FLUG REVUE update: Week ending April 20, 2003

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UPDATE
Week ending April 20, 2003

+++ EADS forms Defence & Security Division +++ UCAV-N concept unveiled by Northrop Grumman +++ Recce market in Europe looks up +++ MTU and LH cooperate in Malaysia +++ American saved for now +++ News in brief +++

EADS forms Defence & Security Division
Neue Struktur im EADS-Militärbereich

EADS, the second largest global aerospace and defence company, is integrating and strengthening its defence and security business by realigning its defence electronics, military aircraft and telecommunications activities. The company announced on Friday that the new division will be headed by Tom Enders (44) and named EADS Defence & Security Systems. The division will continue to be headquartered in Munich. Commenting on this important development, EADS CEOs Philippe Camus and Rainer Hertrich said, “EADS Defence & Security will build upon our formidable strengths as a truly global defence systems powerhouse. Growing our capabilities and business revenues in defence is a core strategic priority for the group. A full integration of our operations and offering within one division will move us substantially towards this goal. With Tom Enders at the helm, we have every confidence that the new division will be a driver of change in transformational defence technology and systems.”
With five billion Euros in revenue and 24.000 employees in nine different countries, EADS Defence & Security will incorporate the following business lines: Missile Systems; Military Aircraft; Sensors and Electronics; Defence and Information Systems; Services. Through the merger of the current business units Telecom and S&DE, EADS is creating a fully-fledged 'system house' comprising the entire C4ISR chain, air defence systems and secure telecommunications systems as well as future large systems integration capabilities. The Division will also include a new concept development, simulation and experimentation entity to develop innovative systems solutions. The EADS CEOs have tasked Tom Enders to develop in detail the structures and organisation for the Defence & Security Division. His focus will be on integrated, cross-business unit products and market approaches. The new organisation structure will be submitted for EADS Board approval at the end of May.

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UCAV-N concept unveiled by Northrop Grumman
Unbemannte Kampfdrohne für die US Navy vorgeschlagen

Northrop Grumman Corporation's Integrated Systems sector today unveiled its operational system concept for a naval unmanned combat air vehicle (UCAV-N) designed to fly surveillance, strike and suppression-of-enemy-air-defense missions from an aircraft carrier. The concept represents Northrop Grumman's participation in an emerging government competition to develop and demonstrate UCAVs that could perform U.S. Navy and Air Force missions. The concept combines the "kite" aerodynamic shape successfully demonstrated by the company's tailless X-47A Pegasus experimental unmanned vehicle with a "flying wing" shape. The kite design enables efficient integration of propulsion and weapons, while the wing extensions provide aerodynamic efficiency. The air vehicle design also provides long endurance, high survivability and the low-speed, aerodynamic flying qualities and precision landing capabilities required for autonomous launch and recovery operations from a carrier. Northrop Grumman is currently conducting technology and risk-reduction studies under Phase IIA of the UCAV-N program managed by the Defense Advanced Research Projects Agency and the Navy.
"This operational UCAV-N concept meets all naval UCAV requirements while leveraging the company's unmatched experience in unmanned systems, precision strike, electronic warfare and low observable or stealth technologies," said Randy Secor, Northrop Grumman's UCAV-N program manager. "Our design also has the flexibility to meet Air Force requirements in the government's emerging joint UCAV program." Northrop Grumman already has a wealth of data generated from the company-funded Pegasus program and from extensive wind tunnel testing of the UCAV operational concept air vehicle, he added. The UCAV-N concept also builds on the company's extensive experience with autonomous flight control, including thousands of flight hours by its combat-proven Global Hawk and Fire Scout unmanned systems. Secor noted that Global Hawk, Fire Scout and Pegasus all completed their first flights, from engine start to shutdown, without human intervention.

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Recce market in Europe looks up
Europa benötig mehr Aufklärungssysteme

The war in Iraq, the nature of modern conflict and the threat of global terrorism have once again underlined the need for superior military intelligence gathering and time-critical information. As the focus shifts to airborne surveillance and reconnaissance (SR) systems, procurements estimated at $1.1 billion in the European market are forecast to surpass the $1.61 billion mark by 2008. In Europe, the dynamics of coalition warfare, accompanied by the need for improved interoperability, has been a key driver for market expansion. For many prospective NATO entrants, including those in Eastern Europe, the upgrade of their airborne platforms to meet crucial interoperability requirements is a central prerequisite to membership.
"Programme offsets are being provided as incentives to procure necessary equipment. These incentives increase programme ownership within the country and add required economic benefits to indigenous defence industries," notes Merl Fuchs, Aerospace and Defence Analyst with Frost & Sullivan. Greater operational rationalisation and improved process efficiencies have ensued from the current trend toward consolidation in the European defence industry. The outcome has been less expensive products, competitively positioned for sale to an eager world market. Another encouraging consequence of industry consolidation has been the dissemination of technology across national boundaries. Joint military research and development (R&D) efforts are likely to weaken traditional technology protectionism, while accelerating system development across Europe.

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MTU and LH cooperate in Malaysia
Zusammenarbeit bei der Triebwerkstechnik

As of April 2003, Lufthansa Technik has acquired 50 percent of the shares of Airfoil Services Sdn. Bhd. (ASSB) from MTU Aero Engines. The company which is based in Kuala Lumpur, Malaysia, known as MTU Maintenance Malaysia Sdn. Bhd., specializes in repairing aero engine turbine blades. The joint venture concentrates on repairing low pressure turbine blades of CF6-50, CF6-80, CFM-56-3, CFM-56-5 and V2500 aero engines. It also overhauls compressor blades of the V2500 engine. In Shah Alam near Kuala Lumpur the company currently has about 100 employees, a number that is expected to reach 280 by the year 2008. ASSB is kept busy mainly filling orders from its two owners, though it also serves customers throughout the Asian market. This Malaysian facility forms part of MTU's worldwide network and Lufthansa Technik's EPAR (Engine Parts & Accessories Repairs) setup. At the official signing of the agreement on 11 April in Hanover, Germany, MTU Aero Engines' president and CEO Dr. Klaus Steffens declared: "Bringing Lufthansa Technik into the picture will have a lasting beneficial effect on ASSB's development and ensure a much higher utilization of its capacities. We'll be able to use its excellent repair technologies even more economically in the interest of our customers."

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American saved for now
Gehaltskürzungen retten American vor Chapter 11

AMR Chairman Don Carty expressed his gratitude to the employees of American Airlines and their union leadership for ratifying ground-breaking agreements to achieve $1.8 billion in annual employee cost savings. American's unionized employee groups rallied to ratify consensual agreements reached just two weeks ago with the Allied Pilots Association, the Association of Professional Flight Attendants and the Transport Workers Union. "This development is unprecedented in the history of the U.S. airline industry," Carty said, heralding ratification votes to approve the restructured contracts, "and I am enormously proud of our employees." "These votes clearly demonstrate our employees' dedication and commitment to creating a secure future for American Airlines and its people," he added. Carty also thanked union leaders for agreeing to accelerate the ratification process from the standard 30 days to two weeks, and credited all three unions for working together to overcome last-minute issues with the APFA's balloting process and urging the extension of voting for flight attendants.
Carty and AMR President and COO Gerard Arpey said ratification of the labor agreements is a significant step toward helping the company in its efforts to restructure costs on its own. In addition, the company continues its work to secure accommodations from its lenders and suppliers.
"Today was an important step in our ability to transition to the 21st century as a new airline in a new era. With the help of our employees – our greatest asset – we will take on the competition, and work together to succeed," Carty and Arpey said. But the company cautioned that even with ratification of the agreements, American's financial condition is weak and its prospects remain uncertain. Carty warned that the company is not yet "out of the woods," and "that given the hostile financial and business environment we find ourselves in and its inherent risks the success of our efforts is not assured." The cost savings were divided by work group as follows: Pilots: $660 million; Flight attendants: $340 million; TWU Represented employees: $620 million; Agents, representatives and planners: $80 million; Management and support staff: $100 million.

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NEWS IN BRIEF / KURZMELDUNGEN

NetJets Europe has reported a 27% increase in flight bookings in recent weeks as NetJets owners react to war-related security concerns and fears over the Severe Acute Respiratory Syndrome (SARS) virus. While the commercial aviation sector has been badly hit by such issues, with British Airways cancelling half of its flights to Hong Kong, travellers are either delaying their flights or switching to more secure modes of transport such as private jets. “It's difficult to determine exactly what is causing the increase in our business” said Mark Booth, Chief Executive Officer, NetJets Europe “but the feedback we're getting indicates that some of the increase is stemming from travellers' concerns about SARS. When travelling in a NetJets aircraft, you're only flying with people you invite on the plane,” he added, “so the health risks are dramatically reduced.”
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South African Airways (SAA) has received its first of five Airbus A340-200s leased from Airbus' Asset Management Division. The remaining four leased long-haul jetliners will be delivered in May, June, August and December SAA will use the four-engined A340-200s on long, thin-density routes, e.g. linking Johannesburg with Zurich, Paris and Sao Paulo. They will introduce cost and operating efficiencies to the airline as replacements for ageing Boeing 747-200, 747-300 and 747SP equipment. Earlier this year SAA began a 10-year fleet modernization program commencing with the delivery of its first three A340-600 aircraft which currently operate on flights to Germany and Hong Kong with significantly improved payloads and reduced costs compared with the older generation aircraft SAA previously flew on these routes.
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On Thursday 17 April ESA Director of Human Spaceflight, Mr Jörg Feustel-Büechl, signed a contract with the French space agency (CNES), represented by its President Yannick d'Escatha, for the development and operations of the Automated Transfer Vehicle Control Centre in Toulouse, France. The main functions of the Centre will be to command and control the Automated Transfer Vehicle (ATV). Under the contract CNES will take responsibility for management of the Centre's development and prepare, coordinate and support all ATV operations on behalf of ESA. The ATV is an unmanned vehicle which will be put into orbit from Kourou, French Guiana, by Europe's Ariane 5 launcher. It will supply the International Space Station with pressurised cargo, water, air, nitrogen, oxygen and attitude control propellant. It will also remove waste from the Station and periodically re-boost the Station to a higher altitude to compensate for atmospheric drag. The first ATV is expected to be launched in September 2004.
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April 14, 2003 marked the first day of operations for Alteon, formerly FlightSafety Boeing Training International and now a fully owned subsidiary of The Boeing Company. The occasion was marked by employee celebrations at the 21 Alteon locations worldwide. Alteon was selected as the new name for FlightSafety Boeing Training International (FSBTI) in January 2003 and today, April 14, marks the first official day of operation under the new name. In October 2002, Boeing completed an agreement to acquire all of FlightSafety International's (FSI) interests in FSBTI. The company, while operating as a joint venture between Boeing and FSI since 1997, has become the world's first truly global aviation training company responsible for flight and maintenance training in the 100-seat-and-above range of aircraft.
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Boeing has been awarded three new contracts under NASA's In-Space Propulsion Technologies program for the development of advanced xenon ion propulsion technologies. NASA awarded the projects to Boeing Electronic Dynamic Devices, Inc., or EDD, located in Torrance, Calif., a leading provider of high reliability products to space and defense customers. The projects include the Carbon-Based Ion Optics project; the NASA Evolutionary Xenon Thruster system; and the High Power Electric Propulsion project. The goal of the In-Space Propulsion Technologies program is to provide funding for the development of advanced propulsion technologies for use beyond Earth's orbit. These technologies will reduce trip times, mass, and/or cost associated with NASA science missions to the outer planets, satellites, small bodies, and other solar system destinations.
+++
The fourth in a series of four built by Boeing, the AsiaSat 4 satellite for Asia Satellite Telecommunications Company Limited of Hong Kong was successfully launched on April 11 from Cape Canaveral Air Force Station, Fla. The high-power Boeing Satellite Systems 601HP spacecraft was launched by International Launch Services onboard an Atlas IIIB vehicle at 8:47 p.m. EDT (8:47 a.m. on April 12 in Hong Kong). The spacecraft separated from the launch vehicle approximately 30 minutes after launch. AsiaSat 4's first signals were received about 48 minutes after the launch at the Fort Stanley Telemetry, Tracking and Control Station in Hong Kong, confirming normal operation. AsiaSat 4, designed by Boeing Satellite Systems to provide a minimum of 15 years of service, will be located at 122 degrees East and will provide television distribution and telecommunications service throughout Asia, the Middle East, Australasia, and the Commonwealth of Independent States.
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EGNOS (the European Geostationary Navigation and Overlay Service) is a joint project of the European Space Agency (ESA), the European Commission (EC) and Eurocontrol, the European Organisation for the Safety of Air Navigation. It is designed to augment the two military satellite navigation systems now operating (US GPS and Russian GLONASS) and is paving the way for Galileo. The system, now in its testbed phase and operational in 2004, already improves the accuracy of GPS positions from about 20m to 2m. A very successful demonstration was organised by Eurocopter last month as part of a programme to improve the ability of helicopters to fly in adverse weather. These trials validated the use of EGNOS on HEMS helicopters. Eurocopter fitted an EGNOS Test Bed User Equipment (TBUE) receiver onto an EC 155-HTT helicopter. This was coupled with the flight management system (FMS) so that EGNOS-guided helicopter approaches could be shown. These trials demonstrated the good quality of the EGNOS signal despite the adverse electromagnetic environment that is typical to helicopters because of the rotating blades and other masking effects. The TBUE receiver successfully enabled precise guidance, both in manual and automatic piloting mode. The flight path simulated a medical mission, including approaches and transition to hover before final landing. EGNOS can deliver real benefits to the Helicopter Emergency Services (HEMS) helicopters by bringing helicopter IFR approaches to reality. There will be less noise at ground level, and it should be safer to fly in adverse weather conditions. Crucially, a more reliable service with fewer cancelled flights means more lives saved.
+++
Rolls-Royce has signed a co-operation agreement with the Brandenburg University of Technology (BTU) in Cottbus, Germany, to establish a joint Engine Technology Competence Centre. This marks a further chapter in the company's history of forging strong links with the academic world on high-technology research in dedicated centres of excellence. Its pedigree in this area is truly international, with funded University Technology Centres (UTCs) established recently in Sweden and in North America as well as a broad network in the United Kingdom. Under the latest agreement in Germany, BTU will bring to the partnership the combined research competencies of its Institute for Transport Technology, which has chairs in Combustion and Aero Engines, Aerodynamics and Fluid Mechanics, Structural Mechanics and Vehicle Vibration, Vehicle Technology and Drive Trains, and Machine Dynamics. Research scientists at Cottbus are developing novel turbine and compressor technologies, combustion methods and engine concepts for Rolls-Royce, along with new measurement and analysis techniques for improved assessment of engine noise. The Materials Science and Modelling and Simulation departments will also potentially contribute research into lightweight design, construction and manufacture.
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Shanghai Sikorsky Aircraft Company (SSAC) has received business license approval from the Chinese authorities, authorizing the light helicopter company to commence operations. "We are beginning a new chapter in commercial helicopter development," said Teng Wei, Chief Executive Officer of SSAC. "Shanghai Sikorsky will soon be known as the premier manufacturer of quality helicopters in China." SSAC is an equity joint venture between Sikorsky Aircraft Corporation and Shanghai Little Eagle Science and Technology Company. Customer negotiations are already underway for 2003 deliveries of three separate light aircraft models, with production capability expected to accommodate 24 aircraft per year. A letter of intent was signed at the first SSAC Board of Directors meeting for the sale of a Shen 4T, a single engine turbine helicopter scheduled for delivery later this year. The LOI represents the first customer for this model helicopter in China and the first sale for the joint venture company.
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Boeing has selected two airlines to participate in the development of an airplane monitoring system designed to reduce flight delays, cancellations, air turn-backs and diversions. Air France and American Airlines will test the new data-monitoring and prognostic service, called Airplane Health Management (AHM), during the next year to ensure its availability to airlines in first-quarter 2004. Boeing will name a third airline from the Asia-Pacific region to the development program soon. AHM monitors the health of an airplane in flight and relays that information in real time from the air to the ground. When the airplane arrives at the gate, maintenance crews are ready to make any needed repairs quickly. AHM is designed to help operators reduce the number and length of airplane dispatch delays and convert certain tasks from non-routine to scheduled maintenance. In addition, AHM will support long-term fleet reliability programs by helping airlines identify recurring faults and trends.
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The US Navy took delivery of the first Shared Reconnaissance Pod (SHARP) Low-Rate Initial Production (LRIP) System from the Raytheon Company in an April 2 ceremony at Raytheon Technical Services Company facility in Indianapolis. This delivery, the first of two LRIP pods to be delivered under this contract, provides the Navy's F/A-18 Hornet program with a significantly improved capability in tactical reconnaissance. Raytheon was recently awarded a contract for eight additional SHARP LRIP systems. "This is a big day for us. Fifty months ago, we were asked to supply a TACRECCE (Tactical Reconnaissance) capability to USS Nimitz (CVN 68),” said Rear Adm. James B. Godwin III, Program Executive Officer for Tactical Aircraft. “Many people didn't think we would deliver this on time. This team has pulled together in ways I couldn't have imagined.”
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SARS and the war in the Middle East are having a direct impact on passenger demand. For this reason, SWISS is temporarily reducing its capacity. These measures affect both Europe and the long-haul network. In the long-haul sector some flights to the following destinations will be suspended during the period April 21 and May 31: Peking, Hong Kong, Johannesburg, Boston, Washington, Cairo, Dar-es-Salaam and Nairobi: In Europe, temporary capacity reduction will be achieved by the selective use of smaller aircraft. For the month of May, the following routes will be affected by this change: Basel: London Heathrow; Zürich: Athens, Frankfurt, Düsseldorf, Hamburg, Berlin, Paris, Rome, Belgrade, London Heathrow, Vienna, Brussels, London City, Geneva, Pristina, Istanbul und Milan. In the period from May 1 to May 31, 2003 the following midday flights will be cancelled: Basel – Düsseldorf, Basel –Munich. In addition, during the period May 1 to May 31, 2003, the following midday flights will be partially cancelled.: Bsel – Manchester, Basel – London City, Basel – Barcelona.
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On the basis of these assessments and advice as well as Turkish views, NATO's Defence Planning Committee (DPC) decided that Operation Display Deterrence, NATO's defensive deployments to southeast Turkey, had met its objectives. The DPC therefore agreed to conclude the operation through a gradual redeployment of NATO forces from Turkey. On behalf of the Defence Planning Committee, the Secretary General expressed gratitude to all those troops whom participated in Operation Display Deterrence. Redeployment of NATO forces will begin shortly, in close coordination with Turkish authorities. The NATO military authorities have assessed that, as the probability increases that Iraq can no longer generate the military capability to threaten the security of Turkey, and as coalition forces operating in northern Iraq strengthen their hold on territory and military installations, a phased withdrawal of NATO forces committed to the defence of Turkey is militarily
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The combined consequences of global economic slowdown, an additional slowing of demand due to the conflict in Iraq and SARS have led to a reduction in the number of passengers especially in March 2003. In the reporting month of March, the Austrian Airlines Group carried a total of 612,000 passengers, 8.2 % down on the comparable month the preceding year. The reduction on scheduled services was 10 %, while the Group increased the number of passengers carried in its holiday and charter segment by 7.9 %. The average load factor for scheduled traffic fell by 7.1 percentage points to 64.0 %, producing an average passenger load factor (scheduled and holiday/charter flights) of 66.3 % overall. Compared to the same period the previous year, the cumulative traffic statistics for the first quarter of 2003 (January to March inclusive) show that the fall in demand has caused a 0.1 % reduction in the total number of passengers carried, to 1.745 million passengers. 3.3 % fewer passengers were carried on scheduled services, while the charter/holiday flight segment generated increases of 30.9 %. Compared to the previous year, the consistent reductions in capacity implemented at the beginning of this year (5 % in January, 5 % in February and 6 % in March) produced an increase in available seat kilometers for scheduled traffic alone of 13.3 %, while the number of revenue passenger kilometers increased by almost the same figure, at 11.5 %. As a result, it was possible to avoid a strong reduction in the average load factor for scheduled traffic; there was a fall of 1.1 percentage points to 64.9 %.
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