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UPDATE
Week ending March 10, 2002

+++ South African chooses Airbus +++ European airlines reject insurers' ultimatum +++ Greece select the C-27J +++ Airlines achieve traffic/capacity alignment in new year +++ MTU reports fifth record year in a row +++ MD Explorer serial no. 100 delivered +++ Nimrod MRA4 order cut +++ News in brief +++


South African chooses Airbus
Airbus gewinnt in Südafrika

“In Airbus, SAA has chosen a good and an efficient partner to help turnaround the airline to profitability and restore its competitiveness. Airbus offers lower operating costs and good product offering," said SAA President and CEO, André Viljoen. “The new fleet will give us flexibility to deploy it on most of our network and routes. It also gives SAA 10% more seat capacity,” Viljoen added. “In line with our strategy of Perfecting the Basics, we strive to provide our passengers with the most modern, reliable and safe mode of travel as well as seamless customer service excellence,” he said.
The total value of the fleet renewal programme is at a list price of $3.5 billion. “I am proud to announce that SAA has successfully negotiated a highly competitive net price for this new fleet,” Viljoen said. The fleet renewal will enable SAA to meet noise requirements at overseas airports, fly more cost-effective, low maintenance and fuel efficient aircraft to ensure long term profitability. SAA plans to replace two Boeing 767s, and the Classics: five 747-200s, six 747-300s and three 747SP, twenty-two 737-200s, sixteen 737-800 aircraft in eight to nine years. These will be replaced by: Six A340-600, Six A340-300, Eleven A319-100 and Fifteen A320-200. The A319-100 will replace the B737-200 when these aircraft lease period expires in 2005. The introduction of the A320-200 will replace the existing B737-800 in 2010 and 2011.
The first planes, through both leasing and outright purchase, will be delivered in the fourth quarter of 2002, and this will be completed by 2010/2011. Airbus will provide both pilot and cabin crew and technical staff conversion training. Airbus and Boeing were asked in September last year to submit proposals in an equitable, transparent and fair bidding process.

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European airlines reject insurers' ultimatum
Versicherungsprobleme für Fluggesellschaften

The terrorist actions of 11th September set off a chain reaction in the world of civil aviation. One relationship which changed forever was between the airlines and their insurers. Previously, third-party war and terrorism risk coverage - against buildings and people on the ground - was included in the airlines' insurance at no extra charge; the risks were so remote.
Very shortly after the attack, insurance companies cancelled third-party war and terrorism cover. Without this, a great deal of airline activity simply cannot take place. National governments stepped in with guarantees, and the industry kept flying. These were interim solutions, designed to fill a gap while new arrangements were worked out.
These arrangements are due to come to an end this month. The airlines had hoped that the insurance industry would come up with a range of commercial and competitive offers which would allow the airlines to tailor their requirements to the risks involved. Instead, the airlines have been presented with a single take-it-or-leave-it proposal which, for the members of the AEA, would add about €600 million to their annual insurance bill.
The insurers portray this as a commercial proposition. To the airlines, whose finances have been severely shaken by market developments since September, clearly it is not. AEA has its own proposal, for a European solution which can be integrated into an eventual global scheme. This would involve the building-up of a fund, through a per-passenger levy substantially smaller than that contained in the insurers' plan. Governments would continue to underwrite excess risks, but their involvement would diminish as the fund grew, and in a relatively short time disappear entirely.
AEA is urging Ministers of Transport and of Finance to support these initiatives. There is common agreement that market-based solutions are preferable to Government intervention, but neither the consumer, nor the general public, will have their interests best served by an imposed solution, backed by the dominant position of the insurers.

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Greece select the C-27J
Alenia C-27 von Griechenland gewählt

Finmeccanica announced that the C-27J tactical transport has been selected by Greek Ministry of Defence as winning choice in the MRTA, Medium Range Tactical Aircraft requirement, against its competitor, the European EADS-CASA CN-295. The procurement calls for 12 aircraft with an option for three additional aircraft. It could have an estimated value to Lockheed Martin of up to $200 million. Actual contract value and production schedule will be determined after final contract negotiations. The Italian Air Force earlier decided to procure the C-27J and is in the final stages of releasing the contract for 12 aircraft. Several other potential customers worldwide are also evaluating the Spartan.

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Airlines achieve traffic/capacity alignment in new year
Fluggesellschaften schaffen Kapazitätsanpassung

Both passenger and freight traffic on the international scheduled services of IATA Members continued to fall in January 2002, but the speed of decline was slower. The passenger traffic decline was 2 percentage points better than in December 2001 and that of freight traffic was more than 6 points better. Of equal significance – from the point of view of carriers' recovery from their worst ever year of operations – was the achievement of cuts in capacity in line with the fall in traffic. At nearly 71 percent, average passenger load factor in January 2002 was nearly a full point higher than in January 2001. In January, total traffic (passengers plus freight) fell by more than 7 percent, but total capacity fell by more than 9 percent. Carriers registered in Central and Southern America, at more than 21 percent, showed the steepest fall in January passenger traffic, reflecting severe local economic difficulties. North American carriers showed a 12 point fall, but European and Far Eastern carriers experienced a less than 8 point fall.

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MTU reports fifth record year in a row
Steigende Umsätze für MTU

MTU Aero Engines GmbH, Munich, a DaimlerChrysler AG affiliate, in 2001 stayed on its growth track and reported its fifth record year in succession. "MTU bucked the industry trend and continued the growth course of the preceding years. We expect revenues to tail off slightly in 2002 and 2003, but we'll still be much ahead of market trends, owing to the short-term immediately effective steps we took. MTU's strategy proves right also in these difficult times," MTU president and CEO Dr. Klaus Steffens said Thursday at the annual press briefing in Munich. "We'll emerge from the crisis with a distinctly larger market share in the medium term and actively shape our future as a profitable potent part of the DaimlerChrysler Group."
Steffens emphasized that a slowdown in the aviation industry had been apparent already in spring 2001 and that the company, forewarned, had been able to respond swiftly and effectively to the economic fallout of the September 11 events. MTU expects to increase its market share over the next several years by boosting its work shares in emerging programs like the GP7000 to power the Airbus A380 mega-transport. "Crisis or no," Steffens said, "there're plenty of options and you bet we'll capitalize on what opportunities we have."
Consolidated 2001 revenues of the world's fifth-largest engine manufacturer soared to €2.5 billion, up 18%. Main drivers of the growth were the commercial engine business and, to a lesser degree, the government business. Commercial engine repair and overhaul, although appreciably dampened in the final months of 2001, still exceeded 2000's sales taken over the whole year. At €2.2 billion, orders in 2001 again achieved a healthy level, although they not unexpectedly lagged behind the stellar performance of 2000, a year that was marked by singular revenue generators.

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MD Explorer serial no. 100 delivered
Meilenstein für MD Explorer

MD Helicopters, Inc. employees and customers held a joint celebration March 1 commemorating delivery of the Serial Number 100 MD Explorer. The milestone aircraft was delivered to Tomen Aerospace Corp., MDHI's distributor in Japan, and will be operated in Hiroshima for electronic news gathering by Aero Asahi, a prominent international aircraft operator. It will be the first MD Explorer operated outside of Tokyo. To date, twin-engine MD Explorers have accumulated 7,000 hours performing a wide range of missions in Japan. The MD Explorers are in air medical, electronic news gathering, utility, and corporate service.

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Nimrod MRA4 order cut
Weniger Nimrods für die RAF

The Ministry of Defence has concluded that future maritime reconnaissance capabilities and operational tasks can be met with a smaller fleet of aircraft than originally envisaged. The revision is based on a number of factors: The submarine threat has not developed as expected when the production contract was signed in 1996; the new Nimrod MRA4 will offer a markedly greater capability in sensor and aircraft performance than the current MR2; our understanding of the potential support options to maximise the aircraft's availability, and the whole life costs of supporting the aircraft, has developed, in consultation with BAE Systems, the prime contractor. The MOD has agreed with BAE Systems, incentives to maximise the savings which will result from reducing the buy from 21 to 18 aircraft.

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NEWS IN BRIEF / KURZMELDUNGEN

It took a little extra effort, but NASA this weekend bridged a nearly seven-and-a-half billion mile span to make contact with Pioneer 10, a plucky space probe that first left Earth's gravitational pull more than 30 years ago. On Friday, scientists at the NASA Jet Propulsion Laboratory's (JPL) Deep Space Network in Goldstone, Calif., sent a signal to the spacecraft, which is still hurtling toward the fringes of the solar system. Twenty-two hours later, at 1:47 p.m. PST, researchers at the network's facility in Madrid, Spain, carefully monitoring a 70-meter dish antenna, heard Pioneer's response. "We are overjoyed that we still have the spacecraft," said Robert Hogan, chief of NASA Ames Research Center's Space Projects Division, where the Pioneer Project is managed.
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NASA Administrator Sean O'Keefe today named Frederick D. Gregory as the Associate Administrator for Space Flight, placing him permanently in charge of the agency's Human Exploration and Development of Space Enterprise. Gregory, 60, has served as Acting Associate Administrator for the office since December, when he replaced Joseph H. Rothenberg, who retired.
+++
Jean E. Wesener has been appointed Secretary General of EDIG, the European Defence Industries Group in Brussels. Jean E. Wesener joins from his current position as Permanent Representative to The European Institutions of Thales SA. Prior to this, he held various positions at Thales: Chairman Thomson-CSF inc, VP North America and VP Northern Europe at Thomson-CSF International. The European Defence Industries Group (EDIG) was formed in 1974 and is the association of the National Defence Industries of Europe. EDIG's role is to co-ordinate European defence industry advice and policy recommendations to the WEAG, the European Council, Commission and the Parliament, on all initiatives concerning the European defence technology and industrial base, including the European Defence Equipment Market. EDIG represents Industries with a total of 400.000 direct employees with a revenue of 50 billion Euro in the Defence field.
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Alenia Aeronautica S.p.A., a Finmeccanica company, has delivered to the Guardia di Finanza (Revenue Guard Corps) at its Caselle Torinese location, the second ATR 42 MP Surveyor (Grifo 13) ordered, fully equipped in operating configuration. The aircraft was formally delivered by the CEO of Alenia Aeronautica S.p.A. Mr. Filippo Bagnato to the Brigadier General Salvatore Mistretta, at the head of the Air and Sea Headquarters of the Guardia di Finanza. This second aircraft will pair with the one already delivered (Grifo 14) and in operation since December 1999 at Pratica di Mare.
+++
The Royal Australian Air Force, or RAAF, has embarked on the second phase of the Hornet Upgrade Program. When the upgrade is complete, the RAAF A (single seat) and B (two seat) model F/A-18 Hornets will be comparable to the latest C and D model Hornets. Representatives of the RAAF, Raytheon, the U.S. Navy and Boeing gathered today to commemorate the induction of the first Hornets to receive the APG-73 radar. Replacing the original APG-65 radar, the APG-73 significantly adds to the combat capability of the Hornet and gives the RAAF the ability to upgrade with new software. Incorporation of the APG-73 is scheduled to be complete in mid-2003.
+++
Galileo, Europe's own Global Satellite Navigation System, constituted a major topic for decision at the ESA ministerial Council in Edinburgh last November. That Council agreed the ESA funding for the Galileo development and in-orbit validation phase subject to the EU Transport Council to approve the Galileo programme. The EU Council, when meeting on 7 December 2001 could not immediately reach final agreement on the implementation modalities. However, the Heads of State at their summit meeting in Laeken, Belgium, reaffirmed the strategic importance they attach to the Galileo programme and welcomed the decision of the European Space Agency taken in Edinburgh. In addition, they invited the EU Transport Council to take a decision in March 2002. In the meantime, the European Parliament has expressed a favourable opinion on the continuation of the programme. An interim structure (Galileo Interim Support Structure - GISS) has already been put in place to ensure that the technical development of Galileo is coherent with the user requirements. The GISS consists of some 30 highly qualified international staff and is located in Brussels. The preparatory development activities have been intensified over the last few months, with the European space industry but also with the application and service industries. Critical technologies, such as atomic clocks and signal generators, are under development and work is progressing as planned. The Galileo ground segment architecture has been further refined with a view to minimise the implementation and operations cost. Moreover, a major activity on the Galileo System Test Bed will start soon. That will allow validating the novel Galileo control methodology (algorithm) in a near-real environment
+++
Gripen International, who are bidding for the supply of its Gripen supersonic multi-role fighter to meet the Brazilian governments requirement for new jet fighter aircraft, have announced that it has signed a Memorandum of Understanding with VEM-VARIG Engineering and Maintenance. Under the terms of the MoU, the parties have agreed that in the event that Gripen International is awarded the contract to supply Gripen fighter aircraft to the Brazilian Air Force, they will evaluate potential projects in the areas of logistics support and the transfer of technology as part of the program of industrial cooperation required under the government's tender process. The MoU agreement outlines potential cooperation activities such as logistics support, maintenance of Gripen avionics and other aircraft systems and the transfer of technology and data to enable the testing and verification of avionics and other aircraft equipments. The technology transfer would also include the provision of training for the support and maintenance of equipment following delivery of aircraft to Brazil.
+++
Telephonics Corporation, a wholly owned subsidiary of the Griffon Corporation (NYSE: GFF), today announced a contract award in excess of $700,000 (USD) from Agusta-Westland of Italy to deliver 14 Search and Rescue, Weather Avoidance Radar Systems in support of their EH-101 Helicopter Program for Denmark "With well over 8,000 maritime surveillance radar in service, Telephonics is a leading supplier of equipment for detecting, tracking, and identifying small targets in severe environments," said Larry Rytter, President of Telephonics Command Systems Division.
+++
Boeing Space and Communications (S&C), a unit of The Boeing Company, has received $336.4 million in funding from the U.S. Air Force to build the first two satellites in the Wideband Gapfiller Satellite (WGS) system. The contract also includes long-lead material for a third satellite. With all options exercised, the contract for up to six satellites has a total potential value of $1.3 billion. WGS is a multi-spacecraft constellation designed to provide improved communications support to America's warfighters. Boeing Satellite Systems, the satellite-manufacturing arm of Boeing S&C, will build the Boeing 702 model satellites in El Segundo, Calif. The first satellite is scheduled to launch in early 2004, with the second one to follow in 2005.
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Like spacewalking astronauts performing open-heart surgery on NASA's Hubble Space Telescope this week, an ingenious team of engineers re-awakened another orbiting observatory earlier this month -- without ever leaving the ground. NASA's Far Ultraviolet Spectroscopic Explorer (FUSE) spacecraft, which some had given up for dead in December after critical guidance components failed, was returned to full operations when the team developed an innovative new guidance system. The system uses a complex new set of procedures that lets controllers use electromagnets in the satellite to push and pull on the Earth's magnetic field. Experts had speculated about such an approach as a fallback for failing satellite guidance systems, but it had never been employed to steer a satellite with the exacting accuracy needed for scientific observations.
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Pratt & Whitney (P&W) has awarded a contract to Nederlands Centrum voor Laser Research (NCLR) to demonstrate an economical advanced excimer laser drilling system on the F135 propulsion system for the F-35 Joint Strike Fighter (JSF). An excimer laser uses a special process to generate the cutting beam, which results in very precise hole location and tolerance. Most excimer lasers are capable of drilling only one hole at a time, which can be very time consuming for applications such as the F135, where more than one million holes must be drilled on each engine. NCLR has designed an advanced excimer laser capable of producing multiple small holes very rapidly. “While typical excimer lasers are rated between 30 and 100 watts, the NCLR laser is 1,000 watts,” said Ed O'Donnell, director of JSF international programs at P&W. The laser can maintain hole quality while drilling multiple holes simultaneously, resulting in a significant reduction in the average time and cost per hole. It is anticipated that the NCLR system would be used on the F135 as well as other engines at P&W.
+++
Following March 7th successful installation of the new Advanced Camera for Surveys (ACS) on the Hubble Space Telescope, scientists will be able to see farther into our universe and with greater clarity and speed than ever before. Columbia's spacewalkers, Jim Newman and Mike Massimino, began the first science instrument upgrade of this servicing mission at 3 a.m. central time. The duo, with Newman on the shuttle's robotic arm, began by removing the last of Hubble's original science instruments, the Faint Object Camera to make room for the ACS. Newman and Massimino first opened Hubble's aft shroud doors, removing the Faint Object Camera and temporarily stowing it at the edge of Columbia's payload bay. After installing the ACS in the Hubble, Newman and Massimino stowed the old camera in the payload bay for its return to Earth. Then Massimino, on the shuttle's robotic arm, installed the Electronic Support Module in the aft shroud, with Newman's assistance. That module will support a new experimental cooling system to be installed during tomorrow's fifth and final scheduled spacewalk of the mission. That cooling system is designed to bring the telescope's Near-Infrared Camera and Multi-Object Spectrometer (NICMOS) back to life. Finally, Newman and Massimino completed some remaining cleanup tasks from yesterday's Power Control Unit installation. During the first half of the spacewalk, mission specialist Nancy Currie operated the shuttle's robotic arm, providing transportation to and from the various worksites on both the Hubble and in Columbia's payload bay – Commander Scott Altman then took over operation of the arm to maneuver Massimino through his tasks. Fellow spacewalkers John Grunsfeld and Rick Linnehan worked from inside the shuttle to choreograph the spacewalk, as Altman and Pilot Duane Carey continued to provide photo and video documentation of the work. Initial functional tests on the ACS and the electronics module conducted by the Space Telescope Operations Control Center in Greenbelt, Md. were both good. Functional tests of the telescope's scientific instruments will not be completed, however, until after the telescope is released from Columbia and its aperture door is opened.
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BAE Systems has recently delivered the fully equipped front fuselage for the first Eurofighter that will enter service with the German Air Force. The front fuselage of GT001 (German Twin Seat No.1) was successfully delivered to Manching, the final assembly line of BAE Systems German partner, EADS ­ Deutschland, following completion of systems testing at the BAE Systems Samlesbury site near Blackburn, Lancashire. The fuselage was shipped at a higher specification than had previously been achieved and included fully fitted and tested systems such as hydraulics, fuel, environmental control systems and crew escape as well as brakes and parachute checks. Another first achieved on the delivery of GT001 was the fitting of the windscreen before shipping ­ this had previously been done as part of final assembly.
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Crossair has been cleared to take off under its new SWISS brand on March 31: the Canton Zurich Commercial Court has rejected the Swissair Group's application to prevent the company from using the SWISS brand and the Swiss Air Lines Ltd. name. The Court did not feel the need to seek Crossair AG's views on the issue before reaching its decision. The decision by the Canton Zurich Commercial Court to reject the Swissair Group's application was founded on two separate considerations: First, the Court rejected the Swissair Group's claim that the group would suffer a disadvantage which would be difficult to subsequently redress if Crossair used the SWISS name from March 31 onwards. For this reason alone, the Court saw no reason to approve the precautionary actions which the Swissair Group was demanding. The Court was also of the firm opinion – in contrast to the Swissair Group – that there was no risk of confusion between SWISS and Swissair, since the two entities were clearly distinct from one another. The Court further felt that it was only natural for SWISS aircraft to carry the Swiss cross on their tails, an arrangement which the Swissair Group had also sought to prohibit.
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The EU Commission has decided to open the state aid investigation procedure against Greece with regard to the potential misuse of aid authorized in previous decisions and with regard to new aid granted to the air carrier Olympic Airways (OA) and its subsidiaries. The opening of the investigation procedure reflects the Commission's concerns about potential misuse of aid authorized in 1994 and 1998 as well as its serious doubts about the legality of a new aid. It is questionable whether the conditions under which aid was authorized in 1998 continue to be met. The measures and conditions covered by that decision have to be examined again, together with new subsequent fiscal and financial measures, resulting in a potential preferential treatment of OA in respect to competitors.
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Just a few months ago, Rhein-Main airport was a quiet base with no aircraft and about 150 personnel. Over the past three months, it has taken on new life, becoming one of six staging bases worldwide to launch missions into the Afghanistan region in support of Operation Enduring Freedom. Like many staging bases, this one follows the hub-and-spoke concept, a joint effort by C-5 Galaxies and C-17 Globemaster IIIs to keep a steady flow of cargo heading downrange. “(The staging base) is like the center of the wheel, and aircraft are sent to many locations from this hub,” said Col. Dave Estep, deployed here from Dover Air Force Base, Del., to oversee operations as the 437th Aerospace Expeditionary Group commander. “C-5s carry cargo here and may just swap the crew before heading on, but the C-17 continues most missions because it is best suited (because of the size of runways) for flying downrange,” he said.
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Having sold 60 helicopters to Malaysia since 1963, French-based Eurocopter S.A.S has decided to set up a facility in Subang to service helicopters and to support further sales of the companys product. The facility will be ready by June 1, said Eurocopter regional sales director (Asia Pacific), Cedric Costes. Costes said Malaysia was the companys first customer in Asia when the Government bought 40 Alouette helicopters in 1963 for its Air Force. Malaysia is a very important market for us, he said after witnessing a demonstration of the companys EC 130 utility helicopter at the Royal Malaysian Air Force base in Jalan Lapangan Terbang Lama.
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Boeing confirmed an order from WestJet Airlines for two additional 737-700s. WestJet was one of the few profitable North American airlines in 2001, recently achieving its 20th consecutive quarter of profitability. The value of the new airplanes at list prices is estimated at $100 million. Deliveries are scheduled for November and December this year. In total, WestJet will take delivery of 10 airplanes during 2002, six of which will be leased from GE Capital Aviation Services. The orders announced today were previously accounted for in Boeing's published order totals and attributed to an unidentified customer.
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The European Space Agency (ESA) and the Italian Space Agency (ASI) have initiated the first sponsorship programme enabling businesses to participate in the world's largest international science and technology venture in space. The programme will offer Italian and European companies the opportunity to join the agencies in sponsoring scientific and technological research by astronauts on board the ISS. Sponsoring such research will contribute to the understanding of human physiology, prevention of diseases, such as osteoporosis, studies on reduction of environmental damage caused by industrial processes, and the creation of new materials and proteins, for the benefit of humankind. ESA and ASI are looking for businesses that have a mission or ideal consistent with improving the quality of life on Earth and are committed to sustaining research in space, including the involvement of astronauts in these experiments over the coming years.
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Against stiff competition QinetiQ have been selected to design and build the Ion propulsion systems for GOCE the first of ESA's Earth Explorer Core Missions. The aim of GOCE (Gravity Field and Steady State Ocean Circulation Explorer) is to achieve very accurate measurements of the earth's gravity field, essential in understanding the physical earth. GOCE is the first of ESA's core explorer missions, part of the living planet program. Scheduled for launch in 2005 it will be in orbit for two years. One of the features of GOCE is that is will be a relatively low earth orbit, only 250 km mean altitude. Other Earth Observation systems tend to be about 600 - 800-km altitude. GOCE needs to be this low, as it will take very sensitive measurements, in some cases to within centimeter accuracy. At this altitude the satellite will experience high levels of drag and require a very efficient attitude control system.
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EADS Aeronautic Defence and Space Company welcomes the decision of the French Ministry of Defence to launch the Scalp Naval cruise missile for its Navy. This decision is a milestone in Europe's acquisition of new major operational capabilities and a breakthrough for EADS on defence markets. Commenting on this announcement, Tom Enders, member of the EADS Executive Committee and head of the Defence and Civil Systems division said: "Through our missile subsidiaries we have now cruise missile programmes in production or R&D status for six countries, with a total order value that could exceed three billion EUR for the next 10 years. The launch of the Scalp Naval programme, worth several hundred million EUR, will further reinforce the capacity of EADS to make complete integrated systems offers. Furthermore, it will contribute to developing our defence activities significantly, particularly for naval forces".
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Previous updates are still available:
Die News der letzten Wochen sind weiter abrufbar:

*March 3, 2002

*February 24, 2002 *February 10, 2002 *February 3, 2002

*January 27, 2002 *January 20, 2002 *January 13, 2002 *January 6, 2002

*December 23, 2001 *December 16, 2001 *December 9, 2001 *December 2, 2001

*November 25, 2001 *November 18, 2001 *November 11, 2001 *November 4, 2001

*October 28, 2001 *October 21, 2001 *October 14, 2001 *October 7, 2001

*January - September 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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