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UPDATE 
Week ending July 1, 2001
+++ JSF competitors hover +++ Raytheon gets German ATC automation contract +++ MTU awarded major order from United Airlines +++ UAVs will play larger role +++ European airlines jon on travel services +++ Bombardier CRJ order boom +++ News in brief +++

JSF competitors hover
X-32B und X-35B im Schwebeflug

On 27 June, the Boeing X-32B Joint Strike Fighter demonstrator aircraft completed the JSF program's first vertical landing following in-flight transitions of the propulsion system to vertical from conventional flight mode. Demonstrating the ability to fly conventionally, transition the propulsion system to vertical flight, and then land vertically is a program requirement and one of the most technically challenging aspects of the JSF program. With the two landings, accomplished on the X-32B's 49th and 51st flights, Boeing completed the government vertical landing requirement for the JSF program. Boeing now has completed more than 70 percent of the X-32B's flight-test requirements since the aircraft's first flight in March.
After a conventional takeoff, Boeing lead STOVL test pilot Dennis O'Donoghue re-directed the X-32B's engine thrust from the cruise nozzle to its lift nozzles and then decelerated to a hover 150 feet above the ground. Once stabilized in the hover, O'Donoghue descended the plane to 50 feet, maneuvered over the center of the hover pit and landed vertically. The aircraft was then refueled and following another conventional takeoff, transitioned to a hover and landed vertically on the hover pad.
The vertical landing came just three days after the X-32B completed four hovers during five flights on June 24. Together, these flights demonstrate the aircraft's robustness and the reliability of the Boeing direct-lift system.
The supersonic Lockheed Martin Joint Strike Fighter X-35B launched vertically, held its position and landed vertically on June 24. The event was a first for a JSF demonstrator and a critical validation of the revolutionary shaft-driven lift fan propulsion system. At 6:30 a.m. PDT at the Lockheed Martin plant in Palmdale, pilot Simon Hargreaves engaged the lift-fan propulsion system, and the plane rose straight up to a sustainedposition at an altitude of about 25 feet above the ground. "This was a stunning success. The lifting power is incredible and the handling is extremely precise,'' said Hargreaves of BAE Systems, a veteran Harrier pilot. "The flight occurred with minimal pilot inputs -- I was essentially a passenger. This speaks volumes about the quality of the aircraft and the propulsion system.'' Hargreaves held the 35,000-pound X-35B in a stabilized position for 35 seconds, checking to ensure the flight controls responded properly before returning the plane gently to the ground.

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Raytheon gets German ATC automation contract
Flugsicherungs-Automatisierung durch Raytheon

Raytheon has been awarded the Very Advanced Air Traffic Control Automation System (VATCAS) contract by Deutsche Flugsicherung GmbH (DFS) of Germany. The contract, valued in excess of $20 million, will be developed over 20 months as the cornerstone of DFS' strategic program for transition to very advanced air traffic management. VATCAS provides the system architecture and strategic platform to ensure interoperability and future expansion under DFS' Very Advanced Flight Data Processing Operational Requirements Implementation (VAFORIT) program. The contract was signed at Le Bourget by Dieter Kaden, chief executive officer of DFS, and Frank Marchilena, president of Raytheon's Command, Control, Communication and Information Systems business area. "DFS is a key customer for Raytheon. The VATCAS program reaffirms Raytheon's long standing commitment and partnership with DFS," Marchilena said. Kaden said, "This contract underlines DFS' commitment to the common goal to further improve our relationship as it has been laid down in the Memorandum of Cooperation signed late last year. DFS is confident to have a competent partner for the VATCAS realization at their side."
VATCAS and DFS' very advanced flight data processing system and displays make up the VAFORIT program. Designed to increase capacity and enhance safety, VAFORIT will allow DFS to manage growing air traffic levels. The system will provide the transition of Germany's airspace from the advanced level of capability as defined by the European Civil Aviation Conference to the very advanced level. Benefits of the new system include highly accurate aircraft position information, comprehensive situational awareness and a
strip-less environment.

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MTU awarded major order from United Airlines
Großauftrag für MTU

United Airlines, one of the world's largest carriers, has selected MTU Maintenance Hannover as one of ist major repair shops for their V2500 engines. Flying over 100 Airbus A320 family transports, all of them powered by V2500s, United is the major operator of this engine. What's more, the carrier has another 80 plus V2500-powered aircraft of the same type on firm order. Paul Egon Grall, President MTU Maintenance Hannover, the largest independent provider for repair and overhaul of commercial engines, commented: "This contract has been the greatest V2500 win ever." The three year contract, worth over _100-million comes up for renewal in spring 2004. For the Hannover repair shop, an affiliate of DaimlerChrysler's MTU Aero Engines, the contract marks another significant milestone in ist flourishing business. Contributing significantly to this boom, the V2500 will continue to provide substantial workload for the shop and secure quality jobs in Germany's larger Hannover area.

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UAVs will play larger role
Gute Prognosen für Drohnen-Markt

By providing critical data quickly and without danger to human lives, unmanned aerial vehicles (UAVs) are meeting the insatiable demands for information by civil, commercial and military organizations. New analysis by Frost & Sullivan (www.aerospace.frost.com), World Unmanned Aerial Vehicle (UAV) System Markets, reveals this market generated $2.4 billion in 2000 and is projected to reach $5.56 billion in 2007. "UAV applications are set to explode in the commercial market once airspace regulations are defined and published," says Frost & Sullivan Industry Analyst Quinton Long. "Currently, the complexity of controlling airspace shared by both manned and unmanned systems presents a thorny barrier to the civilian UAV market segment." Whereas the military can use its own airspace or request special use of restricted airspace, civilian users have no such privileges. Market participants must commit to working with national airspace management organizations to develop, establish and manage unmanned aerial systems in commercial airspace. "Manufacturers must develop the ability to market beyond this single customer market," says Long. "The potential uses for UAVs outside the military are numerous and increasing." Expanding to new markets will mean that manufacturers will need to quickly learn their new customers' objectives. "Every system designed to date has received numerous customizations due to perceived unique mission requirements."

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European airlines jon on travel services
Opodo Travelportal gegründet

Nine of Europe's leading airlines have unveiled plans to jointly move into the online travel market with the launch later this year of a new online travel service, selling flights and other travel products direct to the consumer. The new travel service, named Opodo, has been created as an independent business as a result of a joint venture between Aer Lingus, Air France, Alitalia, Austrian Airlines, British Airways, Finnair, Iberia, KLM and Lufthansa. The nine airlines expect Opodo to become the market leader in European online travel - a market currently worth EUR 6.1 billion and estimated to grow to EUR 40.9 billion by 2005. Opodo will offer consumers a range of competitively priced travel products including flights from over 480 airlines, hotel bookings from over 54,500 hotel properties, 23,500 car rental locations worldwide as well as travel insurance. The company aims to differentiate itself from other travel providers by delivering a truly personal, 24-hour service, seven days a week. Headquartered in London, Opodo will operate independently from its airline shareholders, under the terms set out in the company's joint venture agreement. It plans to launch initially in Germany, UK and France, and later across Europe, between 2002 and 2003.

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Bombardier CRJ order boom
Rekordaufträge für Bombardier

At the 44th Paris Air Show, Bombardier Aerospace has claimed success on all fronts as significant orders and multiple announcements have highlighted the world's largest aerospace trade show. Deals worth a total of more than U.S.$1.9 billion (Cdn.$2.9 billion) were signed withnew and existing customers. For Bombardier, the show demonstrated the strength of its industry leading products and services as virtually all elements of the business, covering all corners of the globe participated in sales and product announcements.
The following recaps the announcements made: Bombardier Regional Aircraft - Memorandum of Understanding (MOU) with Deutsche Structured Finance 30 firm Bombardier CRJ700s and 20 firm Bombardier CRJ900 as well as 30 optioned aircraft - U.S.$1.5 billion (Cdn.$2.25 billion); -Bombardier Regional Aircraft - sale of two Bombardier Q400 high-speed turboprops to Austria's Tyrolean Airways - U.S.$38 million (Cdn.$57 million); -Bombardier Business Aircraft - a total of 17 business jets were sold includingBombardier Global Express, Challenger 604, Continental, Learjet 60 and several Flexjet Europe fractional ownership sales. These transactions, which represent a total value of U.S.$321 million (Cdn.$489 million), were highlighted by the sale of five Bombardier Continental jets to TAG Aeronautics and Alain Prost's fractional acquisition of a Bombardier Learjet 31A; Bombardier Defense Services signs U.S.$42 million (Cdn.$63 million) F/A 18 service contract with Boeing; Bombardier to obtain Q400 Certification for operations at London City Airport; Bombardier increases maximum take-off weight of Bombardier Learjet 45

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NEWS IN BRIEF / KURZNACHRICHTEN


HELI UNIONAIR, a leading German helicopter operator, has signed a contract to purchase two twin-engine MD Explorers. MD Helicopters, Inc. (MDHI), based in Mesa, Arizona, will deliver the aircraft in July and August. One of helicopters will be flown in Leipzig by International Flight Ambulance (IFA) in an air medical role. The second will be used for both air medical and VIP missions. "This was a tough decision," said Johannes Krüger, owner of HELI UNIONAIR. "We considered three different aircraft and selected the MD Explorer because of its outstanding cost-income ration. Customer service, delivery times and after-sales support were also important factors. This is the right aircraft for our customers." HELI UNIONAIR currently operates a fleet of 11 aircraft from a modern, state-of-the-art facility in Ottenoos, near Nuremberg.
+++
Boeing and Pemco Aviation Group kicked off an innovative aircraft-maintenance agreement with delivery of a U.S. Air Force KC-135 refueling aircraft to Pemco's Birmingham, Ala. facility. The agreement provides additional KC-135 maintenance capacity that will be needed in the future to augment the Boeing Aerospace Support Center in San Antonio and the Air Force's Oklahoma City Air Logistics Center. During the next few months the companies will work under an interim agreement involving two KC-135s to ensure smooth processing. The companies expect they will sign a contract by the end of September that extends their relationship for six years.
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Eastman Kodak Company announced that the National Aeronautics & Space Administration (NASA) has chosen to carry the Kodak Professional DCS 760 camera to record the STS108 space shuttle mission to the International Space Station. The images captured by the multinational crew of astronauts with the DCS 760 will be used to develop surveys and maps, to chronicle the crew's life on the shuttle and to capture images of the space station. NASA plans to fly its first DCS 760 to the space station on a mission currently scheduled for November 29. Introduced in April, the DCS 760 is Kodak Professional's latest entrant in the infoimaging industry, which is driven by the convergence of images and information technology. Infoimaging unites three closely related imaging markets -- devices, such as the DCS 760, as well as infrastructure and services / media - that enable people to more easily use images to share pictures as information, entertainment or memories.
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On June 26, Lockheed Martin Aeronautics Company began full scale fatigue testing (FSFT) of a U.S Navy S-3 Viking anti-submarine warfare (ASW) aircraft at its facility in Marietta. "This marks an important milestone in the S-3 program," Mark Jarvis, the S-3 program's manager, said. "The future of the U.S. Navy S-3 community hinges upon the data generated by these fatigue tests." The S-3 is currently certified for a structural life of 13,000 hours, which the Viking fleet is rapidly approaching. The S-3 FSFT program will determine how much longer the Navy could keep their Vikings flying. The U.S. Government, with data provided by LM Aeronautics's FSFT program, hopes to certify the S-3's operational life through 17,750 flight hours through these fatigue tests. Lockheed Martin has been prepping an S-3 fatigue test article since winning the Navy's $40 million contract for this work in 1998. The fatigue testing - which encompasses "bending and flexing" the aircraft to determine the physical limitations of the components and materials from which it is made -- should conclude in late 2002.
+++
International Launch Services (ILS) is scheduled to launch Telesat Canada's Nimiq 2 satellite in late 2002 on an Atlas V rocket, under a contract announced with the satellite's builder, Lockheed Martin Commercial Space Systems (LMCSS). The Nimiq 2 satellite is an A2100AX model that LMCSS is building for Telesat Canada to provide direct broadcast services across Canada. ILS also launched the LMCSS-built Nimiq 1 satellite in 1999. The first vehicle in the high-performance Atlas V lineup has been completed by Lockheed Martin Space Systems in Denver, Colo., and is undergoing processing at Cape Canaveral, Fla. It will be ready for launch in the second quarter of 2002.
+++
The U.S. Air Force has declared initial operational capability (IOC) for seven of its Boeing-built E-3 AWACS aircraft, upgraded with a powerful new radar capability. IOC means the Air Force can commit the aircraft to operational missions to take full advantage of the Radar System Improvement Program (RSIP) kits. RSIP improves the E-3's radar by increasing the sensitivity of the pulse Doppler radar, allowing the aircraft to detect and track smaller targets. It also improves the radar's existing computer with a new high-reliability multi-processor and rewrites the software to make it easier to maintain and enhance in the future.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 software and hardware.
+++
The 2001 edition of World Air Transport Statistics (WATS) is now available, and represents the most comprehensive and timely source of airline statistical information available. Overall, IATA member airlines carried over 1.4 billion scheduled passengers during 2000, a year-on-year increase of 5.2%. However, international scheduled passenger numbers grew by 9.0% - the highest annual rate of growth since 1992. The 9.6% increase in passenger-kilometres flown on international scheduled services against a 6.2% rise in available seat-kilometres gave a passenger load factor up 2.2 percentage points to 72.5. The rise in freight tonne-kilometres performed was 9.2%, and with total available tonne-kilometres increasing by 7.0%, the overall weight load factor rose by 1.5 percentage points to 65.5. IATA member airlines posted a profit after interest of US$2.8 billion for their international scheduled services during 2000, an increase of just US$0.4 billion in spite of a 9% increase in both international scheduled passenger and freight traffic. International airlines could not capitalise on the sharp increases in passenger and cargo traffic during 2000 because of a 2.6% fall in operating revenue per tonne-kilometre in USD terms, against a fall in unit costs of only 0.1%. The US$2.8 billion profit after interest represented a margin of 1.8% on turnover of US$157.2 billion. Available electronically through iataonline.com, or in hard copy, WATS 2001 contains data from IATA's member airlines complemented by global airline traffic trends and financial results from the International Civil Aviation Organisation (ICAO), Airports Council International (ACI) and the World Tourism Organisation (WTO).
+++
From 2nd July 2001 onwards, the Austrian Airlines Group will be building on its current services to the Baltic states of Estonia, Latvia and Lithuania. The Vienna-Riga-Vienna connection, which has previously been provided five times weekly, will in future feature on a daily basis. It will now also be possible to fly to Vilnius from Vienna every day except Saturday, and to Tallinn every day except Sunday. The new services to the three Baltic capitals offer the ideal connections for passengers travelling to and from western Europe and a wide range of Austrian domestic destinations.
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LSG Lufthansa Service Holding AG, a wholly owned subsidiary of Deutsche Lufthansa AG, will create a new Holding company "LSG Sky Chefs International AG" registered in Switzerland. The company's global operations will be managed by the newly appointed international Global Executive Board based in the US. This has been approved by the Deutsche Lufthansa AG Supervisory Board in yesterday's meeting. This decision is an important step for the company's planned IPO. On June 1, 2001, LSG Lufthansa Service Holding AG completed its acquisition of Onex Food Services, Inc., the parent company of Dallas-based Sky Chefs, Inc. LSG Sky Chefs maintains over 200 flight kitchens around the world on all continents and provided 427 million flight meals last year. In 2000, all companies belonging to the LSG Group - including all minority interests - with a staff of 41,700, achieved total turnover of EUR 3.7 billion (US $ 3.5 billion).
+++
Newport News Shipbuilding announced today that the nuclear-powered aircraft carrier USS Nimitz (CVN 68) was redelivered to the U.S. Navy after a successful three-year refueling and complex overhaul (RCOH). Nimitz left the company on June 25 and spent three days on sea trials before returning to Norfolk, Va. In September, Nimitz will depart for its homeport in San Diego, Calif. This was the ship's one and only refueling in a 50-year life-span. Work included the refueling of both of the ship's reactors and significant modernization work. This included a major upgrade of the island house that involved the shipyard removing the top two levels of the island house and replacing them. This action was driven by the installation of a new antenna mast that runs down along the island and provides for better radar capabilities. NNS also integrated a new radar tower aboard Nimitz.
+++
Lockheed Martin Missiles and Fire Control, Dallas, Texas, and Diehl Munitionssysteme GmbH & Co. of Nürnberg, Germany, have signed on a third partner for the production phase of the Guided Multiple Launch Rocket System (Guided MLRS) system. MBDA, a formation of Matra Bae Dynamics, EADS Aerospatiale Matra Missiles and Alenia Marconi Systems, signed a Memorandum of Agreement (MoA) with the Euro Rocket System (ERS) GmbH Joint Venture (a 50:50 partnership between Lockheed Martin and Diehl) during the Paris Air Show to establish a European Prime Contractor for the production phase of the Guided MLRS rocket transatlantic, cooperative program. ERS was established in June 1999 to conduct MLRS-related business in Europe.
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Textron Inc. companies, Bell Helicopter, Cessna Aircraft and Textron Systems, announced several key business awards and customer initiatives at this year's Paris Air Show. The Paris Air Show, which was held June 16 to 23, is the aerospace and defense industry's preeminent, biannual event. Bell received orders for 11 aircraft during the show, including five Bell 412s, one Bell 430, four Bell 427s and one Bell 206. Among these is an order from Offshore Logistics, Inc., a major provider of helicopter transportation services to the oil and gas industry worldwide, which signed a purchase agreement for four Bell 412EP medium twin-engine helicopters with an option for eight additional aircraft. Over the course of the show, Cessna received orders for 13 aircraft: four Citation business jets, six Caravans and three single engine aircraft.
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Finnish Patria, European Aeronautic Defence and Space Company EADS N.V. and the State of Finland, represented by the Finnish Ministry of Trade and Industry, have today signed the Agreements on Patria's ownership arrangements and the industrial cooperation. The Share Purchase Agreement will be subjected to an examination by competition authorities. Prior to the signing the Finnish Government had made a decision on 20 June, 2001 by which the Government authorised the Finnish Ministry of Trade and Industry to sell state-owned shares in Patria Industries Oyj to a value of FIM 150 million to European Aeronautic Defence and Space Company EADS N.V. After the transactions EADS will become Patria's strategic partner in the so far whollystate-owned Patria with a 26.8 percent stake.
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SAAB-BAE Systems Gripen has submitted its response to the initial phase of the Polish government's Request for Proposals (RFP) for the modernization of the Polish air force to meet its national, NATO and European defense needs. The response is based on a request for technical information about the NATO-interoperable Gripen new-generation swing-role fighter. It does not include information about offset or financing proposals in support of a Gripen sale to Poland as this was not requested during the first phase of the evaluation process. The Polish government has a stated requirement for 16 leased and 44 new fighter aircraft for delivery by end 2008. It expects to complete evaluation of all proposals during September.
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After several months of negotiations, Snecma Moteurs is pleased to announce it has signed a contract with Astrium, Europe's no.1 space company, to supply satellite plasma thruster assemblies. This contract will allow Snecma Moteurs with its partner Fakel to equip the new version of Astrium's high-power satellite platforms, the Eurostar 3000, with plasma thruster assemblies. Selected for the Intelsat 10.1 and 10.2 satellites, the largest and most powerful satellites ever procured by Intelsat, the Snecma Moteurs plasma thruster assemblies will also be utilised on the Inmarsat 4 satellites.
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MTU Aero Engines, a DaimlerChrysler affiliate, participates in the European SILENCER technology program. Funded by the EU at Euro 56 million, the April 1, 2001-March 31, 2005, program aims to appreciably reduce aircraft and engine noises, which it hopes to reduce 6 dB in the medium term, and 10 dB within 15 years, i.e. a 50% reduction in effective perceived flyover noise. In all, 51 partners from the industry and research communities share in SILENCER, which is pursued under the EU's Fifth European Research Framework Program. Among industrial partners, MTU Aero Engines is Germany's major member, chairing the Quiet, Clean, Ultra-high Bypass Engine Development Panel. The focus is on reducing noise by design improvements on individual engine components like compressor and turbine, and by active noise control in the form of controlled anti-noise. Accordingly, noise emitted by the various components is first measured and concrete improvement action is then proposed in accordance with the findings. High on the agenda, too, is development of an electronic active noise control unit.
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Six European aero engine companies announced the 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. The shareholding in the company is equal to the workshare percentages in the TP400 programme: MTU, Rolls-Royce and Snecma Moteurs will each hold 24.8 per cent; ITP 13.6 per cent, FiatAvio 8 per cent and Techspace Aero will hold 4 per cent. Dependent upon discussions with potential new customers and participating companies, like the Turkish Aircraft Industries, further partners could join APA in the future.
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Latest European Commission proposals to amend the 1993 Regulation on airport slots have come under fire from the Association of European Airlines and its members, who believe that the Commission has reneged on a promise made last year to limit this stage of the legislative process to technical matters. The airlines and the Commission agree that the functioning of the old Regulation has revealed technical weaknesses that need to be addressed, for example the lack of an effective enforcement mechanism. The Commission, however, believes it has failed in another respect, and that is the realisation of its original policy objectives, which in 1993 could have been described as 'at least three competitors on every major route'. Said AEA Secretary General Karl-Heinz Neumeister: "The Slot Regulation is not an appropriate instrument to pursue what is in any case a questionable policy. Scarce slots redistributed between 20 competitors rather than 4 does not generate more competition, merely wasteful duplication". The Commission agreed with the airlines in 2000 that market access aspects of the slots issue would be subject to a comprehensive impact study and industry consultations. Their latest proposals, however, go far beyond technical revision and contain a number of market-related elements which continue to follow the same policy path. In particular, an attempt to redefine a 'slot' prejudges the entire question of the nature of the rights of airlines with respect to the slots that they hold. There is also redefinition of a 'new entrant', which could exclude airlines which, while doing business on their own account, are also operating in partnership with major carriers.
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The downturn in traffic growth which has been affecting long-haul traffic so far this year finally arrived in the intra-European market in May. This traffic, which had so far been relatively immune to the weakening trend, fell back to a growth of only 0.6%. Long-haul was at minus 2.8%, as the two major markets, the North Atlantic and the Far East, both registered traffic losses in excess of 5%. On all international routes the overall drop in traffic, compared to May 2000, was 2.0%. To demonstrate the impact on the industry's finances, a single percentage point of passenger traffic growth - or loss - represents an annual revenue increment, for the AEA airlines collectively, of about US $ 550 million. Overall, capacity continued to grow, albeit at the modest rate of 1.6%. On long-haul routes, there was no increase in seats on offer, as a very small growth on the North Atlantic, and rather more on Caribbean and Latin American routes, was cancelled out by decreases to Asia and Africa. In Europe the near-standstill in traffic contrasted with a 4.9% capacity increase. The cargo market also weakened. Having seen marginal growth for the first four months, it slumped to minus 4.5% in May. Far Eastern traffic fell back to -3.1% while North Atlantic freight recorded a massive drop of 12% compared to a year earlier.
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Previous updates are still available:
Die News der letzten Wochen sind weiter abrufbar:

*June 24, 2001 *June 17, 2001 *June 10, 2001 *June 3, 2001

*May 27, 2001 *May 20, 2001 *May 13, 2001 *May 6, 2001

*April 29, 2001 *April 22, 2001 *April 15, 2001 *April 8, 2001 *April 1, 2001

*January - March 2001

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

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