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UPDATE
Week ending 21 September 2003

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Air France and KLM discuss holding +++ German industry hopes for more resarch funds +++ EADS invests in tanker systems +++ China to participate in Galileo GPS +++ EADS denies Eurofighter shortcomings +++ Austrian unveils new “market presence” +++ United to launch low cost operation +++ Lufthansa Cargo restructures fleet +++ Bombardier signs SkyWest for 30 CRJ700 +++ News in brief +++


Air France and KLM discuss holding
Fluggesellschaften planen enge Zusammenarbeit

On 17 September Air France and KLM confirmed that detailed discussions between the two companies are taking place in view of an intensive cooperation, concurrently with KLM's entry into the SkyTeam alliance. “These negotiations are in an advanced stage; however, critical points are still under discussion between the parties and further communication will follow as soon as an agreement is expected to be reached”, an official statement said.
French press reports did go further, claiming that Air France and KLM have already agreed in principle on a tie-up that would see the two carriers pool resources in a single joint holding company. According to these reports, Air France chief executive Jean-Cyril Spinetta told staff representatives that both airlines would retain their names and independent operating rights under the deal and that financial terms had yet to be finalised, said Francois Cabrera of the CFDT union. Spinetta told a works council on Wednesday afternoon that the two companies "had agreed on the main principles" of a deal to create "one group with two companies". The new group would be headed by the Air France boss, he said, with both national airlines retaining their names and individual operating rights -- negotiated by their respective governments with third countries.
Besides KLM/Air France, there is apparently the a strong push by Alitalia to be included in the tie-up in some form. French reports said that Alitalia chief executive Francesco Mengozzi lunched with Air France's Spinetta on Wednesday at the official residence of French Prime Minister Jean-Pierre Raffarin. The meeting came less than 24 hours after Italian Prime Minister Silvio Berlusconi told Raffarin that he backed a closer alliance between the two airlines. Spinetta said afterwards that the purpose of the talks had been "to reaffirm the strength of the links between Air France and Alitalia" and to discuss "the deepening of this cooperation". Italian Industry Minister Antonio Marzano had also pressed the case for a three-way deal on Tuesday. "I believe it will be done," he said.

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German industry hopes for more resarch funds
Luftfahrtforschung wichtig für deutsche Firmen

At their recent joint Technology Forum, the BDLI (German Aerospace Industries Association) and the German Ministry of Trade, Industry and Labor praised the state of aviation research in Germany. Speaking at a press conference hosted with the government's aerospace coordinator, Parliamentary Undersecretary Dr. Ditmar Staffelt, BDLI President Rainer Hertrich emphasized the importance of the aerospace research program for Germany's technology policy. "Research policy must back technologies which are promising on the world markets. The German aerospace industry is an outstanding factor within Germany's role as a center of technology. It invests about 20% of its total turnover on research and development, more than any other industrial sector in Germany. Moreover, aerospace's export share of 72% testifies to its global success," said Rainer Hertrich. He continued: "However, the good results achieved by backing civil aerospace research indicate the sort of provisions that need to be made for the structure and funding of military R&D in the defense budget. After all, civilian and military technologies are closely intertwined, especially in the aerospace industry. And shortfalls in one area affect the competitiveness and innovativeness of the other."
According to an analysis by the BDLI, the two previous aviation research programs, LuFo I and II, strengthen the German aerospace industry's key areas of expertise. The survey carried out among businesses found that the previous two research programs safeguarded over 16,000 jobs and created around 2,400 new ones. Moreover, over 90% of the companies interviewed stated they had widened their technological competences, with 58%, 83% and 79% reporting an improvement in their competitive position in Germany, Europe and the world, respectively.
"We, the German and European aerospace industry, are entering the last few months of 2003 with confidence. And there is good reason to do so, despite the aviation crisis recently overcome. I mention just three projects - Galileo, A400M and A380 - which will provide considerable impetus for us in the medium term and which this year made decisive progress," explained Hertrich. In 2002 the German aerospace industry employed some 69,950 people and netted a total turnover of Euro 15.3 billion. The BDLI expects the industry's development throughout 2003 to be stable

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EADS invests in tanker systems
Tanker-Entwicklung bei EADS

EADS is investing more than Euro 80 million of company funding in developing technology and systems to position it as a strong competitor for the U.S. Air Force's future aerial tanker modernisation requirements. The commitment includes investment for the design, manufacture and testing of an advanced centreline refuelling boom that incorporates fly-by-wire controls and provides a high-volume fuel transfer flow. This boom, to be mounted under the aft fuselage of an Airbus A330 tanker, will be used as a primary means for in-flight refuelling of military aircraft such as fighters, transports and special mission platforms.
A prototype of the EADS advanced refuelling boom is currently being developed by EADS Military Transport Division in Madrid, and will be completed for ground-based evaluations on a test rig next year, to be followed by flight testing. "The A330 Tanker offers a state-of-the-art platform and refuelling system clearly exceeding the performances of competitors' alternatives,” said Rafael Acedo, Vice President Programs EADS Military Transport Aircraft Division. The Air Force has a requirement for several hundred aerial tankers to assure its in-flight refuelling mission for U.S. forces worldwide, and EADS is committed to be a viable competitor in this important programme.
EADS will propose a military version of the Airbus A330 airliner for the U.S. Air Force tanker mission. Airbus, one of the world's largest civilian airliner manufacturers, is an affiliate company of EADS, which has broad experience in military aircraft and systems. The A330 military tanker will be equipped with three refuelling points: the advanced centreline boom installed under the fuselage, and a pod located under each wing with probe-and-drogue-type fuelling systems that are unreeled in flight.

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China to participate in Galileo GPS
EU-Vertrag mit China unterzeichnet

An agreement has been reached between the European Union and China on its participation in the GALILEO program. This agreement was initialed in Beijing on 18 September 2003 by Mr. F. Lamoureux, Director-General of Energy and Transport at the European Commission, and Mr. Shi Dinghuan, Secretary General of China's Ministry of Science and Technology. “China will help Galileo to become the major world infrastructure for the growing market for location services,” said Loyola de Palacio, Vice-President of the European Commission, responsible for the Galileo program. Her counterpart in the negotiations, China's Science and Technology Minister Xu Guanhua highlighted that “China supports Galileo and plans to participate actively in its construction and application for mutual benefits”.  
Since the Council gave the Commission the green light for formal negotiations with China on 28 March 2003, two rounds of talks have been held, with one first encounter in Brussels on 23 April 2003. The second negotiation meeting was held in Beijing on 18 September 2003, led by Mr. Shi Dinghuan, General Secretary of China's Ministry of Science and Technology and Mr. François Lamoureux, Director General for Transport and Energy at the European Commission. Both sides finalized a draft agreement which paves the way for China's active participation in the program. It will be submitted to the next EU Transport Council meeting on 9 October 2003 for formal approval by the EU Member States, and must also be approved by China's State Council. The text will subsequently be submitted for signature at the forthcoming EU-China Summit on 30 October 2003.  
This agreement provides for co-operative activities on satellite navigation and timing in a wide range of sectors, notably science and technology, industrial manufacturing, service and market development, as well as standardization, frequency and certification. It also opens the way for China to take a substantial financial part in the program through a stake holding in the Galileo Joint Undertaking, the body established to manage the program, and the activities pursued by the European Space Agency.  

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EADS denies Eurofighter shortcomings
Eurofighter-Leistungen in der Kritik

After the German weekly “Der Spiegel” published excerpts from a recent Rechnungshof (German GAO) report strongly criticising the state of the Eurofighter programme, EADS was forced to strongly deny the accusations. These are not reflecting on the current situation, EADS claimed. All performance requirements like cannon firing, missile launches and operations at low temperatures had been proven with the prototypes, it said. What is going on now is to confirm these test results with series standard aircraft to achieve official certification. Many of the parameters in question have been flown but paperwork at procurement agency NETMA is not complete, EADS claimed. Winter operations will be tested later this year. Also, with availability of a new pilot suite, altitude restrictions will be lifted soon.

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Austrian unveils new “market presence”
Neue Ausrichtung von Austrian

The Chief Executive Officer of the Austrian Airlines Group, Vagn Soerensen, hosted a press conference to introduce the company's exciting new brand presence. Speaking in Vienna's Volksgarten park, Soerensen made the following statement: “Our new market presence is another milestone in the history of the Austrian Airlines Group. It is all the more noteworthy for the fact that it provides the foundation for a series of marketing offensives and dynamic changes. We have analysed the operational and human strengths and values of our companies in detail, and produced a clear and dynamic new presence. At the same time, we have striven to preserve our recognition value and the positive image the company has built up worldwide over the past four decades. The timing of this facelift couldn't be better, as clarity of customer perception is currently a key factor in our beleaguered industry. We have conceived our new brand architecture in such a way that it can evolve gradually, giving us broad scope for its future application.”
After the economic turnaround of the Austrian Airlines Group was successfully introduced in 2002, the ongoing company plan also provided for the brand portfolio to be reorganised. The company immediately set about designing this key project, originally intended to bring the regional traffic segment, which represents a section of scheduled services, closer to the Austrian Airlines mainline brand in an effort to focus the Group's brand strengths. A project team consisting of experts from the three Group airlines and Landor, the renowned British airline branding agency, was created to meet the rebranding challenge.
It was essential not merely to retain the operational, psychological and human strengths and specifics of the individual companies, but to build even further upon these qualities by creating an entirely new brand architecture.  
The decision was taken early on in the project that the brand presence of Austrian Airlines itself should also be rejuvenated. It was clear from the outset that Lauda Air was THE brand for the holiday flight and charter segment, and that its market positioning should remain unchanged.
This brand new world has been created to communicate the atmosphere and mood of the “Spirit of Spring” – an agile, natural and melodic ambience that embodies the unforced style and charming service provided by individual personalities. The brand world represents the determination of the Austrian Airlines Group to return colour and freshness to the travel experience of its passengers.
 The revitalised “Austrian” arrow will highlight the traditional strengths of the company in a more self-confident manner, tightening and pointing in a single direction: towards a successful future. The new designs of the exterior and interior of the aircraft will emphasise the colours of a fresh spring day in tasteful, melodic compositions, while the use of “red” will accentuate the colours of the Austrian flag.
Austrian Airlines becomes “Austrian” – a simpler, cleaner image. Tyrolean will operate in future under the powerful product brand identity of “Austrian arrows – operated by Tyrolean”, a name embodying the decisive and clear strengths of Tyrolean: single-mindedness, dynamism, a will to succeed and smoothness of process handling.

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United to launch low cost operation
Billigangebote von United

United Airlines announced that Denver will be the launch hub for United's new low-cost operation (LCO), an essential element within United's portfolio of products. The LCO will serve predominantly leisure markets and feature a simplified fare structure with low-cost business and leisure fare options. The LCO will launch from Denver International Airport in February 2004. "The United low cost operation and its attractiveness to leisure and business travelers perfectly complement our mainline and United Express operations, and those of our Star Alliance partners," said Sean Donohue, vice president for the LCO. "We've made significant reductions in our cost structure this year, allowing our low cost operation to be competitive, profitable and sustainable.  The LCO is operated entirely by United employees and part of the strong brand and portfolio of products that our customers expect us to provide."
Tickets will go on sale in November through all existing sales channels - united.com, United Reservations, travel agents, and on-line reservation systems - and, later, via sales channels unique to the LCO. The LCO will be a United-branded product. The LCO name will be announced later this year. The LCO fleet will launch with 4 Airbus 320 aircraft in Denver, and expand to 40 A320s by the end of 2004, 19 of which will be based in Denver. Each plane will have 156 seats, including a section of Economy Plus seats with extra legroom. From Denver, the LCO will fly to Reno, Las Vegas, Phoenix, New Orleans, Tampa, Ontario, Calif., and Orlando. Additional destinations will be announced at a later date.

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Lufthansa Cargo restructures fleet
747-Frachter von LH Cargo werden verkauft

The Lufthansa Supervisory Board approved the restructuring of the freighter fleet operated by Lufthansa Cargo. The logistics services provider in the Lufthansa Aviation Group is selling all eight aircraft in its Boeing 747-200 fleet. Three of the Boeings are to be sold to Air Atlanta Icelandic and re-chartered by Lufthansa Cargo, as needs dictate. Simultaneously, the cargo carrier is to augment the 14 freighters in its MD-11 fleet with five used aircraft. Explaining the decision, Lufthansa Chairman of the Executive Board and CEO Wolfgang Mayrhuber underlined the need to make early preparations for major future investments especially in difficult times. “The decision to operate with a uniform MD-11 fleet constitutes an investment in modern, environment-friendly aircraft. We will thereby strengthen Lufthansa Cargo's competitive position in the long term in a generally difficult market: We are rejuvenating the fleet, we can produce more efficiently, and react even more flexibly to fluctuations in the market and demand,” said Mayrhuber after the Supervisory Board meeting. The Boeing 747-200s are to be sold in the course of next year. The used MD-11 passenger aircraft will be converted into freighters prior to their integration in Lufthansa Cargo's flight schedules from January 2005.

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Bombardier signs SkyWest for 30 CRJ700
CRJ700 für SkyWest

Bombardier Aerospace announced that SkyWest Airlines of St. George, Utah has placed a firm order for 30 70-seat Bombardier CRJ700 regional jets for the airline's United Express operation on behalf of United Airlines. SkyWest also took options on an additional 80 Bombardier CRJ700 aircraft. Value of the firm order is approximately $862 million U.S. ($1.2 billion Cdn.). Exercise of the 80 options by SkyWest could boost the potential value of the transaction to approximately $3.35 billion U.S. ($4.6 billion Cdn.). Deliveries of the firm-ordered aircraft are scheduled to begin early in 2004 and continue through 2005.
SkyWest is one of the original launch customers for the Bombardier CRJ and has placed firm orders for 100 of the 50-seat aircraft. SkyWest and United recently signed a Memorandum of Understanding (MOU) for an 11-year contract under which SkyWest will significantly expand its United Express services. On September 10th, 2003, the MOU was converted to a definitive agreement with the approval of the SkyWest Board of Directors, United Airlines, and the U.S. Bankruptcy Court. SkyWest was the first regional airline to sign a MOU for growth aircraft with United, and SkyWest is now the first regional airline to complete a court-approved agreement. Currently, SkyWest operates 675 daily flights to 66 cities for United out of hubs in Denver, Colorado; Los Angeles and San Francisco, California; Portland, Oregon; and Seattle, Washington. The new contract with United will provide SkyWest with new opportunities at United's Chicago, Illinois hub as well as expanded service in the Denver market.

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NEWS IN BRIEF / KURZMELDUNGEN

China is expected to manufacture advanced EC120 helicopters in the near future, said a high ranking official with the Hafei Aviation Industry Co., ltd. in Harbin. "It has been approved in principle to let us build a new assembly line to manufacture EC120 helicopter outside France," said Qu Jingwen, general manager of the company. Qu said the company was discussing with Euro Copter and the China Aviation Technology Import and Export Corporation the detailed technology and the procedure of obtaining airworthiness licenses. A written agreement is expected to be signed by the end of this year and the first aircraft is expected to roll off line by the end of 2004. The EC120 is a five-seat light helicopter. It was designed jointly by Euro Copter, China Aviation Technology Import and Export Corporation, Harbin Aviation Industry Co. ltd and SingaporeTechnology Airspace Industry Corporation, in 1990.
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EADS (stock exchange symbol: EAD), the world's second largest aerospace and defence company, raised Euro 500 million through its second Eurobond transaction under its EMTN programme. The fifteen year Eurobond carries a coupon of 5.50 percent. Bookbuilding was closed on Monday, 15 September. “We had noticed market interest in long term maturities. This suited us, as we are by nature a company with long term assets and programmes”, said Hans Peter Ring, Chief Financial Officer of EADS, reflecting the company's objective of lenghthening the maturity profile of its debt. He added: “EADS' rating confirmation by S&P on 3 September encouraged us to proceed. We believed such an issue would enhance the liquidity around EADS' name, which is good for us, and good for investors we are delighted by their vote of confi-dence to EADS over a fifteen year maturity”.
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Aer Lingus announced that, subject to Board and shareholder approval, it had concluded a deal with Airbus to supply the airline's new European fleet. The deal, which reinforces the transformation of Aer Lingus into a low fares airline, will see the airline transition to a single fleet type for its European operation by the end of 2005 and add 15 new routes to its rapidly expanding network by Summer 2005. This will bring to 30 the number of new routes opened by Aer Lingus since the end of 2001. Under the deal Aer Lingus will acquire 17 A320 aircraft of which seven will be purchased outright and ten will be leased from ILFC. Together with the six A321s and four A320s already in the fleet this will mean a total short-haul fleet of 27 Airbus aircraft. The deal also includes options for a further ten A320 aircraft. Aer Lingus also announced that engine manufacturer, CFM, will provide the engines for the new fleet as part of the proposed deal.  
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The 32 ECR fighter bomber wing at Lechfeld near Augsburg, Germany, celebrated the five millionth flight hour logged by the RB199 engine fleet. The engine has been powering the twin-jet multirole combat aircraft since 1974. Political leaders, industry officials and military brass from the German services and friendly armed forces participated in the ceremony. Among the guests were representatives from the NETMA Management Agency, the commander of the Italian Air Force, representatives from the British Royal Air Force and the German maritime air arm. The speakers praised the engine's notable reliability and flexibility. GAFCOM Commander Lt. General Walter Jertz noted: “The Tornado has been the weapons system of the Luftwaffe's strike forces for over two decades. The RB199 has impressively demonstrated its tremendous reliability. The Lufwaffe's aircrews have always relied fully on the engine's safety under maximum load, be it during the strenuous very low-level flight training in Goose Bay, Canada or during UN and NATO missions in Bosnia-Herzegovina and Kosovo.”  
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On the occasion of Avia Expo China 2003, Mr. SHI Jianzhong Vice President of AVIC II and Mr. Philippe Harache, Eurocopter Senior Executive Vice President, have signed this day the Teaming Framework Agreement laying the ground for intensified cooperation between AVIC II, its production plants and Research Center on one side and Eurocopter on the other side.  This signature intervenes consecutively to the visit of French Prime Minister Jean-Pierre Raffarin in early 2003, and the discussions then held between EADS CEO Philippe Camus and COSTIND Vice-Minister Zhang Hongbiao as well as AVIC II Chairman Zhang Yanzhong where the importance of intensified relations between Chinese and Franco-German aeronautical industries, advocated by EADS and its Chinese industrial partners, has been particularly stressed. The Teaming Agreement provides the basis for joint production and development programs between Eurocopter and AVIC II production plants in the fields of light, medium and heavy helicopters. Both parties will assemble and manufacture helicopter systems, subsystems and parts for the needs of Chinese and export markets. As Philippe Harache has declared, “the Chinese industrial potential has been progressing tremendously in the past decade. We are proud to have been selected as the Partner for this industry to which we have been the faithful companion for almost 3 decades”.  
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The EADS Eagle UAV system has been selected by the UK Ministry of Defence for the Medium Altitude Long Endurance (MALE) aspect of the Joint UAV Experimental Programme (JUEP). As announced by EADS during the Defence Systems & Equipment International exhibition in London, the JUEP programme will evaluate through experimentation and trials the potential roles and military utility of UAVs across the UK armed forces. During this first year, the Eagle will take part in military exercises in the USA and in Canada. It will carry a high definition Synthetic Aperture Radar (SAR), electrooptic/ infrared Sensors and Laser Target Marking and Designation. “The Eagle is well suited for this experimental role. Its large payload bay provides space for multiple sensors or other experiments to be carried simultaneously and has exceptional flight duration in excess of 24 hours,” explained Stefan Zoller, CEO and President of the new Defence & Communication Systems Business Unit (in formation) of EADS. The Eagle UAV is a twin boom unmanned aircraft with a large fixed wing, equipped with fuel tanks and an anti-icing system to provide an all weather capability.
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The Augsburg Plant of EADS Military Aircrafts celebrated an important day for the Bavarian aviation industry on Wednesday: The first wing component for the A380 from Airbus was handed over to the customer as scheduled. During the solemn handing over ceremony the Bavarian Chief Minister Dr. Edmund Stoiber emphasized the importance of this new milestone even for Bavaria. Stoiber said in his speech: “EADS, as the second largest aerospace and defence company in the world with a workforce of about 15,000 in Bavaria contributes significantly to the outstanding reputation of our country in the high-tech sector. The Augsburg Plant also follows the same glorious tradition in the airplane-production in Bavaria. It is evident today that as regards performance and reliability, we are still one of the topmost companies in this industrial sector as we have been before.”  
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The Multi-Element Integrated Test (MEIT) between the Japanese Experiment Module-Pressurized Module (JEM-PM) Kibo, and NASA's Node-2 began Aug. 26 and was successfully completed at Kennedy Space Center (KSC), Fla. The MEIT performed testing of the International Space Station (ISS) element interfaces to be utilized on Node-2 beginning with the JEM-PM mission. The testing included both the Node-2 and JEM-PM emulation of the ISS on-orbit activation sequence, command and track systems that support audio and video systems on-orbit, and the caution and warning systems that monitor life-support systems in the modules. The successful completion of the MEIT is a major milestone, successfully demonstrating on-orbit performance of key Station elements on the ground," said Tip Talone, director of International Space Station and Payload Processing at KSC. "The team did a superior job."
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SAS Flight Academy recently signed a contract with Civil Aviation Flight College (CAFC) in Guanghan, China regarding instructor training. In November twelve of CAFC's instructors will start their training at the SAS Flight Academy training facilities in Stockholm, Sweden. Additional courses for the other CAFC instructors are later to come. CAFC runs continuously SAS Flight Academy's CRM-course for its pilots with its own instructors, who are trained by SAS Flight Academy. SAS Flight Academy has many Chinese customers, among others China Eastern Airlines, China Xinhua Airlines, China Xinjiang Airlines, General Aviation, Hainan Airlines, Shandong Airlines and Zhejiang Airlines. SAS Flight Academy has also been a partner in the EU-China Civil Aviation Co-operation-Consolidation project, of which the purpose was to enhance the safety in aviation in China.
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Rockwell Collins announces that Horizon Air has received Federal Aviation Administration (FAA) approval to fly single-engine Cat III approaches using Rockwell Collins' Flight Dynamics HGS-4200 Head-up Guidance System. This approval for the Bombardier Q400 makes Horizon Air the first operator to gain FAA authorization to dispatch aircraft based on this capability. Steve Bush, Q400 Technical Pilot at Horizon Air commented, "Now when our hubs are fogged-in, we will be able to designate any of our Cat III airports as legal alternates with weather as low as 200 ft. ceiling and 1800 ft. RVR. This is a great advantage in selecting more desirable alternate airports, simplifying fuel planning and increasing payload capability when many of our destinations have low visibility. This capability will also provide our pilots more options in the event of single engine operations, allowing the crew to continue safely to the hub where maintenance can be performed and passengers can be more easily accommodated." In normal operation, the HGS reduces the Q400 landing minima from 1200 ft. RVR to 600 ft. RVR. The system also enables low visibility takeoff in conditions as low as 300 ft. RVR. By December 2003, Horizon's entire fleet of 62 aircraft will be equipped with the Flight Dynamics HGS.
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Northrop Grumman Corporation's California Microwave Systems (CMS) will serve as the aerial sensor integrator for the U.S. Army's Future Combat System (FCS) program. The lead systems integrator (LSI) team of The Boeing Company and Science Applications International Corporation selected CMS, a business unit of Northrop Grumman's Electronic Systems sector, for the task. FCS is a networked "system of systems" that will use advanced communication technologies to link 18 manned and unmanned ground and airborne platforms and sensors. Northrop Grumman Electronic Systems is one of four company sectors working on the Department of Defense initiative to transform the Army into a more agile force capable of going anywhere with enough power to overcome any adversary.
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Northrop Grumman Corporation's Space Technology sector will develop the Strategic Illuminator Laser (SILL) for the Missile Defense Agency (MDA), providing a crucial component for systems such as the Airborne Laser (ABL) and future space-based programs. The MDA chose Space Technology for Phase 2 of the next generation of illuminator laser under an $18 million, 18-month contract managed by the U.S. Air Force. The SILL is a four-kilowatt-class, solid-state, pulsed laser with excellent beam quality. "SILL is the next step toward the generation of high-power, pulsed illuminator lasers," said Jackie Gish, director of DE technology for the sector. "Because of SILL's high power, excellent beam quality and environmental specifications, it will yield an enhancement over existing illuminators.        We are very pleased and excited about being chosen for this important step."
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Rockwell Collins has been selected by Boeing to provide the head-mounted display subsystems (HMDs) for the Remote Aerial Refueling Operator II (RARO II) for the Global Aerial Tanker/Transport Aircraft (GTTA) program. The work will be performed by Kaiser Electro-Optics, Inc. (KEO), a Rockwell Collins company. The customized HMDs will be based on the industry-leading KEO ProViewTM HMD product line that is currently in use throughout the world in industrial, medical, virtual reality, training and military applications. KEO will be responsible for the development, production and integration of the new HMDs into the KC-767A tankers, which have already been chosen by the Italian Air Force and the Japan Air Self Defense Force for their tanker missions.
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Working in close cooperation, IATA, the International Civil Aviation Organisation (ICAO), the governments of Greece and Turkey, and nine other countries in the area have approved a technical and operational plan to improve their air navigation route network in south-eastern Europe. As of December 2003, the agreement will implement the new route network, mainly within Athens and Istanbul Flight Information Regions (FIR). The plan addresses long-standing airspace needs and will usher in significant improvement in capacity and flight efficiency in the area. In addition to providing additional links to meet the expected high traffic demands related to the Athens Olympic Games, airlines will gain significant operational benefits as will the countries themselves. The efficiencies gained will enable Athens and Istanbul FIRs to increase the number of flights by about 15%, and means that airlines can achieve operational cost savings of approximately 40 million Euros per year.
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German airline dba has now flown 25 million passengers since it started operations in March 1992. Lukas Rinner was flying from Munich to Hanburg when he received congratulations from new managing director/owner Hans Rudolf Wöhrl.
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Boeing has completed installation of new mission computers and other hardware and software on the Royal Saudi Air Force's fleet of five AWACS aircraft. The contract upgraded the aircraft's mission computer and software to the same level currently in use by the U.S. Air Force AWACS fleet. This enhancement improves operator capabilities and equipment reliability. Additionally, Boeing provided RSAF operator training and logistics support and an improved identification friend or foe system. Erwin Mollnar, Saudi AWACS program manager for Boeing, said, “This modernization not only increases the effectiveness and reliability of the Saudi AWACS fleet, but paves the way for future communications and navigation upgrades.”
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The F/A-22 Combined Test Force successfully flew a record number of seven Raptors simultaneously in several different testing and training missions, accomplishing multiple program objectives Aug. 29. The test force completed the first four-ship flight test of the Intra-flight Data Link that Friday, according to Donald Blanton, 411th Flight Test Squadron Lockheed Martin deputy engineer. Along with the IFDL four-ship testing, the CTF carried out the initial operational test and evaluation, or IOT&E, of three additional Raptors. The total number of planes airborne to support these test missions was 16, to include chase aircraft and tankers, while the combined total flight hours for all seven Raptors was 17.7 hours. Col. C. R. Davis, 412th Test Wing commander, flew as an F-16 chase pilot during Aug. 29's mission. "Friday was a great day for the men and women of the F/A-22 Combined Test Force," said Davis. "I had the privilege of supporting the first-ever four-ship Raptor flight. While the formation was beautiful to see from the air, I'm sure it was much more impressive to all those on the ground who worked so hard over the last few months to make these missions happen - my hat's off to them."
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Air Force KC-135 Stratotanker brake systems will go from metal to lighter, longer-lasting carbon now that service officials approved an initiative proposed here, that will save nearly $600 million during the next six years. Dubbed the “largest improved item replacement program in Air Force history,” the new commercial-rated brake system will not only last longer, but require less frequent maintenance, according to Capt. Adam Curtis. He is the project program manager who estimates that approximately 99 percent of the savings comes from parts.
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Farmingdale State University of New York is moving forward aggressively in its commitment to raise the bar in flight education with the recent purchase of 13 Piper aircraft for delivery later this year. The purchase was made through New Piper's Authorized Dealer, Columbia Aircraft Sales in Groton, CT. “Farmingdale State has made a strong push to offer an exceptional aviation program to its students,” says Gary Saunders, Manager of New Piper Sales, Columbia Aircraft Sales. “The university's purchase of these New Piper aircraft is a most attractive element of the overall package.”
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Boeing released an artist's concept of its proposed 717-300X passenger jet, which would answer airlines' demand for a larger, short-range, high-frequency airplane. Development and launch of the 717-300X, which has been offered to several airlines, depends on it attracting a sufficient number of orders. Boeing currently produces the 717-200, which typically has 106 seats and is the world's best jetliner in its class. The 717-300X would typically carry 130 passengers in a two-class configuration. The 717-300X would be138.3 ft. (42.2 m) long, compared to 124 ft. (37.8 m) for the -200. The -300X would have higher maximum take-off and space limited payload weights, and greater engine thrust than the -200. The -300X also would have a service door behind the wing. If launched, delivery of the 717-300X is targeted for the second half of 2006.
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The Boeing Company detailed its 2003 Current Market Outlook (CMO) for the People's Republic of China, forecasting a requirement in China for nearly 2,400 new jet airplanes worth $197 billion over the next 20 years. China's airlines will add 1,960 new airplanes to serve domestic markets including Hong Kong and Macau. Nearly 440 new airplanes will be added by China's airlines to provide international service. Regional jets and single-aisle airplanes will account for 87 percent of the airplanes delivered to serve the domestic market. More than 560 intermediate-size, twin-aisle airplanes will be delivered to serve both domestic and international markets. By 2022, Chinese carriers will be flying more than 2,850 passenger and cargo airplanes, making China's fleet the largest outside of the United States. In fact, China's commercial jet fleet will quadruple in size over the next twenty years.
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Northrop Grumman Corporation's Integrated Systems sector announced that Pratt & Whitney has joined the Northrop Grumman-led team competing for the Department of Defense's joint unmanned combat air system (J-UCAS) program. The addition of Pratt & Whitney, a world leader in the design, manufacture and service of military aircraft engines, strengthens Northrop Grumman's efforts to design, develop and produce an unmanned combat air system that satisfies the operational requirements of both the U.S. Navy and the U.S. Air Force. Northrop Grumman will produce two full-scale X-47B unmanned combat air vehicle (UCAV) demonstrators for the Defense Advanced Research Projects Agency (DARPA) under phase IIB of the naval UCAV technology demonstration program that preceded the J-UCAS program.
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Boeing and Centro Italiano Ricerche Aerospaziali (CIRA), the Italian aerospace research center, signed a memorandum of understanding to investigate and develop technology projects of mutual interest. As a first step, during the next four months, representatives from Boeing, an established leader in aerospace technology development, and CIRA, one of the leading aviation and space technology research organizations in Europe and a key member of the Campania Aerospace Research Network in Italy, will discuss technology projects for possible collaboration. “Boeing and CIRA both desire the continued development of the global and Italian aerospace industry and wish to investigate together how we might be able to collaborate in the development of technologies that are beneficial to both parties,” said Rinaldo Petrignani, president of Boeing Italy.
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Rockwell Collins is the first avionics supplier to successfully demonstrate controller-pilot data link communications (CPDLC) through the NEXCOM VDL Mode 3 ground network. The demonstration took place July 15 at the Federal Aviation Administration's (FAA) William J. Hughes Technical Center in Atlantic City, New Jersey. Simultaneous Mode 3 digital voice and data, along with the enhanced voice features of Mode 3, were demonstrated during flight testing. The enhanced features include controller override, anti-blocking, next channel uplink and urgent downlink. Multiple system configurations (four voice, two voice/two data and three voice) provided comprehensive validation testing of the Mode 3 system for the FAA.
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Rockwell Collins has received the first certification of its Integrated Flight Information System (IFIS) on a Bombardier Challenger 601. Part of its Pro Line 21 family of advanced avionics, Collins IFIS enables such advanced capabilities as electronic charting, graphical weather and enhanced map overlays. The system's electronic charting functionality provides operators with approaches, procedures (SIDs and STARs), airport diagrams and NOTAMS. When integrated with Collins flight management systems, operators have ready access to the appropriate charts for the entered flight plan and aircraft position may be viewed on geo-referenced charts, improving situational awareness. The charts are enhanced through proprietary graphics and color pallets designed to improve readability, especially at night.
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U.S. and allied war fighters can look forward to a new larger, more capable model of the U.S. Air Force's Global Hawk unmanned aerial reconnaissance system. Northrop Grumman Corporation's Integrated Systems sector, the Global Hawk prime contractor, has begun developing and producing the new RQ-4B model following a recent $30.1 million award by the Air Force for advanced procurement activities and long lead hardware. The new RQ-4B configuration provides a 50-percent increase in Global Hawk's payload-carrying capacity while retaining its ability to meet the Air Force's operational requirements for altitude, endurance and range. The added capacity also expands Global Hawk's intelligence, surveillance and reconnaissance capabilities to now include signal intelligence (SIGINT) payloads. Northrop Grumman will produce three RQ-4B air vehicles at its Palmdale, Calif., manufacturing facility as part of the third lot of Global Hawk's low-rate initial production. The air vehicles will be delivered between 2004 and 2005.
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The U.S. Air Force's new Multi-Platform Radar Technology Insertion Program (MP-RTIP) radar will give commanders an unprecedented capability to simultaneously conduct air-to-air and air-to-ground combat operations hundreds of miles apart. That's the conclusion of Northrop Grumman Corporation's Integrated Systems sector, the MP-RTIP system prime contractor. The company recently demonstrated the radar's integrated targeting capabilities in a series of complex, stressing and highly realistic virtual war games. The games featured three virtual, MP-RTIP-configured wide area surveillance (WAS) aircraft and a virtual MP-RTIP-equipped Global Hawk high-altitude, unmanned aerial reconnaissance system. The five-day integrated strike warfare exercise, conducted in mid-July, was funded by the Air Force's Electronic Systems Center, Hanscom Air Force Base, Mass. It was hosted on Northrop Grumman's Cyber Warfare Integration Network (CWIN), a nationwide, virtual battlefield environment.
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The Spanish start-up operator Pullmantur Air has entrusted the maintenance and overhaul services of its fleet to Lufthansa Technik AG. Under a Total Technical Support TTS contract the Hamburg (Germany) based provider of MRO services (Maintenance, Repair & Overhaul) will be handling encompassing support packages for two Boeing 747. Already operating a Boeing 747-300 leased from Ansett Worldwide since June 2003, Pullmantur Air added a Boeing 747-200 from Lufthansa German Airlines to its operations. Before introducing the leased Boeing 747-200 into the fleet, Lufthansa Technik guided a comprehensive program, including engine and thrust reverser changes, for the re-entry of the airplane into service, which has been parked in Marana, United States of America, before.
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StarAlliance partner Austrian Airlines is the first customer outside the Lufthansa Group, which will be sending airplanes of its Airbus A320 family to Lufthansa Technik Budapest in Hungary. During the next five years five Airbus A321-100/200 and six Airbus A320-200 will be serviced under a new agreement between Austrian Airlines and the Lufthansa Technik Group. The contract encompasses 5-and 10-year struc-tural checks, which will take between 27 to 32 days depending on the work package. "For us this contract is a further step to offer our portfolio of services to the global aviation market. With 350 specially trained and motivated colleagues we have already returned ten Boeing 737 and six Airbus A320 to Lufthansa to date and will offer the same high quality combined with short turnaround times to our new customer Austrian Airlines", said Peter Ellison, Managing Director of Lufthansa Technik Budapest.
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Lufthansa Technik Shenzhen, China's first and only repairer of high-grade aircraft parts made from composites, took advantage of the fall off in demand occasioned by the SARS crisis to strengthen its ability to service ARCs (airframe-related components). Established in early 2002, by this October the company will have become China's first MRO provider to use an autoclave facility that permits extensive repairs of thrust reversers, engine cowls and other parts made from composite material. The newly installed autoclave will also enable the company to broaden the range of its services, which were previously focused on composite components for the Boeing 737 and especially for that aircraft's widely used CFM56-3 engine. "Once the SARS crisis ended, the Chinese aviation industry resumed growth sooner than initially expected," says Lufthansa Technik Shenzhen managing director Jan L. S. King. "A sizable backlog of MRO needs had accumulated, and we're now taking advantage of the resulting market opportunities, broadening our services to cover additional aircraft and engine types."
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Munich Airport was selected as this year's winner of the "Airport Marketing Award 2003" at “Routes 2003” in Edinburgh. At the ninth edition of "Routes" – an international forum for airports and airlines – the 210 participating airlines were asked to cast votes on various awards. In the category of best marketing performance, Munich Airport took first place among airports with 10–25 million passengers annually. The prestigious award – presented by Prince Andrew before an audience of 1,000 conference participants – has now gone to Munich Airport in five of the past six years. It is judged on the basis of presentation quality, communication and general marketing activities. The 340 airports in addition to the numerous airlines attending represented at this year´s event in the Scottish capital, “Routes 2003” set a new attendance record. The event is intended primarily to promote the development of new routes in international air traffic, and is considered one of the most important contact and information marketplaces for airports and airlines.
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China Southern Airlines, the largest airline in The People's Republic of China, www.cs-air.com/en, and KLM Royal Dutch Airlines www.klm.com, today announce new joint long-haul  747 freighter services - four times weekly - between Shanghai, Pudong Airport in China and Amsterdam, Schiphol Airport in the Netherlands. This new joint China Southern/KLM 747 cargo service, planned to begin Wednesday October 15 2003, further cements the close working affiliation between China's largest airline and KLM as both carriers have offered passenger code share service between Europe and China for more than two years. As part of this new cargo accord, China Southern Airlines will launch new twice-weekly service between Amsterdam and Shanghai while KLM Cargo will continue its current twice-weekly freighter services on the same route.
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Ryanair has expressed total dismay at the decision of the Nancy Court of Appeals which rejected its application for a stay on the decision of the Administrative Tribunal in Strasbourg
The Tribunal required the Strasbourg Chamber of Commerce to terminate its commercial agreement with Ryanairon September 24 following a legal action brought by Air France's subsidiary Brit Air. Ryanair announced on August 24 that it would have to temporarily suspend its services on the route pending the outcome of its appeal of the Tribunal's decision, unless it received a stay from the Court of Appeals. Ryanair's head of regulatory affairs, Jim Callaghan, said: We are dismayed with the Court's decision rejecting our application for a stay on the Tribunal's decision, which would have enabled us to reinstate our highly successful London-Strasbourg route. Ryanair was forced to announce the temporary suspension of the route following Air France's attempt to use the state aid rules to force us off the route. "We will now have to suspend the route pending the outcome of the appeal, which could take over a year to be heard. In the meantime, French consumers and UK visitors to the Alsace region will suffer. Strasbourg Airport will continue to decline with the loss of 200,000 passengers delivered by Ryanair.
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A new, £11 million pound, state-of-the-art production facility, that will be used to produce major assemblies for the F-35 Joint Strike Fighter has been officially opened at BAE Systems Samlesbury. The facility, where aft fuselages and tails will be assembled for the JSF, the world's largest defence contract, was officially opened by Major General Hudson, Program Executive Officer and Program Director, JSF, the man responsible for running the program on behalf the US Department of Defense.  The new facility is equipped with the latest in manufacturing technology, including a flexible flooring system, which was pioneered on the Typhoon assembly line at Samlesbury. Construction of the facility was completed on schedule and JSF major assemblies will start to be produced in the near future. The first fully assembled aft fuselage is on schedule to be shipped in late 2004.  
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BAE Systems successfully demonstrated its Advanced Airborne Reconnaissance System (AARS) during August flight trials at Eglin Air Force Base, Florida. AARS, the latest addition to the BAE Systems reconnaissance product line, was flown on a U.S. Air Force F-16 Block 50 fighter aircraft at altitudes up to 50,000 feet. AARS was developed by BAE Systems Communication, Navigation, Identification and Reconnaissance (CNIR) business unit in Greenlawn, New York. It is a complete rear-real-time reconnaissance system that includes airborne image acquisition and solid-state storage, data linking, ground exploitation, moving target indication, and intelligence dissemination capabilities. The system can be deployed on a variety of military aircraft. AARS features multiple fields-of-view in a single sensor - the largest with a 120-inch focal length. The system provides either individual or simultaneous visible and infrared imaging, as well as manual or autonomous operation.  
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SAGEM has been contacted by ACAC (AVIC1 Commercial Aircraft Ltd) for the development and manufacturing of the flight deck control system of the ARJ-21 Chinese commercial aircraft. This contract represents a potential turnover of 200 million euros. The SAGEM flight deck control system will constitute the interface between the aircraft pilots and the fly-by-wire system. It will include all flight control subassemblies onboard the aircraft: columns, wheels, pedals and central console. The ARJ-21 will first be produced in two versions, a baseline aircraft with a seating capacity of 78 to 85 passengers and a stretched version covering a seating range of 78 to 105 passengers. A cargo and a .business jet versions will be developed later. The first flight tests will be conducted in 2005 and the first series produced deliveries will take place in 2007.  
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OLT GmbH, Germany has acquired a second 50-seater Saab 2000 for service between Finkenwerder (Hamburg area), Bremen, and Filton in the UK. “We selected the Saab 2000 because we consider it an outstanding aircraft. The 2000 offers our customers high speed operation and allows us to provide them with business class service and comfort levels,” said OLT President Gerd Weber. The second Saab 2000 will initially be operated between Filton-UK, Finkenwerder and Bremen for its customer, Airbus.  The Saab 2000 (an ex. SWISS aircraft) was delivered to OLT and placed into service in late August. OLT's fleet consists of one Saab 340A, two Saab 2000s and four Metros. The airline offers more than 65 flights per week mainly concentrated from its Bremen operational hub.  
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Saab Aircraft AB of Linkoping, Sweden and Embraer Aviation International of France have signed a long term agreement making Saab Aircraft an authorized service center for maintenance of the Embraer EMB 120, EMB 135, 140 and 145 aircraft types. “The Embraer service center authorization is a key milestone in our long term strategy to broaden the range of products and services that we are able to offer our current and future customers. Addition of other aircraft types to our existing Saab 340 and Saab 2000 maintenance capability is a logical next step.” Says Michael Andersson, Vice President of Saab Aircraft AB : “The fact that Embraer has the confidence to provide us with a factory authorization is a further acknowledgement of our MRO capabilities and the high levels of quality provided by our service center.” The service center authorization provides a factory approval for Saab Aircraft to perform line and heavy maintenance checks on Embraer EMB 120 Brasilia turboprop as well as the EMB 135, 140, and 145 jet aircraft. Saab Aircraft already holds a national JAR-145 approval.  
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