FLUG REVUE update: Week ending May 25, 2003

UPDATE
Week ending May 25, 2003

+++ A400M gets final OK +++ A318 is certified +++ Air traffic drops 18.5% in April +++ Eurowings demonstrates stability +++ A380 assembly hall dedicated +++ Galland to lead Boeing France +++ EU space policy discussed +++ News in brief +++

A400M gets final OK
Vertrag für A400M wird unterzeichnet

On 21 May, the budget committee of the German Bundestag finally gave its approval for the procurement of the A400M military transport aircraft. The budget committee agreed to the procurement of 60 wide-body transports This will allow the German Federal Armed Forces to improve the strategic deployment capability urgently needed for their operational requirements and their international obligations in relation to NATO and European Union.
Delivery of the airplanes to Germany will begin in 2010 and continue until 2016. The first unit will be operational in 2012, with 12 aircraft. The international procurement contract covers production and supply of 180 airplanes for the seven program nations (Belgium, which also represents Luxembourg, Germany, France, Great Britain, Spain and Turkey), including all support and logistic equipment to ensure their operational support. The European arms agency OCCAR (Organization Conjointe de Coopération an matière d'ARmement) will sign the international industrial contract with Airbus Military on Tuesday on behalf of the partner nations, and will assume management of the program.
German industry will receive a 33-percent work-share on the program, proportionally to Germany's 60-aircraft out-take of the total 180 aircraft on order, and will sustain 3,300 direct jobs as well as 7,150 indirect jobs in Germany. For German engine manufacturers MTU Aero Engines and Rolls-Royce Germany, this program will allow promotion of high technology and program management functions at Dahlewitz and Ludwigsfelde.
The start of the 180-plane project had been delayed for months pending approval from Germany, which wants the most planes. Repeated German wrangling over how to fund the 17 billion euro project have irked Germany's European partners.

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A318 is certified
Zulassung für A318

Airbus' A318, the newest and smallest addition to the world's most modern airliner family, was certificated by the European Joint Aviation Authorities (JAA), at a ceremony held in Hamburg, Germany. Approval covers the CFM International CFM56-5B powered version of the new 100-120 seat airliner, paving the way for airline service with European carriers - as well as with those around the world following JAA regulations. US Federal Aviation Administration (FAA) certification is expected in June.
Flight trials of the Airbus A318 began in January last year, with the two aircraft involved having flown some 850 flight hours in around 350 flights with the two engines on offer – the Pratt & Whitney PW6000 and the CFM56-5B. They covered the performance of the aircraft in all phases of flight, including an evaluation of handling qualities, which are confirmed as being just like those of the other members of the A320 Family. Trials also included minimum unstick speeds and rejected take-offs, a visit to the hot and high airport at Mexico City, and tests of the aircraft's avionics and air-conditioning.
With all of the flight trials for the CFM56-5B powered version, and most of those needed for the PW6000, already complete, only about a hundred hours remain. These will take place in 2005, with the final, improved, version of the PW6000, leading to certification in November of that year. First delivery of the Airbus A318, to Denver-based Frontier Airlines, is planned this summer, followed by deliveries to Air France, which begin later this year.

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Air traffic drops 18.5% in April
Einbruch im Luftverkehr

Preliminary IATA traffic figures for April 2003 show an 18.5% drop in global passenger traffic over April 2002, with SARS-hit Asia Pacific carriers experiencing a 44.8% drop. „The unprecedented combination of crises—the War in Iraq and the SARS—has had a disastrous impact on the international air transport industry in an order of magnitude approaching that of September 11,“ said Giovanni Bisignani, IATA's Director General and CEO. With carriers reacting to the current crises, overall capacity (expressed as ASKs) was down for the first time this year, –6.23% on the equivalent period last year with the load factor being 63.5%. Overall RPKs for the first four months of the year fell by –2.9%, with ASKs up 4.2%. (See tables below)
The most serious fall in passenger traffic was experienced by the Asia-Pacific carriers, as the SARS crisis deepened. RPKs for the region's carriers fell by an unprecedented 44.8%. With ASKs falling by 12.6%, the average load factor was only 48.0%, a fall of 28 points over April 2002. North American carriers have also been badly affected, seeing RPKs fall by –23.5%. European carriers conversely have fared much better, seeing overall passenger traffic fall by –4.8%.
In the Freight market, overall traffic rose by 7.7% in April, continuing the healthy trend seen this year. The key Asia-Pacific markets saw freight (expressed as FTKs) grow by 10.6%, offering one bright spot in the current crisis. In contrast North American carriers suffered a –11.2% fall in freight traffic. FTKs for the first four months of the year have witnessed a 10.5% growth overall.
„These are dark days for our industry. The industry's immediate tasks are to rebuild passenger confidence in air transport and reduce costs. Safety is the key concern of travellers. Since WHO-recommended screening procedures have been implemented at airports in late March, not a single case of onboard transmission of SARS has been reported. Several countries have controlled SARS and been removed from the WHO lists. We must cut through the hysteria so that travellers can make informed decisions based on facts. Since April over 150 million people have travelled on aircraft and not a single case of inflight transmission has been reported. This is a fact that travellers need to know,“ said Bisignani.

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Eurowings demonstrates stability
Gutes Ergebnis für Eurowings

Defying the global crisis in air travel with new business models and a low cost structure: even in a very difficult year for civil air travel, Eurowings Luftverkehrs AG has remained on course as one of the leading European regional airlines in the business year of 2002. As Friedrich-Wilhelm Weitholz, Chairman of the Board of Directors of Eurowings Luftverkehrs AG, announced on Tuesday in Düsseldorf at the balance-sheet press conference for his company, the Eurowings group was able to convey around 3.8 million passengers in the past commercial year of 2002. With this, the airline once more flew over a passenger record and simultaneously increased its turnover by 124 million € (27 percent) to over 584 million €. Friedrich-Wilhelm Weitholz: “We have flown to a result with which we can be especially satisfied considering the present conditions. However, in view of the global crisis, we do not expect to be able to achieve a similarly positive result for the current business year of 2003 without lasting measures for the further lowering of costs“.
In the past business year of 2002, the operative profit performance showed a surplus amounting to 12.8 million Euro. It thus exceeded the figure for the business year of 2001 by 13.9 million Euro. In total, a pre-tax profit of 8.1 million Euro (previous year: 4.7 million Euro) was achieved. The tax burden in the business year of 2002, at 2.8 million Euro, was
markedly higher than in the previous year, so the annual net profit was 5.3 million Euro. “Due to early realignment, a drastic internal cost-cutting programme and the development of new business models we managed in the year 2002 to successfully fly against the general negative trend in civil aviation“, said Friedrich-Wilhelm Weitholz.
“We are aware, however, that our success is to a significant extent dependent on the business development of our partner Deutsche Lufthansa. Should the market not recover and the commercial environment for the aviation industry not improve, we at Eurowings will be forced to take further measures to adapt to the changed commercial situation as quickly as possible“, added the Eurowings Chairman.

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A380 assembly hall dedicated
Einweihung der A380-Halle in Hamburg

The new A380 Major Component Assembly (MCA) hall was officially opened May 21 in the presence of the German Chancellor Gerhard Schröder at the Airbus site in Hamburg. The ceremony, hosted by Airbus President and CEO Noël Forgeard, was also attended by Ole von Beust, First Major of the Free and Hanseatic City of Hamburg, Parliamentary State Secretary Dr. Ditmar Staffelt, Coordinator of German Aerospace Policy, and numerous guests. “As a European company Airbus is privileged and honoured by the presence of Gerhard Schröder, the German Chancellor, who is one of the main drivers of the European integration, from which we benefit so much,” said Airbus President and CEO Noël Forgeard. “The hand-over of the Hamburg major component assembly hall is a key milestone in the making of the A380, in the history of our company and in the long-lasting relationship between Airbus and Germany.“
The new MCA hangar is 228 metres long, 120 metres wide and features a height of about 23 metres. It will house the structural assembly and the fitting with equipment of the forward fuselage sections and the complete rear fuselage sections for the Airbus A380, which will introduce a new way of flying when it enters into service in 2006. For the production of the A380 state-of-the-art manufacturing methods have been developed, which will allow Airbus to further enhance its unmatched production efficiency and flexibility.

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Galland to lead Boeing France
Boeing verstärkt Präsenz in Frankreich

On May 20, Boeing named Yves Galland to the new position of president of Boeing France. Galland, who combines an extensive career in public affairs with a strong business background, will be based in Paris at a new Boeing France headquarters to be established soon. In his new role, Galland will help to identify and pursue new revenue-growth opportunities, lead the country strategy planning process, coordinate company activities in France and focus on strengthening local-market presence and profile.
"France is a strong aerospace market with many opportunities for mutual value creation,” said Phil Condit, Boeing chairman and chief executive officer. "Our current relationship with our customers and suppliers is very good, but we believe we can take it to a new level. Yves will help us better understand the business environment in France. He also will help us identify areas for France and Boeing to work together in new areas of collaboration." “France is key in these globalization efforts, allowing Boeing to operate broadly and effectively with the entire globe as a market and as a source of production and resources.”Sales and marketing responsibilities for Boeing products and services will remain with the business units – Boeing Commercial Airplanes, Integrated Defense Systems, Connexion by Boeing, Boeing Capital Corporation and Air Traffic Management. Galland will support business unit sales and marketing teams as they conduct their campaigns in France.

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EU space policy discussed
Weltraumpläne in der Diskussion

Key decision-makers responsible for shaping Europe's future in space gathered in London May 20, to discuss how to enhance Europe's leading position in developing space technology. Philippe Busquin, European Research Commissioner, Lord Sainsbury, UK Minister for Science and Innovation, and Antonio Rodotà, Director-General of the European Space Agency, addressed over 350 representatives from government, industry and research. This meeting was part of a series of consultation events on European space policy, following the publication of the EU Green Paper on Space. The consultation will be closed by a major conference in Paris on 23-24 June, paving the way for a White Paper and detailed Action Plan to be presented by the end of 2003. Today's conference specifically focused on how space R&D can lead to concrete applications and commercial products in a wide range of areas, such as telecommunications, navigation and localisation, and earth observation.
"Space and the way we exploit its potential can bring many benefits to the lives of all Europeans" said Commissioner Busquin. "We should turn space research into an engine that fuels Europe's economic fortunes and improves the quality of life of our citizens. Without investments in space R&D, we would not have many products that we take for granted today, such as internet by satellite and early warning systems for natural disasters. I urge everyone to participate in this debate on Europe's role in space before it concludes next month. I am confident Europe wants to be a region ready to explore new frontiers."
Lord Sainsbury said: "Working with our European partners is critical to the success of the UK's space ambitions. This is clearly demonstrated by the outstanding achievements Europe has made collectively in the last decade, particularly in satellite technologies. I am determined that the UK will continue to play an active role in driving forward European advances in space, participating fully in key activities such as Galileo, Europe's satellite navigation system, and Global Monitoring for the Environment and Security (GMES). We are also contributing to the consultation on the Green Paper on Space, to help define the future blueprint for EU space policy."

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NEWS IN BRIEF / KURZMELDUNGEN

German Defense Minister Peter Struck presented his new policy guidelines to leaders in Chancellor Gerhard Schröder's cabinet on May 20, drawing criticism from within the government coalition of Social Democrats and Greens as well as from opposition parties. It's the first new set of government defense policy guidelines in 11 years. They're aimed at overhauling the Bundeswehr and adapting it to its changing tasks in the modern world. The defense ministry says the Bundeswehr's most important task nowadays is peacekeeping abroad, and national defense is no longer the priority -- at least in times of peace. The new guidelines also mark a shift in domestic security policy, as they give the army powers to assume roles in anti-terrorist operations within the country's borders, in cases where the domestic security forces do not have the required capabilities. Meanwhile, local and regional politicians reacted angrily to the announcement that about 10 army and air force bases staffing more than 7,000 troops are slated for shutdown. The government says the closures will release up to 1 billion euros ($1.17 billion) in funds for overseas missions. One of the bases slated for the chop is a tornado fighter jet base in Upjever in the state of Lower Saxony. State Premier Christian Wulff, of the conservative Christian Democratic Union, described the decision as "a blow to the coastal region."
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The Berlin Brandenburg Flughafen Holding GmbH (BBF) will not be privatised an the planned airport Berlin Brandenburg International will not be built with private funds, after the owners of BBI (Land Berlin, Land Brandenburg and Germany) have split with private consortium Berlin Brandenburg International Partner GmbH & Co. KG (BBIP) and have ended a bidding process runing since 1997 and consistently mired in controversy .
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Lockheed Martin has received a finalized contract from the U.S. Air Force valued at approximately $320 million to build 10 F-16s for the Chilean Air Force under the U.S. Foreign Military Sales program. A letter contract valued at approximately $40 million was awarded in March 2002, and preliminary work began at that time. The remaining $279.9 million was awarded May 20. Design, development and procurement are well under way, and fabrication of parts and components for the fighter jets are scheduled to begin this year. The aircraft will be assembled in the Lockheed Martin facilities at Fort Worth next year and delivered to Chile beginning in early 2006.
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Medi Flight of Oklahoma received the first of two new custom designed EC 130 B4 helicopters, the first helicopter in the world to be used for hospital/air ambulance service. OU MEDICAL CENTER owns and operates Medi Flight of Oklahoma. The EC 130 B4, which were flown in from Provo, Utah, landed at OU MEDICAL CENTER's Everett Tower helipad near the hospital's trauma center. There are only a handful of the newly designed helicopters in use today, but none, until today, are used for medical transport. The second EC 130 B4 should be delivered around the first of June.
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Sweden is the latest addition to the growing number of countries to have chosen the EC 135 for its police services. On May 16th, the Rikspolisen took delivery of the last of a total of eight EC 135s at Eurocopter's Donauwörth facility. The helicopters will be based in Stockholm, Ostersund, Boden, Malmö and Gothenburg. With the Swedish Rikspolisen, Eurocopter has acquired another highly experienced police customer which has operated helicopters since 1964. With the acceptance of its 8th EC 135, the Rikspolisen completes the renewal of its fleet which previously consisted of older-generation American models which are meanwhile outdated and being phased out.
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NASA Associate Administrator of Space Flight William F. Readdy announced the reassignment of Arthur G. Stephenson, Center Director of the NASA Marshall Space Flight Center (MSFC) in Huntsville, Ala., effective June 15. Stephenson decided to step down from his current position and move to an important role in promoting NASA's Education efforts until his retirement in January 2004. "I worked closely with Art in the Office of Space Flight, and I'm thankful for what he has done for the Marshall Space Flight Center, the people of Alabama, and the entire NASA family," said Readdy in making the announcement.
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The pace of launch preparations for Arianespace's upcoming Ariane 5 mission accelerated with the arrival of the BSAT-2c satellite payload at the Spaceport. Liftoff of Flight 161 with BSAT-2c and Australia's Optus and Defence C1 remains on schedule for early June from the Spaceport's ELA-3 launch complex.
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Boeing and Turkmenistan Airlines recently concluded a definitive agreement for the purchase of two 717-200 airplanes, which will increase to five the number of the environmentally-friendly, short-haul 717s the airline operates. The definitive agreement for the two twinjets, which is valued at approximately $78 million, was signed in the capital city of Ashgabat on May 16. The airplanes, which will be configured for 120 passengers, are scheduled for delivery next year.
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Lufthansa has powerfully endorsed the long-term market acceptability and competitiveness of the Avro RJ regional jetliner with the decision for its Lufthansa Cityline subsidiary to continue operating its fleet of 18 RJ85s well into the second half of this decade. This decision by the premier German carrier comes at a time of considerable market uncertainty and represents a minimum-risk, solution to its 80-100 seat regional jet fleet requirements.
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NASA has selected 15 industry, government and academic organizations to pursue 22 innovative propulsion technology research proposals that could revolutionize exploration and scientific study of the solar system. Total value of the work to be done over a three-year period is approximately $20 million, with $9.6 million in fiscal year 2003; $10.2 million in fiscal year 2004; and $0.6 million in fiscal year 2005. The research will be conducted in five, in-space propulsion technology areas: aerocapture; advanced chemical propulsion; solar electric propulsion; space-based tether propulsion; and solar sail technologies. Each technology identified for development is part of the In-Space Propulsion (ISP) Program, managed in the Office of Space Sciences, NASA Headquarters. The awards are being made as part of the In-Space Propulsion Technologies "Cycle 2" amendment to NASA Research Announcement 02-OSS-01.
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Boeing briefed Washington state Gov. Gary Locke and other state officials, including Federal elected officials, on the criteria it will consider in choosing the location for the final assembly of its proposed 7E7 passenger jet. The company had committed to share the criteria with state officials before initiating the site selection process. Boeing has retained the well-respected firm of McCallum Sweeney Consulting, Inc., to help conduct the site selection. “We are in search of the site that will allow us to meet our needs most successfully and deliver to the world a safe and efficient airplane,” said Mike Bair, Boeing Commercial Airplanes senior vice president of the 7E7 program.
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Lockheed Martin and Raytheon Company have formed NetFires LLC, a limited liability company to pursue missile and launcher development and production for the Non Line of Sight - Launch System (NLOS-LS), also known as NetFires. Products under development include a Loitering Attack Missile (LAM), a Precision Attack Missile (PAM), and an autonomous Container Launch Unit. Both companies are under contract by the Defense Advanced Research Projects Agency (DARPA) to demonstrate elements of the NLOS-LS weapon system. Elements include prototypes of a LAM, PAM and launcher. Although the two missiles have significantly different mission profiles, the objective is that they both operate as part of a system that includes a common launcher. Developing the systems together will enhance component as well as command and control commonality throughout the NLOS-LS. Additionally, the LLC will offer a single source for NLOS-LS development and production for the Army's new NLOS-LS Task Force. The two companies will jointly manage the LLC.
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Raytheon has been selected to develop and demonstrate a Miniature Air Launched Decoy (MALD) for the U.S. Air Force. The $88 million contract was awarded May 20 by the Air Force Materiel Command's Air Armament Center Precision Strike Systems Program Office, Eglin AFB, Fla. Work on the contract will be performed at Raytheon's Missile Systems business in Tucson and be completed by June 2008. The decoy is a low-cost expendable air-launched vehicle that mimics the radar signature and flight characteristics of fighter aircraft and bombers to deceive a threat air defense system.
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The United States has given the green signal to Israel for the sale of Phalcon airborne radar systems worth one billion dollars to Indian Air force without any conditions or limitations, a media report said. Clearing the long pending deal, Washington has withdrawn all objections and given Israeli Defence Ministry the green signal for the deal that US had earlier asked Israel to freeze in view of tense standoff between India and Pakistan, daily “Ha'aretz” reported.
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Bombardier Aerospace recently delivered its CRJ700 Series regional jet serial number 10100 to Lufthansa CityLine (CLH), the airline that began the regional jet revolution with the original Bombardier CRJ100 in 1992. It was the 63rd delivery of a Bombardier CRJ and the 18th delivery of a Bombardier CRJ700 to the wholly-owned subsidiary of Deutsche Lufthansa AG. “This delivery of the 100th production aircraft represents a tremendous milestone for us,” said Steven A. Ridolfi, president, Bombardier Regional Aircraft. “We have met our goal to have the right aircraft available for our customers at the right time.”
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Textron announced that Michael Redenbaugh has been named chief executive officer of Bell Helicopter, the world's leading manufacturer of vertical-lift aircraft. He will report to Textron Chief Operating Officer Steven Loranger. He succeeds John Murphey, who has been named chairman emeritus of the Ft. Worth, Texas-based producer of helicopters and revolutionary tiltrotor aircraft. Redenbaugh, 44, joins Textron from Honeywell, where he spent more than 21 years in positions of increased leadership, most recently serving as vice president and general manager of the $1.4 billion Propulsion Systems business and acting president of Honeywell's $4.6 billion Engines, Systems and Services group. He also served as vice president and general manager of Honeywell's Military Helicopter and Industrial Engine business.
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At the 1st Worldwide Fokker 50 Customer Conference, Fokker Services launched the Future 50 program to re-market Fokker 50's that have recently become available and will become available in the future. Future 50 is a program of which the key vendors are committed to, such as Pratt & Whitney Canada, Honeywell, Dowty Propellers, Messier Dowty and Aircraft Braking Systems Corporation. Through the Future 50 program, these companies will guarantee service, spare parts and support for at least the next ten years. "Operators want the best transport solution to fit their business plan. Under the Future 50 program, operators can get a tailored total care program, good technical dispatch and a fixed competitive fee based on flight hours," explained Erik Goedhart, Fokker Services Vice President of Marketing & Sales.
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ISRO's experimental satellite, GSAT-2, which was launched by GSLV-D2 on May 8, 2003 from Satish Dhawan Space Center, SHAR, has been successfully placed in its final geo-stationary orbital slot at 48 deg East longitude. It may be recalled that, after the injection of GSAT-2 into geo-stationary transfer orbit by India's Geosynchronous Satellite Launch Vehicle, (GSLV), orbit-raising maneuvers were carried out from ISRO's Master Control Facility (MCF), Hassan, by firing the 440 Newton Liquid Apogee Motor on board the satellite to place it in the geo-stationary orbit. At the end of these maneuvers on May 11, 2003, the satellite was allowed to drift slowly towards its designated orbital slot. In this drift orbit, deployment of antenna and solar arrays was carried out on May 12, 2003.
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The Paraguay Air Force has signed a contract with EADS CASA for the purchase of a C-212-400 military transport aircraft, and for the implementation of a logistic support programme to overhaul and rebuild three C-212-200 military transport aircraft that were purchased by Paraguay two decades ago. Included also in this programme is the instruction and technical training of maintenance personnel belonging to the Paraguay Air Force, to perform overhaul, retrofit and maintenance operations of the airframe and systems. The new aircraft is expected to be delivered by the end of 2003. Work on the other three aircraft will commence at the beginning of June, to be delivered by the end of the year. This work will be carried out by EADS CASA personnel displaced to Paraguay, together with technicians from the Paraguay Air Force.
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South Korea and Russia are on the eve of reaching an agreement on bilateral space technology cooperation, according to the Ministry of Science and Technology Thursday. The two sides are fine-tuning the wording of the accord during the five-day meeting in Moscow, which began on Monday, after they reached broad agreement on space science cooperation. In the 14-point draft agreement, they are haggling over how to deal with tariffs and legal responsibilities. "Russia proposed across-the-board tax exemption, including tariffs, with regard to imports and exports involved in the agreement, but we insist on tax exemption for exports and tax cuts or exemption for imports," a ministry official said.
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The corporate management of Volvo Aero has decided to submit preliminary notice of redundancy measures affecting 250 employees in Trollhättan, 150 blue-collar and 100 white-collar. The background is the ongoing decline in the international aviation industry, which is forcing Volvo Aero and other companies in the industry to continue to adjust to the prevailing conditions. New workload figures for the workshops during the period 2004-2005 and the weakening of the profitability has led to the decision. Stage 1 Codetermination negotiations with the unions will start immediately. The process to determine the employees that will be affected will start as soon as the first Codetermination negotiations have been concluded. The notice periods will vary, depending on length of employment but no one will be required to leave the company before November 20, 2003.
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The B-52H Avionics Midlife Improvement project recently completed two missions to test new hardware and software upgrades in extreme conditions around the world. The missions were part of the research and developmental test for the project before it moves to operational test and evaluation, allowing the B-52 Stratofortress to continue flying until 2040. Officials tested the new hardware and software's ability to continue navigation without a global positioning system over the different poles of Earth, the international dateline and other locations that have different magnetic readings.
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Ulrik Svensson, SWISS's recently-appointed Managing Director Finance, assumed his new office on Monday, May 12. Thomas Hofmann, the previous Chief Financial Officer, will leave the company after introducing Svensson to his duties. The appointment of Ulrik Svensson, a Swedish national, completes SWISS's new corporate level of three managing directors reporting directly to the CEO. Svensson, who has extensive experience in corporate turnaround activities, will now swiftly familiarise himself with the airline business with the assistance of former CFO Thomas Hofmann.
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Northrop Grumman Corporation has received a final $113 million increment of a $257 million contract for production of the 17th E-8C Joint Surveillance Target Attack Radar System (Joint STARS) aircraft. The contract includes funding to establish postproduction planning and support after the completion of the final aircraft. Delivery of the 17th E-8C Joint STARS to the U.S. Air Force is scheduled for March 2005.
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The combined effects of the global economic downturn, the sharp reduction in demand due to the war in Iraq and the rise of SARS brought about a particularly sharp fall in passenger numbers in April 2003. The Austrian Airlines Group carried a total of 638,581 passengers in the reporting month of April, 7.8 % fewer than the same month the previous year. There was a 12.8 % fall on scheduled services, while the number of passengers carried in the holiday and charter segment rose by 29.2 %. The average passenger load factor on scheduled services decreased by 6.9 percentage points to 62.7 %, while the average load factor overall (scheduled and holiday flights/charter) was 64.5 %. Due to the reduction in the number of passengers carried with the lower passenger demand, the cumulative traffic statistics for the first four months fell by 2.3 % compared to the previous year to a total of 2.383 million passengers carried. On scheduled services, 5.9 % fewer passengers were carried, while the figure for the charter/holiday segment increased by 30.3 %. With the ongoing reductions in capacity made by the company since the beginning of 2003, available seat kilometers only increased by 11.6 % compared to the previous year, while the number of revenue passenger kilometers rose by 7.1 %. As a result, the company has been able to avoid a dramatic collapse in its average load factor on scheduled services in what has been an extremely difficult operating environment. The load factor finally fell by 2.7 percentage points to reach 64.2 %.
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A major critical design review for the Electronic Warfare Self Protection and Electronic Support Measures Subsystems of the Wedgetail Airborne Early Warning and Control (AEW&C) aircraft has been successfully completed, Minister for Defence, Senator Robert Hill, said. The work has been done by BAE Systems Australia, as a subcontractor to The Boeing Company. Senator Hill said the successful completion of these reviews, in April and May 2003, would enable The Boeing Company to complete the AEW&C aircraft design phase on schedule in July 2003.
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