FLUG REVUE update: Week ending March 28, 2004

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UPDATE
Week ending 28 March 2004

+++ Eurosystems advances +++ Eurofighter sales overtaking US? +++ Lufthansa positiv on 2004 +++ Swiss fighting on +++ RBS15 Mk3 Selection for K130 Corvette reconfirmed +++ Cessna delivers 5000th new single from Independence +++ News in brief +++

Eurosystems advances
Zusammenarbeit BAE/Finmeccanicia kommt voran

BAE Systems and Finmeccanica have achieved an important milestone in the Eurosystems transaction. The EuroSystems partnership - initially announced with the signing of the preliminary MoU on July 3, 2003 - represents the common aspiration of Finmeccanica and BAE Systems to reinforce their strategic cooperation, through an extension to other business activities. To this aim, the two companies will be forming a Strategic Steering Council to coordinate activities in all areas of common interest, identifying opportunities either within the existing joint ventures or in other businesses. The companies have agreed the businesses to be included in the transaction and their respective valuations.
The companies will form two entities each under the clear operational control of one of the parents: A Systems Integration business, to be majority owned by BAE Systems, with capabilities in C4ISR systems and sub-systems, combat management systems, land and naval radars.An Avionics business, to be majority owned by Finmeccanica, with capabilities in sensor systems, airborne radars, mission systems, electro-optics and electronic warfare systems. Recognising the relative sizes of the companies' communications businesses, it has been agreed that Finmeccanica, through Marconi Selenia Communications, will acquire the relevant BAE Systems communication activities in the UK. These activities will considerably expand the capability of Marconi Selenia Communications in the UK.
It has also been agreed that Finmeccanica will acquire the Air Traffic Management activities of Alenia Marconi Systems. The companies believe that these activities will be more fully developed through closer alignment with the related Finmeccanica activities in this area, such as those carried out in the Space sector. The overall turnover of the activities involved in the transaction is around Euro 3.7 bn. The next step is for the companies to conduct due diligence and to prepare the contractual documentation

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Eurofighter sales overtaking US?
Gute Aussichten für Eurofighter

Over the next 10 years the Eurofighter team is expected to surpass U.S. firms in sales of fighter/attack/jet trainer aircraft. This projection is one of the major findings of a recently released market analysis by Forecast International. Overall, the analysis reports that deliveries of fighter aircraft can be expected to accelerate during the 2004-2013 timeframe. FI is projecting worldwide deliveries of 4,300 new aircraft worth $161 billion, with shipments and revenues both rising from late-decade onward.
The so-called legacy fighters – the F-15, F-16, and Mirage 2000 – continue to generate “last call” orders, but interest in these types will fade in favor of next-generation models such as the F/A-22, F-35 Joint Strike Fighter, Dassault Rafale, and the Eurofighter Typhoon by the end of the 10-year period under review. Virtually all the new models are having difficult if not painful gestation periods as their development costs continue to spiral upward. In the U.S. the Lockheed Martin F/A-22 has had its inventory objective scaled down to 276 aircraft as cost overruns and technical problems dog its progress, while the planned U.S. Navy/USMC buy of the same manufacturer's F-35 has also been cut significantly amid criticism of its “aggressive” development timetable and a weight problem.
Europe's Typhoon program may be further delayed as the consortium member nations renegotiate work shares and seek to cut costs. The program's credibility is not helped by rumors that the U.K. may reduce or stretch out its Tranche 2 order, although that country's Ministry of Defence (MoD) claims it has no plans to cut its 232-unit Typhoon requirement. Meanwhile, France's defense minister has called for an audit of Dassault's Rafale program to resolve a dispute between the government and the manufacturer over who should bear the burden of unforeseen program costs.
Forecast International aviation analyst Bill Dane notes that a number of overseas governments have signed aboard the F-35 development program and adds that “should this multirole type emerge at the end of this decade as a cost-effective design living up to its performance and cost goals, it could become an everyman's fighter which could well emulate or even surpass the success Lockheed Martin has enjoyed with its long-running F-16 family.” At the end of 2003, with a first flight still more than two years in the future, the manufacturer already held commitments from the U.S. and U.K. services for nearly 2,600 F-35s.
In terms of unit production, Lockheed Martin will lead the field but, its current problems notwithstanding, the Eurofighter team is expected to overtake the U.S. company in value of production before the end of the forecast period. This projection assumes the multinational Typhoon requirement is not cut back. The Europeans will be closely trailed by Boeing, Lockheed Martin, and the Lockheed/Boeing F/A-22 team.

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Lufthansa positiv on 2004
Besseres Jahr erwartet

Lufthansa has stayed on course and again demonstrated its stability in the turbulent year 2003. "Thanks to our flexibility we were able to progressively recover from a record loss in the first quarter to post an operating profit of Euro 36m for the full year," Lufthansa's Chairman of the Executive Board and CEO Wolfgang Mayrhuber said today on presenting the company's annual financial statements. "The weak macroeconomic momentum, the war in Iraq and SARS squeezed demand, further increased price pressures and severely depressed our result. We nonetheless managed to half our indebtedness." Mayrhuber expressed optimism: "The goal is clear, the strategy is correct, we are on course, but there is still a long way to go before we reach our destination."
"We have retrenched and restructured, developed innovations for the customer and invested in the future. Lufthansa has mastered the crisis," Wolfgang Mayrhuber said. "We have won awards, we have gained new customers and strategic business partners, we have attained very positive customer ratings and we have again outperformed the German stock index DAX in what was a crisis-ridden year. We are proud of these achievements." The Lufthansa CEO added, however, that he was naturally not satisfied with the result for the year 2003. "In order to generate profitable growth and offer our staff secure jobs and future prospects, we have to lastingly improve our efficiency and profitability. That is also something which all of our shareholders expect."
The segments Passenger Business, Logistics, MRO and IT Services posted positive segment results. But LSG Sky Chefs and Thomas Cook were hit particularly hard by last year's crises. "Thomas Cook's priorities must be to minimise the losses, put in place a competitive cost structure and return to profitability," Mayrhuber said. The LSG group had faced massive slumps, especially in its main market of the USA. He cautioned that it would be wrong, however, to focus exclusively on the current performance: in the past the company had achieved good returns over many years. "And we want to resume that track-record. LSG is currently undertaking a mammoth cost-cutting programme, the entire organisation is being redimensioned," the Lufthansa Chairman informed his audience. "In future we shall concentrate on the business we do best: airline catering. All other operations will be subjected to a strategic review. In the case of Chef Solutions talks are in full swing with potential buyers."
Lufthansa has critically re-examined the book values of its goodwill and tangible fixed assets, cleaned up its consolidated balance sheet and made unscheduled amortisation and depreciation charges totalling 783m Euro, largely in respect of the LSG Sky Chefs group. This leaves Lufthansa with a bottom-line result of -984m Euro. This means that Lufthansa cannot pay a dividend for 2003.
However, neither this result nor the serious situation of LSG Sky Chefs and Thomas Cook warrants calling the strategy into question. "The aviation group is alive," Wolfgang Mayrhuber said, "and where there is life there are also changes." The aviation group will continue to orient itself to economic and strategic criteria, the Lufthansa Chairman commented. "That is the successful consequence of this strategy." It was only the Group's reorganisation into business segments that had brought transparency and established market relationships between internal customers and suppliers. That had widened the action radius, encouraged entrepreneurial thinking and behaviour and enabled the individual companies to become global market leaders. Consequently, the aviation group's individual business segments can now be given a market value and are open to capital participations. In future Lufthansa's portfolio management strategy will also focus more on the respective core business. "We shall continue to manage our equity portfolio actively and more selectively and to strengthen the individual core competencies in our business segments," Mayrhuber announced. "Our aviation group is stable but not static."
Lufthansa began the year 2004 in optimistic mood. The Group will resolutely implement its announced action programme. "We are right on schedule." Of the total targeted savings of 1.2bn Euro, around 430m Euro will be saved on a permanent basis in the course of this year. The Group has already achieved 234m Euro of the savings. "With the streamlining of our balance sheet, the successful launch of our action programme and our strategy of product differentiation and continuous quality enhancement, we have charted the course for Lufthansa's future. We are confident that in 2004 we shall be to post a significantly better operating result as well as a positive net result," Wolfgang Mayrhuber prophesised.
In 2003 the Lufthansa Group generated revenue of 16.0bn Euro, which was 6.0 per cent less than in 2002. The Group's airlines generated traffic revenue of 11.7bn Euro. That is a year-on-year decline of 3.1 per cent. Other operating income fell by 17.8 per cent to 1.7bn Euro. It includes book profits of 79m Euro from the disposal of the equity stake in Start Amadeus and 151m Euro from the sale of aircraft.

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Swiss fighting on
Geringerer Verlust für Swiss

SWISS reported a better-than-expected financial position thanks to progress in restructuring, the gradual recovery in the markets it serves, and careful cash management. The operating loss for 2003 amounted to CHF 498 million, a sharp improvement over the CHF 909 million loss reported for the previous year. Liquid assets of CHF 503 million at the end of 2003 also exceeded expectations. Active cash management is playing a key role in SWISS's turnaround. Liquidity-improving measures implemented in the course of 2003 are having a positive effect. The consolidated balance sheet at December 31, 2003 showed liquid funds (cash and cash equivalents, fixed-term deposits and marketable securities) of CHF 503 million. The actions taken helped limit the net outflow of liquid funds during the fourth quarter to CHF 152 million, despite the negative effect of restructuring costs and the delivery of five new Airbus A340s.
Within the overall framework of its imminent membership of oneworld, SWISS entered into a strategic alliance with British Airways. In addition to commercial considerations, the terms of the alliance included British Airways' provision of a CHF 50 million financial guarantee. This guarantee permitted the conclusion of a credit agreement for this amount with Barclays Bank plc on March 12, 2004. SWISS drew the full credit amount on March 16, 2004.
Independently of liquidity trends in the light of business operations, SWISS is striving to create a liquidity buffer to cushion the impact of any unforeseen events. To this end, the company has been involved in intensive negotiations for several months with the major Swiss banks and international financial institutions abroad. As the negotiations also involve the refinancing of part of the SWISS aircraft fleet (these assets will serve as collateral on the loan amount), the discussions are extremely complex and are taking more time than was originally envisaged. With the company's liquidity developing better than expected, the loan from Barclays Bank already in place, the summer months with their stronger revenue flows coming up and substantial cost reductions effected, the time pressure on concluding these negotiations has been significantly reduced, compared to the time of launch of the restructuring programme. According to current planning the liquidity level is expected to stay above CHF 250 million, even at its lowest point in the second quarter of 2004, with expectations of a further increase thereafter.
In the middle of 2003 SWISS decided on a new direction for the company. Today's airline is smaller, more efficient and more dynamic. The company was able to initiate the turnaround in less than a year with good prospects of success. At this point some 60 per cent of all the measures intended have been implemented. SWISS expects to push ahead with the final third of the possible improvements. The full impact of these measures will only become apparent next year because of restructuring costs and the longer time factor of the processes involved.
Route network capacity was reduced by 21 per cent and the fleet downsized from 111 to 83 aircraft (2004 summer timetable: 82 aircraft incl. 3 Charter). The streamlining of the route network and further measures are taking effect. Capacity utilisation on SWISS aircraft in December 2003, measured in terms of average seat load factor (SLF), rose to 74.6 per cent. This is an improvement of almost six percentage points compared to the level of 68.7 per cent for the same period a year earlier. The proportion of transfer passengers of total passenger volume fell significantly, which had a positive impact on average yield per passenger.
The workforce was reduced by 2530 full-time positions by the end of 2003, with an additional 670 trimmed in the first quarter of 2004. More favourable contract terms were negotiated with the five major suppliers, which reduced unit costs by 20 per cent. Administrative and personnel costs were also reduced decisively. Once all measures have been implemented these will be 50 per cent lower, generating repeating annual savings potential of CHF 600 million.
The Board of Directors will propose a capital reduction at the Shareholders' Meeting on May 6, 2004 in order to prevent net equity from falling below half of the share capital. The proposal is to reduce the nominal share value from CHF 32 to CHF 18. This measure would also have tax benefits for the company.

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RBS15 Mk3 Selection for K130 Corvette Reconfirmed
Saab-Lenkwaffe für Korvetten ausgewählt

The German Federal Office for Defence Technology and Procurement (BWB), the Armament Department of the MoD (Rü), the German Navy Staff (FüM) and the State Secretary for Defence, Dr. Peter Eickenboom, reconfirmed an earlier decision to procure the RBS15 Mk3 heavy anti-ship missile offered by BGT and Saab Bofors Dynamics for the German Navy's new K 130 corvettes. The new weapon will provide the German Navy from 2007 onward with the capability to attack sea targets in blue water and littoral environments, and also targets on land. The re-assessment of the K130's anti-ship missile armament concept became necessary as a result of the cancellation in early 2003 of the Polyphem S light anti-ship missile proposed by EADS Lenkflugkörpersysteme GmbH. The fiber-optic guided Polyphem S missile was intended to defeat small sea and land target. Under the new armament concept part of the tasks of Polyphem S will be taken over by the RAM Block 1 HAS mode and the RBS15 Mk3 missiles.
RBS15 Mk3 is an evolutionary development of the well proven RBS15 Mk2, built in large numbers and in service with several European navies, such as the Royal Swedish Navy and the Finnish Navy. The Mk3 version differs from its predecessor by a high-precision GPS assisted inertial measurement unit and a much larger engagement range. The RBS15 Mk3 Mission Engagement Planning System (MEPS) has been completely redesigned and its performance enlarged. It provides for fast and efficient employment of RBS15 Mk3 missiles even in critical situations and under most difficult operating conditions.
Production of RBS15 Mk3 missiles will be performed in Germany under BGT prime contractorship. Final missile assembly will take place at Diehl Munitionssysteme's Maasberg facility. RBS15 Mk3 is a true European missile involving a number of companies from Germany, France, Sweden, UK and other nations in addition to BGT and Saab Bofors Dynamics. The work share amounts to 25% for Germany, 33% for the Sweden, 21% for France, and 18% for UK.

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Cessna delivers 5000th new single from Independence
5000. Cessna Einmot gebaut

Cessna has delivered its 5000th single engine piston aircraft, a Skylane, since the restart of production in Independence, Kansas. This remarkable milestone takes place only seven years after the delivery of the first Independence-built airplane. “When we restarted single engine piston aircraft production and delivered our first new airplane in 1997, we knew we were beginning an exciting journey,” said Roger Whyte, Cessna's Senior Vice President of Sales and Marketing. “We have built a new facility, trained a new workforce, and sold and delivered 5,000 airplanes in less than a decade. This commendable achievement is because of the hard work and dedication of the entire Cessna team. “This accomplishment is proof of our commitment to delivering the world's most popular, reliable, and safest airplanes. Teaching people how to fly has been Cessna's passion for over 77-years. We will continue to hold firm to that principle and will invest in this area of the market.”
Cessna's current single engine piston aircraft product line includes the 172R Skyhawk, 172S Skyhawk SP, 182T Skylane, T182T Turbo Skylane, 206H Stationair, and T206H Turbo Stationair. In 2003, Cessna announced Garmin's new G1000 all-glass integrated avionics system as a Nav III option on all Skylanes and Stationairs.

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NEWS IN BRIEF / KURZMELDUNGEN

Management Board of OHB Technology AG presented the audited consolidated financial statements 2003 on their annual accounts press conference in Frankfurt / Main today. OHB Group sales in 2003 made a huge jump by around 42 % to EUR 96.3 mill (previous year EUR 68.0 mill). The prevailing key figure of the Group – driven through the mainly project oriented space technology – total revenues achieved a growth in 2003 of around 34 % to EUR 105.8 mill (previous year EUR 78.9 mill) and over fulfilled the companys´ planning slightly. For the current fiscal year the management board expect total revenues in the amount of more than EUR 120 mill(previous year EUR 105.8 mill). “The high order backlog of around EUR 188 mill gives us the optimism of a significant growth in total revenues and earnings for the current year and offers also the opportunity for further increases in coming years,” underlined Marco R. Fuchs, CEO of OHB Technology AG. An under proportionate increase in Group expenses, especially due to the rather constant level of personal costs result in an extraordinary strong earnings increase in EBITDA of 60% to EUR 8.5 mill (previous year EUR 5.3 mill) and in EBIT of 70% to EUR 6.3 mill (previous year EUR 3.7 mill). Higher adjustments for deferred tax liabilities of around EUR 1.7 mill result in an increase in net profit of 36% to EUR 4.6 mill (previous year 3.4 mill) and in earnings per share of nearly 35% to EUR 0.31 (previous year EUR 0.23). For the current fiscal year a double digit increase in earnings is planned. Space technology division was the main driver of total revenues and earnings in fiscal 2003 with around 90% (EUR 94.2 mill) of total revenues and responsible for the complete earnings. “We are confident to achieve also profitability in the two other divisions telematics and satellite services in fiscal year 2004,” confirmed Marco R. Fuchs the current planning of the Group.
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Florako, the Swiss air forces' new air defense and air operations command-and-control system, went live. The Florako System entered operational service on February 2, 2004, after successfully completing final tests and operating in parallel alongside the old Florida air defense system. Florako is an all-new system comprising Master surveillance radars, a data and communication system, a new air picture generation and airspace management system, and new control Air Command and Control Centre. This capability gives the Swiss air forces and Skyguide, the service providers responsible for military air safety, a modern system for monitoring airspace to meet increased civil and military air navigation requirements. "Congratulations to ThalesRaytheonSystems for achieving this significant milestone," said Armasuisse Programme Manager, Hans-Peter Hulliger, "Florako will significantly enhance Switzerland's air defense capability and airspace safety." The entry into service of this system marks the most important acquisition milestone in the project. The system's development will continue as new features are phased in progressively up to 2006.
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In 2003, the Pilatus Group doubled its profit in comparison with the previous year and ended the year with a positive CHF 5.3 million. Turnover even increased by 24 percent. It has maintained its concentration in three business areas - General Aviation (PC-12), Government Aviation (training aircraft and systems) and Maintenance. The 2003 business year was not an easy one for the Pilatus Group but it turned out to be a very successful one. The workshops and assembly hall were on shorttime until the end of May 2003 and only two PC-12s per month were leaving the factory. However, the order situation changed abruptly in the middle of the year. Suddenly production rose to two PC-12s per week. Almost half the staff even had to work during the factory's two-week holiday closure in July and August, so that they could deliver all the planes that had been ordered. Last year the PC-12 achieved a market share of 22 percent in its market segment, which meant Pilatus was able to pull ahead from the direct competition, thanks to the PC-12, and was the only manufacturer whose significant increase in sales took it to a new high altitude in 2003. This is supported by figures from the General Aviation Manufacturers' Association, GAMA. During last year Pilatus was able to deliver a total of 65 PC-12s, which is 40 percent more than the previous year. In addition to this came eight of the PC-9 M trainers ordered by the Irish Air Force. Sales even began again of the Pilatus Porter PC-6, which the company has been producing for 44 years. 76 aircraft were delivered in 2003, compared with 49 the previous year, which means Pilatus' sales increased by 55 percent. With the fleet of six PC-9M ordered by the Bulgarian Ministry of Defence and the fact that the 500th PC-12 is about to be delivered, the order situation for 2004 is looking very good. The Pilatus Group's previous year turnover of CHF 353 million increased by approximately 24 percent to CHF 436 million. Operating profit went up from CHF 2.4 million to CHF 5.3 million (after the investment of CHF 36 million in research and development). The dollar's low rate of exchange, which fell to a record low of 1.24 by the end of the year, had a negative effect of CHF 18 million on the result. For the first time business activities operated with an earned free cash flow of CHF 90 million. Pilatus has no debts and has excellent liquidity.
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Pratt & Whitney Canada Corp. (P&WC) has received Transport Canada certification for its new PT6A-68C engine, selected to power the Embraer EMB314 Super Tucano multi-purpose military turboprop aircraft. The 1,600 shp PT6A-68C is the most powerful and latest member of P&WC's legendary PT6 engine family and features an electronic engine control-Power Management Unit (PMU). Transport Canada certification was obtained 23 months after the engine program's launch in January 2001. Embraer recently delivered the first production model of the Super Tucano to its launch customer, the Brazilian Air Force (FAB). The delivery took place at a ceremony held at Embraer's Gaviao Peixoto facility in the state of Sao Paulo attended by high-ranking Brazilian military and civilian authorities, Embraer personnel, partners and suppliers, including senior P&WC executives.
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NetFires LLC, a limited liability company established by Lockheed Martin and Raytheon Company, has received a $1 billion contract for System Design and Development (SDD) for the Non Line-of-Sight - Launch System (NLOS-LS), previously known as NetFires. NLOS-LS is a family of artillery missiles fired from a vertical launcher that can be deployed by ground or air assets throughout a theater and networked to quickly engage an enemy. The two NetFires LLC partner companies will evenly split the SDD contract. The sole-source, six-year SDD contract includes design and development of the Loitering Attack Missile (LAM), the Precision Attack Missile (PAM) and an autonomous Container Launch Unit (CLU). Raytheon is developing the PAM, Lockheed Martin is developing the LAM and together they will produce the CLU. The NLOS-LS Task Force, U.S. Army Aviation & Missile Command, Huntsville, AL, is the contracting agency.
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Northrop Grumman Corporation has selected key team members and assigned roles to four of its sectors to create a best-of-industry team in the competition for the Aerial Common Sensor (ACS), the U.S. Army's and Navy's next-generation airborne multi-intelligence collection system. BAE SYSTEMS North America will collaborate with Northrop Grumman to form a signals intelligence (SIGINT) team of national scale. BAE will bring its proven Diamond(tm) open-system architecture to the effort, and Northrop Grumman will contribute its expertise in multi-aircraft geolocation. Together they will provide a formidable SIGINT capability for both the Army and Navy. Gulfstream, a unit of General Dynamics, will provide its G450 business jet as the ACS platform and will make all special-mission modifications to the aircraft. The suppliers that will provide the communication subsystem for the mission suite include a number of incumbents on the Army/Navy inventory: L-3 Communications - West, a recognized world leader in military communication systems, will provide the line-of-sight and satellite communication data links, which will ensure that critical information is rapidly disseminated to all levels of command. L-3 currently supplies data links for the Army's RC-12 Guardrail and RC-7 Airborne Reconnaissance Low systems.
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A Global Positioning System (GPS) satellite built by Lockheed Martin for the U.S. Air Force was successfully launched from Cape Canaveral Air Force Station, Fla. The satellite features significant upgrades, including an advanced antenna panel, which will deliver greater performance and power for GPS receivers. Today's launch represented the 50th GPS mission for the nation. GPS IIR satellites are designed to improve global coverage and increase the overall performance of the global positioning constellation. Lockheed Martin has delivered 21 of these satellites to the U.S. Air Force Space and Missile Systems Center, Los Angeles Air Force Base, Calif. There are now a total of 28 GPS satellites on orbit, including 10 new-generation GPS IIR spacecraft. The very first GPS satellite was launched on February 22, 1978 aboard a Lockheed Martin-built Atlas rocket from Vandenberg Air Force Base, Calif. The GPS IIR satellites are compatible with the first-generation global positioning spacecraft and provide improved navigation accuracy, achieved by using an ITT Industries payload system. Increased autonomy and longer spacecraft life are other features inherent in the Lockheed Martin satellite design.
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The Italian Air Force have taken delivery of Typhoon IT002 in a ceremony at the Italian Air Force Base in Grosseto. IT002, a twin-seat aircraft, was handed over to 4th Squadron and is one of 29 aircraft to be delivered to Italy in Tranche 1 of the programme. IT003 and IT004 are currently at the Alenia Aeronautica final assembly facility and expect to complete national acceptance shortly. The Italian Air Force programme covers a commitment to 121 aircraft. In Italian service Typhoon will replace F-104s used for the defence of national air space. In February, IT001 was delivered to the Italian Air Force Base at Cameri where it is being used in a programme of training for Aircraft Maintenance and Support personnel.
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The following is a statement from Stephen D. Ramsey, Lockheed Martin's US101 vice president and general manager: "Team US101 understands the Government's decision to delay the award on the Marine One presidential helicopter replacement program. "Over the next several months, we will continue to work closely with the U.S. Navy customer to ensure that our low-risk approach will maintain the 2007/2008 delivery schedule required by the White House. We believe that it is important that the President have this new safe and secure transportation capability, particularly in the post-September 11 environment.
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On the afternoon of March 22, the V-22 Integrated Test Team flew the first air-to-air refueling flights since the program's return to flight in May of 2002. Over the course of two one-hour sorties using Osprey No. 22, test pilots Lt. Col. Kevin Gross, USMC and Steve Grohsmeyer each logged five “dry plugs” behind a VX-20 KC-130F operating near NAS Patuxent River. The pilots were assisted by crew chiefs Staff Sgt. Brett Heuvelman, USMC and Staff Sgt. Craig Mynard, USMC. The primary reason for the flights was to re-establish Gross and Grohsmeyer's day aerial refueling qualifications. Eventually the ITT will have six pilots qualified to tank day and night, and at night while wearing night vision goggles - all part of the developmental test plan. “Air-to-air refueling is an easy task in the V-22,” Lt. Col. Gross said after the flights. “The aircraft demonstrates positive and predictable characteristics in all axes but especially in the thrust axis where the pilot's ability to control closure rates is important.” Gross said this particular refueling exercise was done at airspeeds around 200 knots and an altitude of 10,000 feet. Although Osprey No. 22 has an eleven-foot fixed probe, the qualification flights were the initial step toward testing the new retractable refueling probe that will be installed on Osprey No. 21, currently being modified in Hangar 109 at Pax River. The developmental testing of the retractable probe will begin early next month and should last about three weeks. The retractable probe is just over nine feet long when extended but is flush with the nose when stowed - a necessary feature for shipboard operations. The V-22's air-to-air refueling features are the cornerstone of the improvements in self-deployment capability and operational range over the legacy systems it will replace.
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Adam Aircraft announced the appointment of Joe Walker as President of the Company. "With over 25 years of experience in leading general aviation companies, Joe Walker initially will play a key role in the expansion of Adam Aircraft's sales, marketing and customer support capabilities," said Rick Adam, CEO of Adam Aircraft. "Joe has participated in the launch of close to 30 different aircraft ranging from light singles to ultra-long range business jets. As one of the most talented senior executives in our industry, Joe will provide the guidance and leadership necessary to ensure a successful launch for both our A500 piston-twin and A700 AdamJet." Prior to his appointment last year to Adam Aircraft's Board of Directors, Mr. Walker had a distinguished career with other leading aircraft manufacturers. Most recently he was Senior Vice President of Worldwide Sales for Gulfstream Aerospace and Vice President of General Dynamics. He held senior roles at Gulfstream from 1995 to 2002 as the firm grew through an Initial Public Offering, and later an acquisition by General Dynamics.
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On March 18, the next generation IRIS-T short-range air-to-air missile, developed by an international consortium under BGT's prime contractorship, performed its first safe separation firing from an Italian Eurofighter over the Salto di Quirra test range in Sardinia, Italy. Primary task of the successful launch, the first of a series of seven, was to demonstrate safe separation of the IRIS-T missile from the Eurofighter aircraft. The launch was made out of a high-g turn from the multi-functional rail launcher (MFRL) on the inner outboard station of the right wing. The launch altitude was 4500 m, launch speed high subsonic. The next day a second successful safe separation firing was performed, this time from the integrated tip stub pylon (ITSP) launcher mounted at the outer outboard station of the right wing. The launch occurred again out of a tight turn under an even higher g-load. The flight altitude was about 1500 m, flight speed high subsonic. The two successful firings represent important milestones on the way towards achieving operational clearance for IRIS-T on German, Italian and Spanish Eurofighters.
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The first flight tests of the tanker version of the Multi Role Tanker Transport (MRTT) based on a converted A310 have successfully taken place in Dresden, Germany. The first tests on 12 March were designed to analyse the effect of the aircraft's refuelling pods on the aerodynamics of the MRTT. The four-hour flight demonstrated that no significant difference could be noted between the handling of the MRTT and that of the basic A310 aircraft. Subsequent flights were performed to test how the aircraft's fuel hoses operated under different flying conditions and to find out whether different air flows and speeds affected their stability. A manoeuvre was also carried out with a German-owned Tornado military aircraft to assess how well the MRTT hoses reacted to a fighter aircraft close-by. These tests confirmed that air-to-air refuelling could successfully take place. The MRTT testing programme is continuing with a total of 80 flight hours planned. Future tests, which will be carried out every week, will look at how the aircraft performs at higher speeds, and assess the aircraft's systems, such as hydraulics, electrics and navigation aids.
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The Airbus A380 is on board! Airbus' sites across Europe are preparing to send major A380 sections to the Jean-Luc Lagardère final assembly line in Toulouse. Here in the pages of Airbus4U, we will follow the sections as they progress along their journey. Delivering these A380 components presented Airbus' transportation teams in France, UK, Spain and Germany with a fresh challenge – the dimensions of some A380 components are bigger than anything previously produced for a civil aircraft, meaning new transportation methods were needed. Airbus worked with partners and suppliers to produce sea vessels, barges and road vehicles capable of bringing the A380's components across the canals, rivers, seas and roads of Europe to Toulouse. The first major A380 sections, the rear fuselage sections, have left Hamburg in Germany and are being transported to Saint-Nazaire in France. The sections were loaded onto a ship on 23 March and are expected in Saint Nazaire at the end of the week. These rear sections manufactured in Spain and Germany, were assembled in Hamburg. They will be used for the static test aircraft.
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The new Bombardier Global 5000, the world's fastest intercontinental super-large business jet, has received full type approval from Transport Canada, clearing the way for first deliveries of “green” production aircraft to begin in the second quarter of 2004. The first Global 5000, currently being equipped with a custom interior, will enter service in the fourth quarter of 2004. The Bombardier Global 5000 offers an exciting combination to operators – unparalleled speed and unprecedented cabin productivity and comfort. Transport Canada -- the lead regulatory agency involved in the program -- awarded full certification to Chapter 525, Change 6, on March 12, 2004. The Bombardier Global 5000 will also be approved by the U.S. Federal Aviation Administration to FAR Part 25, Amendments 1 to 97, and by the European Joint Aviation Authorities to JAR Part 25, up to Change 14.
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Connexion by Boeing, a business unit of The Boeing Company announced pricing details for its high-speed in-flight Internet service scheduled to become commercially available this spring. Connexion by Boeing has created a model that enables airline passengers to affordably extend their on-the-ground connectivity experience. The result is more choices for how to use their time in the air using either of two initial pricing plans, which will vary depending on flight length: Flat Rate Pricing Option: (Unlimited access to the Internet) $29.95 for long-haul flights (more than six hours); $19.95 for medium-haul flights (between three and six hours); and $14.95 for flights less than three hours. Metered Pricing Option: 30-minute starter package for $9.95 with rates of $0.25 per minute thereafter.
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Flight testing with external stores began recently for the T-50 Golden Eagle supersonic trainer. Korea Aerospace Industries (KAI) is the prime contractor for the T-50 Full Scale Development (FSD) program, Lockheed Martin is the principal subcontractor for FSD, and the Republic of Korea Air Force is conducting the flight testing. Flight testing is being conducted from Sacheon Air Base, South Korea. Flight testing with captive AIM-9 air-to-air missiles was initiated on Nov. 3, 2003, and the first flight with external fuel tanks occurred on Feb. 7. Initial flights are to verify the T-50 aircraft's stability and control, flutter and handling qualities. Later flights will verify its performance, store functionality and interfaces, and store separation. The 150-U.S. gallon fuel tanks are built by Sargent Fletcher of El Monte, Calif., and provide extended mission duration and range. The tanks can be carried on the centerline station and the inner under-wing stations in a one-, two- or three-tank configuration. A single tank extends mission duration/range about 15-20 percent, and the three-tank configuration extends the duration/range about 40 percent.
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In the course of its meeting in Kiruna (Sweden) on 24 and 25 March, the ESA Council approved the accession of Greece and Luxembourg to the ESA Convention. The two countries are expected to become full members of the Agency by 1 December 2005, after their national approval procedures have been completed. The Hellenic Republic officially applied to join ESA last October, the Grand Duchy of Luxembourg in December. The ESA Council unanimously approved both applications. Greece and Luxembourg were granted observer status to attend meetings of ESA's Council and all its subordinate bodies, to enable them to familiarise themselves with the Agency's procedures and working practice.
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Lockheed Martin's Line-of-Sight Antitank Weapon System (LOSAT) completed its Developmental Test program on March 9 with the successful launch of a Kinetic Energy Missile (KEM) against a target tank at White Sands Missile Range, NM. The tank was destroyed by the hit-to-kill KEM. The Developmental Test program, begun in June 2003, was under the control of the U.S. Army Test & Evaluation community. Over the past eight months, the LOSAT weapon system fired 18 KEMs at various targets, including a stationary armored personnel carrier, a reinforced urban structure, and stationary and moving tanks, all at various ranges in both nighttime and daytime conditions.
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Boeing and Hamilton Sundstrand are expanding their partnership on the all-new 7E7 Dreamliner passenger airplane with the selection of the United Technologies unit to provide the airplane's primary power distribution system. That system includes six large power panels containing equipment that controls, protects and distributes electrical power on the 7E7. "Hamilton Sundstrand has won additional work because of its innovative approaches and understanding of our requirements," said Boeing 7E7 Senior Vice President Mike Bair. "Our systems team is really taking shape. We are making good progress selecting partners and completing the contracting process." In February, Boeing selected Hamilton to provide the 7E7's auxiliary power unit, environmental control system, remote power distribution units and electrical power generating and start system.
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For the first time, the 'videometer' (VDM), a new technology device to ensure very precise automatic rendezvous operations between the 20.7 tonne Jules Verne Automated Transfer Vehicle and the ISS, has been successfully tested this month. Based on the design of a star tracker, the Jules Verne videometer, which is the first automatic optical operational system ever used for spacecraft navigation, has been through extensive simulated rendezvous tests. This state of the art rendezvous technology is the crucial part of the new European cargo spaceship to which it gives its specific name of Automated Transfer Vehicle (ATV). "For the first time, the ATV rendezvous sensors were used successfully in real conditions. And, within their operational domain, they worked exceptionally well," said ESA ATV engineer Stein E. Strandmoe, who supervised a critical 10-day test campaign. For the final rendezvous manoeuvres, the ATV will use its videometer eye-like sensors, combined with additional parallel measurement systems, which allow an automatic docking with an incredible centimetre precision while the spacecraft and the ISS are circling the Earth at 28 000 km/h. "The first European rendezvous spacecraft is expected to dock with ISS next year with the accuracy of the size of a one Euro coin", said ESA astronaut Jean-François Clervoy, senior advisor to the ATV programme.
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ATR (Avions de Transport Régional) signed 5-year operating lease contracts for 5 second-hand ATR 42-500 aircraft with the French regional airline Airlinair. The five aircraft are scheduled to be delivered by the end of the summer season 2004. Paolo Revelli-Beaumont, Senior Vice President Commercial of ATR, is “proud of this new proof of confidence from Airlinair, one of our customers since 1999, and whose entire fleet consists of ATRs. Moreover, this order confirms Air France's high interest in the new generation ATR aircraft.”
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Cessna's Citation XLS has received FAA program approval less than six months since its introduction at the 2003 National Business Aviation Association (NBAA) convention. The Citation XLS is the successor to the Citation Excel, the fastest-selling business jet in the world. The XLS is powered by Pratt & Whitney's new PW545B engines that provide 3,991 pounds of takeoff thrust each, an increase of 4.9% compared to the Excel. This additional thrust also provides remarkable cruise speeds and climb performance. At its maximum takeoff weight, the XLS is able to climb directly to 45,000 feet in 29 minutes, and cruise at 429 ktas once at that altitude.
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BAE Systems has introduced a day/night, all-weather capability designed to enable pilots to navigate and land in degraded visual environments. The capability combines radar, infrared sensors, and low-light-level TV to enable pilot visibility in dust-outs, smoke, fog, haze, rain, snow, and complete darkness. The system consists of BAE Systems Radar-Enhanced Vision System, a multimode, millimeter-wave radar, integrated with forward-looking infrared, low-light-level television, and proprietary sensor fusion technology to enable operation in zero-ceiling/zero-visibility (0/0) environments. The fused image is displayed either on a head-up or helmet-mounted display. “One of the most dangerous challenges military aviators face is poor visibility, a fact that has been underscored by recent operations in unprepared environments in Iraq and Afghanistan,” said Dutch Neilson, leader of the BAE Systems Platform Solutions team that developed the technology. “Our system provides the best and most affordable solution to the hazards caused by dust generated during landing and take-off, smoke in battlefield areas, and adverse weather.”
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NASA continues to prepare for the Space Shuttle fleet's Return to Flight. Space Shuttle Discovery, the first orbiter scheduled to fly, is undergoing processing at Kennedy Space Center, Fla. Discovery and the seven-member STS-114 crew are targeted to launch between March 6 and April 18, 2005. X-rays showed that Rudder Speed Brake actuator gears had been improperly installed. The actuator has been sent back to the manufacturer where the gears' orientation will be corrected. Currently, Discovery is in the middle of the two-week period in which it is undergoing electrical wiring inspections and voltage testing. Also, the installation of Reinforced Carbon-Carbon (RCC) panels continues. The RCC panels protect the leading edge of the Shuttle's wings during re-entry and are a part of the orbiter's Thermal Protection System. Workers are conducting checks of the Shuttle's Main Propulsion System. Meanwhile, Space Shuttle Atlantis continues to undergo processing for STS-121, and Space Shuttle Endeavour is in its Orbiter Major Modification period.
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This year's Heli-Expo in Las Vegas from March 15 to 17 was the most successful trade show in Eurocopter's history. During his first press conference in the United States, President & CEO Fabrice Brégier pointed out that 2003 had been a good year for Eurocopter. One of the main targets for the future is expansion and even stronger commitment in the United States, where a new plant in Mississippi is opening this year while a strong American partner is being sought to help introduce Eurocopter's military products to the U.S. market, notably the NH90 which has a unique mission capability for various U.S. requirements. Marc Paganini, President of American Eurocopter, was pleased to announce that his company had captured a share of 49 percent of the U.S. civil and parapublic market in the previous year, a quite remarkable result in view of currency and market fluctuations.
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The W3A spacecraft, designed and built by EADS Astrium for EUTELSAT and launched by Proton on 16 March 2004, successfully performed early operations and in now in geostationary orbit. After its launch from Baikonur by a Proton launch vehicle, the satellite's perigee altitude was raised in several burns of its own engine until it reached geostationary orbit. Its solar arrays were successfully deployed as were the antenna reflectors, and the satellite is now accurately pointing to Earth. All systems are behaving nominally. As planned the satellite is slowly drifting round to its orbital position where it will be thoroughly tested before the payload can be brought into full operational service. “This is a major event for EADS Astrium as W3A is the first of the Eurostar E3000 series. All over Europe our teams and our expertise were mobilized to make this event a success.” said Antoine Bouvier, CEO of EADS Astrium. “With the launch of W3A, its largest satellite so far, Eutelsat has demonstrated its confidence in the Eurostar E3000 and EADS Astrium's overall capabilities.”
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Early reports show that the Air Force's next generation close-air support aircraft has a weight problem. Secretary of the Air Force Dr. James G. Roche told members of the Senate Committee on Appropriations subcommittee on defense the issue was predictable. “The (F-35 Joint Strike Fighter) has only completed two of an 11-year-development program,” the secretary said. “You would expect that at about this time. I can predict what (problems) we're going to see in 2008 because they're natural in the development of the systems.” Being overweight is especially troublesome for the close-air support variant of the F-35 because its primary feature is the capability for short takeoffs and vertical landings. The STOVL version uses a shaft-driven lift fan propulsion system that allows the aircraft to hover and land like a helicopter. Lockheed Martin originally contracted with the U.S. Marine Corps to build the STOVL variant of the F-35 to replace the aging AV-8B Harrier. The Air Force will take over the program in June, as part of the service's commitment to improving close-air support. “This aircraft is expected to provide sustainable, focused close-air support for the joint force commander,” Secretary Roche told the lawmakers. “Together (with the F/A-22 Raptor) these aircraft will be integral to our support of ground forces in various environments.” The secretary said he expects to work closely with the Marines in developing training courses, based on that service's extensive experience with vertical takeoff and landing aircraft. In the meantime, Secretary Roche promised to make the weight problem a top priority item.
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HEICO Corporation, in whose subsidiary HEICO Aerospace Lufthansa Technik holds a 20 percent interest, announced that it has entered into a long-term exclusive supply agreement with Japan Airlines (JAL), providing for a Strategic Relationship between HEICO's Flight Support Group (HEICO Aerospace) and JAL. The Strategic Relationship is HEICO's first in Asia and the sixth such unique relationship between HEICO Aerospace and a major international airline. HEICO has partner positions with Lufthansa, American Airlines, United Airlines, Delta Air Lines and Air Canada, in addition to the new Strategic Relationship with JAL. The Strategic Relationship will accelerate HEICO's efforts in developing a broad range of aircraft component and engine parts slated for FAA approval. Subject to the terms of the agreement, JAL has agreed to purchase these newly developed parts and most applicable HEICO Aerospace FAA Approved Replacement Parts on an exclusive basis from HEICO Aerospace. In addition, JAL has designated HEICO as its largest and premier supplier of non-OEM FAA Approved Replacement Parts, and is committed to developing additional FAA Approved Replacement Parts with HEICO Aerospace.
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An Improved version of Prithvi-II missile, having higher accuracy, was successfully launched from Interim Test Range (ITR), Balasore at 1010 hrs today. The shore based and down range tracking system like Radar, EOTS and Telemetry of ITR, Balasore tracked the flight path of the missile until impact, validating the accuracy of the missile guidance. All the mission objectives were met.
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After launching its new Business Class on long-haul routes, Lufthansa is following suit with an improved product of the highest quality standard on continental flights. Starting with the summer flight schedules on 28 March, it will be Europe's only airline to keep all central seats free in Business Class on flights in Germany and Europe. Business-Class passengers will enjoy up to 50 per cent more room as well as better inflight cuisine and service as well as more stowage space for luggage, making their stay on board an entirely more pleasant experience. Into the bargain, steps are afoot on the ground to enhance punctuality: Almost nationwide in Germany from early April, Senators as well as Frequent Travellers and Business-Class passengers will have privileged use of priority check-in and fast lanes to speed their passage through the terminal. In Economy Class as well, Lufthansa is offering customers a broad range of diverse tariffs, from flexible tickets to "bargain fares".
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Beginning March 29, the Asian carrier Dragonair (airline code = KA) will be inaugurating a cargo service between Frankfurt Airport (FRA) and Hong Kong International Airport (HKG). A Dragonair B747-300F jumbo freighter will be serving Frankfurt four times per week: every Monday, Tuesday, Thursday and Saturday. The new service includes a stop in Dubai on the way to and from Frankfurt. Dragonair is expanding its cargo network to FRA in response to growing demand for freight capacity between Asia and Europe. In 2003, Asia accounted for more than 49 percent of FRA's total cargo tonnage. The arrival of Dragonair underscores CargoCity Frankfurt's (the name of Frankfurt Airport's cargo metropolis) continuing growth as a dominant player in the Asian market. With 1.7 million metric tons of airfreight and airmail in 2003, FRA ranked number one in Europe and number eight worldwide.
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