging Soviet MiG-21s currently in Czech air force service. Boeing is likely to offer its F/A-18E/F Super Hornet for the Czech requirement, while Lockheed Martin would bid its F-16C/D Block 50+. Meanwhile, EADS was invited to bid the Typhoon fighter on behalf of the Eurofighter consortium. The Eurofighter consortium is composed EADS, BAE, and Italy's Alenia. BAE was asked to bid the JAS-39 Gripen fighter in cooperation with Sweden's Saab. Dassault would bid its Mirage 2000-5 Mk II fighter. Under a timetable approved by the Czech government last week, a conference of the potential bidders will be held on Feb. 28, with the bids due by May 31. A winner of the competition would be selected on Oct. 31.
+++
The third try was the right one for Ariane Flight 137, as the Eurasiasat 1 satellite payload was placed into an accurate geostationary transfer orbit by the mission's Ariane 4 launcher. This flight had experienced several delays, beginning last December when a quick fix was performed on the launcher's payload fairing. Subsequently, Eurasiasat 1 was removed from the launcher at the client's request to allow for technical troubleshooting on thespacecraft. After being rescheduled for a January 8 liftoff, Flight 137 was postponed two more days due to wind conditions at the Spaceport. The flight was inaugural launch of 2001 for Arianespace, and is expected to be the first of 11 missions during the year. The vehicle used for Flight 137 was an Ariane 44P version of the workhorse Ariane 4 family, and its liftoff leaves 14 more Ariane 4s to be launched before the vehicle is phased out of service. Arianespace's next launch is Flight 139, which will employ another Ariane 4 to orbit two military telecommunications satellites: SICRAL of the SITAB consortium for the Italian Defense Ministry and the Astrium-built SKYNET 4F for the British Ministry of Defence. This mission is to use an Ariane 44L launcher version, and its liftoff is scheduled for February 7.
+++
LFK-Lenkflugkörpersysteme GmbH (LFK, Munich) and two specialists from BAe Systems and Vought Aircraft Systems - successfully performed a first free-flight of its new Autonomous Free-flight Dispenser System AFDS by launching it from an A-7 aircraft on 12 December 2000. The A-7 had started at Andravida Air Force Base (Air Tactics Center) and released the AFDS over the sea between the Peloponnes and the southernmost Ionian Island Zakinthos. This was announced on Tuesday by LFK, a subsidiary of the EADS European Aeronautic Defence and Space Company. "This first AFDS free-flight was the final step in the certification of the dispenser system on A-7 and an important step for total AFDS system certification", Peter Ibbeken, CEO of LFK, stated.Following take-off, the pilot proceeded to the test area and performed a perfect approach at the prescribed velocity (1500 m release altitude, Mach number = 0.7) to the planned release point. Once the Weapon Release Button was pressed, the Dispenser's Thermal Battery ignited, the Fins unlocked and ejection from the pylon was achieved. Following safe separation from aircraft, the Dispenser flew to the designated target area and descended to the stipulated attack altitude (100 m). 42 seconds after release and following a flight of approximately 7.5 km, the Dispenser overflew the target area and released submunition in accordance with mission requirement plan.
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Atlantic Coast Airlines Holdings Inc. has finalized its order for Fairchild Dornier 328JETs. The Dulles-based company also increased its options for its United Express and Delta Connection carriers, bringing the total for ACAI orders and options of the 32-seat regional jet to 145, with a value of $1.75 billion. Under the agreement, ACAI placed a firm order for 32 328JETs for Atlantic Coast Airlines (ACA), its United Express operation, to join the 30 328JETs already ordered by Atlantic Coast Jet (ACJet), a Delta Connection carrier. ACAI also increased its 328JET options to 83 from 30 that can be assigned to either carrier. ACJet began operating the 328JET in August. Fairchild Dornier has delivered 14 328JETs to ACJet this year and will deliver the 16 remaining aircraft on firm order in 2001. ACA will take delivery of its first 328JET in January 2002 with deliveries completed in 2003. These aircraft will be the first 328JETs in a United Airlines livery.
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Effective 1 January 2001, Lufthansa Technik AG (LHT) has formed a joint venture with the firm of Interturbine Germany GmbH, a member of the Intercon/Interturbine Group. Based in Kaltenkirchen near Hamburg, the new company has been named Lufthansa Technik Intercoat GmbH. It specializes in a coating procedure for repairing complex components, particularly of aircraft engines, such as fuel pumps and gearboxes. The coating material, known as Interfill, enables surfaces deformed by mechanical wear to be restored to their original dimensions and in some cases to a condition qualitatively superior to when they were new. Certified by the American FAA (Federal Aviation Administration) and the European JAA (Joint Aviation Authorities) and used by major airlines and overhaul shops, the procedure allows damaged aircraft parts that would otherwise be no longer usable to be repaired any number of times.
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Aeronautics Days 2001 at Hamburg on 29-31 January is intended to address the technological and industrial development of the European aeronautics sector. This event aims to provide a high-level, future-oriented perspective coming from politics, the industry and the research community, in response to Europe's social needs and expectations. The conference will offer a comprehensive view with in-depth thematic presentations of the technological achievements and ongoing activities of collaborative aeronautical R&TD, especially under the "New Perspectives in Aeronautics" key action of the European Union's Fifth Framework Programme for Research and Technological Development. Aeronautics Days 2001 will also provide an overview of other national and international research activities within Europe. It will offer a unique forum for researchers, engineers, managers, government officials and journalists from all over Europe to discuss and reflect on a future-oriented R&TD roadmap for aeronautics in line with the concept and objectives of a European Research Area.
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Previous updates are still available:
Die News der letzten Wochen sind weiter abrufbar:

*January 7, 2001

*December 24, 2000 *December 17, 2000 *December 10, 2000 *December 3, 2000

*November 26, 2000 *November 19, 2000 *November 12, 2000 *November 5, 2000

*October 29, 2000 *October 15, 2000 *October 8, 2000 *October 1, 2000

*September 24, 2000 *September 17, 2000 *September 10, 2000 *September 3, 2000

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


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