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UPDATE
Week ending 17 August, 2003

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TRIGAT tests on Tiger completed +++ Lufthansa posts operating profit in second quarter +++ SWISS sees restructuring on the right track +++ Fraport sees difficult market conditions +++ AESA radar tested on F/A-18E/F +++ MTU to modernize CH-53 engines +++ News in brief +++


TRIGAT tests on Tiger completed
Tiger schließt TRIGAT-Tests ab

The extraordinary capabilities of the fire-and-forget guided missile system LR TRIGAT, the main armament of the Tiger helicopter, having recently been demonstrated in several firing campaigns. Now the last remaining demonstration firing of HOT from Tiger using the EADS/LFK-developed ATA firing post was carried out successfully. Following 39 firings over four campaigns (May 1997, June 1999, May 2003 and July 2003), the HOT firing post achieved qualification on the Tiger helicopter. Stationary and moving targets were engaged at ranges between 600 and 4,000 meters, with Tiger engaging its targets both from a hovering position and from forward flight at up to 150 km/h. In this way it was demonstrated that:  the HOT weapon system achieves its extremely high hit probability of over 90 percent, also on Tiger; the weapon can be reliably deployed under all the specified flight conditions (including while banking or descending flight) both by day and at night, and; the specified electro-optical countermeasure scenarios (smoke, fire and flares) could be mastered.  
The firing post, from which both LR TRIGAT and HOT missiles can be launched, was developed by EADS/LFK and adapted to Tiger within the scope of the ATA development contract. Currently, series component production is taking place at Schrobenhausen for the HOT and LR TRIGAT firing posts destined for the Tiger UHT/HAC helicopters, of which the Germany Army is procuring 80 units (UHT) and the French Army 10 (HAC).  

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Lufthansa posts operating profit in second quarter
Positives Resultat für Lufthansa

Thanks to its professional capacity and cost management strategy, Lufthansa succeeded in posting an operating profit of 65 million euros in the second quarter of 2003. This positive result for the period April to June reaffirmed the Group's leading position, after it had recorded an operating loss of -415 million euros in the first quarter. "Despite weak macroeconomic momentum, the Iraq war and SARS, we achieved a fine result and thereby strengthened our position in international competition. But even though we fared better in the second quarter than many other carriers, we must remain on our guard. The aviation industry is still operating in a difficult economic environment. But it looks like we have now come through the worst," Lufthansa's Chairman and CEO Wolfgang Mayrhuber said when presenting the interim figures.
Mayrhuber expressed confidence in the future, yet at the same time cautioned against exaggerated optimism: "The key requirements at the moment are clear and prudent judgement, a correct assessment of the markets and professional risk provisioning. Ongoing strict cost discipline is required for all corporate units." This was crucial given that for the first six months of the year Lufthansa turned in a negative operating result of -354 million euros and that a lasting global economic recovery is still not in sight. The current booking figures indicate that no marked improvement can be expected in the second half of the year. Despite the capacity adjustments and cost-curbing measures, Lufthansa does not anticipate a positive operating result for 2003 as a whole. "The present business trend has a gratifying counterweight in our Group's persistently high degree of financial stability."
Wolfgang Mayrhuber emphasised that, along with all Lufthansa's staff around the world, he is driven each day anew by an uplifting motivating force: "That motivating force comes from our customers. They are at the focus of our attention, it is their needs that we work for and serve. Satisfied passengers are and remain our greatest incentive." He added that Lufthansa is currently in the middle of an innovation and quality offensive.

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SWISS sees restructuring on the right track
Greifen Sparmaßnahmen bei SWISS?

At its meeting in Basle, the SWISS Administrative Board was briefed by the Management of the gratifying progress being made in the  „Foundation for Winning“ restructuring programme and on the detailed Business Plan which has been drawn up. The Board discussed this Business Plan at length and also examined various scenarios with a view to future strategic decisions. The implementation of the measures which SWISS announced on June 24, 2003 are proceeding more efficiently and faster than planned. The Board noted with satisfaction what has been achieved so far. This includes agreements with the various unions on the down-sizing of the workforce. Discussions with partners and suppliers on considerably more advantageous terms for SWISS are proceeding constructively and should be finalised shortly. In the opinion of the Board, this progress will create new trust in the employees and, above all, in the SWISS clients. The Management was instructed to further increase the tempo of the „Foundation for Winning“ restructuring measures. The Business Plan has now been worked out and discussed in its definitive form. It forms an important basis for future strategic decisions. On the strength of this plan, the Board has introduced promising scenarios for the future. No decisions were taken, however, and the evaluation will be continued in the weeks to come. The rumors spread by some media on the possible bankruptcy did not form a part of the scenarios examined.

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Fraport sees difficult market conditions
Flughafen Frankfurt AG im schwierigen Umfeld

Fraport AG Frankfurt Airport Services Worldwide released its interim report for the first six months of financial year 2003. The airport operator achieved a sales increase of 2.6 percent to EUR877.7 million. Despite a slight decrease in earnings in the first half-year, Fraport expects an EBITDA of EUR500 million. Against the background of the after-effects of the Iraq conflict, SARS and the continued worldwide economic downturn, Fraport registered a fall in sales from airport charges, which are directly related to the volume of air traffic. The sales increase for the Fraport Group resulted from the rise in demand for security services (including the 100-percent baggage checks that have been required since January 1, 2003), from which both Frankfurt Airport as well as the Fraport subsidiary ICTS Europe, the European market leader for aviation-related security services, have benefited.
Group-wide, Fraport recorded 30.9 million passengers, a 1.6 percent decline versus the same period last year. 22.5 million passengers used Frankfurt Airport, the Group's most important location, 2.1 percent fewer than in the first half of 2002. Antalya was particularly affected by the war in Iraq and recorded a 16.6 percent decline in the number of passengers. Positive developments were posted in the volume of cargo traffic and number of aircraft movements: Airfreight and airmail volumes rose at Frankfurt Airport by 2.2 percent to 798,556 metric tons; the number of take-offs and landings increased by 1.4 percent to 225,665. As of the end of June, Fraport employed 23,164 staff. Sales growth in the area of security services was offset by higher costs caused by the higher staff levels required. This was the primary factor contributing to the 7.7 percent rise in personnel costs to EUR461.6 million. Group-wide, non-staff costs sank by 7.1 percent to EUR229.3 million.

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AESA radar tested on F/A-18E/F
Raytheon AESA-Radar im Test

A revolutionary radar system from Raytheon Company for the U.S. Navy's F/A-18 E/F Super Hornet with significantly improved reliability, target detection and tracking range has successfully completed its first in-flight test at NAVAIR, China Lake, Calif. The test, which lasted for two hours on July 30, verified the integration of the APG-79 Active Electronically Scanning Array (AESA) radar with onboard avionics and demonstrated that various subsystems were in working order. The evaluation was conducted on an F/A-18F two-seat model test aircraft. The event marked the beginning of the validation and verification procedure for the system, which is expected to enter service in 2006. Tested at various altitudes and range scales, the radar produced clear maps of Santa Catalina Island and surrounding ocean waters off the coast of Southern California. The radar was developed in record time by a team at Raytheon Space and Airborne Systems (SAS) that worked with the Navy and Boeing, which builds the aircraft. The program hit every significant milestone on schedule, allowing demonstration of the first system months ahead of plan.  
The APG-79 system has been designed to provide warfighters with enhanced capabilities and flexibility for growth, according to Tom Marchese, AESA program manager for the Raytheon team. “The entire team has worked hard to achieve this significant program milestone,” he said. “This system will benefit the warfighter for the foreseeable future.”  

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MTU to modernize CH-53 engines
Modernsierung der CH-53-Triebwerke

MTU Aero Engines will modernize the engines of 20 Sikorsky CH-53GS cargo helicopters of the German armed forces. Germany's leading engine manufacturer won a contract from the BWB German Federal Office of Defense Technology and Procurement to fully overhaul and update 46 General Electric T64 engines. The modernization will occur over the next two years, with the first rebuilt engines to be returned to their military operators as early as spring 2004. The contract is worth 28 million euros. It was signed August 12, 2003. Executive vice president Dr. Paul Krammer commented: "We were pleased we could offer the government an attractive total package that ranges from the procurement of new parts, to fully overhaul, component modification, test running and warranty services." The German ministry of defense said the modernization campaign had become necessary because most of the aging engines had ceased to deliver rated performance across the full service envelope. The present investment, said the ministry, made the engine again compliant with the original performance specification also under harsh climatic and geographic requirements and lowered maintenance costs down the road. The rejuvenation of the totally 46 engines (two for each helicopter plus 6 spares) is achieved essentially through the installation of newly-developed turbine blades.

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NEWS IN BRIEF / KURZMELDUNGEN

Rolls-Royce announced today (14 August) that it had successfully carried out one of the key safety tests in development of the Trent 900, lead engine for the Airbus A380. The test, performed to schedule on a special rig at the company's Derby, UK facilities, involved deliberately releasing a fan blade at maximum speed by detonating an explosive charge at its root. The blade was then held safely within the armoured titanium containment system which will surround the engine in flight. Ian Kinnear, Director Airbus Programmes, Rolls-Royce, said: “Because operational safety is paramount in our thinking throughout all development programmes, this test represents a major milestone. This example was even more impressive because it involved the largest fan ever used on a Rolls-Royce engine.
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On 12 August, Arianespace announced a delay in Flight 162, scheduled to launch SMART-1 on the first stage of its journey to the moon. The Ariane-5 launch, with SMART-1 and two commercial satellites on board, was planned to take place on Thursday 28 August from Europe's spaceport in Kourou, French Guiana. The launch has now been put back six days until 3 September. ESA's SMART-1 spacecraft, Europe's first probe to the Moon, will take around 16 months to reach its destination where it is expected to carry out a number of unprecedented studies of the Moon, and demonstrate innovate and key technologies for future deep space science missions.  
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Northrop Grumman Corporation's Integrated Systems sector has demonstrated, through a series of test flights, that a synthetic aperture radar/moving target indicator (SAR/MTI) system can be integrated and operated successfully on the company's RQ-8A Fire Scout vertical takeoff and landing tactical unmanned air vehicle (UAV) system. The company-funded flight tests verified SAR/MTI operation in combination with Fire Scout's existing payload of electro-optical and infrared sensors and a laser designator/rangefinder. The tests also ensured that the SAR/MTI payload is compatible with the increased vibration of a rotary wing UAV compared to a fixed wing UAV. "Our flight test program demonstrated the flexibility of the Fire Scout system to carry multiple payloads simultaneously and receive sensor data from those payloads at its ground control station," said Tom Soard, Northrop Grumman's Fire Scout program manager. "The SAR payload significantly enhances the Fire Scout system's ability to perform tactical long-range, wide-area search, surveillance and target
location in a variety of weather conditions, day and night."
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The Japan Defense Agency (JDA) selected GE Aircraft Engines' (GEAE) CF6-80C2 engine for its C-X program, Japan's next-generation cargo military aircraft. The JDA will take delivery of the first engine in 2006. The potential value of the engine contract for GEAE is valued at approximately $1 billion over the estimated 30-year life of the program. The C-X, currently in development, will replace the C-1 cargo aircraft. The JDA will begin operating the C-X in 2011, and anticipates a minimum fleet of 44 aircraft to be in service.
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BAE Systems Regional Aircraft and Finnish airline Air Botnia have signed an agreement for the long term operating lease of two Avro RJ85 and two Avro RJ100 jetliners (E2393, E2394 E3386, E3387). A member of the SAS Group, operating more than 80 daily flights to/from five cities in Finland to Stockholm, Gothenburg, Oslo, Copenhagen, Brussels and Dusseldorf, Air Botnia already successfully operates five Avro RJ85s. These aircraft were acquired from November 2001 onwards to meet buoyant demand on its network, particularly from the country,s vibrant telecommunications sector. As part of the new lease agreement, Air Botnia has agreed to extend its lease commitments on the existing Avro fleet for a further substantial period.  
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An independent panel of astronomers identified three options for NASA to consider for planning the transition from the Hubble Space Telescope (HST) to the James Webb Space Telescope (JWST) at the start of the next decade. The panel, chaired by Prof. John Bahcall, Institute for Advanced Study, Princeton, N.J. chartered by NASA earlier this year, submitted their report to the agency this week. NASA's current plans are to extend the life of the HST to 2010 with one Space Shuttle servicing mission (SM 4) in 2005 or 2006. The plan is tentative pending the agency's return to flight process and the availability of Shuttle missions. NASA plans to eventually remove the HST from orbit and safely bring it down into the Pacific Ocean. "NASA is deeply appreciative to Prof. Bahcall and the panel for getting this thoughtful report to us ahead of schedule," said Dr. Ed Weiler, NASA's Associate Administrator for Space Science. "We have a big job to do to study the panel's findings and consider our options, and we will respond as soon as we have time to evaluate their report," Weiler said. The three options presented by the HST-JWST Transition Plan
Review Panel, listed in order of priority, are: 1. Two additional Shuttle servicing missions, SM4 in about 2005 and SM5 in about 2010, in order to maximize the scientific productivity of the Hubble Space Telescope. 2. One Shuttle servicing mission, SM4, before the end of 2006, which would include replacement of HST gyros and installing improved instruments. In this scenario, the HST could be de-orbited, after science operations are no longer possible, by a propulsion device installed on the HST during SM4 or by an autonomous robotic system. 3. If no Shuttle servicing missions are available, a robotic mission to install a propulsion module to bring the HST down in a controlled descent when science is no longer possible."
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OHB profit and total revenues continued to grow encouragingly in the second quarter of 2003. In the period under review, the OHB Technology Group generated total revenues of EUR 45.25 million in line with forecasts, an increase of 48.1% over the same period one year earlier. Earnings per share came to EUR 0.16. Order books were valued at EUR 230.8 million on June 30, 2003. Cash and cash equivalents stood at EUR 31.84 million at the end of the quarter. Once again, the Space Technology + Security business unit proved to be the OHB Group's business mainstay in the period under review. The SAR-Lupe program is continuing to prog ress well and remains on time and in budget.
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Space Imaging's Wildland Fire Risk Assessment System (WFRAS) approach has been selected by the Southern Group of State Foresters (SGSF) to support ongoing fire management planning and wildland fire risk analysis in each community, county, congressional district and fire response zone of the organization's 13 states. The member states are Alabama, Arkansas, Mississippi, Florida, Georgia, Kentucky, Louisiana, Virginia, Texas, Tennessee, South Carolina, North Carolina, and Oklahoma. The organization also includes the U.S. Forest Service's Region 8 Office in Atlanta. The Texas Forest Service is administering the project on behalf of SGSF. Space Imaging's WFRAS is a proven wildland fire risk assessment methodology that employs both GIS and remote sensing technologies. It is a well-defined and repeatable process for describing fuels and analyzing wildland fire risk to suit any scale of operation, including wildland and wildland urban interface areas. The wildland fuels are mapped using 30-meter resolution Landsat(tm) imagery as a baseline. Optionally, high-resolution multi-spectral imagery from Space Imaging's IKONOS satellite may be used for mapping fuels for specific areas of interest. To develop the methodology, Space Imaging worked with leading fire subject matter experts to incorporate the best wildland fire science available for fire protection planning. The Wildland Fire Risk Assessment Model contains calculations to derive indices of Wildland Fire Susceptibility, Fire Effects, Fire Response Accessibility and Wildland Fire Risk. This award follows successful completion of the statewide Florida fire risk assessment project by Space Imaging.
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Honeywell International Inc., Phoenix, Ariz., is being awarded a $70,000,000 indefinite-delivery/indefinite-quantity contract to provide for Versatile Affordable Advanced Turbine Engines (VAATE) Phase I. The VAATE program is a joint DoD/NASA/DoE/industry effort to develop revolutionary and innovative technologies by the 2017 timeframe that will permit an order of magnitude increase in turbo-propulsion affordability over the year 2000 state-of-the-art technology.
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The first production CJ3 (serial number 001) took its first flight three weeks ahead of schedule. The 1.5 hour flight took place on Friday, August 8, 2003. The CJ3 departed from McConnell Air Force Base and landed at Wichita's Mid-Continent Airport. This first flight of the Serial 001 aircraft was performed using a standard production first flight profile. This included the full range of airspeed from stalls to MMO, and coupled approaches. This aircraft will be used primarily for avionics development and certification. Cessna has dedicated three Citation CJ3s to certification endeavors: a production conformed prototype, serial number 001, and 002. The prototype made its maiden flight on April 17, 2003, and has already logged over 83 hours. Flight tests underway include climb performance and roll control tests. Recent CJ3 program accomplishments are the successful completion of the low and high speed envelope expansion, mating of the wing to the fuselage on CJ3 serial number 002, completion of the first customer specification session, and painting of the prototype. The CJ3 team has also begun static testing. The first major airframe article assessment of the tailcone and empennage was completed in late June. All static testing is expected to be completed by the first quarter of 2004.
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Orbital Sciences Corporation announced that its Pegasus space launch vehicle successfully launched the Scientific Satellite (SCISAT-1) Atmospheric Chemistry Experiment (ACE) spacecraft for the National Aeronautics and Space Administration (NASA) and the Canadian Space Agency. In a mission that took place on Tuesday, August 12, from Vandenberg Air Force Base, California, the 330-pound SCISAT-1 spacecraft was accurately delivered into its targeted orbit approximately 400 miles above the Earth, inclined at 73.9 degrees to the equator. The powered flight sequence for the SCISAT-1 mission took about 11 minutes, from the time the Pegasus rocket was released from its L-1011 carrier aircraft at approximately 10:10 p.m. (EDT) to the time that the satellite was deployed into orbit. It was the 35th launch of the Pegasus rocket and its 21st consecutive successful mission.  
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The Federal Aviation Administration (FAA) has granted a national Certificate of Authorization (COA) to the U.S. Air Force to routinely fly the Northrop Grumman-produced RQ-4 Global Hawk aerial reconnaissance system in national airspace. The certificate is the first national COA granted for an unmanned air vehicle (UAV) system. The high altitude, long endurance Global Hawk currently flies in restricted airspace during take-off and landing before quickly ascending to altitudes high above commercial air traffic. The COA paves the way for it to support homeland defense missions in national airspace.
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Embraer announced the maiden flight of the second EMBRAER 175 aircraft, the second member of a family of four new-generation commercial jets specifically designed for 70- to 110-seat markets. The complete family is composed of the EMBRAER 170, EMBRAER 175, EMBRAER 190 and EMBRAER 195. Manned by Guilherme de Miranda Cará, Carlos Moreira Chester and Carlos Masaki Kobayashi, the second EMBRAER 175 aircraft took off from the company's São José dos Campos facility at 11:00 AM for a 1-hour flight, to perform a range of systems validation tests. The first EMBRAER 175 aircraft, which performed its maiden flight on June 14, is already engaged in the test campaign, which from now on will count with the second EMBRAER 175 aircraft as well.  
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Northrop Grumman Corporation's Integrated Systems sector demonstrated in a recent test a simpler, more cost-effective way to use the Affordable Moving Surface Target Engagement (AMSTE) system. The company used a single Ground Moving Target Indicator (GMTI) radar source and Raindrop, the U.S. Air Force's Joint Direct Attack Munition (JDAM) targeting system, to engage a moving target with a seeker-less weapon. The test proved that AMSTE, which normally requires information from two radar systems to determine a target's location, could carry out a mission with a single GMTI radar if necessary.  
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The United States confirmed it has cleared the way for Israel to sell India its advanced “Phalcon” airborne early-warning radar system. A similar Israeli deal with China was vetoed by the United States three years ago. The Bush administration has given Israel the final go ahead for a reported $1 billion sale of its “Phalcon” radar to India after deciding that the transfer of the sophisticated combat control system would not unduly effect the military balance in South Asia. The Israeli radar is similar to the AWACS airborne command and control system long in service in the U.S. Air Force, and the United States has wielded an effective veto over its transfer to third countries because it is understood to incorporate some U.S. technology.
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Lockheed Martin recently took the Marine Corps Aviation Simulator Master Plan F/A-18D simulator for its first flight using a new, PC-driven image generator and host computer system designed to enhance performance and lower life-cycle cost. The newly designed training system enhances Marine air-ground task force combat skills by providing a high fidelity tactical training environment. The simulator is the latest Lockheed Martin offering that provides realistic offensive and defensive weapon simulations without risk to aircrew and aircraft. The Marine Corps program is designed to increase the probability of success of combat flight training and subsequently real combat flight.  
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Summaries of previous UPDATES are still available:

*August 10, 2003 *August 3, 2003

*July 27, 2003 *July 20, 2003 *July 13, 2003 *July 6, 2003

*June 29, 2003 *June 22, 2003 *June 15, 2003 *June 8, 2003 *June 1, 2003

*May 25, 2003 *May 18, 2003 *May 11, 2003 *May 5, 2003

*April 27, 2003 *April 20, 2003 *April 13, 2003 *April 6, 2003

*January - March 2003

*January - December 2002 *January - December 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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