FLUG REVUE update: Week ending March 21, 2004

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UPDATE
Week ending 21 March 2004

+++ Embraer 190 flies +++ GlobalFlyer flies +++ Austria takes Swiss Tigers +++ EADS profits up +++ Lufthansa operates A330-300 +++ Boeing 777-300ER certified +++ Helicopter sales outlook unveiled +++ Swiss CEO Dosé leaves +++ News in brief +++

Embraer 190 flies
Erstflug des Regionaljets Embraer 190

On March 12, Embraer announced the maiden flight of the Embraer 190, the third member of a family of new-generation commercial jets specifically designed for the untapped 70- to 110-seat market. The first flight marked the beginning of the Embraer 190's flight test campaign, which will be conducted at Gavião Peixoto, in the interior of São Paulo state. The Embraer 190, serial number 0001, took off from the company's São José dos Campos facility at 10.30 am (local time). In its 2.45-hour mission, the new aircraft successfully performed a range of systems validation tests and started the expansion of its flight envelope. “We are thoroughly satisfied with the memorable completion of the Embraer 190's maiden flight, which set a new milestone in this highly challenging program,” said Maurício Botelho, Embraer's President and CEO. “Once in serial production, the Embraer 190, a world class product, will meet and exceed the most demanding requirements of the air transport industry.”
Conclusion of the flight test campaign will validate the new aircraft, which can be configured for between 98 and 108 passengers, to receive type certification in the third quarter of 2005. This will immediately be followed by the first deliveries to launch customer JetBlue Airways of the U.S.. The Embraer 170/190 family of aircraft has secured 245 firm orders and 305 options from operators such as Air Caraïbes, Alitalia, Cirrus, GECAS

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GlobalFlyer flies
Flugzeug für Weltumrundung hebt ab

The Scaled Composites Model 311 (Virgin GlobalFlyer) flew for the first time on 5 March. The flight, piloted by Scaled's Project Engineer and Test Pilot Jon Karkow, lasted one hour and thirty minutes . After liftoff, the aircraft climbed to 12,000 feet and conducted stability tests from near stall (54 Knots) up to a speed of 110knots. The tricycle landing gear was retracted and extended and the effectiveness of the airplane's descent and landing drag chutes was evaluated. Jon reported that the airplane had "excellent flying qualities". All aircraft systems operated well and the aircraft returned with no maintenance squawks. The flight begins a series of test flights that should culminate in an attempt to circumnavigate the globe with a single pilot, non-stop, and non-refueled.

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Austria takes Swiss Tigers
Österreich mietet Tiger aus der Schweiz

To ensure the security of its air space until delivery of the fleet of Eurofighters it has on order, the Austrian Air Force have leased 12 F-5E Tiger fighters from Switzerland. The four-year contract will cost Austria 14 million euros per year. The contract was announced by Austrian Defence Minister Günther Platter on March 9. Platter claimed that the contract offers best value for money of all the options under consideration. The possibility of leasing F-5s came on the table only very recently, after it became clear that operations costs for the Draken would balloon in the wake of a delayed request to the Swedish authorities for contiunued support. Getting Eurofighters early was also no viable proposition.
In addition to provision of the 12 aircraft, the contract with Switzerland also covers logistic support for a main operating base and for a secondary base, and also defines maintenance and training aspects. Training of the first four Austrian pilots and of maintenance personnel, and delivery of logistic equipment, is to be completed by the end of 2004. Minister Platter told reporters that Austria's fleet of Saab Draken combat aircraft will be retired by the end of 2005.

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EADS profits up
Gute Ergebnisse für EADS

In 2003, EADS has again strongly exceeded its profit target. At EUR 1.54 billion, EADS achieved an EBIT well above the previous target of about EUR 1.4 billion and up eight percent from 2002. EADS has beaten its EBIT forecast thanks to strong growth in its defence businesses and better than expected performance at Airbus. The EBIT improvement benefited from a 40 percent growth at the Defence and Security Systems Division with strong contributions from Military Aircraft and MBDA, the turnaround of the Military Transport Aircraft Division thanks to better performance and a 21 percent increase at the Aeronautics Division following increased profitability of Eurocopter. The Space Division recorded, in line with plan, an EBIT of EUR -400 million, after a restructuring charge of EUR 288 million. EBIT also includes a higher contribution from the 46.03 percent shareholding in Dassault Aviation.
EADS Research and Development (R&D) expenditure increased, as planned, to EUR 2.2 billion in 2003 (2002: EUR 2.1 billion). Half of this was spent on R&D for the A380, the 555-seater Airbus aircraft due for first deliveries in 2006.
EADS Group revenues of EUR 30.1 billion slightly exceeded the forecast of EUR 29 to EUR 30 billion, and are above the 2002 figure of EUR 29.9 billion. At constant US-Dollar exchange rates, revenues would have even increased by 6 percent. Growth was mainly driven by an 18 percent rise at the defence businesses, with combined revenues rising across all defence segments from EUR 6 billion to EUR 7.1 billion.
The EADS CEOs Philippe Camus and Rainer Hertrich said: "EADS has now achieved commercial aviation leadership and reached a top position in the global defence market. Our 2003 figures are the result of the relentless actions taken to streamline and focus this company since its creation, as well as the keen market interest in our products. The market environment remained difficult in 2003, and yet we have again beaten expectations." On expectations for 2004, the CEOs commented: "The ramp-up of major defence programmes, such as Tiger and NH90 helicopters and missiles, and the turnaround of the Space Division provide the basis for operating results growth in 2004. For the Defence and Security Systems Division, which has been created in 2003, the current year will be characterised by the implementation of streamlining and efficiency improvement programmes with some associated costs and investments."
The EADS order intake doubled in 2003 to reach EUR 61.2 billion (end of 2002: EUR 31.0 billion), twice as high as revenues. The biggest successes were achieved at Airbus with net orders of 254 aircraft, including 34 A380, and with major defence contracts such as the Skynet 5 military satellite communications system for GBP 2.5 billion, the EUR 19.7 billion A400M order, and a major missile contract for 1,400 Aster missiles received by a consortium led by MBDA. The EADS order book increased to EUR 179.3 billion (2002: EUR 168.3 billion). At constant exchange rates, the increase would have been about 20 percent. The defence order book doubled to about EUR 46 billion, supporting the goal to grow defence revenues by more than 50 percent between 2002 and 2005.
EADS achieved a positive Net Income in 2003 of EUR 152 million (2002: EUR -299 million). As a result of the original industrial integration of the EADS Group, goodwill amortization has been regularly recorded in the EADS accounts since the year 2000. Thanks to better EBIT, Net Income pre-goodwill amortization and exceptionals is up 10 percent to EUR 769 million (2002: EUR 696 million), or EUR 0.96 per share (2002: EUR 0.87).

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Lufthansa operates A330-300
A330-300 bei LH im Einsatz

On 16 March, Lufthansa started operating its first A330-300 on a scheduled flight from Frankfurt to Cairo and Karthoum, Sudan. The A330-300 is a new Airbus aircraft type in the carrier's fleet. Lufthansa has ordered ten A330-300s, the spacious medium-range twin-engine aircraft from Airbus' market leading A330/A340 Family. All A330-300 aircraft will be delivered by end of 2005. The carrier will introduce the aircraft on its route network to the Middle East, Africa and the US East Coast. With 43 Airbus A330/A340s currently in service, Lufthansa operates the world's largest fleet of Airbus wide-body aircraft. The A330s will give Lufthansa the full benefit of Airbus' unique operational commonality, which will enable Lufthansa to operate the A330s and A340s using the same pool of pilots, cabin crews and maintenance engineers. This gives Lufthansa more crew and fleet planning flexibility and will result in significant cost savings in training.

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Boeing 777-300ER certified
Zulassung für die 777-300ER

The Boeing 777-300ER, the newest member of the market-leading 777 commercial airplane family, now is certified by U.S. and European regulators to carry passengers to destinations around the world. The U.S. Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA) have formally recognized that the 777-300ER passed all testing and safety requirements during an eleven-month flight-test program.
International Lease Finance Corp. customer Air France will receive the first 777-300ER next month. Offering airlines more flexibility in serving the non-stop routes passengers demand, Boeing has so far received orders for 63 777-300ERs from eight customers. The FAA and EASA certifications grant an amended type certificate for the 777, as well as a production certificate, which authorizes Boeing to build the 777-300ER. Three 777-300ER flight test airplanes completed nearly 1,500 flight- and 1,000 ground-test hours during the program, starting with the first flight on Feb. 24, 2003. The thorough and rigorous test program demonstrated the airplane's capabilities, often in extreme environments such as frigid Yakutsk, Russia and sweltering Alice Springs, Australia. Major test activities included aerodynamics, stability and control, flight controls, structures, and systems.

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Helicopter sales outlook unveiled
Prognosen für das zivile Hubschraubergeschäft

Honeywell announced today that its sixth Turbine-Powered Civil Helicopter Purchase Outlook projects deliveries of approximately 2,350 new civil use helicopters during the five-year period 2004 - 2008, driven in part by increased demand for light single and intermediate twin-engine models offering newer technology. Corporate, emergency medical services (EMS) and law enforcement helicopters combined are expected to account for almost two thirds of all new civil rotorcraft sales during the five-year forecast period. Some highlights revealed by the annual survey of helicopter operators' purchase expectations are: Although helicopter sales in 2003 were flat compared to 2002, they are likely to increase about 8 percent in 2004 compared to 2003; helicopter sales during the five-year period 2004-2008 are predicted to be 6.8 percent greater than in the five-year period 1999-2003; helicopter sales are forecast to enjoy a 2 percent annual compounded growth rate during the 11-year period 2004-2014.
The near-term increase in demand is also driven by continuing strong worldwide demand for corporate, EMS law enforcement and utility helicopters, bonus depreciation in the United States, a strong U.S. economy and booming economic conditions in Asia. In North America, law enforcement received 30 percent of all mentions this year. It remained the most frequently mentioned helicopter use segment although this represented a decline from almost 40 percent in 2003. One possible reason was that expected funds to purchase new helicopters for increased homeland defense and boarder patrol requirements never materialized. EMS applications held steady at almost 30 percent of planned new purchases in North America, while planned corporate purchases fell again to 18.4 percent of the total.

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Swiss CEO Dosé leaves
Personalprobleme bei Swiss

André Dosé, President and Chief Executive Officer of Swiss International Air Lines Ltd., has placed his position at the disposal of the Board of Directors. The Board respects this personal decision and thanks André Dosé for his exceptional and tireless endeavours. It acknowledges his great achievement in establishing the young airline and setting it on course towards a sound business future. Chairman of the Board Pieter Bouw will additionally assume the function of company CEO on an interim basis.
As is already known, the Office of the Prosecutor General of the Swiss Confederation is considering extending its investigations relating to the loss of a Crossair aircraft near Bassersdorf, Switzerland in November 2001 to individual persons. André Dosé's offer to place his position at the disposal of the SWISS Board of Directors follows a comprehensive analysis of the situation by himself and the Board. The Board condemns the imputations, personal attacks and prejudgements from certain circles to which André Dosé has been exposed in the last few days and weeks. The Board not only expresses its great respect for André Dosé for the decision he has taken in the interests of the company; it also voices its thanks to him for his selfless commitment to SWISS since its inception. André Dosé led the young company through the most turbulent of times; and he managed – despite difficult overall conditions – to initiate a corporate turnaround that has every prospect of success.
Chairman of the Board Pieter Bouw will assume the function of company CEO in addition to his existing duties with immediate effect. In doing so, he can draw on the experience and expertise of an extensive career covering all key areas of the airline business. He successfully led KLM Royal Dutch Airlines as its company CEO from 1991 to 1997. To assist Pieter Bouw effectively in his new dual role, the Board of Directors has also appointed a second Deputy Chairman from its ranks. Walter Bosch has been designated to serve in this capacity. Bosch has also been named as independent Lead Director, to ensure full compliance with all good corporate governance requirements. The Board of Directors has further confirmed SWISS's clear commitment to its current overall strategy, and to its continued consistent pursuit of the corporate turnaround which has already been initiated.

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NEWS IN BRIEF / KURZMELDUNGEN

Thanks to ESA's Mars Express, we now know that Mars has vast fields of perennial water ice, stretching out from the south pole of the Red Planet. Astronomers have known for years that Mars possessed polar ice caps, but early attempts at chemical analysis suggested only that the northern cap could be composed of water ice, and the southern cap was thought to be carbon dioxide ice. Recent space missions then suggested that the southern ice cap, existing all year round, could be a mixture of water and carbon dioxide. But only with Mars Express have scientists been able to confirm directly for the first time that water ice is present at the south pole too. Mars Express made observations with its OMEGA instrument to measure the amounts of sunlight and heat reflected from the Martian polar region. When planetary scientists analysed the data, it clearly showed that, as well as carbon dioxide ice, water ice was present too. The results showed that hundreds of square kilometres of 'permafrost' surround the south pole. Permafrost is water ice, mixed into the soil of Mars, and frozen to the hardness of solid rock by the low Martian temperatures. This is the reason why water ice has been hidden from detection until now - because the soil with which it is mixed cannot reflect light easily and so it appears dark.
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Lockheed Martin announced it successfully demonstrated a series of launcher and integration tests of its precision-strike Hellfire II missile and digital M299 launcher system during the maiden flight of the Australian ARH-1 Eurocopter Tigre. This significant milestone validates the Hellfire II missile and digital M299 launcher system can interface with the European-manufactured attack helicopter, and marks the second time the M299 has been integrated onto an international aircraft-the first being GKN Westland's WAH-64 Apache in the UK. The successful M299 integration also paves the way for the ARH-1 to carry the Hellfire II family and allows for potential use of the Hellfire on European versions of the Tigre currently flown in France and Germany. "This testing series reflects the continuing confidence our U.S. Army and international customers place in our M299 launcher," said Mark Stenger, director of the Air-to-Ground Missile Systems program area at Lockheed Martin Missiles and Fire Control. "This all-digital 'smart' launcher can carry and fire any combination of Hellfire II and Longbow Hellfire missiles, giving the Australian ARH-1 and other attack helicopters the ability to engage a wide range of targets in a single sortie. The digital design also minimizes system weight, complexity, power usage and support requirements."
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On 18 March, Ryanair welcomed the arrival of their 50th new Boeing 737 800 series aircraft. Boeing delivered Ryanair's first Boeing 737 800 in March 1999. To date Ryanair has 155 confirmed Boeing 737 800 orders, in addition Ryanair has a total number of 123 option orders, which will bring the Ryanair fleet to a total of 278 Boeing 737 800's over the next 6 years. By 2010, Ryanair will pilot the youngest aircraft fleet in Europe and Ryanair will be the second largest operator of the most successful jetliner in the world.
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Ryanair has confirmed that it is reducing its operations at Birmingham Airport with effect from April 28th by 70%. These operations will relocate to Nottingham East Midlands International Airport, effective from April 29th. Services to be relocated include 3 daily Dublin flights and daily flights to Barcelona Girona and Murcia. Birmingham will for the moment retain 2 daily flights to Dublin. The Dublin route, in operation at Birmingham since 1993, has carried over 2.9 million passengers. Last year alone over 260,000 passengers availed of Ryanair's outstanding fares to fly between Birmingham and Dublin. The 2 Spanish routes were launched last October and have been a huge success with record bookings. Ryanair confirmed that this 70% reduction in daily flights at Birmingham was the direct response to the Airport's decision to raise runway charges to Ryanair by 100 %.
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An agreement has been reached between the European Union and the State of Israel on its participation in the Galileo program. This agreement was initialed in Jerusalem on 17 March 2004 by François Lamoureux, Director-General of Energy and Transport at the European Commission, and Ra'anan Dinur, Director-General of the Ministry of Industry, Trade and Labour of Israel. During the visit of Mr. Lamoureux, thanks to the support of the EU, cooperation between Israel and the Palestinian Authority has led to concrete results with the creation of a joint Israeli-Palestinian office on energy. Since the Council invited the Commission to start formal negotiations with Israel on 16 January 2004, intensive exchanges have been held between the parties. These culminated in an agreed text in record time at the round of talks held in Tel Aviv on 17 March 2004.
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The EU Commission decided today to initiate a formal State aid investigation procedure against Greece concerning Olympic Airways. The Commission has doubts about the arrangements for setting up and privatizing a new company to be known as Olympic Airlines and intends to ensure that no State aid is involved. “It is high time to take action: this is the last chance for Olympic Airways. Unless the privatization process is completed in full conformity with European legislation, the company will have to be placed into liquidation, as was the case with other companies in the competitive air transport market” stated Loyola de Palacio, Vice-President with special responsibility for transport and energy. “I am certain that the Greek Government will cooperate fully with the Commission to avoid the errors which led to this situation” she explained. The Commission decided to initiate a formal investigation under Article 88(2) of the Treaty against Greece since it has doubts as to whether several measures in recent years may be regarded as compatible with the common market. The Commission will assess whether the advantages granted to Olympic Airways constitute new State aid, and in particular the non-payment of tax debt in 2003; the provision of an advance by the Greek State to fund the restructuring and privatization of the company and the non-payment of the airport modernization tax (Spatosimo) charged to passengers.
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The first of three new Lockheed Martin C-130J transports for the Royal Danish Air Force (RDAF) was delivered to its new home base in northern Jutland on March 1. Denmark is the first Scandinavian country to bring the Super Hercules into service. “Teams from the Royal Danish Air Force and Lockheed Martin worked very hard over the past three years to reach this point,” said Ross Reynolds, Lockheed Martin C-130J Program vice president. “It is a mark of that teamwork that the first aircraft was delivered on time and the other two aircraft will be delivered to schedule in the next six weeks.” The arrival of the C-130J was the highlight of the ceremony, which also marked the moving of 721 Squadron's aircraft from Vaelose AB, near Copenhagen, to this base near the North Sea. The move is being done as a force consolidation measure and 721 Squadron will officially begin operations out of Aalborg AB on April 1. Construction of the base's new C-130J hangar began last year and was recently completed.
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Germany's Ministry of Defense has awarded Northrop Grumman Corporation a contract to provide a passive missile-approach warning system to protect additional C-160 Transall transport aircraft. Under the contract, Northrop Grumman will provide 21 AN/AAR-54(V) warning systems along with spares. This contract follows Northrop Grumman's successful completion of a nine-month aircraft integration and test program, during which time the Ministry conducted a competitive fly-off to assess the system capability of ultraviolet missile warning systems. Under its initial contract, Northrop Grumman delivered one missile warning system and spares to the Ministry in support of the fly-off assessment. The Northrop Grumman AN/AAR-54(V) is an imaging sensor system that passively detects ultraviolet energy, tracks multiple sources and quickly classifies each source as a lethal missile, non-lethal missile or clutter. The system can be utilized independently as a stand-alone detection system to cue flare-dispensing systems, or as part of an integrated directional infrared countermeasures self-protection suite.
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MTU Aero Engines, one of the world's largest aircraft engine component manufacturers by revenue, announced the launch of a private offering of Euro240 million of 10-year Senior Notes. The proceeds will be used to fund the recent acquisition of MTU Aero Engines by funds managed by Kohlberg Kravis Roberts & Co. JPMorgan and Credit Suisse First Boston will act as Joint Lead and Book-running Managers for this offering and Commerzbank will act as Co-Lead Manager.
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The European aircraft manufacturer Airbus announced the addition of new Japanese partners for the A380 program. Matsushita Avionics Systems (MAS), Koito Industries and JAMCO Corporation have all been selected as preferred suppliers of new technology equipment for the next-generation very large aircraft program. Moreover, Sumitomo Precision Products (SPP) and JAMCO Corporation will supply structural assemblies for the A380. Airbus' President and CEO, Noel Forgeard, said, “We are honored to welcome these fine companies in the A380 program. With their contribution we can provide the most advanced technology for the world's most advanced airliner program currently launched in production.” The addition of these three new partners brings to eighteen the total of Japanese companies collaborating in the A380. The estimated revenue of the Japanese suppliers in the A380 program will rise to well over US $4.25 billion in the years to come.
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On March 19, India has finally signed an agreement to buy 66 BAE Systems Hawk jet trainers worth 1.63 billion dollars. The deal signals an end to more than 20 years of dithering by the Indian Air Force (IAF) over trainers to graduate new pilots to its mainstay MiG-21 fighter jets, which have been dubbed "flying coffins" due to frequent crashes. An Indian statement said the deal was signed by Indian Defence Secretary Ajay Prasad and British High Commissioner (ambassador) to India, Michael Arthur. "A memorandum of understanding between the government of India and the government of the United Kingdom was concluded for the effective and uninterrupted implementation of the contracts regarding acquisition of 66 Advance Jet Trainers from British Aerospace System and other equipment manufacturers of United Kingdom," it said. Arthur later told reporters that Britain will train the first batch of 75 Indian pilots for the Hawks, which can also be configured for combat.
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Sikorsky has announced that it has sold more than 20 S-92 aircraft worth in excess of $340 million, making it the most successful new commercial product launch in the company's history. In addition to the confirmed sales, Sikorsky also has 17 options and four deposit agreements for the S-92. Petroleum Helicopters, Inc. (PHI) was presented keys to the first production S-92 in a public ceremony at Heli-Expo in Las Vegas. The delivery marks the first of two S-92 aircraft slated to enter service with PHI in 2004 to support deepwater drilling and production activity in the Gulf of Mexico. “The S-92 represents the latest technology in terms of design and safety,” said Lance Bospflug, PHI President and CEO. Other customers include such respected offshore operators as Norsk Helikopter of Norway and Canada's CHC Helicopter Corporation, and several VIP customers, attesting to the aircraft's versatility and confidence in Sikorsky.
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The U.S. Navy awarded the third low rate initial production (LRIP) contract for Tomahawk Block IV all-up-round missiles to Raytheon Systems Company, Tucson, Ariz., March 4. The $176 million undefinitized contract action will obligate more than $87 million at this time and will procure approximately 225 missiles.
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Loral Space & Communications announced that it has completed its previously announced transactions with Intelsat yielding $1.027 billion, consisting of $977 million for Loral's North American fleet and related assets, after adjustments, and a $50 million deposit for the construction of a new Intelsat satellite to be built by Loral's manufacturing unit, Space Systems/Loral (SS/L), of Palo Alto, Calif. The completion of the Intelsat transactions represents the achievement of a major milestone in Loral's plan for reorganization under chapter 11. Proceeds from the transaction will be used to pay in full Loral's $967 million of outstanding secured bank debt, nearly half of the company's total of $2.0 billion in principal debt obligations. Announced in July, the agreement with Intelsat provides for the sale of the in-orbit Telstar satellites 5, 6, 7 and 13, as well as Telstar 8, which is scheduled to be launched in the third quarter of 2004. The agreement also includes rights to the 77 degrees West longitude orbital slot, formerly occupied by Telstar 4.
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Northrop Grumman ISS International Inc., a subsidiary of Northrop Grumman Corporation, submitted its proposal for the United Kingdom Ministry of Defence's Watchkeeper battlefield imagery and intelligence program. Northrop Grumman's proposed Watchkeeper system addresses all of the Ministry of Defence's key requirements for target detection, identification and data dissemination on the modern battlefield. It will give the U.K. Armed Forces an all-weather, world-class intelligence, surveillance, target acquisition and reconnaissance (ISTAR) capability for the 21st century. Northrop Grumman supports its Watchkeeper bid with a highly qualified, operationally experienced team that will continue its partnerships with the Ministry of Defence to make this highly capable ISTAR system available for U.K. Joint Forces. The team -- which includes General Dynamics U.K. Ltd, BAE Systems, Ultra Electronics, Detica, Stasys, HVR Consulting, QinetiQ and RUAG Aerospace -- will help minimize the risk of fusing Watchkeeper into the future battlefield. Northrop Grumman's proposed Watchkeeper system offers a combination of UAVs. The fixed-wing Ranger UAV, currently in service with the Swiss and Finnish defense forces, has completed more than 3000 successful missions. The bid also includes the Northrop Grumman-developed Fire Scout vertical take-off and landing tactical UAV, currently in low-rate initial production for the U.S. Navy. The U.S. Army has also selected Fire Scout as the Class IV unmanned aerial system for the service's Future Combat System.
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On 10 March Embraer announced that Alitalia has taken delivery of its first Embraer 170 in a ceremony held at the manufacturer's main facilities in São José dos Campos. The Italian airline placed an order for six Embraer 170 jets and holds options for another six. Alitalia plans to put the 70-seat airliner into service by mid-April through its regional company Alitalia Express, which flies all over Europe.
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HAI Heli-Expo 2004 has resulted in the largest number of sales orders for Bell Helicopter at a show in recent memory. Bell Helicopter Chief Executive Officer Mike Redenbaugh announced the receipt of signed sales orders and purchase agreements for new Bell helicopters totaling more than $150 million dollars for delivery over the next several years. Mr. Redenbaugh began the announcement by saying, “I am extremely pleased at the number of sales we have had at this show. I believe these sales are reflective of the future for Bell. We have listened and responded to our customers to meet their needs in our current products and develop outstanding new products. Our customers have responded by showing their confidence in Bell with the strongest sign possible...they bought our aircraft.”
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On 16 March a Russian Proton rocket successfully placed the Eutelsat W3A satellite into orbit this morning, marking the second mission in three days for International Launch Services (ILS). This was the first flight of the year for the Khrunichev-built Proton vehicle, which has carried out more than 300 missions for the Russian government and commercial customers over nearly 40 years. This also was the third mission of the year for ILS. The company's other vehicle, the Lockheed Martin Atlas rocket, successfully launched a satellite Saturday morning from Cape Canaveral, Fla. The Proton vehicle lifted off at 4:06 a.m. local time (6:06 p.m. Monday EST, 23:06 GMT). In less than 10 minutes, the three-stage Proton vehicle finished its climb into space, leaving the Breeze M upper stage to continue the mission for the next nine hours. The Breeze M's engine underwent five burns to place the W3A satellite into a geosynchronous transfer orbit at 1:16 p.m. Baikonur time (3:16 a.m. Tuesday EST, 08:16 GMT).
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Thales has signed new contracts worth almost 100 million euros with EADS to supply over 500 Threat Warning Equipment (TWE) self-protection systems for Eurocopter Tiger and NH90 helicopters. These aircraft will be delivered to the armed forces of France, Germany, Italy, Portugal, Finland and Australia. The TWE system, developed and integrated by Thales, consists of an instantaneous wide-band electromagnetic detection function (radar warning receiver) and a laser warning receiver developed by EADS. Thales will also supply the system's central processing unit. The TWE forms the core of an integrated self-protection system. In addition to the radar warning and laser warning functions mentioned above, it also manages all the other components of the self-protection system, including the missile approach warning system and chaff/flare dispensers. Deliveries will be completed in to 2012. +++
The US101 team led by Lockheed Martin and AgustaWestlandBell announced in Las Vegas, Nev., that Kaman Aerospace Corp., Bloomfield, Conn., has been selected to supply structures and engineering work for the US101 medium-lift executive aircraft being offered in a competition for the next Marine One helicopter for the president of the United States. Kaman is a leading contractor on major civil and military aviation programs, including the C-17 military transport and the SH-2G Super Seasprite naval helicopter. Under arrangements agreed upon today, AgustaWestland will place metallic and composite structural manufacturing work into Kaman's Jacksonville, Fla., and Wichita, Kan., facilities. The agreement also provides for Kaman to contribute engineering resources to the US101 program from its Connecticut facilities. The multi-million dollar deal could create employment opportunities across Kaman's aerospace businesses in Connecticut, Kansas and Florida.
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Singapore has signed the Letter of Offer and Acceptance to participate in the System Development and Demonstration Phase of the Joint Strike Fighter (JSF) program as a Security Co-operation Participant (SCP). The JSF program is a US-led multi-nation project to develop an advanced, cost-effective multi-role stealth strike fighter that can perform air defense and ground attack missions with precision engagement, enhanced combat survivability and lower cost of maintenance. Singapore's bilateral SCP arrangement with the US provides an early opportunity to assess the JSF's ability to meet the Republic of Singapore Air Force's longer-term operational requirements for a multi-role fighter. Singapore will have insights into the JSF's development progress and be able to conduct studies for integration of Singapore's requirements into the JSF. As an SCP, Singapore can also request early purchase of the JSF for delivery from 2012 onwards.
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Turbomeca reaffirmed its position as world leader with its large scale of activities, particularly within North America, during the Heli Expo in Las Vegas (Nevada, USA). Turbomeca also announces the production of its 35,000th engine, of which 20,000 are turbo-shaft engines. In the last five years, Turbomeca's fleet of engines in North America has increased by more than 30% and now consists of over 1,400 engines. Turbomeca USA sales represents 14% of global Turbomeca sales. Arriel engines are particularly popular in this market and represent more than 80% of the total fleet. To date, Turbomeca has completed the retrofit of 200 Eurocopter AS 350 helicopters, with the Arriel 1B and 1D1 engines and that number continues to grow. The 1000th Arriel 2 has been delivered to Sikorsky and will reach its final destination, Massachusetts Mutual Life Insurance Company, at the beginning of next summer. The US Coast Guard prototype HH-65 helicopter, fitted with the Arriel 2C2 CG, has made its maiden flight. The engine received its qualification in October 2003.
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The first T-6A Texan II was officially welcomed at Naval Air Systems Command (NAVAIR) Patuxent River during an aircraft acceptance ceremony March 11. “The Texan is setting the standard for the next couple of decades on how we go about efficiently producing skilled pilots,” said Vice Adm. Wally Massenburg, NAVAIR commander. “This aircraft is a win-win product for industry, and the Navy and its war fighters, and is an example of NAVAIR aligning our priorities with fleet-driven metrics.” The Navy accepted the first Texan into its inventory in November 2002 and plans to buy 328 aircraft. So far, the Navy has procured 49 Texans. Of those, 31 have been delivered to Training Air Wing (TW) 6 at Naval Air Station Pensacola, Fla., for Naval Flight Officer training. The remaining 278 aircraft will be delivered by fiscal year 2013 and used for pilot training at NAS Whiting Field in Florida and NAS Corpus Christi in Texas.
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On 16 March Embraer announced an order from Republic Airways Holdings, parent company of Chautauqua Airlines, for 16 ERJ 145LR regional jets. Deliveries will begin in May and run through September 2005. At list price, the order is valued at US$ 320 million. “The addition of 16 Embraer regional jets to the fleet of Chautauqua Airlines will offer expanded business opportunities with Delta Air Lines as well as other partners,” said Bryan Bedford, Chairman, President and CEO of Republic Airways Holdings. “This order will allow us to further strengthen Republic Airways Holdings' position as an industry leader in delivering high quality, low-cost regional jet lift to our major airline partners.”
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With the successfully completed taxi tests of Phoenix, EADS Space Transportation achieved another milestone this week: at Lemwerder Airport near Bremen, the prototype of a future space transport system proved its ability to detect and automatically correct track deviations on the ground. The braking system also underwent extensive testing. “We are very satisfied. Testing was successful and we have gained all the results required,” said Peter Kyr, Phoenix Project Manager, in Bremen after testing had been completed. With Phoenix, EADS Space Transportation wants to prove the feasibility of a re-usable space transport system. The prototype is just under seven meters long, has a weight of 1,200 kilograms and a wingspan of 3.9 meters. Testing in Lemwerder began last Monday (1 March 2004) and was performed in several steps. After reliability of the connection between towing vehicle and Phoenix was confirmed, taxi tests at speeds between 30 and 150 kilometers per hour at a maximum were carried out.
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Bell Helicopter Chief Executive Officer Mike Redenbaugh announced Bell's intention to go forward with an IFR version of the 427. "We are nearing completion of negotiations with our partners and expect to make a formal announcement about partnership details by mid-year. Bell is also discussing initial sales with several prospective customers, including fleet purchase prospects.” He continued “The key message about the 427IFR is Bell's commitment to the commercial market by our investment in the 427 to make it meet customer requirements. It was designed for our customers with their direct input. Over two years of study and evaluation have gone into producing what will be a great single pilot IFR rated light twin.”
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Honeywell announced that its new Primus 701A airborne weather radar system has been selected by Eurocopter for the new North Atlantic Treaty Organization (NATO) NH-90 helicopter. “The new Primus 701A offers special features such as sea clutter reduction and ground mapping like our well-received Primus 701, but it has more versatile data interface capability for integration with modern commercial and military aircraft cockpit displays.” said Ken Snodgrass, Honeywell Director of Marketing. Eurocopter has placed 197 firm orders for Primus 701A systems. The systems are also expected to be installed on other helicopters in military and civilian use such as the Agusta HKP15, Sikorsky S-92, Israeli Aircraft Industries KA-32 and Boeing CH-47 as well as on fixed wing aircraft such as the C-130 Hercules utility transport aircraft.
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On 13 March an International Launch Services (ILS) Atlas III rocket blasted off early this morning, successfully orbiting the MBSAT satellite for Space Systems/Loral (SS/L). This was the 70th consecutive successful flight of an Atlas vehicle, and the second launch of the year conducted by ILS, a Lockheed Martin joint venture. Liftoff was at 12:40 a.m. EST, and the SS/L 1300 model satellite separated from the rocket 29 minutes later. SS/L built the satellite and contracted with ILS to deliver it in orbit for Mobile Broadcasting Corp (MBCO) of Japan and SK Telecom of Korea. The state-of-the-art satellite will deliver digital multimedia information services such as CD-quality audio, MPEG-4 video and data to mobile users throughout Japan and Korea. This was the fifth flight for the Atlas III vehicle, is one of three Atlas models currently being flown. It is a transitional vehicle between the Atlas II series that has been flying since 1991, and the powerful Atlas V, which made its debut successfully in 2002. The Atlas II, III and V families have achieved 100 percent success since mid-1993.
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Northrop Grumman Corporation is supporting the integration of its Litening AT targeting system onboard U.S. Marine Corps F/A-18D aircraft. Litening AT is a self-contained, multi-sensor laser target designating and navigation system that enables fighter pilots to detect, acquire, track and identify ground targets for highly accurate delivery of both conventional and precision-guided weapons. This initiative is being conducted by the U.S. Navy's F/A-18 program office at the Patuxent River Naval Air Station in Lexington Park, Md. Litening AT features advanced image processing for target identification and coordinate generation, a 640 x 512 pixel forward-looking infrared (FLIR) sensor (first introduced in the Litening ER variant), charge-coupled device television (CCD-TV) sensors, laser spot tracker/range finder, infrared laser marker; and an infrared laser designator.
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Northrop Grumman will help the U.S. Air Force enhance the surveillance capabilities of aerial vehicles by embedding antennas in the primary load-bearing structures of composite aircraft wings. The new approach could lead to antennas as large as the surface area of a wing with enough sensitivity to simultaneously detect ground-moving targets through dense foliage and track air-to-air missile threats. Northrop Grumman and the Air Force Research Laboratory will share the costs of maturing the antenna integration technology under a five-year, $12 million effort called the Low-Band Structural Array (LOBSTAR) program. The effort could benefit unmanned aerial reconnaissance systems such as the Air Force's Global Hawk, the Defense Advanced Research Projects Agency's Joint Unmanned Combat Air System, and the Air Force Research Laboratory's future Sensor Craft concept.
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GKN Aerospace is to design, develop and supply complex carbon wing spars for the Airbus A400M future military airlifter program – 'the most ambitious European military procurement program ever undertaken'. This contract is valued at $110m based on the current order book alone and was gained in the face of tough international competition. This contract award has great strategic significance for GKN Aerospace as it represents the first application of carbon composite technology for primary structures on a large transport airplane wing. Frank Bamford, Director of Sales and Marketing, GKN Aerospace (Europe) comments: “This contract award is a clear demonstration of the confidence Airbus feels in our ability to meet their demanding requirements in complex composite structures. It is also an endorsement of the considerable investment GKN Aerospace has made in composite technologies and processes across its sites world-wide. The A400M work represents a major step for us in our drive to maintain our technology leadership in composite aerostructures.”
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The specially modified Sikorsky H-92 Presidential helicopter demonstrator turned over to U.S. Navy evaluators has successfully completed its government flight tests. “We are very pleased to achieve this latest milestone in the Presidential helicopter competition,” said Sikorsky President Steve Finger. “Our aircraft performed beautifully throughout the demonstration flights, demonstrating decisively that it is the best helicopter in the race. In fact, during the 22.1 flight hours, not a single component needed replacement.”
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EDO MBM Technology Ltd, a unit of EDO Corporation has been awarded an initial contract worth GBP 1.2 million ($2.2 million), with options of GBP 3 million ($5.5 million), for the supply of scanning motors and drive electronics on the Eurofighter Typhoon infra-red search and track system, known as PIRATE (Passive Infra-Red Airborne Track Equipment.) The contract was awarded by Thales Optronics Ltd. following successful scanning-motor qualification trials. The scanning motors were designed by EDO MBM Technology, which is an active development partner in the Thales PIRATE team. PIRATE represents a major advance in avionics and gives Typhoon substantial tactical advantages in air-intercept and air-ground operations.
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Dassault Aviation and HAI have signed today a MoU on the participation of the latter to the programme of Unmanned Combat Air Vehicle (UCAV) technology demonstrator. This agreement is the follow-up of the letters of intent exchanged between the Hellenic and French governements. On June 16th 2003, Dassault Aviation has been designated prime contractor for the UCAV demonstrator programme by the French Minister of Defence. Sweden joined this European programme last December. Discussions are underway with other European countries to enlarge this programme.
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The first company test flight of a Boeing 737-300 Quick Change (QC) aircraft, with a new cargo door installation was successfully completed at Israel Aircraft Industries' Bedek Aviation Group. Bedek will continue the certification test flight, which will shortly result in an approved Supplemental Type Certificate (STC) for the Quick Change configuration. In December, Bedek received a United States Federal Aviation Administration STC for installation of modifications to convert Boeing 737-300 passenger aircraft into full freighter configuration. This new program is for a QC model of the same aircraft.
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Russia has formally handed over the aircraft carrier Admiral Gorshkov to the Indian navy for the subsequent refit at a naval dock yard in North Russia. At a ceremony in the White Sea port city of Severodvinsk, Russian Deputy Defence Minister Colonel-General A M Moskovsky formally handed over the 44000-tonne ship to Indian Ambassador Krishnan Raghunath, who received it on behalf of India. “The handing over of the ship is an outstanding symbol of the Indo-Russian defense cooperation, as well as of close and long established friendship between the two countries, which has in recent years been consolidated into strategic partnership,” an Indian Embassy release here said. Within 52 months of the handover Severodvinsk-based SevMash Naval shipbuilders have to deliver Admiral Gorshkov to the Indian Navy after repairs, and refit.
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On 9 March South African Airways (SAA) took delivery of its first Airbus A340-300E, which is the first “enhanced” version of this Airbus type. SAA will receive six A340-300Es by 2005. The 295-seat A340-300E features several enhancements, including a higher thrust-generating version of the CFM56 engine, which burns less fuel and is ideally suited for the hot-and-high conditions, at airports such as Johannesburg International Airport. Among the other improvements are the use of LCD cockpit display units and a revised cabin interior design creating even more personal space for passengers.
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The Bell Helicopter “Eagle Eye” Vertical Take Off and Landing (VTOL) Unmanned Aerial Vehicle (UAV) passed a critical milestone recently within the U.S. Coast Guard's Integrated Deepwater System program, with the highly successful completion of its Preliminary Design Review (PDR), a required deliverable to proceed to the next stage of the contract. The PDR demonstrated that Eagle Eye will successfully fulfill the U. S. Coast Guard missions. In meeting these mission requirements, the system is well within margins for risk, performance, supportability and cost allocations. The preliminary design of the Eagle Eye is based on the successful demonstrator that flew over 90 hours, and achieved 200 knots in level cruise while carrying 210 pounds of payload at 7/8 the scale of the planned production version.
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After more than 40 years of service, the venerable T-2 Buckeye training aircraft is retiring from the Navy after one last hurrah in Key West, Fla. Since the early 1960s, the T-2 had been the first jet flown by Navy and Marine Corps student pilots while earning their wings. But it will be leavin g service soon after one last training detachment with Training Wing 1's Reserve Squadron Augment Unit (SAU) 9. The T-2 started as a single-engine trainer in the 1960s. However, it was quickly modified into a twin-engine jet, and has gone through two major modifications in its service life. The current version flown by student pilots is the T-2C, and has been around since the late 1970s. The Navy is gradually phasing out the T-2 in favor of the more advanced T-45 Goshawk.
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On 9 March Embraer announced that Poland's LOT Polish Airlines has taken delivery of its first Embraer 170 airliner. The airplane, leased from GE Capital Aviation Services (GECAS), is planned to be placed into service before the end of March. “Entry into service (EIS) for the new airliner is an important milestone for the program, where commitment to quality has been the guiding principle for Embraer and its partners and suppliers,” said Flávio Rímoli, Embraer's Senior Vice-President – Airline Market. “The rapid entrance of the Embraer 170's into commercial operation shows the excellent quality of its project, allowing for efficiency in crew training and reflecting Embraer's irreproachable focus on customer support services.” The new Embraer 170 fleet will support LOT Polish Airlines's expansion of its regional network from the Warsaw hub by providing more seat capacity and aircraft range to access new markets. LOT Polish Airlines's already flies 14 50-passenger ERJ 145 aircraft, and shall be operating 10 Embraer 170 up to mid-2005, with options for 11 more aircraft of the type.
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A survivability upgrade to the current fleet of AH-1W Super Cobras has turned out to be a solution to tail boom structural problems encountered during developmental testing of AH-1Z and UH-1Y aircraft here. Turning the exhaust away from the helicopter's tail boom will not only further decrease the AH-1W's infrared signature, but engineers here expect it will help with decreasing engine exhaust heat on AH-1Z and UH-1Y tail booms. H-1 program officials paused flight testing February 5 because of decreased structural strength in tail boom components caused by increased engine exhaust temperatures and higher loads and torque imparted on the tail boom by the upgraded T-700 engines. "Tail boom heating has had our interest since flight-testing began in 2000, but the full impact has only recently become apparent," explained Col. Doug Isleib, H-1 program manager here. "We'd prefer that these sorts of things didn't crop up, but we'd rather deal with them now than have them be problems for Marines out in the fleet. This is why we do developmental flight test in the first place."
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The Board of EADS appointed Johann Heitzmann (50) as the new head of the EADS Military Aircraft Business Unit. Heitzmann succeeds Aloysius Rauen (47), who transfers to the position of Chief Executive Officer of Eurofighter GmbH, located at Hallbergmoos near Munich. Heitzmann, who is to take up his new task in Ottobrunn on 1 May, currently heads the EADS Defence Electronics Business Unit located in Ulm. His successor will be Bernhard Gerwert (50), who at the moment is in charge of the Air and Naval Defence arm in Ulm. Commenting on Heitzmann's appointment, Tom Enders, chief of the Defence and Security Systems Division, said: “With his many years of experience in the Eurofighter programme and the development of systems and subsystems for all types of airborne platforms, Johann Heitzmann is the right man to take over the leadership of EADS Military Aircraft. He will strongly contribute to the success of the Eurofighter programme and will develop new business perspectives for his Business Unit with more than 7.000 employees in Spain and Germany.”
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Bell Helicopter has secured a firm purchase order for its 600th Bell 407. The aircraft will be delivered in 2nd Quarter 2004 to a customer in South Africa. National Airways Corporation (NAC), Bell's sole representative in Southern Africa, secured the sale. The aircraft will be used for corporate transportation in the region.
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Global Helicopter Technology has just completed another chapter in their successful history of engine integration programs. On March 1, 2004, the FAA issued Global a Supplemental Type Certificate for the re-engining of the UH-1H Huey with the Pratt & Whitney Canada PT6C-67D engine. Global has become closely identified as the cost effective option by various other engine companies, including Honeywell, Rolls Royce,and LHTEC for developing engine integration kits, particularly for the venerable UH-1H Huey. International engine upgrade programs have also included early versions of the Hindustan ALH for India and the A129 Mangusta for Agusta.
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Bell/Agusta Aerospace Company has delivered the first AB139 to Elilario, a leading Italian helicopter public transport company. The delivery took place at the Agusta Vergiate facility in Italy where AB139 deliveries will ramp up during 2004 to the customers who have already committed to the AB139, providing Bell/Agusta with a comfortable three-year order book. The AB139 is designed to meet today's JAR29/FAR29 standards and received Type Certification in June 2003, this will be followed by FAA certification in the second quarter of 2004 through the bilateral agreement between the certification authorities of Italy and the USA. These modern design and certification standards combined with its exceptional power to weight ration and high speed capability to make the AB139 ideally suited for, Offshore, Corporate, VIP, EMS or Law Enforcement operations. Following the selection of the AB139 by ICGS for the USCG Deepwater program a number of US and other Government Agencies are showing a keen interest in this new state of the art medium twin-engine helicopter.
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In an effort to standardise its short- and medium-haul fleet further, the Austrian Airlines Group has ordered a total of seven Airbus A319 aircraft. The first two aircraft were recently integrated into the Austrian fleet, and will be introduced to the public on 17 March 2004 within a ceremony to be held at the Austrian Technical base. Chief Executive Officer Vagn Soerensen said the following about the new jet, and the company's overriding concept of family and size: “The Airbus A319 is the perfect complement to our existing Airbus family for short- and medium-haul routes. With the Airbus A321, we cover the highest-volume flights. Equipped with up to 186 seats, this largest version will take over on our “racetracks” or high volume routes. With up to 150 seats, meanwhile, the Airbus A320 represents the standard size currently used in the European business and holiday sector. Its sister model, the A319, which is slightly smaller with up to 126 seats, primarily complements our routes into Central and Eastern Europe. In acknowledgement of our future in this region, we have named these aircraft – in English, the language of international aviation – after our important destinations in this region. The three Airbus A319 OE-LDA “Sofia”, OE-LDB “Bucharest” and (from the summer onwards) OE-LDC “Kiev” will strengthen our two-way West-East connections via our Vienna hub.”
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Bell's Modular Affordable Product Line (MAPL) of helicopters is making significant progress as development continues on the technologically advanced products. Plan calls for aircraft to be designed, built and certified by the end of the decade. Bell began development last year of the technology for MAPL, a family of light helicopters, including both single and twin-engine models. The MAPL family is being designed to provide break through productivity gains for Bell customers. Bell market research on the MAPL concept has shown us that our customers' price is the clear driver of customer satisfaction and that our initial targets of speed, payload, and noise are preferred. In response to our customers some of the design characteristics designed into the aircraft are: 20% productivity improvement via speed and useful load improvements; 20% reduction in operating costs; 10 dB noise reduction; 99% dispatch reliability. In order to achieve the high reliability rating desired, Bell has embarked on technology maturation for the MAPL family. Key technologies being developed by Bell include the main rotor, drive train, autopilot, and noise control. In addition, suppliers are working on engine technologies and avionics to meet customer requirements
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Lou Bartolotta, Managing Director, Bell/Agusta Aerospace Company, announced today the firm's highly advanced AB139 new medium twin-engine helicopter's US production and final assembly site will be Bell Helicopter's Amarillo assembly center. The Amarillo site selection is in addition to the existing AB139 production line in Agusta's Vergiate, Italy facility, and will provide the additional aircraft production required to meet customer delivery demands. Also of importance, Amarillo will significantly increase the U.S. content of the AB139, a key element in Federal, State and local government sales. This market has already shown significant interest in the AB139. The Bell center is located on 184 acres along the southeast corner of Amarillo International Airport. Bell/Agusta previously announced it would manufacture its BA609 civil tiltrotor at the West Texas facility.
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The opening day of this year's Heli-Expo in Las Vegas, March 15, saw the unveiling of the first EC 145 to go into service with a US EMS operator, Lee County. The event takes place exactly one year after Eurocopter first demonstrated the aircraft to American customers and prospects at Heli-Expo 2003. With interest in its latest light twin accelerating, Eurocopter attaches utmost importance to the stateside market and especially its EMS operators. A total of five EC 145 have been sold in the United States to date. With European service introduction of the EC 145 in April 2002, Eurocopter has launched a highly promising new aircraft in the world market which excels in terms of cabin space and versatility. In fact, the 50th aircraft will enter service at the end of this month. With production now in full swing, delivery times have been reduced significantly. This makes the aircraft even more attractive to the market where high interest has been expressed for law enforcement, EMS and oil & gas applications.
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Bell Helicopter Chief Executive Officer Mike Redenbaugh today announced that Bell will develop and manufacture a fully certified Bell model 210 Medium Utility Helicopter. The new aircraft will provide a significant increase capability over comparative models at greatly reduced direct operating costs. In making the announcement Mr. Redenbaugh said, “The Bell 210 is the perfect solution for the many agencies that use the UH-1H in utility, Homeland Security law enforcement or firefighting capacities. It combines great performance with an existing logistical base, an unbeatable DOC and a tremendously low initial acquisition cost. Add to that complete FAA certification and the Bell 210 is truly the best total value proposition to be found in the market today.” Much of the Bell 210 is based on the highly successful Huey II program. Many of the modifications and upgrades that result in the Bell 210 are the same that go into the Huey II. The success of the Huey II program, with more than 100 conversions currently flying worldwide, confirms the viability of the certified Bell 210 in the US market. The primary differences between the Bell 210 and the Huey II are the inclusion of different actuators, nose assembly and a new electrical system and the receipt of FAA certification.
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Rolls-Royce released its annual ten-year forecast of worldwide turbine helicopter deliveries. The forecast, which was presented at Heli-Expo 2004 by Stuart Mullan, the company's President - Helicopters, projects worldwide deliveries of turbine-powered helicopters and rotary-wing unmanned air vehicles (UAVs) in all size classes, both civil and military, from 2004 until the end of year 2013. During the 2004-2013 period, some 10,724 turbine helicopter deliveries are forecast worldwide (with an associated airframe value of $95.6 billion and an installed engine value of $8.8 billion). This figure represents three percent growth over last year's forecast, reflecting the transition of some major military programs into production during the period, offset by some rescheduling of demand. Although substantial growth in the military helicopter market is still forecast, the timing of this growth has been delayed due to program delays and a near-term of funding re-directed to operational expenditures associated with the war on terror. The civil helicopter market forecast has also seen a very slight near-term softening associated with the prolonging of the current economic downturn, in addition to a small refocusing by segment. On a unit basis, the split between civil and military sales is still forecast to be 50:50, although on a value basis the split is 15:85, or 22:78 by engine value. In addition to underscoring the relatively larger size (and hence cost) of most military rotorcraft, this value split does of course also reflect the higher cost of mission avionics, etc., fitted to military rotorcraft.
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Munich Airport's new summer timetable features five attractive new long-haul routes: a 40 percent increase in the number of nonstop long-haul destinations served from Munich. Lufthansa especially is expanding its offerings in this sector, including new nonstop services to Charlotte (seven times a week), Delhi, Tehran and Vancouver (three weekly flights each). Another focus of Lufthansa's commitment to the intercontinental segment is the growth market of China. Lufthansa will be operating its first-ever Munich-Peking service (three flights a week). It is also resuming its flights to Hong Kong, and will bump up the frequency of departures to Shanghai and on to Canton, adding two new weekly flights to bring the total to seven. These developments place Munich alongside Amsterdam and Paris as one of just three European airports offering direct flights to four Chinese destinations. The additions to Lufthansa's long-haul offerings represent a 67 percent increase over the summer of 2003.
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Frankfurt Airport's Summer Timetable 2004 – which goes into effect on March 28 –will feature 112 scheduled airlines offering a total of 4,217 flights per week to 300 destinations in 109 countries. Slightly more weekly departures (4,290) were registered for the Summer Timetable 2003; however, due to the Iraq war and SARS epidemic only 93 percent of the planned flights were actually realized. The total number of airline seats being offered at Frankfurt Airport (FRA) will increase from 693,153 last summer timetable to 697,871 this year. The major growth regions for the Summer Timetable 2004, above all, will be Eastern Europe and the Far East. New destinations include Kuching, Borneo, with Malaysia Airlines from March 28; and Ufa, Russia, served by Lufthansa from May 1.Frankfurt Airport's busiest routes this summer season will be in Europe. The top route will be FRA to Paris-Charles de Gaulle (CDG) with 128 weekly connections, followed closely by London-Heathrow (LHR) with 124 connections, and Berlin-Tegel (TXL) with 111 connections. In intercontinental traffic, Frankfurt's busiest routes will be Chicago (ORD) with 38 connections per week, followed by New York-Kennedy (JFK) and Los Angeles (LAX) – both with 34 connections per week.
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Virgin Express NV/SA has been informed by its majority shareholder,VEX PLC (Euronext Brussels: VIRE; OTC Bulletin Board: VIRGY) and by VSIL, majority shareholder of VEX PLC that a non-binding letter of intent (“LOI”) has been signed on 15 March 2004 by VSIL and SN Airholding, the majority shareholder of SN Brussels Airlines, which contemplates placing their respective operational airlines, Virgin Express NV/SA and SN Brussels Airlines, under common ownership. The parties have not as yet determined a detailed plan of how the Virgin Express NV/SA and SN Brussels Airlines business would be jointly managed. However, it is foreseen that both operational companies will remain separate legal entities. VEX PLC will remain a publicly quoted company on both the Euronext and Nasdaq (OTC Bulletin Board). The Board of VEX PLC and the Board of SN Airholding believe that the non-binding LOI and the transactions which it contemplates are in the best interests of all concerned parties, their employees shareholders and customers. Both companies expect significant mutual benefits through network optimisations. If the common ownership of the two airlines is realised, SN Airholding will offer the market two airlines with different brands and products to satisfy the growing needs of the competitive market in Belgium: a flexible full service airline and a low fare airline. SN Airholding will ensure that there will be no product confusion for the customer.
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The Board of Directors of SAS has approved a new Group structure and has agreed to introduce a new control and management model for the SAS Group. The new organization is a natural result of the changes that have been implemented and aims to achieve improvements in results by making better use of the business opportunities open to each business unit and to allow joint resources to benefit the entire organization in a more efficient manner. The Group structure that was introduced on May 20, 2001, an integrated airline group based on SAS Airline, has been modified in line with the acquisition of majority shareholdings in Braathens and Spanair. Through these acquisitions, the Group's sales increased from SEK 50 billion to SEK 60-65 billion. At the beginning of 2002, the business structure was adjusted and a group was created consisting of airlines and related operations. This development is complemented by today's Board decision to release and form separate business units out of Scandinavian Ground Services, Scandinavian Technical Services and World sales with 7,300, 3,800 and 3,500 employees respectively. These units, which were previously integrated sections of SAS Airline, will combine with SAS Cargo to form the new Airline Support business area.
The SAS Group will thereby be operated within the framework of the following areas: SAS Airline, Subsidiary & Affiliated Airlines, Airline Support, Airline Related Businesses and Hotels.
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EADS Defence Electronics will deliver advanced self-protection systems to the Eurocopter Tiger and NH90 helicopter programmes in Germany, France, Italy, Australia, Portugal and Finland. As announced by the company on Monday, Eurocopter awarded EADS Defence Electronics (DE) several contracts worth 200 Million Euros to deliver self-protection systems for the Eurocopter Tiger and NH90 helicopters procured by these countries. Deliveries will take place through to 2012. EADS Defence Electronics in a consortium with Thales will deliver an Electronic Warfare Suite comprising a missile approach warning system and a laser warning receiver developed by EADS DE in combination with a radar warner and the central processing unit developed and integrated by Thales as well as a chaff/flare dispenser from MBDA.
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