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UPDATE 
Week ending June 24, 2001
+++ MoU on A400M signed +++ Air Liberté AOM files for bankruptcy +++ Portugal joins NH90 +++ ESA announces its largest-ever contract +++ Commission launches Advisory Council for Aeronautics Research +++ Lufthansa offers passengers the world's first online "flying office" +++ CHC launches Eurocopter EC 225 +++ Cooperation between Boeing and LHT +++ Airbus doubles orders for the year +++ News in brief +++

MoU on A400M signed
A400M: Regierungsvertrag unterschrieben

The 2001 Le Bourget Air Show saw the signing of the Memorandum of Understanding (MoU) for the A400M programme. Nations participating in this programme are Belgium and Luxembourg, France, Germany (signed conditional of parliamentary approval), Italy (did not sign), Spain, Portugal (did not sign, has reduced number to three from four), Turkey (reduced number to 10 from 20) and United Kingdom. The participants confirmed their strong commitment to strengthen the capabilities of their Air Forces for strategic and operational air transportation. The A400M programme is tailored to this end and contributes to the participants' commitment in support of NATO's Defence Capability Initiative and the European Headline Goal. It generates the necessary potential for harmonising operational and support arrangements and offers a large margin for cost savings by means of co-operation. It also paves the way for greater task sharing in meeting European military air transport demands.
"Best practice" methods widely used in the civil aircraft business will be applied to the management of this programme; in particular, the contract with industry will cover the full scope of development and production. Airbus Military Company (AMC) has proposed to fund a significant share of the costs of the programme. The programme will be managed for the participants by the Organisation for Joint Armament Co-operation, known by its French acronym OCCAR (Organisation Conjointe de CoopÈration en MatiËre D'Armement) The next step will be to sign the more detailed arrangements for the management of the programme within OCCAR and also the contract between industry and OCCAR; these are expected to be concluded by the end of September 2001. The Participants therefore note with satisfaction the recent progress towards contract placement and look forward to early completion.
Meanwhile, industry was signing of an agreement to establish the Aero Propulsion Alliance (APA) joint venture. The joint venture is formed to develop, manufacture and support the TP400 turboprop engine chosen to power the Airbus A400M military transport aircraft. The companies comprising the new company are FiatAvio (Italy); ITP (Spain); MTU Aero Engines (Germany); Rolls-Royce (UK and Germany); Snecma Moteurs (France) and Techspace Aero (Belgium). Headquartered in Munich, Germany, APA will manage the TP400 programme and act as a single point of contact for customers, the European nations - through procurement agency OCCAR - and Airbus Military Company (AMC). The participating companies will staff the management company in accordance with their percentage participation in the programme.

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Air Liberté AOM files for bankruptcy
Swissair: Französische Töchter sind bankrott

On June 15, Air Liberté AOM's management has filed for bankruptcy under French bankruptcy laws. The announcement follows the decision by Air Liberté AOM's principal shareholders not to continue to support the loss making airline and the failure of Air LibertÈé AOM to find an alternative solution under the ongoing conciliation process to secure its future. Air Liberté AOM's future could have been secured by a third party offering to take it over and replace existing shareholders. Unfortunately, no firm offer was received. Swissair Group, as a minority shareholder in Air Liberté AOM, has repeatedly stated its willingness to participate in the restructuring costs of Air Liberté AOM to the extent of two thirds on the basis that its majority shareholder, Marine-Wendel finance the remaining third. Regrettably, Marine-Wendel has refused to do so. Commenting on the announcement, Swissair Group's chairman and chief executive, Mario A. Corti said: "we have worked hard with the "conciliateurs" and Air Liberté AOM's majority shareholder to secure Air Liberté AOM's future, but to no avail. Ultimately, Swissair Group has to safeguard the interests of its own shareholders and, therefore, made the decision earlier this year not to pursue the unacceptable option of financing operating losses for an indefinite period." The expected exit costs relating to this situation are provided for in the accountsfor the year ended December 2000. The resolution of this issue is the first major step in addressing the restructuring of the Swissair Group's participations. It will strengthen the overall financial position of the Swissair Group and remove a major element of financial uncertainty.

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Portugal joins NH90
NH90-Programm jetzt mit Portugal

The Armament Directors of France, Germany, Italy and the Netherlands and the State Secretary of Portugal signed a Memorandum of Understanding (MoU) at Le Bourget on June 21, 2001, to include Portugal as fifth European nation in the NH90 programme with a 1.2 per cent stake. Portugal will purchase 10 NH90 helicopters for tactical transport missions and in turn become a member of NAHEMO (NATO Helicopter Management Organisation, comprising the Steering Committee and NAHEMA, the NATO Helicopter Management Agency), the government authority which controls the programme. Jean-Francois Bigay, President of Eurocopter, welcomed the Portuguese decision to join the NH90 programme, already the biggest helicopter programme ever launched in Europe. Now backed by the governments of five nations, the programme has an even stronger base while the first production batch of NH90 helicopters has increased by ten from 243 to 253. Contracts for the first production batch plus options for an additional 55 NH90s were signed by the original four NAHEMA countries in June 2000, also confirming a total requirement of 595 helicopters which is now increased to 605. The industry agreed to yield 1.2 per cent to the new industrial partner, OGMA of Portugal. OGMA will be single-source producer for aiframe parts, cables, interior fittings, the radome and engine installation parts for the entire programme respectively.

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ESA announces its largest-ever contract
Herschel und Planck Teleskope bstellt

The largest contract ever in the history of European space astronomy has been awarded by the European Space Agency, ESA, to an industrial consortium led by Alcatel Space Industries (France), for the manufacture of two ESA astronomy satellites, the Herschel Space Observatory and Planck. The contract, whose signature was announced on June 22 by ESA representatives at Le Bourget Airshow in Paris, is valued at 369 million Euros. Alcatel Space of France will be the prime contractor of ESA's Herschel/Planck mission, with Astrium GmbH (Germany) and Alenia Spazio (Italy) as main contractors. The contract covers the activities of design, development, manufacture, test, launch and in-orbit commissioning of both satellites.
The large size of this mission is explained by the fact that it involves two large and complex satellites, Herschel and Planck. The decision to combine both missions into one was taken by ESA due to the significant cost savings that could be achieved in this way, and in view of certain technical commonalties shared by both satellites. For instance, their final orbits are such as to allow both spacecraft to be launched together in the same rocket. However, once in operation Herschel and Planck will work as completely independent satellites, with different scientific goals and different orbits. In fact, this will be the first time that two satellites aimed at solving different astronomy problems are launched together and subsequently injected into different orbits.
Apart from being the prime contractor, Alcatel Space will be in charge of the Planck Payload Module development - the Payload Module hosts the spacecraft's scientific instruments. Alcatel Space will also be responsible for the assembly and testing of the Planck spacecraft. Astrium GmbH will be entrusted with the Herschel Payload Module development, as well as with the Herschel spacecraft assembly and testing. The Herschel Payload Module consists basically of a large cryostat filled with liquid helium, containing the scientific instruments; the cryostat acts as a huge 'thermos bottle' that keeps key parts of the instruments - namely, the focal plane units - at a temperature very close to absolute zero (-273 degrees Celsius). This is a strict requirement and one of the main technological challenges of the mission. The extensive experience of Astrium GmbH in cryostat technology was proven in ESA's Infrared Space Observatory (ISO), a highly successful pioneer in infrared space astronomy that was operational until 1998.

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Commission launches Advisory Council for Aeronautics Research
Beratergremium für Luftfahrtforschung

At the 44th Paris Air Show at Le Bourget (France), European Research Commissioner Philippe Busquin will open the first meeting of the new Advisory Council for Aeronautics Research in Europe (ACARE). The set-up of this council was recommended by a group of leading personalities from the aeronautics sector that, at the request of Philippe Busquin, formulated a 2020 Vision for European Aeronautics. The 2020 Vision, unveiled in Hamburg in January 2001, is to become a global leader in the world market with safer, less noisy and less polluting aircraft. The new advisory council will develop and implement a strategy for building the next generation European aircraft. It will define an agenda for a closer R&D co-operation between the European Commission, Member States, industry and the scientific community, in line with the objectives of a European Research Area. ACARE members include Walter Kröll (Chairman, DLR), Franois Lureau (Thales), Phil Ruffles (Rolls Royce), Joachim Szodruch (Airbus) and Victor Aguado (Director-General, Eurocontrol).
The Advisory Council will be composed of some 30 members, including representatives from Member States, the Commission and stakeholders. It will meet at least twice a year. ACARE's mission will be to prepare and promote a Strategic Research Agenda (SRA) that will serve as a guide in the planning of research programmes - national and EU programmes - in the field of aeronautics. ACARE's activities will include preparing and updating the SRA; making strategic and operational recommendations and commissioning studies for implementing the SRA; evaluating the results and benefits of the SRA for Member States, the Commission and other players; recommending measures for optimising the use of existing research infrastructure and achieving cost-effective investments; recommending measures for improving education policies to attract the scientists and engineers needed in the sector; promoting awareness of the SRA and disseminating information on research.

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Lufthansa offers passengers the world's first online "flying office"
Connexion by Boeing: Lufthansa erster Kunde in Europa

In cooperation with the provider Boeing, Lufthansa is realising the world's first "flying office" by providing high-speed Internet connectivity services on all the aircraft in its long-range fleet. Scott Carson, President Connexion by Boeing, and Wolfgang Mayrhuber, member of the Executive Board of Deutsche Lufthansa AG and CEO Passenger Airlines, signed an agreement to this effect on Sunday 17 June at the Paris Air Show at Le Bourget. Both partners aim to equip a first commercial Boeing 747 jet with the system in 2002. The following year Internet access will become a regular component of Lufthansa's in-flight service.
During a trial lasting several months Boeing and Lufthansa aim to find out more about passengers' online habits and interests. It will be particularly valuable for business travellers to make flight and hotel reservations from their own notebook while airborne. In addition, the system will enable normal access to corporate intranets and e-mail servers. Realising this ambitious project requires an extensive financial and technical planning. It will be necessary, for example, to set up a global satellite and data network for people on travelFurthermore, extensive certification is required for the use of the frequency band and on-board installations.

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CHC launches Eurocopter EC 225
Erste Bestellung für EC 225

CHC Helicopter Corporation has announced the signing of a contract for the acquisition of the first civilian EC 225 helicopter (delivery mid-2003) and a new AS 332 L2 Super Puma (delivery Q4 2002). CHC President Sylvain Allard and Eurocopter Group President Jean-Francois Bigay signed the contract at the Paris Air Show, making CHC the launch customer for the EC 225, the newest addition to the Super Puma family, and one of the most sophisticated heavy helicopters in the world. With the EC 225, CHC will operate a helicopter with highly increased performance capabilities, thanks to a new main rotor with five blades, a reinforced main gear box, new engines and a new integrated piloting and display system. The EC 225 is capable of transporting 19 passengers more than 400 nautical miles, with the fuel reserves required by relevant aviation authorities. In a Search and Rescue (SAR) role, the EC 225 can rescue 21 personnel at sea and safely transport them to an offshore platform.

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Cooperation between Boeing and LHT
Boeing und Lufthansa Technik kooperieren

Boeing Aircraft Trading President Dinesh Keskar has announced the signing of an agreement with Lufthansa Technik AG to establish relationships between the two organizations. According to terms of the agreement, Lufthansa Technik will be providing support to Boeing Aircraft Trading's airplanes, including those not manufactured by Boeing. Areas of technical support that may be provided by Lufthansa to Boeing Aircraft Trading customers include aircraft modifications, aircraft maintenance and training, and other services. "Regardless of the manufacturer or model, any airplane that Boeing Aircraft Trading sells or leases will have the Boeing stamp of approval on them," Keskar said. "We stand behind our products and will support our customers to the best of our abilities." Lufthansa Technik AG - a subsidiary of Lufthansa German Airlines based in Hamburg, Germany - is an established and qualified technical support provider well known in the aviation industry. The company is an approved design, development and production center, and is recognized by more than 30 maintenance organizations, including JAR 145 and FAR 145.

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Airbus more than doubles 2001 sales at Le Bourget
Airbus meldet 175 Bestellungen

Airbus signed deals with five customers at the Paris Le Bourget air show this week for a total of 175 aircraft worth US$14 billion. Of these 155 were firm sales valued at US$13.2. These firm orders more than double Airbus' sales so far this year, which now stand at 299. Announcements included the consolidation of two major customers' earlier commitments for the all-new A380 superjumbo, with Air France and ILFC placing firm orders for 10 A380s respectively. This year's show also witnessed the largest Airbus order ever placed by a single customer in terms of value, with the sale of 111 Airbus aircraft in total, worth US$8.7 billion.
The first major order placed at this year's show came with the signature by JetBlue Airways of a firm contract for an additional 30 A320s, bringing the New York start-up carrier's total firm orders for the type to 63. Airbus then gained a new customer with Royal Air Maroc's firm order for four A321s. This was followed by an order from Air France for 10 A380-800s, in confirmation of an earlier commitment.
ILFC, the world's largest leasing company, and the first North American customer for the A380, doubled its original commitment for the type, firmly ordering five A380-800s and five A380-800F freighter versions. ILFC also firmly ordered 21 A330-200s and 80 A320 Family single-aisle aircraft. This milestone deal, valued at US$8.7 billion, is the largest order in value terms ever placed for Airbus aircraft by a single customer. Brazilian airline TAM - Linhas AÈreas also confirmed its intention to acquire 20 A318 aircraft, the latest member of Airbus' highly popular A320 Family of single-aisles.

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NEWS IN BRIEF / KURZMELDUNGEN

The Swedish Defence Materiel Administration (FMV) and Agusta SpA, an AgustaWestland Company, have today signed a contract calling for the supply of 20 Agusta A109 Military helicopters. The contract is worth more than 130 Mio Euro, and initial deliveries are scheduled for September 2002. The A109 Military, to be designated HKP15 under the Swedish configuration, will be incorporated into the Swedish Armed Forces as a new light utility helicopter system. The new helicopter will replace three older helicopter systems. The primary purpose of the HKP15 is to serve as a cost efficient system for tactical education and training of crews. In addition, the new helicopter will be used for other missions, including utility, ASW, SAR and MEDEVAC. The HKP15 will be operated from both permanent and field bases, with some of the helicopters equipped for ship based operations.
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The Boeing Company has awarded its gold level Preferred Supplier Certification to Derendinger & Cie SA of Geneva, Switzerland. Gold is the highest level in the Boeing Preferred Supplier Certification process - a tool to identify and recognize high-performing suppliers strategically important to Boeing. Company President Pierre Derendinger accepted the award from Boeing in a ceremony held during the Paris Air Show. A supplier of high precision, complex machined parts, Derendinger supplies parts for the F/A-18C/D Hornet, the F/A-18E/F Super Hornet and the F-15 Eagle. In 1983 the Swiss air force purchased 34 Hornets, with significant workshare awarded to Swiss industry. The industrial participation agreement with the Swiss government amounted to 100 percent of the $1.3 billion contract value. Derendinger is under contract with Boeing to supply the F/A-18E/F stabilator torque box assembly and titanium hinge, as well as spares for the F/A-18C/D spindle bearing assembly.
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On June 21, Lockheed Martin delivered the 25th C-130J airlifter to the United Kingdom's Royal Air Force. This completes deliveries under the current production contract. The first aircraft was delivered to RAF Lyneham, the RAF's only Hercules operating base, on 23 November 1999. The 25 Hercules, composed of 10 C-130Js, and 15 of the longer C-130J?30s, will equip 24 and 30 Squadrons. 24 Squadron will be operational with the new aircraft this year, and 30 Squadron in spring, 2002. The C-130Js, becoming widely known as the 'Super Herc', will supplement the 29 original Hercules that will still be flown by 47 and 70 Squadrons, also based at RAF Lyneham. These Hercules are scheduled for replacement in 2007.
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Boeing and KLM Engineering and Maintenance (E&M) announced that KLM is the European launch customer for the Global Airline Inventory Network. The E&M division is the maintenance, repair and overhaul (MRO) organization of KLM Royal Dutch Airlines. It provides total care, airframe, component and engine maintenance services to KLM and more than 50 other airlines and operators around the world. The Global Airline Inventory Network is a value-added service in which Boeing will manage the supply chain for expendable airframe spare parts. The parts are used to maintain KLM's fleet of Boeing airplanes and the fleets of other airlines who contract for maintenance services from KLM E&M. The program initially will involve Boeing parts and will expand to include other standard and vendor parts. The Global Airline Inventory Network is designed to eliminate costly inventory inefficiencies in the airline industry, where both airlines and suppliers incur extra costs because of duplicated distribution channels and unnecessary inventory levels. The airline industry worldwide consumes $7 billion a year in airframe spare parts to support Boeing airplanes.
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Boeing, Sukhoi Civil Aviation, and the Ilyushin Design Bureau have announced a cooperative effort to determine the feasibility of jointly designing, manufacturing, certifying, marketing, selling and servicing a new regional jet for global operations. The feasibility study encompasses market research and development of a joint market forecast, analysis of issues regarding the product development and certification of a Russian-built airplane for export, and preparing preliminary business plans that will form the basis for evaluation of a possible joint airplane program.
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The Novosibirsk Aircraft-Building Production Association named after Chkalov is effectively fulfilling a contract on the modernization of 22 SU-24 tactical bombers for the Algerian Air Force. For the purpose of fulfilling the contract, Rosoboronexport purchases the planes through the Russian Defence Ministry and has them repaired and modernized at enterprises of the Chkalov Association. The completion of the fulfilment of the 120-million-dollar contract is expected to take place in 2001-2002. The modernization is done in three stages, on coordination with the Algerian side. The first stage, which includes the labour-consuming improvement of the plane frame, is done at enterprises of the Chkalov Association. The first-stage operations have been completed on 14 SU-24 bombers, which have been sent to Algeria. The second and third stages of the modernization will be done by specialists of the Chkalov Association directly in Algeria. The money, obtained in this way, will be spent by the Chkalov Association on the modernization of the SU-24 tactical bombers, used by the Russian Air Force, as well as on the creation of the AN-38 plane for local air lines.
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Boeing released its 2001 Current Market Outlook (CMO) at the Paris Air Show, noting a forecast of a $4.7 trillion market for new commercial airplanes and aviation services over the next 20 years. The report, widely regarded as the most comprehensive and respected analysis of the commercial aviation market, reflects the reality of a more competitive industry and a growing - and to some extent, aging -- worldwide airplane fleet, a testimony to the long-term utility and value of today's jetliners. "The shift from a regulated to liberalized market has increased competition among airlines and is forcing them to operate at much higher levels of efficiency to remain profitable," said Randy Baseler, Boeing Commercial Airplanes Group vice president - Marketing. "And passenger preference for more frequent, nonstop flights with shorter trip times, will continue to drive market evolution and airline strategies. Afterall, air travel is all about saving time." Boeing estimates the world fleet will double to almost 33,000 jets by 2020, comprising almost 18,400 new airplanes for market growth; 5,100 airplanes for replacement; and the more than 9,500 airplanes that currently are flying. The mix of current and new airplanes is expected accommodate a forecast of 4.7 percent growth in world air travel, plus 6.4 percent growth in the cargo segment. Regional growth varies between 3.1 and 7.7 percent, with Latin America expected to be the fastest growing market. Boeing projects airlines will invest $1.7 trillion in new commercial airplanes, which equates to 23,500 airplane deliveries over the next 20 years.
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Boeing announced at the Paris Air Show that Japan Airlines (JAL) has placed an order for three Boeing 777-200ERs. The value of the new airplanes at list prices is estimated at $525 million. Deliveries are scheduled between 2003 and 2006. This order marks the initial replacements for the fleet of 15 DC-10s that the JAL Group currently operates. Additional replacement orders, including commitments for 767-300ERs, are expected at a future date.
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Northrop Grumman has signed a foreign military sales (FMS) contract to deliver an E-2C Hawkeye 2000 export configuration aircraft to Egypt. This contract adds the modification and upgrade of a sixth Egyptian E-2C, a former U.S. Navy E-2C airborne early warning and control (AEW&C) aircraft, to a program awarded previously and brings the value of the work to be done to $163 million. In late 1999, Egypt contracted for the upgrade of its five Hawkeyes under a Navy FMS contract valued at approximately $138 million, which funds nonrecurring design and development work and the procurement of retrofit kits and initial spares. A subsequent contract authorization later this year will add the installation of the upgrade kits into the five Egyptian-owned E-2C's. All six aircraft will be modified in St. Augustine, Fla., by the Airborne Early Warning and Electronic Warfare (AEW&EW) Systems business area of the company's Integrated Systems Sector (ISS).
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Longbow International (LBI), a joint venture of Lockheed Martin and Northrop Grumman have teamed with Bell Helicopter to develop the Cobra Radar System (CRS) for the AH-1Z Cobra helicopter. The Cobra Radar System will complement the war fighting, surveillance, and reconnaissance capabilities of the AH-1Z Cobra at an affordable procurement and life cycle cost. The Cobra Radar System consists of a new pod-based millimeter wave radar that can be mounted on a wingtip or stores position of the AH-1Z Cobra helicopter. The Cobra Radar System will be integrated with the existing M299 launcher and AGM-114L RF Hellfire fire-and-forget missile.
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A powerful software tool developed by Boeing to help airlines quickly troubleshoot their Boeing and Douglas jetliners now is available to operators of Fokker airplanes. Boeing has entered into an agreement with Fokker Services B.V., under which Boeing will adapt its Portable Maintenance Aid (PMA) software application for use by maintenance and engineering staffs supporting Fokker aircraft. There are almost 1,200 Fokker turboprop and jet-powered airplanes in service worldwide. They were built by the former Fokker Aircraft B.V. of the Netherlands. Although production of these airplanes has ceased, operators continue to receive technical support from Fokker Services B.V., a unit of the Dutch concern Stork Aerospace Group.
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Northrop Grumman has delivered the last new-production Group II Hawkeye aircraft to the U.S. Navy. The aircraft was officially accepted by the service approximately six weeks ahead of schedule. "I'm very proud of our response to our customer - products delivered on or ahead of schedule, at or below cost -- and that's both new production and modified, overhauled and upgraded aircraft," said Philip A. Teel, sector vice president, ISS Airborne Early Warning and Electronic Warfare (AEW&EW) Systems business area. "The production expertise and experience in St. Augustine, Fla., backed up by our top team in Bethpage, has and continues to achieve much. What better way to end the Group II Hawkeye production line and transition to the Hawkeye 2000." The company has manufactured 36 new Group II E-2C Hawkeyes for the Navy and two for France, which will receive its third Group II procured under the Hawkeye 2000 multiyear program to keep its inventory consistent.
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Pierre Fabre has been named president and chief executive officer of CFM International, the 50/50 joint company between Snecma Moteurs of France and General Electric of the United States. The company, headquartered in Cincinnati, Ohio, is the world's largest manufacturer of jet engines for transport aircraft. Mr. Fabre is replacing GÈrard Laviec, who is retiring August 30 after a 38-year career. Mr. Laviec has served as CFM president and CEO since September 1995.
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From July 2001 onwards, Austrian Airlines will be offering a brand new service on its long-range Airbus A330 aircraft. Passengers will now be able not only to send their text messages direct to a fax number, but also to pick up the satellite telephone that will be integrated into every seat to transmit their text to a mobile telephone or e-mail address. By taking advantage of this new service, passengers will be able to tap in their message using the monitor without ever leaving their seat. It is then simply a matter of selecting whether the message should go to a fax machine, mobile telephone or e-mail address. Payment will be with the passenger's credit card. The messages will be transmitted via Satcom and completed within just a couple of minutes.
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Lufthansa's realignment as an aviation group has proved to be a stabilising factor and an important step towards bolstering the company against cyclical fluctuations and other risks. In his address to the 48th Annual General Meeting in Cologne, Lufthansa Chairman and CEO Jürgen Weber said: "Our business results and our market position in all areas of our activities are proof of the market maturity and strength of the Lufthansa aviation group." A dividend of Euro 0.60 (previous year: Euro 0.56) per share will therefore be proposed to shareholders. With an operating result of more than Euro 1 billion in 2000, Luft-hansa outperformed its European competitors for the fourth year in succession. Lufthansa has reaffirmed its aim to secure the future success of the company in spite of a faltering economy in the US and Europe, rising staffing costs and a dramatic deterioration in air traffic control services. Weber expressed understanding for the strong public reaction to the arbitration ruling in the wake of the dispute with the pilots' union, Vereinigung Cockpit. He said the relentless manner in which action had been taken without any consideration for other groups of employees had certainly given him pause for thought. Despite the heavy financial burden Lufthansa had, however, agreed to the arbitration proposal because it contained innovative and viable approaches towards solving the problem, Weber said. "The settlement is a one-off event which cannot be repeated," he added. The pay deal provides for a completely new remuneration system and links it more closely to the company's performance. The agreement, which runs for an unusually long period of 39 months, would, he said, give the company more longer-term stability.
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On June 19, Swissair Group announced that Flightlease, its aircraft leasing subsidiary, intends to realign and restructure its aircraft lease portfolio. The intention is to concentrate on aircraft needed for Swissair Group's operations. The planned exit from Flightlease's third-party leasing business is in line with the Group's strategy to focus on its core businesses of Swissair and Crossair. The planned measures will enable Swissair Group during the course of the current year to generate significant cash, strengthen its balance sheet and withdraw from a number of future commitments. Additionally, they will simplify the legal, management and financial structure. Further announcements from Swissair Group on this will be forthcoming. Accordingly, GATX Flightlease Management, the joint venture between Flightlease and GATX which was formed primarily to address the fleet management requirements of GATX and Flightlease in leasing aircraft to the Qualiflyer Group and third party airlines, will be restructured to release assets from the portfolio. Commenting, Swissair Group chairman and chief executive Mario A. Corti said: "Our new strategy of withdrawing from Flightlease's 3rd party business should provide an important source of value and cash generation for Swissair Group during the coming months". Mr. Corti added "whilst this now means that the original purpose of the GATX joint venture is no longer valid, we look forward to continuing to working closely with GATX in areas of mutual interest and we thank them for all their collaboration in recent years."
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According to the terms of the Memorandum of Understanding signed in Brasov on December 22nd, 2000, Jean-Franois Bigay, President of Eurocopter and Neculai Banea, President of IAR S.A. Brasov, have signed the Shareholders Agreement of Eurocopter Romania S.A., a joint venture company currently under incorporation process in Brasov, Romania. Beyond the implementation of an assembly line dedicated to new light-twin helicopters intended for the Romanian market in a first stage, Eurocopter will progressively transfer workload pertaining to its first-generation product-range support activities, in a move intended for optimising IAR's unique experience acquired through the licensing of the Alouette 3 (1968) and Puma (1976) series. This experience is build upon a total output exceeding 350 helicopters, most of which are still flying today in 20 or so countries. The new company will also address the retrofit market of Eurocopter's first-generation range of helicopters. Both companies have already made joint proposals to several customers, obtaining in return very positive assessment. These first negotiations show to the evidence the validity and the merits of the concept and both partners are confident the new company will expand rapidly.
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The Russian Space Agency Rosaviacosmos and Astrium deem it necessary to strengthen industrial cooperation in the area of the new re-entry technology, called IRDT (Inflatable Re-entry and Descent Technology). Yury Koptev, President of Rosaviacosmos, and Armand Carlier, CEO of Astrium, signed an exclusive according Memorandum of Understanding/Protocol today during the International Airshow in Le Bourget with the aim to intensify the cooperation between Astrium and the Russian Babakin Science and Research Centre (BSC) in this field. This new technology - already proven in February 2000 - bears the potential to return objects from space at favourable conditions compared to "classic" return capabilities (e.g. capsules, orbiters). "Our current studies indicate significant applications and markets for IRDT varying from ISS operations, planet exploration up to returning entire stages of launchers or any space object back to Earth. This unique potential deserves joint efforts - based upon our excellent cooperation with Astrium - and is manifested in today's agreement," said Yury Koptev after the signature.
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In presence of Brazilian Army Generals Marcelo (Chief of Staff) , Elito ( Commandant of AVEX), and French Army General Jeannot, Erocopter chairman Jean-Francois Bigay announced today the signature of a contract for eight more Cougar helicopters for Brazilian Army (AVEX). The Brazilian Army (AVEX) has taken its operations to a new level by equipping its first helicopter battalion for logistical transport. With the acquisition of a lot of 8 Cougar AS 532 UE helicopters equipped with a hoist, sling, side-mounted machine gun, and ferry fuel tanks, AVEX has expanded its range of activities in troop deployments, logistics, and Search and Rescue missions.
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A contract of cooperation has been signed during the Bourget Air Show between Dassault Aviation and the Polish firm PZL Swydnik. This contract concerns the manufacturing of the ailerons of all current VIP Falcon aircraft. This work, given to PZL Swydnik covers primary part and piece tool manufacturing, as well as final aileron assembly. First elements should be delivered at the beginning of 2002. This contract is the second signed between the two companies. The first was signed on the 16th March 2001 regarding the assembly of the front part of the monoplace Mirage 2000. This shows, once again, the will for Dassault Aviation to develop a cooperation with Polish aeronautic industry.
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Giat Industries has been awarded a contract from General Dynamics Armament Systems (U.S.A.) for the design, development and production of 13 prototype composite turret assemblies that will be a major component of the U.S. Army's RAH-66 Comanche helicopter turreted gun system. General Dynamics Armament Systems, a business unit of General Dynamics, is the prime contractor for the turreted gun system. Under terms of this contract, Giat will deliver the turret assemblies to General Dynamics in the 2003 to 2004 timeframe. Giat Industries has a long standing teaming agreement with General Dynamics Armament Systems on this program. This agreement covers the composite turret assembly for the Engineering, Manufacturing, and Development (EMD) phase of the program through the production phase.
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The Mako program, jointly pursued by EADS Military Aircraft and the U.A.E. Air Force and Air Defence, is gaining more momentum. At the 44th International Aerosalon at Paris/Le Bourget, five major international suppliers have signed MoUs with EADS and the U.A.E. to actively support the progress of the Mako family. These companies are (in alphabetical order): APPH Precision Hydraulics (UK), offering the landing gear and hydraulics systems; BAE Systems Controls (UK/USA), bidding for flight control computers, flight control system actuation, and for the utility control system; BGT / Diehl (Germany), would like to supply flight control computers, mission computers and participation in weapons and self-defence systems as well as training aids; FHL [Fairey Hydraulics Ltd.] (UK) would participate in flight control system actuation; Snecma Group (France) offers the M88-2 engine, landing gear (Messier Dowty), gear box (Hispano Suiza), APU/starting systems (Microturbo), and other equipment from the Group's portfolio (e.g., brakes, wheels, wiring, filter systems).
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Rolls-Royce Snecma said on 19 June that its initial task is to establish an acquisition plan for military aero-engine technologies required in the future. Chief Executive Officer, Guillaume Giscard d'Estaing, said: "The purpose of the joint venture is to be in a position to develop an engine for any future combat aircraft in which the UK and French governments both participate. Rolls-Royce Snecma will act as prime contractor and single point of contact for the governments, and will be in charge of whole engine integration studies. "The programmes Rolls-Royce Snecma will run are related to military combat engines. The first years will be devoted to the implementation of a technology acquisition plan in line with the strategy of the new company. The company is set to carry the existing joint AMET (Advanced Military Engine Technology) programme into its next phase, and will be responsible for collborative propulsion studies on the Future Offensive Air System (FOAS)."
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GE and Honeywell submitted to the European competition authorities a final, detailed package of actions they are willing to undertake as part of the approval process for their proposed transaction. The undertakings propose divestitures of $2.2 billion in revenue in Honeywell's Aerospace business. The divestitures include a new business and regional jet engine, air turbine starters and certain avionics and non-avionics products. GE also offered to set up GE Capital Aviation Services (GECAS) as a separate "ring-fenced'' entity to deal at arms length with Honeywell avionics and non-avionics products. GECAS would remain 100% owned and managed by GE. The proposed divestitures are far short of the European Commission's demands, which seek billions more than the proposed GE divestitures. GE is not optimistic that its proposal will meet with European regulatory approval.
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FiatAvio, the aerospace company of the Fiat Group, and Agusta, an AgustaWestland company, have signed a contract for production and logistics support of the T700/T6E1 engine for the Italian military multi-role NH 90 helicopters. This engine contract is the first awarded after signing of the NATO Helicopter Management Agency (NAHEMA) Memorandum of Understanding for production go-ahead. A total of 396 engines plus spares will be produced for 196 helicopters. This contract covers the initial procurement of 232 engines for 116 helicopters.
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The Boeing-led team of international ordnance companies that developed the advanced 27mm aircraft cannon for the Joint Strike Fighter (JSF) is unveiling a new gun pod at the Paris Air Show. The pod, complete with a 27mm cannon and ammunition feed system, was display at the U.S. Department of Defense corral throughout the show. This is the public debut of the gun pod, which can be mounted on virtually all modern fighter aircraft that meet the pod's fuselage or wing-mount requirements. Mauser-Waffensysteme, The Boeing Company, Western Design and Sargent Fletcher, Inc., developed the pod and weapon system. The Advanced 27mm Cannon is the same weapon selected by both Boeing and Lockheed Martin for their JSF aircraft and by the multinational Eurofighter consortium for its aircraft.
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Two "flawless'' first flights within a week have demonstrated the power of the LHTEC (Light Helicopter Turbine Engine Company) T800 helicopter engine jointly produced by Rolls-Royce and Honeywell. On June 6, a US Army RAH-66 Comanche advanced helicopter completed an initial flight powered by two T800-LHT-801 engines at West Palm Beach in the USA. Just six days later on June 12, a Westland Super Lynx 300 Demonstrator, powered by two LHTEC CTS800-4N engines, completed a successful maiden flight at Westland's Yeovil facility in the UK. The Super Lynx 300 Demonstrator flew a standard initial test schedule, including forward flight to 55 knots and single engine hovers.
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A Memorandum of Understanding was signed at the Le Bourget Air Show by the Ministers of Defence of three nations: France, Sweden and the UK, representing their joint formal commitment to the Meteor programme. Germany, Italy and Spain intend to sign once their internal approval processes are complete. Meteor is the next generation weapon chosen last year by the UK to meet its Beyond Visual Range Air to Air Missile (BVRAAM) requirement. Eurofighter partner nations, Germany, Italy and Spain, Sweden for Gripen and France for Rafale identified a similar requirement. Following the UK decision discussions have continued with all potential partner nations, which have led to the signature of an MOU. Meteor is a vital component of the ability of Eurofighter, Rafale and Gripen to dominate the skies. It will therefore make a major contribution to European Defence capability. Meteor is a UK led programme with industry responsible for defining workshare based on technical excellence, manageable risk and best value for money rather than any predetermined or directed formula. Partner nation contributions to development costs will be broadly based on the workshare arising from the proposal from industry. The programme will be managed by an International Joint Programme Office (IJPO) located at the UK's Defence Procurement Agency in Bristol. The team will consist of members from all partner nations who will form a fully integrated project team working under the DPA's new Smart Acquisition principles. Negotiations on concluding a contract with the Prime Contractor MBDA are continuing. It is hoped that these can be satisfactorily concluded in the next few months.
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BAE Systems in the UK and its partners in the EuroDASS consortium, Elettronica in Italy and Indra in Spain, have been awarded the production contract for the first batch of Defensive Aids Sub System (DASS) equipment for the Eurofighter Typhoon. The contract award is as a result of close co-operation between the EuroDASS companies, representing the needs of the Defence Ministries of UK, Italy and Spain, and the Eurofighter partner airframe manufacturers. The initial contract, worth in excess of Pound 300 million, is to equip 103 aircraft. The EuroDASS partner companies will deliver DASS Line Replaceable Items in their home countries and deliveries will start in the first quarter of 2002. Germany, one of the Eurofighter partners, initially decided to omit DASS but following recent German Parliamentary approval, it is anticipated that the order will be augmented in the near future, to include the involvement of EADS in Germany. The amended order is expected to cover additional equipment deliveries together with some initial system enhancements.
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The Government of Israel has reached an understanding with Lockheed Martin Aeronautics Company to purchase more than 50 additional F-16 aircraft. The aircraft are being purchased in a follow-on order to the 50 ordered by Israel in 1999 and will be produced in the same advanced, two-seat F-16 I configuration. Deliveries will be in 2006, following completion of the 50 aircraft that were already on order, and will be completed in 2009. Total value of this follow-on purchase is approximately $2 billion with Lockheed Martin portion approximately $1.3 billion. The Israeli Ministry of Defense and Lockheed Martin reached an agreement in principle for the sale at the Paris Air Show at Le Bourget airport in France. Formal governmental agreements will be completed later.
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Northrop Grumman and the European Aeronautic Defence and Space Company (EADS) have signed a teaming agreement focused on the introduction of a new standard in cost-effective monopulse secondary surveillance radar for the ground-based air traffic control (ATC) market. The agreement is exclusive to international ATC applications. As the companies announced, the new radar system will incorporate the proven technology and heritage of Northrop Grumman ATC system architecture and the EADS MSSR 2000 I/ATC Interrogator for safe and efficient air traffic management. The agreement is a further expansion of the existing cooperation of EADS and Northrop Grumman as displayed in a common pavilion at Le Bourget.
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Fairchild Dornier announced at the 44th Paris Air Show aircraft orders for airliners and corporate jets worth more than $297 million, bringing the company's total order book to 543 aircraft valued at more than $12 billion. CSA Czech Airlines ordered eight 728JETS in a deal valued at $230 million. Four of these aircraft will be leased to CSA by GE Capital Aviation Services, which last year ordered 50 firm, 50 options and 50 rolling options of the 728JET Family. CSA's 728JETs will be used on new routes in cooperation with alliance partners and will replace some of its existing fleet of ATR 72 aircraft. CSA, based in Prague, will take its first three 728JETs in 2003, three in 2004, one in 2005 and one in 2006. The contract allows CSA to convert the last two aircraft to 928JETs. Fairchild Dornier also announced orders for corporate versions of the 328JET from Grupo InvestBlue in Madrid for one aircraft, and two additional 328JET corporate aircraft from undisclosed customers. In addition, Air Namibia ordered two 328JETS. These aircraft, scheduled for delivery later this year, will be based in Windhoek.
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Rolls-Royce is working with China Aviation Industry Corporation II (AVIC II) to develop a twin-engined version of the Z-11 helicopter powered by the Rolls-Royce Model 250 engine. Rolls-Royce President, Helicopters, Stuart Mullan and China Aviation Industry Corporation II Vice President Shi Jianzhong signed a Memorandum of Understanding (MOU) at the Paris Airshow.
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At the Paris Air Show today, Arianespace and PanAmSat announced the signature of three contracts for the launch of communications satellites for the North American market. Galaxy 12 will be launched by an Ariane 5 or Ariane 4 at the end of 2002 from the Guiana Space Center, Europe's Spaceport in Kourou, French Guiana. PAS Light 2 and 3 are scheduled for Ariane 5 launches during the second half of 2003 and in 2004, respectively. These are the 18th, 19th and 20th contracts that PanAmSat has awarded Arianespace. The leader in the U.S. market, PanAmSat once again has confirmed its confidence in the dependability of the Ariane launch system with this latest order.
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Ericsson Microwave Systems has signed an agreement with the US radar manufacturer Raytheon on the development of an AESA (Active Electrically Scanned Array) antenna system. The active antenna unit is planned to be delivered to Ericsson in 2004. Ericsson Microwave Systems is under contract from the Swedish Defence Materiel Administration (FMV) to develop, manufacture and evaluate a full scale AESA radar system demonstrator for future upgrade of the Gripen system capabilities. The antenna supplied by Raytheon will be developed for use in the radar system demonstrator to conduct flight evaluations.
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Fairchild Dornier is working with a number of systems integrators to evaluate the company's line of regional jets and airliners for a variety of special mission applications including airborne early warning, surveillance, maritime patrol, logistics support and personnel transportation, the company announced during a briefing at the 44th Paris Air Show at Le Bourget. "We've gotten a tremendous amount of interest in the 328JET and the 728JET Family from companies pursuing a variety of projects with government agencies around the world," said Tom Jobe, vice president for Fairchild Dornier Government Programs. "All have cited aircraft performance, payload capacity, acquisition cost and cabin volume as factors in considering our aircraft for these programs."
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Saab AB of Sweden has confirmed its involvement as an industrial partner in the Airbus A380 superjumbo programme. The Swedish defence, aviation and space group will undertake a major package of work on the wings for the new 555-seat Airbus A380 and is also bidding for work on other parts of the aircraft. Under an agreement between the two companies, signed in May 2001, Saab AB will be responsible for the 31 metre long fixed section of A380 mid and outer wing leading edge. This major package of work involves detail design, manufacture and assembly. The package of wing work is potentially worth more than US$1billion over the next twenty years. Delivery of the first completed section to Airbus' wing assembly plant at Broughton in North Wales, UK will be in 2003.
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Bombardier Aerospace and Deutsche Structured Finance (DSF) have announced that DSF, in association with Deutsche Operating Leasing AG (DOL) have concluded a Memorandum of Understanding (MoU) for the purchase of 50 Bombardier CRJ regional jets - plus 30 optioned aircraft. The definitive purchase contract is expected to be finalized shortly. The MoU outlines an agreement for the sale of 50 firm aircraft - 30 70-seat Bombardier CRJ700 and 20 86-seat Bombardier CRJ900 - plus 30 optioned aircraft. The optioned aircraft allow DOL the flexibility to choose between Bombardier CRJ200, CRJ700 and CRJ900 models of the CRJ family of regional jets. The firm order portion of the contract is valued at approximately U.S.$1.5 billion (Cdn.$2.25 billion) with deliveries scheduled to begin in the first quarter of 2003 and be completed in the second quarter of 2009. The option portion of the contract is valued at approximately U.S.$1.0 billion (Cdn.$1.5 billion).
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Airbus has signed with Verkhnaya Salda Metallurgical Production Association (VSMPO), an additional long-term contract providing for the supply by the Russian material producer of semi-finished products in titanium alloys (flat and round rolled products) used for the production of Airbus airframes. In addition both parties have agreed to continue joint work on the development of new materials (titanium and aluminium alloys) for applications in aviation. VSMPO, which is the Airbus major supplier for titanium, has been involved in Airbus' success story for the past ten years and has seen its business volume grow, following Airbus' increasing production generated by the remarkable success in the market of the Western European manufacturer's aircraft family and its dynamic product policy. This strategic partnership has been constantly reinforced not only with increased titanium supply by the Russian producer but also the inclusion of semi-finished products including higher added value.
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European Aeronautic Defence and Space Company (EADS) and Northrop Grumman Corporation hosted a shared pavilion at the Paris Air Show 2001 featuring the achievements of their numerous collaboration projects as well as their vision of expanded trans-Atlantic cooperation. During the Paris Air Show, the two companies also announced the following: NATO Alliance Ground Surveillance System Solution A substantial part of the two companies' common activities is the collaboration on a system solution for NATO's Alliance Ground Surveillance (AGS) system requirement. In this effort, Northrop Grumman's ISS and EADS will establish a joint project team to evaluate a program implementation approach to meet the NATO AGS system requirement. "This is another important development in the EADS-Northrop Grumman relationship," said Mr. Enders. "We will leverage our respective synergies to address the AGS requirement in a way that benefits our NATO customer and the individual Alliance partners."
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On June 18, Raytheon Company and Thales announced that all required U.S. and European regulatory approvals have been obtained for their new joint venture, Thales Raytheon Systems. Operations began June 1, 2001. Thales Raytheon Systems is an equally owned transatlantic joint venture encompassing air defense/command and control centers and ground-based air surveillance and weapons locating radars. The Chairman of Thales Raytheon Systems is Reynald Seznec of Thales, and the Chief Executive Officer is Phillip George of Raytheon. The new enterprise has operating subsidiaries in Fullerton, Calif., and in the greater Paris metropolitan area. It has about 1,300 employees worldwide and pro forma revenues of $600 million (675 million euros). Command and control systems for air operations and air defense, which include surveillance radars and command and control centers, provide protection against air threats, identify approaching targets, initiate defensive measures as appropriate, and plan and prepare offensive missions over a specified area. Such systems are linked to airborne sensors, surface- to-air missiles, air bases or battalions.
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