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UPDATE
Week ending 9 November 2003

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easyJet announces new base at Berlin Schönefeld +++ Critical decisions on Cosmic Vision +++ Spain comes aboard Tiger +++ Boeing 7E7 comes closer +++ TIPS gets more industry agreements +++ Boeing to convert MD-11s to freighters for Lufthansa Cargo +++ News in brief +++


easyJet announces new base at Berlin Schönefeld
Billigflieger etabliert sich in Berlin

Ray Webster, easyJet Chief Executive, announced that Berlin Schönefeld would be the airline's next European base. Speaking alongside the State Secretary Ministry of Transport, Tilo Braune, Ray said that easyJet will operate on 11 routes to six countries, with six aircraft operating in the German capital - either permanently based in Berlin or drawing from other bases.
Services will start from May 2004 and are already on sale at easyJet.com 1. Locally, some 300-400 direct jobs and hundreds more indirectly will be created by easyJet's activity.
The routes, all joining existing cities on the easyJet network, are London Luton, Liverpool, Bristol and Newcastle in the UK, Paris and Nice in France, Palma Majorca and Barcelona in Spain, Naples in Italy, Copenhagen in Denmark and Athens in Greece. One way fares including all taxes and charges will start at EUR 25, representing a huge saving for customers compared to the high fares charged by the traditional airlines. The first flight (Berlin - London Luton) will start on 1 May 2004 and all 11 routes will be launched by the end of June, representing a formidable ramp-up of activity in only two months.
Showing the importance of easyJet's announcement to the region, Ray and Herr Braune were accompanied by the CEO of Berlin International Airports, Dieter Johannsen-Roth, and two prominent politicians - Matthias Platzeck - Prime Minister of Land Brandenburg and Klaus Wowereit, Governing Mayor of Berlin. Ray Webster said: "We know a great deal about the German market following our analysis of Deutsche BA and it is clear that Berlin is already one of the most attractive inbound destinations in Europe. As the German economy returns to full strength and the European Union expands eastwards in 2004, Berlin is likely to be one of the major cultural and business growth markets of the future. With its large catchment, it will also be an important future origin market for easyJet. "This is a key step in the planned growth of easyJet and the fact that we can start 11 new routes using six aircraft by opening up a single new airport underlines why we put so much emphasis on network density and the joining-the-dots element of our growth strategy.

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Critical decisions on Cosmic Vision
ESA cancels Eddington mission

At its 105th meeting, on 5/6 November, ESA's Science Programme Committee (SPC) made important decisions concerning the Cosmic Vision programme. Due to the current financial exigencies and an outlook with no budget increase or other relief, the SPC was forced to cancel the Eddington mission and rescope the BepiColombo mission. Eddington had two aims, both remarkable and very pertinent to front-line astronomical interests. The first was to look for Earth-like planets outside our solar system - one of the key goals in the search to understand how life came to be, how it is that we live where we do in the universe and whether there are other potential life-supporting environments 'out there'. At the same time it was going to follow the path that the ESA-NASA mission SOHO had taken with the Sun of using astroseismology to look 'inside' stars. In the longer term, the loss of this one mission will not stop ESA and the scientific community pursuing the grand quests to which it would have contributed. The loss of the BepiColombo lander is also hard to take scientifically. ESA, in conjunction with the Japanese space agency, JAXA, will still put two orbiters around Mercury but the 'ground truth' provided by the lander is a big loss. However, to land on a planet so near the Sun is no small matter and was a bridge too far in present circumstances, and this chance for Europe to be first has probably been lost.
The origins of the problems were recognised at the ESA Council meeting held in June. Several sudden demands on finance occurred in the spring, the most obvious and public being the unforeseen Ariane 5 grounding in January, delaying the launches of Rosetta and Smart-1. A temporary loan of EUR 100 million was granted, but must be paid back out of present resources by the end of 2006. ESA's SPC was therefore caught in a vice. Immediate mission starts had to be severely limited and the overall envelope of the programme contained.
With this week's decisions, the SPC has brought the scope of the Cosmic Vision programme down to a level that necessarily reflects the financial conditions rather than the ambitions of the scientific community.

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Spain comes aboard Tiger
Tiger-Vertrag mit Spanien

German Federal Minister of Defence Dr. Peter Struck and his Spanish colleague, Dr. Federico Trillo Figueroa, have signed an agreement for the participation of Spain in the French-German Tiger program.  A comparable agreement has already been signed by the defense ministers of France and Spain.  With this agreement, the co-operation of the countries involved within the helicopter industry will be strengthened, and European arms co-operation will be extended by a significant project.  Germany and France will each receive 80 Tiger combat helicopters, while Spain plans the procurement of 24 helicopters.  Including Spain's participation, the financial volume for the entire program has now increased from 5.5 billion euros to approx. 6.8 billion Euros.

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Boeing 7E7 comes closer
Definition der 7E7 macht Fortschritte

The Boeing 7E7 Dreamliner program recently defined in broad terms the all-new passenger airplane's size and functionality, in so doing completing a major milestone known as "firm concept." In passing that milestone the 7E7 team turned its focus to more specifically defining the shape of various parts, structural capabilities of the airplane, and the way the flight controls will operate. "This is a significant technical accomplishment," said Mike Bair, senior vice president of the 7E7 program. "We are making solid design progress as we make the decisions that will allow us to bring this airplane into service in 2008."
A shorter-range version of the 7E7 has been added to the 7E7 family plan. The shorter-range 7E7 will be the same size as the baseline 7E7 but configured in single-class seating to accommodate about 300 passengers. It also will feature changes in the wing and landing gear to optimize its mission. The anticipated range for the short-range 7E7 is 3,500 nautical miles (6,500 kilometers). As part of ongoing airplane refinements, the team also revised the projected range of the baseline 7E7 to 7,800 nautical miles (14,500 kilometers) and the stretch 7E7's to 8,300 nautical miles (15,400 kilometers). "We've examined a number of different range capabilities in this general area for these airplanes," Bair said. "The changes have been fairly subtle, all around the 7,000 to 8,000 nautical mile area. The range may continue to change in the months ahead as we continue to learn more specifics about airline requirements."
Completing "firm concept" concludes the first exploratory round of wind tunnel tests and begins the first design cycle of wind tunnel test and design structural loads.
Another refinement to the 7E7 plan has been the rescheduling of an engine-supplier selection to mid-2004 from the end of this year. "The three engine manufacturers are showing tremendous cooperation as they evolve the technologies and engine designs for the 7E7 program," said Bair. "We believe enough improvement is being made that it is in the program's best interest to give the engine companies a few more months to evolve their offerings and put forth the best possible solutions. We have discussed this with the engine companies and all three agreed to continue their work on the program."
The 7E7's next major milestone is gaining authority to offer from the Boeing board of directors. That's expected to happen late this year or early in 2004. Other program milestones include initial customer commitments in mid-2004, firm configuration, expected in mid-2005; start of major assembly, planned for 2006; first flight, schedule in late 2007; certification in mid-2008; and first delivery, which will occur shortly after certification.

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TIPS gets more industry agreements
Neue Partner im TIPS-Konsortium

The Transatlantic Industrial Proposed Solution (TIPS) for the NATO alliance ground surveillance (AGS) program has successfully secured another two industry memoranda of understanding with the Czech Republic and Hungary industry associations in signing ceremonies on Nov. 3 and 4 respectively. This is another significant step toward the realization of transatlantic cooperation between the NATO member states as these memoranda of understanding demonstrate the increasing support and acceptance for the TIPS mixed fleet solution for the NATO AGS program, and underscore the TIPS commitment to industrial participation. The TIPS Industries are comprised of European Aeronautic Defence and Space Company (EADS), Galileo Avionica, General Dynamics Canada (GD Canada), Indra, Northrop Grumman and Thales.
Key members of Czech Republic industries including Jiri Hynek, president of the Association of the Defense Industry for the Czech Republic (AOP) met with TIPS industrial representatives in Prague for the symbolic ceremony on Nov. 3. At the meeting, which included high-ranking members representing different ministries, the Czech general staff and industry partners, Hynek expressed his gratitude to the TIPS Industries and expressed his enthusiasm for the future cooperation of 11 key industry players from the Czech Republic in the TIPS program. In addition, Hungary's industries met with TIPS industrial representatives on Nov. 4 in Budapest to sign a memorandum of understanding with the coordinating company for Hungary Industries, the MOD ED, located in Budapest. The presence and welcoming address of Mr. Zámbori Mihály, under secretary of state for the Defense Ministry and the National Armament Director, reinstated the importance of the occasion for the Hungarian government, TIPS Industries, and NATO commitments. Dr. Tamas Rath, director of the Hungarian Technology Institute, expressed his enthusiasm for the TIPS mixed fleet and the long-term cooperation between the two parties.

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Boeing to convert MD-11s to freighters for Lufthansa Cargo
Mehr MD-11 für LH Cargo

Boeing is helping Lufthansa Cargo improve its operational efficiency by converting five MD-11 passenger airplanes into freighters and updating them with features such as the flight deck and cargo-handling system so that they are consistent across Lufthansa Cargo's fleet. The conversions are part of the carrier's fleet-standardization plan. The MD-11s will replace 747-200s in the Lufthansa Cargo fleet and increase to 19 the number of MD-11s the carrier operates. Passenger to freighter modification involves primarily the removal of the passenger furnishings, installation of a side cargo door and installation of a cargo handling system. The work typically takes about four months. Boeing Commercial Aviation Services will provide detailed engineering design work and oversight of the Lufthansa Cargo conversions, with SASCO, a subsidiary of Singapore Technologies Aerospace, providing touch labor on the airplanes. Modification work will begin in June 2004. The first two airplanes will be redelivered to Lufthansa Cargo in mid-December of that year. Two more airplanes will be completed in January 2005, with the final to be complete in February 2005.

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NEWS IN BRIEF / KURZMELDUNGEN

The Raytheon-led CTAS-team (NATO AGS) has announced that Siemens Business Services, an international leading IT service provider, has joined the consortium in pursuit of a NATO contract that could exceed 3 billion Euros in value. Siemens adds strength to the CTAS campaign, said Richard R. Anderson, vice president for integrated airborne systems, Raytheon. Besides Siemens, Rheinmetall Defence Electronics and Atlas Electronik have also joined the CTAS team. “When we began CTAS, Germany was the country with the least representation. Now, it has a major part and will benefit accordingly”, said Robert A. Bushnell, director of business development for CTAS.
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US Air Force officials announced a compromise agreement regarding the KC-767A tanker lease initiative. This agreement enables the Air Force to begin recapitalization of the KC-135 aerial refueling tanker fleet by leasing the first 20 KC-767A aircraft starting in 2006. The initiative also provides for purchasing 80 additional aircraft delivered between 2008-2014, for a total of 100 new tankers. This agreement was forged in recent days through close consultations between Congress, Department of Defense and the Air Force. "While details remain to be finalized, this compromise achieves an appropriate balance between the need to begin tanker recapitalization and the hard fiscal realities of the budgeting process," said Dr. Marvin Sambur, assistant secretary of the Air Force for acquisition. The lease initiative enables the Air Force to begin replacing the KC-135E tanker fleet three years earlier than would otherwise be possible using a normal procurement schedule. With an average age of more than 43 years, E-model KC-135s make up the oldest weapon system in the Air Force inventory.
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A procurement order for two unmanned Foton capsule flights was recently signed at the European Space Agency's Moscow Office by ESA's Director of Human Spaceflight, Mr Jörg Feustel-Büechl, and Mr V.I. Kozlov, Head of the Automatic Vehicle and Ground Control Department at Rosaviakosmos. The outcome of a year of extensive negotiations, this order will cover the Foton-M2 and -M3 missions, which will have 660 kg of ESA-supplied scientific payloads onboard. The order binds ESA, Rosaviakosmos and two Russian partner companies (KBOM in Moscow, TsSKB-Progress in Samara) for at least the next three years, with a first launch scheduled for May 2005 and the second for autumn 2006. This will provide reflight opportunities for almost the entire experiment programme originally assigned to Foton-M1 but lost when that launch failed on 15 October 2002. It will also reinstate a substantial part of ESA's scientific objectives for the STS-107 mission unfulfilled following the Columbia Shuttle accident in February with the tragic loss of its crew, experiment samples and science/technology experiments.
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Raytheon has received a U.S. Navy contract for the first of a two-phase process to develop the Advanced Extremely High Frequency (AEHF) Multi-band Terminal (NMT), the Navy's most advanced satellite communication (SATCOM) system. The company's initial funding increment is $3.1 million; the program's total value is expected to be $1.6 billion. NMT's first phase launches with a 30-month development period, during which Raytheon will build AEHF SATCOM system prototypes. Raytheon will then test their prototypes against competition in a simulated "fly off" to determine final production award for the NMT system. More than 300 NMT systems are scheduled for production through 2010. NMT will address three U.S. Navy requirements-expansion of bandwidth availability, reduction of "top side real estate" and support to network-centric operations via FORCEnet. The use of multi-band terminals is designed to meet all three. NMT will replace several existing SATCOM communication terminals and antennas. Additional benefits to the Navy include increased ship stealth through decreased ship signature, or "footprint." The reduction of numbers of terminals and antennas will further serve to reduce life cycle costs.
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The members of Star Alliance have agreed to discuss a termination of the membership of Mexicana Airlines in the global alliance at the next regular Alliance Management Board meeting on November 13 in Frankfurt, Germany. The decision follows the official announcement of the termination of the bilateral relationship between United Airlines and Mexicana Airlines. In a joint statement, the members of the alliance “regret this development but do not see any other solution for the future of our business partnership. The combined strength of the Star Alliance membership will ensure that the international air travel market, and in particular Mexico, will remain well served by our team of high quality airlines.”
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EADS is strengthening its position in the prevailing challenging market conditions. Looking forward to an expected strong performance in the fourth quarter, EADS is able to confirm all full-year targets. It anticipates 2003 EBIT (Earnings before interest and taxes, pre-goodwill amortization and exceptionals) in the same range as 2002, at approximately Euro 1.4 billion, full-year revenues in a similar range as last year, and positive Free Cash Flow before customer financing outlays. In the first nine months, EBIT amounted to Euro 784 million (January to September 2002: Euro 1,013 million). This reflects an increase in Research and Development (R&D) of about Euro 200 million, in line with the EADS plans. All divisions but Airbus and Space enhanced their performance, mainly thanks to defence programmes. The EBIT improvement at the Aeronautics division was particularly strong, driven by the Tiger and NH90 programmes. EBIT of EADS headquarters includes better results from the Dassault Aviation consolidation. EBIT before R&D remained stable at about Euro 2.3 billion, despite restructuring costs at the EADS Space Division totalling Euro 88 million booked in the first nine months, and slower Airbus deliveries (199 aircraft compared to 219 in the 9-months comparison). Revenues from January to September 2003 amounted to Euro 18.5 billion (same period last year: Euro 20 billion).
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MTU Aero Engines has concluded the first series of Silencer tests. The new numerical code used in the tests produced results of best-ever integrity and precision. Under test was the acoustic emission of baseline compressor blades. In a second test block scheduled to begin in March of next year, the tests will focus on blades incorporating noise abatement features. Silencer is an EC-sponsored engine noise reduction technology program.  In partnership with the German Aerospace Center (DLR), MTU has developed new computational and analysis techniques enabling a much more detailed assessment of the noise radiated by engines and of the major sources of engine noise emissions. The new techniques come in time for use in the development of the GP7000, which is to power the Airbus A380 mega-transport, and in the concept phase of the engine to equip Boeing's proposed 7E7.  In the Silencer technology program, which is backed by funding from the European Union's Fifth Framework Research Program, MTU is Germany's major partner, cooperating closely with European aircraft and engine manufacturers, research institutions and academe. The program aims to validate noise-reduced blades in high-speed low-pressure compressors and turbines designed for use on geared turbofan engines. Long-term, over the next 15 years, the program is expected to halve subjective noise levels.  
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Following the success of the 7/8 scale Bell Eagle Eye Tiltrotor UAV (Unmanned Aerial Vehicle) prototype, Bell CEO Mike Redenbaugh has announced a major new effort to design, build and fly a new full scale Bell Eagle Eye by November 1, 2004. Speaking to a handpicked team of about 40 aerospace engineers and manufacturing and production experts, Mr. Redenbaugh said, “there is a strong worldwide interest in the Bell Eagle Eye and we owe it to our customers to develop this full scale prototype to demonstrate the full capacity of this great tiltrotor product.” Bell's Director of UAV Programs Robert Dompka explained that while the one-year to flight status goal is a challenge, “Bell has a great history of tackling ambitious projects with teams of dedicated employees; such as the great effort to produce the first Cobra attack helicopter back in the mid-1960s, and more recently the development of the Bell 407 commercial helicopter in less than one year.”
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The first wing for an A380, Airbus' new large double deck aircraft, successfully completed a key milestone in its production. The port wing for MSN001, the first flight test aircraft, was removed from its four-storey high main assembly jig at Airbus' factory in Broughton, North Wales (UK). It was then maneuvered through 90 degrees to be laid in a horizontal position for the first time.  At this stage this wing weighs around 30 tons - including flight test instrumentation. It measures over 45 meters along its leading edge, is 11 meters wide and nearly three meters deep at the root-end (where it ultimately attaches to the fuselage).  Workers began loading the major wing components – spars, ribs, skin panels and leading and trailing edges – into the assembly jigs in early June. For the last five months, a complex program of assembly of these and many smaller parts has been underway. This has included thorough testing and evaluation at each stage as the first wing has taken shape; culminating in the removal from the jig of the first wing-box, on schedule. The first A380 wing will now spend a week on a transportation 'raft' beside the assembly jig whilst detailed measurements and quality control checks are carried out. It will then be transferred to the next stage of assembly and placed in one of three dedicated two-storey bays in the new 'equipping' area. Here components such as hydraulic, pneumatic and fuel systems and wiring will be fitted. This stage will be followed by cleaning and anti-corrosion painting before a finished pair of wings is delivered from Broughton to the final assembly line in Toulouse, France in late Spring 2004.  Three sets of A380 wings are now in the main assembly jigs at Broughton – including a set of non-flying wings for static testing. The 'partner' of the wing removed yesterday - the starboard wing for MSN001 - is due for removal from the main jig before the end of this month.  
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Rockwell Collins has surpassed more than $1 billion in sales of AN/ARC-210 radios since its inception 10 years ago. With more than 14,000 radios fielded worldwide, the AN/ARC-210 has become the accepted standard for multi-band, multi-mode radios within all branches of the U.S. military. The radio is equipped on more than 135 military aircraft types worldwide. In both design and performance, the Collins AN/ARC-210 meets heightened requirements for effective, reliable and fully digital secure communications in both the tactical and air traffic control environment. The system can provide normal and secure two-way voice and data communications over the 30 to 400 MHz frequency ranges. Additionally, the radio provides 8.33 Khz channel spacing capability to increase the number of available air traffic control frequencies, and provides for growth to new very high frequency (VHF) data link modes.
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"International passenger traffic growth has given us cause for celebration. For the first time since February when SARS and Iraq so radically impacted our industry, we can write our monthly traffic figure with black ink," announced Giovanni Bisignani, IATA's Director General and CEO. Overall RPKs for September 2003 show a 1% improvement over results for same month of the previous year. Although small, this is a significant increment, as it confirms the steady traffic rise of the past three months. Robust growth in Europe (3.6%) and high growth in the Middle East (19.4%) contributed to this worldwide result. Although still reporting negative passenger figures in Asia-Pacific (-1.6%) and North America (-3.6%), both regions have shown good improvement over the previous month's results (respectively -4.6% and -6.5%). On the freight side, both FTKs and ATKs are recorded at 2.9% better than September 2002. A comparison of industry growth today with the period prior to the effects of 9/11, Iraq and SARS provides another view of industry recovery. Passenger traffic growth for Aug 2003 over Aug 2001 is down 4.2% on the 2001 results, whereas freight is a strong +14% above 2001 level.
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Rainer Hertrich, CEO of EADS, is calling for extensive competencies to be given to the planned European armaments agency.  “Our procurement policies for the armed forces in Europe need to be thoroughly europeanised. This is the only way that our tight resources can be pooled and therefore used more efficiently and effectively,” stated Hertrich on Tuesday at the 'Bundeswehr and Society' forum in Berlin. “The European armaments agency needs real political weight if it is to become more than just another EU authority.”  The establishment of a European Armaments, Research and Military Agency, which the European Council has planned for 2004, is a first but particularly important step towards greater integration within European security and defence policy. In Hertrich's opinion, the member states ought to be prepared to transfer their national procurement competencies to the new agency. “Only in this way will we be able to reduce the bureaucracy in our procurement procedures. The decisive criterion in ensuring political weight for the agency will be its own budget,” said Hertrich.  The agency must be tasked with preparing joint requirement profiles as well as with commissioning and coordinating research and development work, which would finally lead into joint procurement projects. According to Hertrich, who is also President of the German Aerospace Industries Association (BDLI), industry is ready to “cooperate constructively as a partner to the governments.”  
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Deutsche Lufthansa AG and KarstadtQuelle AG, as the shareholders of Thomas Cook AG, hereby give notice that Stefan Pichler and Norbert Kickum have resigned their posts as members of the Executive Board of Thomas Cook AG by mutual and amicable agreement with the shareholders and with immediate effect. The Supervisory Board of Thomas Cook AG has consequently appointed Peter Gerard as interim CEO and Dr. Karl-Ludwig Kley as interim CFO of Thomas Cook AG. Mr. Gerard and Dr. Kley will relinquish their positions on the Supervisory Board of Thomas Cook AG, but will remain members of the Executive Boards of their respective Group companies KarstadtQuelle AG and Deutsche Lufthansa AG.
Dr. Peter Fankhauser, member of the Executive Board of Thomas Cook AG responsible for Product, will also assume the post of interim Labour Director of Thomas Cook AG with immediate effect.
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Air India has approved the purchase of 18 Boeing 737-800 and 10 Airbus 340s to upgrade its aging fleet in a deal worth 2.21 billion dollars. The order needs final approval by the Indian cabinet. A company statement, issued on Saturday, said that the Air India board met in New Delhi under Civil Aviation Secretary K. Roy Paul and recommended the order estimated at 100 billion rupees (2.21 billion dollars).
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NASA recently selected candidate mission proposals that would study the universe, from Jupiter and the sun to black holes and dark matter. The proposals are candidates for missions in NASA's Explorer Program of lower cost, highly focused, rapid-development scientific spacecraft. Following detailed mission concept studies, NASA intends to select two of the mission proposals by fall 2004 for full development as Small Explorer (SMEX) missions. The two missions developed for flight will be launched in 2007 and 2008. NASA has also decided to fund as a "Mission of Opportunity" a balloon-borne experiment to detect high-energy neutrinos, ghostly particles that fill the universe. "The Small Explorer mission proposals we received show that the scientific community has a lot of innovative ideas on ways to study some of the most vexing questions in science, and to do it on a relatively small budget," said Dr. Ed Weiler, associate administrator for space science at NASA Headquarters, Washington. "It was difficult to select only a few from among the many great proposals we received, but I think the selected proposals have a great chance to really push back the frontiers of knowledge," he said.
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Bombardier Aerospace's CRJ700 will be the first 70-seat regional jet in the Asia/Pacific region with the delivery on October 31, 2003 of two Bombardier CRJ700 aircraft to Shandong Airlines of The People's Republic of China. Shandong Airlines, based at Jinan in Shandong Province, currently operates ten 50-passenger Bombardier CRJ200* regional jets, five of which were acquired from Bombardier and five of which are leased from General Electric Capital Aviation Services (GECAS). The Bombardier CRJ700 represents the first 70-seat regional jet to be certified by Chinese Aviation Authorities for operation in China.
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The U.S. Army Program Executive Office - Simulation, Training, and Instrumentation (PEO-STRI) has selected CAE USA to provide desktop trainers (DTTs) and a reconfigurable part-task trainer (PTT) for the MH-47G Chinook and MH-60K Black Hawk helicopters operated by the 160th Special Operations Aviation Regiment - Airborne. The initial delivery order, valued at approximately US$5 million, calls for CAE to design reconfigurable MH-47/MH-60 part-task and desktop trainers. CAE and the U.S. Army are currently in alpha contract negotiations on a delivery order for a MH-47G combat mission simulator (CMS) and a MH-60K CMS. If CAE is awarded these additional trainers, the total value is expected to be approximately US$85 million.
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The European aircraft manufacturer Airbus announced the participation of leading Japanese companies to the A330/A340 programs. This participation expands the strong industrial cooperation on the A380, with a huge opportunity for further collaborations.  Noël Forgeard, President and Chief Executive Officer of Airbus said: “We are very pleased to see these highly skilled and renowned companies join our long range program. The A330 and A340 are the technologically most advanced airliners currently in production, and proven winners with airlines around the world. Today's agreements are the continuation of the series started with the A380. We are progressing our collaboration talks with other Japanese companies and are confident that more and more will join the Airbus family”.  
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Northrop Grumman Corporation has been awarded a contract by the Defense Advanced Research Projects Agency (DARPA) to develop technologies and tools for predicting the near-term structural health and readiness of aircraft to carry out their missions. The Structural Integrity Prognosis System will give the U.S. military the ability to monitor the effect of the stresses and strains of flight operations, combat and environmental corrosives on structural aircraft components. It promises to reduce aircraft maintenance life cycle costs, increase crew safety and enhance aircraft availability. Northrop Grumman's $14.1 million contract could be worth up to $32 million if all options are exercised. It is one of the largest non-product related research and development contracts won by the Bethpage-based Airborne Early Warning and Electronic Warfare (AEW&EW) Systems business unit of the company's Integrated Systems sector.
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Bombardier Aerospace announced the appointment of Judith Moreton as the new Managing Director for Bombardier Flexjet Europe, which offers corporations and individuals access to business jet travel within Europe and beyond. Effective immediately, Mrs. Moreton is responsible for ensuring the continued growth of the company's Jet Membership programme along with overseeing its Skyjet Europe charter operations. She also assumes responsibility for Bombardier Flexjet Asia-Pacific, based in Hong Kong. Mrs. Moreton has over 20 years of aviation experience. She served as Operations Manager for Shell Aircraft for ten years, and was General Manager at Virgin Express for two years prior to joining Flexjet Europe in 2002.
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German Chancellor Gerhard Schröder visited the Jagdgeschwader 73 Steinhoff in Laage, close to Rostock on Monday, November 3, 2003.  Chancellor Schröder had the opportunity to sit in the Eurofighter cockpit and received a briefing on the aircraft's capabilities. This prompted him to state that Eurofighter will meet the requirements of the German Airforce for the future including participation in international missions.  Chancellor Schröder also stressed the fact that the Eurofighter is an aircraft for pilots and not just technology wizards. He was impressed by the commitment shown by the future Eurofighter pilots and the professional approach towards the re-structuring process of the Forces.  Laage will be the first Luftwaffe squadron to start flying operations with Eurofighter. In addition, this squadron will also host the training for all German Eurofighter pilots.  The first five Eurofighter aircraft have been delivered to the Air Force and are being used for training of the pilot instructors
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The U. S. Department of Defense, the Royal Air Force, the Italian Air Force and the Royal Australian Air Force have signed a contract with Lockheed Martin valued at approximately $20 million to collaborate on defining a C-130J avionics and hardware block upgrade program. With more than 100 C-130Js now in service worldwide, the operators are seeking to maximize the inherent potential of the aircraft. The C-130J is at the leading edge of transport aircraft technology, and as such, operators flying the aircraft want to be fully engaged in the spiral development of future capabilities. Known as Cooperative Systems and Software Upgrade Requirements Management (COSSURM), the three-year program will ensure that enhancements and upgrades to areas such as radio communications, aircraft diagnostics displays and collisionsystems will be shared across the user community. It is likely  that other C-130J operators will sign on to the COSSURM program as they receive their aircraft, and future customers will join COSSURM in turn.
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NASA has awarded a contract with a potential value of $145.1 million for support of International Space Station mission integration services to Barrios Technology, Inc. of Houston. The International Space Station Mission Integration Contract is among contracts being awarded as part of a restructuring of Station contracts seeking to consolidate work, increase efficiency, increase accountability, and transition the program's contract strategy from development and construction of hardware to orbital operations. Work under the contract will provide products and services that support mission planning, mission integration, mission operations, international partner integration, and Russian language and logistics services.
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Spanish carrier Air Europa has signed an order for four new Boeing 737-800 airplanes, for delivery in 2004, with an additional 11 737 orders on the horizon. The first four will be leased from ITOCHU AirLease, B.V. Air Europa, headquartered in Llucmajor, Mallorca, and operator of an all-Boeing fleet of 737s and 767s, will use the new airplanes within Spain and on intra-European routes. The four 737-800s will replace 737-400s.
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Bombardier announced the closing of the sale of its Military Aviation Services unit to L-3 Communications MAS (Canada) Inc., an affiliate of New York-based L-3 Communications Corporation and Canadian-based Spar Aerospace Limited.  The sale was closed for a total consideration of $87.4 million US. L-3's Canadian presence was established in 2001 when it purchased Spar Aerospace.  MAS was part of Bombardier's Defence Services business and was earmarked for divestiture as part of Bombardier's recapitalization program, announced on April 3, 2003. BMO Nesbitt Burns acted as Bombardier's financial advisors for this transaction.  
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“We are working on the assumption that, in the course of the expansion of the European Union into Eastern Europe in May 2004, the demand for direct flights from the capitals of the new member countries to West European cities will increase markedly. In addition to continuing to expand our transfer traffic passing through Vienna into and out of Central and Eastern Europe, we shall be making every effort to make active use of this foreseeable trend. In a first step, direct flights will be introduced from the Slovakian capital Bratislava to Brussels, Paris and London from May 2004 onwards. To continue building on our market leadership, we are examining other direct flights between key cities in Eastern and Western Europe.” The words of Vagn Soerensen, Chief Executive Officer of the Austrian Airlines Group, explaining the next step in the ongoing profiling of Austrian as the Eastern Europe specialist operating across the Continent.  From May 2004 onwards the Austrian Airlines Group will fly from the Slovakian capital to the cities of Brussels, Paris and London on a daily basis, initially using one Boeing 737 based in Bratislava. The Slovakian aviation market is distinguished by its high growth potential. Passenger volume at Bratislava Airport, for instance, rose by 25.5 % from 2001 to 2002, to around 370,000 passengers. The new direct connections to be introduced into the flight programme by the Austrian Airlines Group next May are the highest-volume routes from Slovakia.
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The Export Credits Guarantee Department (ECGD) is supporting its first Airbus aircraft financing deal with Russia's Aeroflot which will begin with the purchase of four A319 aircraft as part of a 18-strong order.  ECGD, the UK's official export credit agency, is providing an export credit guarantee on a $24 million (£18.5 million GBP) bank loan to Aeroflot which it will use to finance the contract worth approximately $170 million (£114 million GBP) under the initial four aircraft deal.  ECGD's support for the contract will cover the parts of the aircraft manufactured in the UK - i.e. the wings which are manufactured at Airbus UK's Broughton facility in North Wales.  Mike O'Brien, the Minister for Trade, said: “I am extremely pleased that Airbus has managed to break into a new market that has traditionally bought aircraft from its competitors. “The European Airbus consortium has been able to win this important business in a competitive global market place with the support of ECGD,” he added.  
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EADS, the global number two in aerospace and defense, is committed to further strengthening its high level of research and development.  In opening remarks at the 2003 EADS Technology Forum being staged at the company's Corporate Research Centre at Suresnes near Paris, Philippe Camus, CEO of EADS, showcased the role that innovation and R&D has played in the transformation of the company since its formation just three years ago in 2000. “The best companies will succeed only when they embrace a culture of continuous and all-encompassing innovation,” he said. “This means a willingness to be daring in the application of advanced technology, design and engineering.”  The annual seminar is being attended by over 100 participants, including 70 business and technology journalists from 15 countries around the world, and involves presentations on technological advances across all EADS's spheres of businesses in commercial aviation, helicopters, military aircraft, missiles, space and defense electronics. Mr. Camus drew attention to the financial nature of EADS's commitment, referring to the 17 percent of total revenues invested in R&D in 2002. He then forecast a total of 2.3 billion euros self-financed investment in R&D within EADS in 2003, which reaches a new peak for the company. The R&D investment of EADS is substantially higher than that of its closest competitors.  
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South Korea has developed the world's largest balloon-type electric motor-propelled unmanned aerial vehicle (UAV).  According to the Ministry of Commerce, Industry and Energy (MOCIE) on Thursday (Nov. 6), the 50-meter-tall vehicle is also the first with the ability to fly 5 kilometers above the ground.  “The aerial vehicle, which weighs 2.8 tons, is equipped with an electric motor that is powered by a gas turbine electricity generator,” said MOCIE director Kim Dong-soo.  “It has been developed as a test bed for securing the technology to build a 200-meter-long UAV that could travel in the stratosphere,” Kim added. He said the vehicle is equipped with cutting-edge automatic aviation technology.  He said the three-phase national project would be completed by 2010. Phase two will begin later this year and will be completed in 2007.  The government launched the stratospheric aircraft development project in 2000 with the aim of commercializing the technology by 2010. The UAV is to be used as a next-generation telecom signal relay station as well as for climate observation.  
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The Defence Materiel Organisation and the Royal Australian Navy today achieved a significant milestone in the Super Seasprite project, with the maritime helicopter successfully making its first ever landing on the deck of an Australian warship. The Super Seasprite landed onboard the ANZAC class frigate HMAS WARRAMUNGA at Garden Island in Sydney this morning to commence shipboard trials which include landing, lash-down and stowage procedures onboard the ANZAC class warships. This was a long-anticipated event in the $1,014.6 million project and was an important step forward. Defence provisionally accepted the first of the 11 Super Seasprite helicopters for testing, evaluation and training at HMAS ALBATROSS in Nowra on the 18th October.
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India Sunday successfully tested a supersonic cruise anti-ship missile, it is jointly developing with Russia, from a launch site in the eastern state of Orissa, defence officials said. The Brahmos missile has a range of 300 kilometres (186 miles) and can carry a 200-kilogramme (440-pound) conventional warhead. It was first test-fired in June 2001.
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Royal Air Maroc entered a new era with the delivery of its first Airbus aircraft in Hamburg, an A321, thus joining the European manufacturer's worldwide customer base of some 200 customers and operators. The aircraft is the first of four single-aisle A321s firmly ordered by the Moroccan national carrier from Airbus in June 2001. The second A321 will be delivered to Royal Air Maroc in a few weeks. All aircraft will be powered by CFM56-5B engines from CFM International. Royal Air Maroc will use the A321 on its medium haul high density routes such as Casablanca-Paris. The A321, the largest member of Airbus' highly successful A320 Family, is the preferred aircraft of airlines with a strong customer base of tourist travellers. In the spacious layout selected by Royal Air Maroc, the A321 will seat 177 passengers and up to 198 in high season.
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During the first nine months of 2003, a period characterised by numerous geopolitical crises and a lasting intensification in competitive pressure, the Austrian Airlines Group used effective management to achieve a result from operating activities (EBIT) of EUR minus 7.5m. The profit before tax was EUR –19.0m, compared to EUR 35.6m in the third quarter of last year. For the full year, the result from operating activities (EBIT) is forecast to break even. Due in particular to the effects of the crises in the early months of the year, the passenger volume of the Austrian Airlines Group for January-September 2003 fell by 5.9 % to 6,441,304 passengers carried.
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The Indian airline Jet Airways is one of the major customers of Lufthansa Technik in Asia with its fleet of 42 aircraft. In the next seven years, Lufthansa Technik will assume responsibility for the component maintenance for the successful private airline's Boeing 737 fleet consisting of six 737-400 and twenty-seven 737 Next Generation aircraft.
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*November 2, 2003

*October 26, 2003 *October 19, 2003 *October 12, 2003 *October 5, 2003

*September 28, 2003 *September 21, 2003 *September 14, 2003 *September 7, 2003

*August 31, 2003 *August 17, 2003 *August 10, 2003 *August 3, 2003

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

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