FLUG REVUE update: Week ending February 22, 2004

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UPDATE
Week ending 22 February 2004

+++ Embraer 170 certified +++ Italy gets first Eurofighter +++ Austrian Technics is EASA “Design Organisation” +++ Shuttle to fly again in 2005 +++ Europe checks US space plans +++ News in brief +++

Embraer 170 certified
Zulassung für Embraer 170

On 19 February, Embraer announced that it has been granted final type and production certification for the Embraer 170 airliner from the Brazilian Centro Tecnico Aerospacial (CTA). A letter of recommendation from the European Joint Aviation Authorities (JAA) and issuance of a final type certification by the U.S. Federal Aviation Administration (FAA) will follow shortly. Embraer also expects the newly established European Aviation Safety Agency (EASA) to issue its type certificate for the Embraer 170 early next week.
Awarding of final type certification for the Embraer 170 paves the way for the first deliveries and allows the aircraft to enter revenue service. Embraer expects deliveries to LOT Polish Airlines, Alitalia and U.S. Airways to begin shortly. “We are very glad that the Embraer 170 is soon to enter revenue service in key European and U.S. markets, where we believe its attractive economics and high levels of comfort will please both airlines and passengers,” said Antonio Luiz Pizarro Manso, Embraer Executive Vice-President Corporate & CFO.
The flight test program involved six prototypes and one production aircraft used for reliability testing. An additional 250 tests were conducted in laboratories and ground test simulators. “The simultaneous CTA, JAA and FAA's certification processes were an indication of the close cooperation between Embraer and the authorities in the application of harmonized certification requirements. Embraer congratulates the authorities, its partners and its workforce on this great achievement,” said Luis Carlos Affonso, Senior Vice-President, Engineering and New Product Development. The Embraer 170 is the first of a four-member jet family to be granted final type certification from Brazilian, European and U.S. aerospace agencies. The Embraer 175 should be next, with its final certification expected in the fourth quarter of 2004, followed by the Embraer 190 in the third quarter of 2005, and the Embraer 195 in the second quarter of 2006. The Embraer 170/190 family has attracted 245 firm orders and 305 options from Air Caraibes, Alitalia, Cirrus, GECAS, JetBlue, LOT, Swiss and U.S. Airways.

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Italy gets first Eurofighter
Eurofighter an Italien geliefert

The first Eurofighter “Typhoon” aircraft was delivered 20 February 2004 to Cameri Air Base after Italian Air Force and Alenia Aeronautica concluded the necessary acceptance procedures. The Base Aircraft Maintenance Wing will use the jet for the initial training of Air Force personnel. The Typhoon, a two-seat aircraft called IT001, is the first of 121 Eurofighter's to be delivered to Italian Air Force, while Grosseto AFB, home of 4th FW, will shortly receive the second jet (IT002).Eurofighter, developed and produced in Italy by Alenia Aeronautica (aircraft) and Avio S.p.A. (engine), is an air superiority fighter aircraft that will replace the F-104 Starfighter in the air defence of national airspace. The aircraft, capable also of performing air-to-ground mission, can be air-refuelled, and carries last generation radar, weapon and avionics. The production of Eurofighter has been planned for 620 aircraft: United Kingdom (232), Germany (180), Italy (121) and Spain (87). In addition, the aircraft has been ordered by Austrian Air Force, has been selected by Greece and down-selected by Singapore.

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Austrian Technics is EASA “Design Organisation”
Zulassungs-Premiere für Austrian Technics

The European Aviation Safety Agency or EASA, an official body of the European Union, has officially certified the Austrian Technics Organisation as a “Design Organisation”. This certificate of competence confirms that the holder fulfils all the prerequisites to make changes and modifications in and on the aircraft. After eighteen months of lead time, when the appropriate training has been carried out and the organisational prerequisites created for certification, Austrian Technics has now been officially recognised as the first “Design Organisation” of EASA in Europe. The prestigious certificate – no. 001 – was presented by the Director of EASA, Patrick Goudou, at a ceremony held on 5 February in Vienna. Dr. Walter Bock, Chief Operations Officer at the Austrian Airlines Group, made the following statement at the presentation of the certificate: “It has required an enormous amount of knowhow and understanding of aircraft technology and maintenance for this authorisation to be granted. Our Austrian Technics Division unites decades of such experience with modern design competence.”
Essentially, modifications to the aircraft (in the cabin, for example) or repair work may only be made within the scope of the respective regulations defined by the manufacturer. Until now, if a repair has not been defined in the regulations, it has been necessary to request additional authorisation from the manufacturer or national aviation authority. This method compromised flexibility and produced higher costs and longer idle times for aircraft. he EASA is a new agency of the EU, founded in September 2003, with responsibility for regulatory tasks in the specific area of safety in civil aviation.

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Shuttle to fly again in 2005
Raumfähre fliegt erst wieder 2005

Members of NASA's Space Flight Leadership Council, which is charged with the oversight of the agency's Return to Flight efforts, today moved the target window for the next flight of the Space Shuttle to March 2005. The decision was made at NASA's Johnson Space Center in Houston after an extensive review of activities surrounding plans to return the orbiter fleet to safe flight. The council also decided that the Space Shuttle Discovery will carry Commander Eileen Collins and a six-person crew into orbit for the Return to Flight mission, which is designated as STS-114. Several issues factored into the decision to adjust the planning window for the mission. More time is needed to: assess the condition of the Rudder Speed Brake Actuators on the Shuttle orbiters; research, analyze and test a larger area of the Space Shuttle's external fuel tank for potential foam insulation loss; and design and build a new camera/laser boom that would be used by the Space Shuttle's robotic arm to help inspect for possible damage while in orbit.
The new STS-114 launch-planning window, which extends from March 6 to April 18, is designed to focus the efforts of Space Shuttle employees working toward Return to Flight. "We've said for months that we'd be driven by milestones, not a calendar. When we successfully reach those milestones, that's when the Space Shuttle will return to safe flight," Readdy said. "The reports we got from the Space Shuttle Program today indicate to us we need to change the launch planning window for STS-114. This decision reflects our commitment to taking the time we need to make the Space Shuttle safer."

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Europe checks US space plans
EU/ESA prüft Raumfahrtpläne

A new committee created by the European Commission and the European Space Agency (ESA) is to examine the consequences of the recently announced US space strategy for Europe, it was announced on 16 February. The joint EU-ESA evaluation group was announced by EU Research Commissioner Philippe Busquin and ESA Director General Jean-Jacques Dordain as they spoke to the media about Europe's reaction to the new US space strategy. Mr. Dordain highlighted the “many positive elements” in the 14 January speech by American President George Bush, which contained plans for a new space exploration program for “human missions to Mars and to worlds beyond.” For example, Mr. Bush reiterated a commitment to international cooperation, saying “the vision I outline today is a journey, not a race, and I call on other nations to join us on this journey, in a spirit of cooperation and friendship.”
One of the consequences of the US strategy which is likely to affect Europe relates to the International Space Station (ISS). “We need to look at how the ISS will be used. Bush would like to see a reorientation towards exploration research,” said Mr. Dordain. Another aspect to be considered is how the timescale foreseen by Mr. Bush, which includes the development of a crew exploration vehicle by 2008, will affect Europe's work in related fields. Mr. Dordain emphasized that while Europe's space community will assess how the new US priorities should affect those of Europe, “Europe will keep its right to do what it wants” in terms of space activities. He conceded that in terms of human missions, Europe is reliant upon the US as Europe is unable to transport crews, but that this is not the case for all space activities.
The ESA Director General was keen to point out that Europe is a very capable partner in space, and is not being left behind. ESA has had huge success recently with Mars Express, and has been in a position to offer data obtained by the orbiter to non-European countries. Moreover, the fact that ESA recently took over the command of the US Mars rover Spirit for pre-arranged period illustrates the extent to which other countries have confidence in Europe as a space power. Mars Express was used to transfer commands from Earth to the rover, and relayed data from the rover back to Earth, demonstrating the interoperability of the ESA and NASA systems.

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NEWS IN BRIEF / KURZMELDUNGEN

The Chief Executive Officer of the Austrian Airlines Group, Vagn Soerensen, has made the following statement on the forecast results: “The year 2003 was an extremely hard one for the aviation industry, especially the first six months of the year. However, due to our innovations and marketing offensives, efficient cost management and readiness to change structures that have been in place for many years in an effort to design a more powerful production base, we have been successfully turned around the negative trend. The momentum of the market recovery, which really began to gather pace in the final third of the year, and the more favourable euro/dollar exchange rate enabled us to even exceed the overall result for 2002. We have now achieved another part of the turnaround of our group. From now on, we will strive to make permanent improvements and considerably strengthen our customer orientation Chief Financial Officer Thomas Kleibl made the following comment on the financial situation of the Austrian Airlines Group: “Although we have implemented a continuous programme of investment in the past two years, we have succeeded in bringing down our interest-bearing liabilities by more than EUR 800m to date. As a result we have been able to strengthen the ability of the group to withstand crises further still. We are more than ready to face the coming challenges in the industry!” The result for earnings before interest and tax (EBIT) is expected to reach plus EUR 63.4m, a full EUR 22m up on the previous year. The EBIT before exceptionals, at EUR 4.2m, is also firmly in the black. The result for earnings before interest, tax, depreciations and rent (EBITDAR) is estimated to total EUR 420.8m, around EUR 42.5m less than the comparison figure for the 2002 business year. After the result for finances and participations of EUR 37.7m is deducted, the forecast profit before tax is plus EUR 25.7m.
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The Canadian Air Force is lifting a flight restriction on its fleet of 15 CH-149 Cormorant search and rescue helicopters that temporarily limited the aircraft to search and rescue operations only, following modifications to an engine fuel supply line. The individual CH-149 Cormorant aircraft will be able to be used for training flights as soon as they are modified. The flight restriction meant that the Cormorants could only be flown for actual search and rescue missions: no training flights could be conducted until aircraft modifications were completed. The fuel lines on all 15 Cormorants were inspected and no further defective lines were found. An over-sized Viton sleeve is fitted over the aircraft fuel lines to reduce the possibility of fuel being sprayed inside the engine compartment until new, re-engineered fuel lines can be produced and installed on all three engines of the aircraft to completely eliminate the problem.
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CHC Helicopter Corporation announced that it has closed its previously announced acquisition of 100 per cent of Schreiner Aviation Group of Hoofddorp, the Netherlands, for a cash payment of 83 million euros (CDN $140 million), including the outstanding debt of Schreiner. The acquisition was financed by a euro facility provided by the Bank of Nova Scotia through an amendment of the Company's existing senior credit facilities. Schreiner operates a worldwide fleet of approximately 50 aircraft, providing helicopter and fixed wing aviation services primarily to the offshore oil and gas industry in Europe, Africa and Asia. Schreiner's annual revenues are approximately (euro) 100 million (CDN $169 million). CHC Helicopter Corporation, is the world's largest provider of helicopter services to the global offshore oil and gas industry, with aircraft operating in 30 countries and a team of approximately 3,400 professionals worldwide.
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Austrian Airlines received its first Airbus A319. The aircraft will join the carrier's current Airbus single-aisle fleet, consisting of eight A320s and six A321s. In total Austrian Airlines has ordered seven A319s. This new aircraft will be the first reflecting the airline's new corporate identity with a new livery, new interior colours and new seats.
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Frankfurt Airport (FRA) has been ranked as the best large airport in the world in the 2003 Global Airport Passenger Satisfaction Study, conducted by the internationally renowned J.D. Power and Associates marketing information company. In this latest study, J.D. Power reported that “Frankfurt Airport ranks highest in passenger satisfaction among large airports – those with 30 million passengers or more per year – performing particularly well in the factors pertaining to getting to the terminal, leaving the airport, and baggage claim.” Passengers evaluated airports on nine different factors: getting to the terminal, leaving the airport, check-in process, baggage claim, airport terminal facilities, security check, gate areas, concessions (retailing), and immigration/customs control. Frankfurt Airport achieved an overall passenger satisfaction index score of 660 (based on a 1,000-point scale), well above the “large airport average” of 612. Three U.S. airports followed FRA in the rankings: Denver (DEN), Minneapolis/St. Paul (MSP) and Las Vegas (LAS). Amsterdam-Schiphol (AMS), in fifth place, was the only other European airport ranked in the top 10. Other European airports ranking below the “large airport average” included London-Gatwick (LGW), London-Heathrow (LHR), Madrid Barajas (MAD) and Paris-Charles de Gaulle (CDG). Based on more than 12,000 responses from passengers around the world, the 2003 Global Airport Passenger Satisfaction Study was conducted in seven languages between September and October 2003. The study measured passenger satisfaction at 61 airports worldwide.
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At a time of tight budgetary restraints in the research field, the French government has confirmed it is giving the Centre National d'Etudes Spatiales (CNES), the public body responsible for space technology, an annual one per cent increase in budget for both 2004 and 2005. 'The mastery of space is of the utmost strategic importance' declared Jacques Chirac, the French President. CNES will see its budget rise from 667.5 million euro in 2003 to 676 million euro in 2004, and 682 million euro in 2005. Furthermore, the French contribution to the European Space Agency (ESA) budget will rise to 685 million euro per year, compared to 640 million in 2003, with the promise of maintaining this level until 2009. '2004 is the year of our newfound ambition' explained Yannick d'Escatha, president of CNES. 'Once again the CNES is taking its destiny in its own hands. Our objective is to retain our position as European leader by putting our expertise at the service of the European space policy.'
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Before an enthusiastic crowd of Cessna team members, government officials, and aviation representatives, Cessna Aircraft Company's President and CEO Jack J. Pelton announced that Cessna's newest business jet, the Citation Mustang, will be assembled in Independence, Kansas. “This is an important day for Cessna and Kansas,” said Pelton. “Nearly eight years ago we dedicated this facility with the revival of our new single engine piston aircraft product line. Today, we're excited to announce that a new era of business jets will be built in Independence. “We thoroughly analyzed all aspects related to building the Mustang at all current facilities. The Wichita and Independence facilities were the two final choices. Both facilities have excess capacity, a dedicated workforce, and a good partnership with the community. And, they both have a reputation for building quality products. With over 200 orders already taken, Cessna anticipates Citation Mustang deliveries to be higher than any other Citation model. When the Mustang reaches full production, Cessna expects to have increased its Independence workforce by approximately 500. Currently, Cessna employs approximately 350 people in Independence.
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Cessna's first Citation CJ3 manufactured on the production line rolled out the door today at its Wichita, Kansas, production facility. Announced at the 2002 National Business Aviation Association (NBAA) convention, the CJ3 has remained on schedule and is positioned for type certification in mid-2004. Certification flight-testing for the CJ3 has reached over 567.8 hours in 345 flights. Cessna recently finished induced icing development and certification flights, and has begun flights in natural icing. The CJ3 airframe undergoing static testing has successfully completed over 200 certified test conditions. Of those tests, one of the most significant was the ultimate load test. One of the major tests nearing completion is on the landing gear. So far, Cessna has achieved 105,000 hours out of the scheduled 120,000 hours, or five life cycles, on the landing gear test article.
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As announced by the Minister of Defence on Feb. 2, the French defence procurement agency (Delegation Generale de l'Armement, DGA) on Feb. 17 awarded a contract for the development on the F3 standard of the Rafale combat aircraft. The contract, worth 659 million euros, was awarded to Dassault Aviation, Thales, MBDA and Sagem. The award covers all development work necessary to allow the operational deployment of the first squadron of nuclear-capable Rafale strike aircraft in 2008, as set out in the operational schedule appended to the current long-term defense blueprint. The F3 standard will also expand the operational capabilities of Rafale aircraft already in service with the French air force and navy by making them capable of firing air-launched ground attack weapons such as the Air-Sol Moyenne Portee – Ameliore (ASMP-A) nuclear stand-off missile and the AM-39 Exocet anti-ship missile. Additionally, the aircraft will also be able to operate new-generation reconnaissance systems now in development.
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A rising worldwide demand for new military helicopters, combined with large-scale U.S. re-engining requirements, will propel an otherwise flat turboshaft engine market to higher levels during the coming decade, according to a Forecast International market analysis. “The Market for Aviation Turboshaft Engines: 2004-2013” points to several key U.S. military programs that will drive production of current-technology turboshaft engines; it also describes emerging military requirements mandating new and more efficient powerplant designs. The demand for military turboshaft engines is expected to rise significantly over the course of the forecast period as a number of U.S. helicopter programs gain momentum. Military turboshaft deliveries will increase from 776 in 2004 to more than 1,200 in 2009, and will remain near that level through the end of the forecast period. Civilian helicopter production, according to the report, will continue to require about 900 turboshaft engines per year over the next six to seven years. Recent U.S. military helicopter operations in high-elevation regions have highlighted the need for more powerful engines, and a long-term effort to re-engine several hundred U.S. Army UH-60 Black Hawks is intended to address that need. Even more powerful replacement engines are expected as a result of the Army's Improved Turbine Engine Program (ITEP), which ultimately could yield a common powerplant for Black Hawks and AH-64 Apaches. Under the auspices of ITEP and similar programs, engine-builders have been striving to develop more durable and economical turboshaft engines to power those helicopters and their successors. Forecast International projects that 19,719 turboshaft engines, including 8,793 civil and 10,926 military engines, will be delivered in the 2004-2013 period. These engines will have a total value at $10.6 billion in 2004 U.S. dollars, including $7.5 billion in military sales.
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Honda Motor Co., Ltd. and General Electric Co. (GE) announced the formation of a strategic alliance to produce a new jet engine for light business jets. The basic agreement was signed today at Honda Motor headquarters in Tokyo, Japan, by Takeo Fukui, President and CEO of Honda Motor, and David Calhoun, President and CEO of GE Transportation, a business unit of GE. GE is headquartered in Fairfield, Connecticut, USA. The agreement establishes the framework under which Honda and GE will further develop and certify Honda's new HF118 turbofan jet engine. Honda launched its jet engine and aircraft project in 1986, and has been developing the lightweight HF118 engine, in the 1,000- to 3,500-pound thrust class, since 1999. The HF118 has run more than 1,400 hours, including ground tests and more than 200 hours in flight tests on an existing test aircraft. In addition, two HF118 engines have powered Honda's new experimental compact business jet, the HondaJet, in flight tests that began in December 2003.
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Lockheed Martin awarded a $87.4 million contract for two CN-235-300M Medium Range Maritime Patrol Aircraft to European Aeronautic Defence and Space Company (EADS), in support of the U.S. Coast Guard's Integrated Deepwater System program. The CN-235 will support the U.S. Coast Guard's maritime patrol mission by replacing older and less capable aircraft. With a 2,000 nautical mile range and 10-hour flight endurance, the CN-235 is capable of surveillance, search, rescue and transport duties. The CN-235 was selected after a comprehensive review of the global aircraft market, based on specific U.S. Coast Guard operational effectiveness and total ownership cost requirements. The CN-235 is manufactured by EADS CASA in Spain. This contract includes development, manufacture and testing of two CN-235 aircraft, with a $4.15 million option for spares and integrated lifetime support, and an option for six additional aircraft. Final mission integration will be completed in the U.S.
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FLORAKO, the new air defence ground environment of the air force, has been put into operation at the beginning of February. After the completion of tests and a simultaneous operation with the old FLORIDA system FLORAKO has been successfully put into operation on 2 February 2004. FLORAKO is a completely new system, replacing the surveillance radars, air situation computers and operations centers in use so far. The new air situation computers, so-called multi radar trackers, establish a common air situation of military and civilian flight data. This provides the air force and Skyguide, re-sponsible for military air traffic control, with a modern air surveillance system meeting the increased requirements of civilian and military air traffic. The first subsystems went into service last year. And now, by now putting into operation the main system, the most important milestone during the procurement of this extensive and complex electronic system could reached on time and within budgetary limits. Fur-ther development steps will follow. FLORAKO was approved with Armament Programs 1998/1999. The procurement of the system amounts to 728 million Swiss francs; building costs are estimated at 95 million Swiss francs
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With immediate effect Eurowings assigns the management of its warehouses to Lufthansa Technik Logistik (LTL). Last October 1200 part numbers were transferred from the previous Eurowings warehouse in Duesseldorf to the warehouses of LTL. In January/February the big move is now in progress: LTL is organizing the stock transfer of 5500 part numbers that have to be transferred from the Eurowing warehouses in Dortmund to the new warehouse site in Duesseldorf. To ensure the smooth handling of the transport and the entry of the goods into the new warehouse, a team of 10 LTL logistics experts will assist the Eurowings staff.
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Sikorsky Aircraft has delivered a specially-modified Sikorsky H-92 helicopter to the U.S. government team evaluating alternatives for the next generation Presidential helicopter. The Sikorsky demonstrator aircraft incorporates many unique features that highlight the H-92's world-class VIP performance, comfort, and systems capabilities, Sikorsky said. This gives powerful evidence of the skills and resources that Sikorsky and its all-American teammates can assemble to provide the safest, most comfortable, and highest performance VIP transport available anywhere.
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European entrepreneurs with innovative ideas now have help in getting their businesses started, thanks to a recent ESA initiative called the European Space Incubator. Its goal is to stimulate and promote new venturing as a means to transfer space technology or use space systems in non-space markets. “Having an innovative idea is one thing, but getting it to work in the marketplace is another,” says European Space Incubator (ESI) Manager, Bruno Naulais. “ESI can bridge the gap between having an idea and putting it into practice by helping entrepreneurs draw up a business plan and carry out a feasibility study on the technology to be used”. ESI provides European entrepreneurs with a complete package of all they need through the initial and very challenging development period. This includes seed funding, office space, technology expertise, management support, networking and legal services.
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Bratislava, Canton, Charlotte, Cracow, Danzig, Kuala Lumpur, Lille, Poznan, Tallinn and Tirana - those are the new destinations in the Lufthansa summer timetable 2004, which will be valid as of 28th March 2004. Lufthansa passengers can look forward not only to these new destinations, but also to the increased offers to numerous other destinations. Overall, Lufthansa passengers have a choice between 175 destinations in 75 countries. Together with the code-share flights of the partner airlines, as many as 344 destinations in 91 countries will be offered under Lufthansa flight numbers this summer. According to the current state of planning, in comparison to the summer timetable 2003, in continental traffic there are indications of moderate growth in the lower single-figure percent range. The intercontinental traffic was seriously affected last year by the capacity reductions as a consequence of the Iraq war and the SARS crisis. As a result of the revival effects as well as the use of larger aircraft such as, for example, the A340-600, this summer in the intercontinental area there will be growth of around 18 percent.
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Fraport AG regrets that the members of the SFK Accident Commission did not take the time to review thoroughly the opinion of the Airport Working Group. There is sufficient cause and reason for such a review. Serious flaws and discrepancies regarding the opinion of the Accident Commission persist and important questions raised by Fraport AG remain unanswered by the commission. In this context, Fraport AG refers to its letter of February 10 and also to the expert opinions of TÜV Pfalz and TÜV Hessen (the technical inspection agencies of the State of Rhineland-Palatinate and the State of Hesse). Both of these expert opinions confirm the compatibility of a new northwest landing runway and the Ticona chemical plant, if specific measures are implemented. Fraport AG will initiate a detailed scientific review of the SFK Accident Commission's opinion and argumentation. Based on all available findings and expert opinions, the Hesse Ministry of Economics, Transportation and State Development – the responsible approval authority – will make a final assessment of the SFK Accident Commission's opinion.
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Dassault Aviations consolidated orders taken in 2003 amounted to 2.42 billion euros. The fall in relation to 2002 was due to the situation in the business jet market, only 40 FALCON jets were ordered. Consolidated 2003 sales amounted to 3.3 billion euros. A balance has been found between civil (51%) and military (49%) activities. Consolidated operating profit amounted to 405 million euros. It accounts for 12.3% of consolidated sales. Consolidated net profit (Group profit and Group's share) amounted to 295 million euros. It accounts for 8.9% of consolidated sales. Consolidated net profit per share is 29.1 euros.
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Schweizer has been awarded a contract to manufacture five Model 333 helicopters for Mexico. The helicopters, all slated for delivery in 2004, will be delivered to the Mexican Procuraduria General de la República (PGR), Agencia General de Investigación (AFI). The new 333's will perform airborne law enforcement and surveillance missions including border patrol, drug enforcement and interdiction. Paul Schweizer stated, “The 333 was selected over its competitors because of the helicopter's outstanding performance in the airborne patrol role. Every day 333 helicopters fly critical missions with law enforcement and military groups. A combination of exceptional performance, rugged dependability, and low direct operating costs make the 333 the ideal aircraft for border patrol and law enforcement missions.”
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