FLUG REVUE update: Week ending April 18, 2004

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UPDATE
Week ending 18 April 2004

+++ A330 tanker selected by Australia +++ Boeing completes 7E7 partner selections +++ China Southern buys Airbus +++ Ryanair continues Charleroi services +++ News in brief +++

A330 tanker selected by Australia
EADS gewinnt Tanker-Wettbewerb

The Military Transport Division of the European Aeronautic Defence and Space Company (EADS) teamed with Qantas Defence Services has been selected as the preferred tenderer for the Royal Australian Air Force's fleet of new air-to-air refueling aircraft, Defence Minister Robert Hill announced. Senator Hill said the government had selected the EADS A330 Multi-Role Tanker Transport Aircraft to replace the RAAF's ageing Boeing 707 aircraft in an approximate $2 billion project. “The five new aircraft will be capable of refueling F/A-18, F-111, Airborne Early Warning and Control and Joint Strike Fighter aircraft,” Senator Hill said. “They will also have a significant strategic air lift capacity when not engaged in aerial refueling tasks, including the ability to carry 293 passengers and a significant amount of cargo. “The acquisition of an additional aircraft will provide a big boost to operational capabilities – giving the RAAF a wider range of activities in one area of operations while also supporting refueling and transport activities in a second area.” “Our aircraft, for example, would enable non stop deployment of six F/A-18s from Darwin to Butterworth in Malaysia, while carrying 43 tons of support equipment and stores.”
Contract negotiations will now commence with EADS for the purchase of five aircraft. The basic aircraft will be constructed in Europe, with four of the five having refueling modifications installed and integrated by Qantas in Brisbane. Qantas Defence Services will also conduct through life support of the aircraft in Australia. “Australian industry will also be involved in the design of the refueling system, project management and production of aircraft components and engine parts for export,” Senator Hill said. “Over the life of the program, the value of the work to be undertaken by Australian industry and the associated technology to be transferred to Australia exceeds $500 million.” Contract signature is expected later this year, with the aircraft planned to enter service from 2007.
Two different contracts for a total amount of around Euro 1.2 billion will now be finally negotiated between the parties. EADS CASA will be prime contractor for supplying the aircraft, and Qantas Defence Services will be prime contractor for the through life support for a period of 20 years. There will be other Australian-based major partners in the programme.

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Boeing completes 7E7 partner selections
Wichtigste Partner für 7E7 ausgewählt

Boeing completed its 7E7 Dreamliner partner team by selecting its Wichita division to provide the all-new passenger jet's pylons and Goodrich Corporation to provide the nacelles, including the thrust reverser. The pylon holds the engine to the airplane while the nacelle is the outer covering of an engine. The nacelle system will be designed and supplied by Goodrich's Aerostructures business, headquartered in Chula Vista, California. The Boeing Commercial Airplanes Propulsion Systems Division (PSD), based in Tukwila, Wash., will continue its role in managing the engine relationships with 7E7 engine partners General Electric and Rolls-Royce. In addition, PSD will be part of the 7E7 Propulsion Team providing both engineering and procurement support.
"The progress we have made since making the first partner decisions last November has been outstanding," said 7E7 Senior Vice President Mike Bair. "We have established an aerospace industry all-star team that will bring the world's airlines and travelers a more advanced, efficient and comfortable airplane." The 7E7 partner team includes 15 companies from at least 10 U.S. states and seven countries. Many partners operate in multiple countries and states. "The combined knowledge and abilities of these companies will result in an airplane that exceeds the expectations of our customers and passengers," Bair said.
The 7E7 is a family of three airplanes, all of which will use the same engine type. The 7E7-8 Dreamliner will carry 217 passengers in three-classes of seating with a range of up to 8,500 nautical miles (15,700 kilometers). The 7E7-3 Dreamliner, a model of the 7E7-8 optimized for shorter flights, will carry 289 passengers in two-class seating on ranges up to 3,500 nautical miles (6,500 kilometers). The 7E7-9 Dreamliner, a longer version of the 7E7-8, will carry 257 passengers in three classes with a range of 8,300 nautical miles (15,400 kilometers). It is being designed to provide customers with a better flying experience including and improved cabin environment with more room and more conveniences.

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China Southern buys Airbus
Airbus A320/A319 für China Southern

Further to China Southern Airlines' announcement dated January 30, 2004, the Board hereby announces that on April 8, 2004, the Company and China Aviation Supplies entered into the Airbus Aircraft Acquisition Agreement with Airbus for the purpose of acquiring 15 A320-200 aircraft and six A319-100 aircraft from Airbus. As stated in the announcement of the Company dated January 30, 2004, the Directors believe that the acquisition of the Airbus Aircraft will further expand the flight service network and operating capacity of the Company, thereby enhancing its ability to compete significantly in the industry. The Directors also believe that the terms of the Airbus Acquisition Agreement are fair and reasonable and in the interests of the shareholders of the Company as a whole. CSAHC, which currently owns approximately 50.30% of the issued share capital of the Company, has approved the Transaction.

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Ryanair continues Charleroi services
Billigairline bleibt in Charleroi

On 13 April, Ryanair confirmed that it had concluded an agreement with Brussels Charleroi Airport and the Walloon Authorities which will allow Ryanair's low fares base at Brussels Charleroi Airport to continue with no change to the cost base, which means that all of the eleven existing low fare routes served from Brussels Charleroi will continue. The agreement concluded between Ryanair, Brussels Charleroi Airport and the Walloon Authorities contained the following principal elements: The existing airport and handling charges will continue for the foreseeable future until the airport reaches 2 million passengers per annum at which time 3rd party competitive handling will be introduced. Legislation will be enacted by the Walloon Authorities in order to make the Ryanair discounted arrangements available to other airlines operating at Brussels Charleroi Airport.
Ryanair have agreed to actively explore possibilities for basing more aircraft at, and opening new routes from, Brussels Charleroi Airport, subject to a new terminal being constructed, and the airport providing a competitive cost offer for these new routes which would be similar to the other lower cost offers presently available from a number of other privately and publicly owned airports. Welcoming the announcement of this agreement Ryanair's Chief Executive, Michael O'Leary, said: “We welcome this agreement which is good news for consumers and removes uncertainty and allows our low fare services to continue at Brussels Charleroi. This agreement was timely as we have negotiated a number of other airport base arrangements in recent months at costs which are lower than that at Brussels Charleroi, and there was a real likelihood that in the absence of an early agreement with Brussels Charleroi we would have closed the base and moved the aircraft and the low fare routes elsewhere.

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NEWS IN BRIEF / KURZMELDUNGEN

The 220 hours endurance test, prior to the Eurocopter EC 225 certification, has been successfully completed on the “Iron Bird” test bench in Marignane, from January to March 2004. The dynamics and power train have hence demonstrated their reliability further to a highly demanding spectrum of loads. The program featured 20 cycles of 11 hours with : 40 hours at TOP ( Take-Off Power) 80 hours at MCP ( Max Continuous Power), 40 hours Hours at OEI (One Engine Inopertaive) rating. Three cycles of 11 hours each, performed simultaneously at high oil temperature and low oil pressure. Then 50 overspeed and 200 overtorque completed the endurance test. The new Makila 2A, the reinforced gear box and the new spheriflex five bladed rotor performed very well and confirm the confidence put by Eurocopter in these proven technologies insertion in the EC225.
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A team led by Northrop Grumman has been selected to execute the first stage of an assessment phase for Project Helix, a new mission suite that will considerably enhance the reconnaissance mission capabilities currently provided by the Royal Air Force's Nimrod R1 aircraft. The Defence Logistics Organisation, an office of the U. K. Ministry of Defence, selected the Northrop Grumman team along with two other teams to compete for this initial nine-month phase of the work. The field will be narrowed to two competitors for the definition stage in 2005. Following down select, a single team will proceed with the risk-reduction stage in 2006. The implementation phase of the project will be carried out in two major increments, the first, of which the acquisition element is valued at £200 million (approximately $370 million USD), is slated for 2007.
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China's ACAC, AVIC I Commercial Aircraft Ltd., has chosen Goodrich Hella Aerospace Lighting Systems to supply a major portion of the lighting system on its new ARJ21 -- "Advanced Regional Jet for the 21st Century." According to Goodrich's Franz-Josef Beermann, Director Sales and Marketing for Lighting, "Goodrich will be supplying systems for nearly every lighting need for this new aircraft. From exterior to interior -- including the cockpit -- our latest technology will be on board. We are proud that ACAC identified us as the technology leader and recognized our proven capability to fulfill not only their technology needs but also their need for a systems integrator." The ARJ21 will make use of Goodrich's latest Light Emitting Diode (LED) and High Intensity Discharge (HID) technology. LED and HID technologies are the next generation in aircraft lighting. Both systems can lower direct maintenance costs and lengthen maintenance time between unscheduled repairs. LED technology also allows for smaller designs which weigh less and require less power. ACAC is leveraging all of these benefits for its new aircraft. Goodrich's HID technology has a lifespan 80 times longer than traditional technology, emits a light color similar to daylight and has extremely low power consumption resulting in energy savings between 40-80% compared to traditional lighting systems.
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Making sure that the measurements made by satellites are as accurate as possible has always been a difficult business and this will be especially true for ESA's ice mission CryoSat. However, last week a new instrument, which is set to be the workhorse for validating CryoSat data, was successfully tested from an aircraft over the snow and ice not far from the North Pole. CryoSat, due for launch at the end of this year, will be the first satellite to be launched as part of ESA's Living Planet Programme. From an altitude of 720 kilometres it will measure small changes, of no more than a few centimetres or so, in the thickness of polar ice sheets and floating sea ice. The main aim of this mission is to determine whether or not the Earth's ice masses are actually thinning due to global warming. During the last two weeks of March an important step forward was made in the preparations for the CryoSat validation campaigns. For the first time, the ESA Airborne Synthetic Aperture and Interferometric Radar Altimeter System (ASIRAS) was flown and tested over the snow and ice expanses of Svalbard, an archipelago of islands lying in the extreme north of Europe just 12 degrees from the North Pole. The ASIRAS radar altimeter simulates CryoSat measurements from an aircraft. The specific aim of this campaign was to acquire the first data sets of the instrument over snow and ice and to make sure that the instrument could be operated under the icy temperatures and high winds prevalent in this part of the world.
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Space Shuttle Discovery is a step closer to its Return to Flight mission, STS-114, to the International Space Station. Vehicle power up work continues with communications system testing, drag chute instrumentation retest and wireless video system testing. The left-hand Orbital Maneuvering System pod is scheduled for installation Saturday. The launch planning window for STS-114 opens in March 2005. Technicians successfully installed the four new Rudder Speed Brake actuators Wednesday. Panel installation is scheduled to begin early next week. Build-up of left-hand Reinforced Carbon-Carbon (RCC) panels and associated fittings is ongoing with 17 left-hand and six right-hand spar fittings installed on the vehicle.
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The functional tests of the M-346 aircraft engines have started at Aermacchi flight test center, according to the schedule for the first flight. The M-346 is the new lead-in fighter trainer, which will soon enter service as propaedeutical to the next generation of fighters. The First Engine Runs demonstrated the satisfactory operation of the engine electronic control units and of the fuel system both in the transient and the continuous operation phases. During the tests, the aircraft was stationed on the runway with the engines in Ground Idle conditions. The beginning of the tests performed with the powerplant in the airframe is a milestone in view of the first flight clearance. This will subsequently be integrated with the ground qualification tests that are to complete the validation of the other aircraft systems.
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Arianespace has revamped its organization, with effect from April 1st, 2004, as shown in the organization chart below. Jean-Marie Luton is the Chairman of the Board. The Executive Committee has not been changed. Its members are: Jean-Yves LE GALL, Chief Executive Officer; Françoise BOUZITAT, General Secretary and Senior Vice-President, Finances; Philippe BERTEROTTIÈRE, Senior Vice-President, Sales and Marketing; Patrick BONGUET, Senior Vice-President, Programs. The following appointments have been made: Edouard PEREZ, Senior Vice-President, Engineering; Jean-Marcel AGASSE, Senior Vice-President, Operations; Jean-Max PUECH, Vice-President, Finances; Louis LAURENT, Vice-President, Developments; Claude LE MOIGNE, Vice-President, Purchasing; Claire Coulbeaux, Vice-President, Communication and Public Relations.
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Cathay Pacific Airways announced that it has placed a firm order for two Boeing 777-300 jetliners as part of its plans to grow the airline and enhance Hong Kong's status as a leading international aviation hub. The new airplanes, which are valued at US$380 million at list prices, will be delivered in April 2005 and July 2006. Cathay Pacific's new 777-300s will feature a two-class configuration and will be powered by Rolls-Royce Trent 800 engines.
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Government representatives of France, Germany, the United Kingdom and Spain have signed a new tax agreement, which further advances the establishment of integrated European companies. This agreement, signed in the presence of Mr. Dominique Bussereau, the French [junior] Minister for the Budget and Budgetary Reform, and representatives of the German, UK and Spanish Ministries of Finance, establishes a government framework for sharing corporation tax revenues from European companies operating subsidiaries in more than one European member state. The agreement, which follows OECD guidelines, is fully compliant with each member state's national legislation and European competition regulations. As such, the agreement permits pan-European companies to move forward towards full integration. As the leading European aircraft manufacturer, Airbus is at the forefront of European industrial integration and will be the first to apply and operate in accordance with these groundbreaking principles. Airbus welcomes the signature of this agreement as an important step, further strengthening its own integration.
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NASA has approved an extended mission for the Mars Exploration Rovers, handing them up to five months of overtime assignments, as they finish their three-month prime mission. The first of the two, Spirit, met the success criteria set for its prime mission. Spirit gained check marks in the final two boxes on April 3 and 5, when it exceeded 600 meters (1,969 feet) of total drive distance and completed 90 martian operational days after landing. Opportunity landed three weeks after Spirit. It will complete the two-rover checklist of required feats, when it finishes a 90th martian day of operations April 26. Each martian day, or "sol," lasts about 40 minutes longer than an Earth day. "Given the rovers' tremendous success, the project submitted a proposal for extending the mission, and we have approved it," said Orlando Figueroa, Mars Exploration Program director at NASA Headquarters, Washington. The mission extension provides $15 million for operating the rovers through September. The extension more than doubles exploration for less than a two percent additional investment, if the rovers remain in working condition. The extended mission has seven new goals for extending the science and engineering accomplishments of the prime mission. "Once Opportunity finishes its 91st sol, everything we get from the rovers after that is a bonus," said Dr. Firouz Naderi, manager of Mars exploration at NASA's Jet Propulsion Laboratory (JPL), Pasadena, Calif., where the rovers were built and are controlled. "Even though the extended mission is approved to September, and the rovers could last even longer, they also might stop in their tracks next week or next month. They are operating under extremely harsh conditions. However, while Spirit is past its 'warranty,' we look forward to continued discoveries by both rovers in the months ahead," he added.
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Cathay Pacific Airways has signed a contract with Airbus for three additional A330-300, plus three further A330-300s from US leasing company ILFC, expanding the Airbus widebody fleet at the airline. Deliveries of the new aircraft, powered by Rolls-Royce Trent 700 engines, are scheduled between 2005 and 2007. Hong Kong-based Cathay Pacific already operates one of the largest Airbus fleets in the Asia - Pacific region, with 23 A330-300s, 15 A340-300s and three A340-600s currently in service. The airline operates its fleet of A330-300s on medium range regional routes, as well as on longer sectors to Australia. The A340-300s and A340-600s are deployed on ultra long-haul non-stop routes linking Hong Kong with destinations in Europe and North America. The A340-600s will inaugurate daily non-stop services between Hong Kong and New York in July 2004.
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EADS North America announced that it is extending its operations into Alabama with the construction of a new EADS CASA North America facility in Mobile. EADS CASA, which is making an initial investment of $1 million into the new center, will relocate its North America headquarters to Mobile. The new facility will be located at the Mobile Regional Airport. “EADS North America is very pleased to be coming to Alabama,” said Ralph D. Crosby, Jr., Chairman and CEO, EADS North America. “We are committed to increasing our already significant footprint in the U.S. by providing employment and quality products for U.S. corporate, para-public, and governmental customers. U.S. Senator Richard Shelby played a significant role in influencing our decision to relocate to Alabama, and we look forward to thanking the people of Alabama by being good corporate citizens of Mobile.”
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The Superbird-6 satellite was in orbit on April 15 thanks to a successful launch on an Atlas IIAS rocket provided by International Launch Services (ILS). Liftoff of the Atlas vehicle, built by Lockheed Martin, was at 8:45 p.m. EDT (00:45 April 16 GMT). The rocket released the satellite into its target transfer orbit 30 minutes later. This was the fourth launch conducted this year by ILS, a Lockheed Martin joint venture. It also was ILS' second launch for Space Communications Corp. of Tokyo. Both Superbird spacecraft are 601 model satellites from Boeing Satellite Systems (BSS) of Los Angeles. “We appreciate that SCC again placed its confidence in ILS and Atlas,” said ILS President Mark Albrecht. “And we're delighted to have a role in inaugurating new telecommunications services in the Western Pacific region.” Albrecht added: “Tonight's launch marks the 80th mission since the start of the commercial Atlas program. I want to acknowledge BSS and the team that builds the 601 model – 26 of these satellites have flown on Atlas rockets of various configurations over the last 11 years. So this launch is a reunion of a winning trio of companies.”
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Elbit Systems and Gilat Satellite Networks Ltd. announced that the two companies have signed a teaming agreement for cooperation in the area of satellite communications for the defense and homeland security markets. The agreement leverages Gilat's latest commercial satellite-based Very Small Aperture Terminal (VSAT) technology by integrating it with Elbit Systems' defense technologies for military and homeland defense applications. The joint effort has already resulted in the introduction of a new product as well as additional defense and security applications. The new product, GlobaLight(TM) is a man-pack, military standard, portable VSAT terminal for broadband data, voice and video, providing a highly effective means of communication for disaster and emergency command and support teams, as well as for remote infantry and border patrols. GlobaLight products were already presented to several potential customers.
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A report released by the Pentagon's Inspector General further supports a decision to halt a sweetheart deal to lease Boeing 767 tankers. “From the beginning, this has been a tail wagging the dog scenario,” Miller said. “The Inspector General's report showed that the specifications for the tankers were tailored to match the contractor's product, and not the Air Force's needs. The investigation also showed that the tanker lease deal is laced with provisions that will remove critical transparency in contracting and other taxpayer protections.” “The Air Force hasn't yet justified the need for the tankers, nor has it provided convincing evidence that it's the best financial deal for the taxpayers.” The Department of Defense Inspector General report documents how the Air Force violated federal contracting rules by: Tailoring the tanker contract so that only Boeing would be able to meet the requirements. By doing so, the Air Force eliminated other companies from being able to compete for the contract, it failed in its duty to procure a tanker that will meet its mission needs. This compromise means that the Pentagon is not buying the best, most useful tanker for our fighting men and women. Attempting to waive vital taxpayer protections including the Truth in Negotiations Act (TINA) and the Cost Accounting Standards (CAS) by labeling the tankers a “commercial” buy. Both TINA and CAS protect the government in cases where a true commercial marketplace that sets fair prices does not exist, particularly in the purchase of military aircraft such as the 767 tankers. Cost Accounting Standards ensure that defense contractors do not use Enron-like accounting gimmicks to cheat the government. The Truth in Negotiations Act creates an even playing field by requiring defense contractors to disclose their costs so that the government can negotiate reasonable prices. The Air Force's illegal use of commercial buying practices for the tanker deal gave Boeing the green light to rip off the government.
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Swiss International Air Lines carried a total of 2.16 million passengers in the first quarter of 2004 and achieved a seat load factor of 71.6 per cent. This represent an improvement of 3.7 percentage points against the same period a year ago. The seat load factor was higher for both the intercontinental and European route networks. The increase was particularly noticeable in March, which saw an improvement of 6.4 percentage points to 74.8 per cent. SWISS continues to improve in terms of capacity utilisation. In the first quarter of 2004 the seat load factor (SLF) rose by 3.7 percentage points on a previous-year comparison to 71.6 per cent. A total of 2.16 million passengers boarded a SWISS flight. Compared to the same quarter a year ago, SWISS reduced seating capacity by 21.8 per cent but the decline in demand was checked at 17.6 per cent, with a corresponding increase in seat load factor. Given the significant decrease in production between the two first quarters, which went hand in hand with adjustments to the route network, a meaningful comparison of passenger figures is impossible. The outbreak of war in Iraq also had a negative effect on last year's result. Seat load factor on European routes improved sharply in the first quarter, to 55.5 per cent or 5.9 percentage points higher. Markets driving this trend were the UK, Germany, Austria and Italy, all of which reported impressive increases in each of the three months under review. The improvements in seat load factor in Europe are largely attributable to the re-sizing of the route network and the introduction of the Swiss in Europe concept.
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Alcatel Space, a subsidiary of Alcatel has been chosen by the Galileo Joint Undertaking (GJU) consortium as the prime contractor for the European research and development project SCORE (Service of Coordinated Operational Emergency & Rescue using EGNOS). The SCORE project will run for 24 months, and is budgeted at Euro 2 million, including Euro 1.1 million financed by GJU. In the scope of this project, which integrates positioning data from EGNOS and Galileo - Europe's planned satellite positioning system - Alcatel Space will lead a European consortium in setting up emergency call positioning (regulation E112) and rescue force guidance services during accidents or natural disasters. For example, if a fire breaks out in a shopping center, a person in danger could automatically send his exact position via a cell phone in real time (call code E112), even from inside a building. Fire-fighters and police forces with PDAs could easily and precisely locate the place where the disaster has struck and determine which accesses remain open, be effectively guided to the person to be rescued, and easily coordinate their positions and actions.
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Connexion by Boeing , a business unit of The Boeing Company, and StarHub , Singapore's leading info-communications provider , today announced the signing of a Memorandum of Understanding (MOU) for an associate service provider agreement that will add the Connexion by Boeing real-time, high-speed Internet service to StarHub's wireless broadband services portfolio.As part of the MOU, Connexion by Boeing and StarHub will explore linking their respective networks, providing StarHub account holders with a seamless and simplified solution for accessing the full richness of the Internet when in flight. Airline passengers who have a StarHub account will simply have to enter their user ID and password to access the Connexion by Boeing service, and they will subsequently receive their billing for service access as an add-on to their existing StarHub bill.
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Using space systems to obtain the ultimate high ground in military operations has grown exponentially over the past decade and this growth shows no signs of slowing down in the coming decade. According to a recently released Forecast International market analysis, “Western Military Satellites: 2004-2013,” approximately 113 dedicated military satellites will be produced over the next 10 years, having an estimated value of $42 billion. These satellites range in size and cost from the relatively small and affordable Israeli Ofeq communications satellite to the U.S. National Reconnaissance Office's ORCA and Future Imagery Architecture constellations, with their secretive budgets and designs. During the recent wars in Iraq and Afghanistan, the U.S. military leveraged space-based assets to the maximum. No country in the world depends on space systems as its eyes and ears more than the United States, which accounts for approximately 90 percent of global military space spending. “Since the United States has evolved an asymmetric military advantage in space, it is this factor more than any other that will truly drive the international military satellite market in the years to come,” said John Edwards, Forecast International space systems analyst. “However,” he added, “competing in this arena is a costly enterprise, and while the United States moves forward alone, Europe continues to develop systems through cost-sharing partnerships.”
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SEROS II (Semmerzake Radar Operating System n° 2), Belgium's new military air traffic control system, was officially inaugurated on Tuesday March 9, 2004. The system has been operating at the Semmerzake control center since October 2003, controlling military airspace over Belgium and Luxembourg—one of Europe's densest air traffic regions. ThalesRaytheonSystems developed and deployed the computer systems for SEROS II from start to finish. Built around leading-edge technologies, SEROS II is a model programme and one of a family of major systems produced by ThalesRaytheonSystems. Using mainly commercial-off-the-shelf (COTS) components, SEROS II is based on an open client- server architecture, object-oriented design and UML technologies to ensure a high degree of interoperability and scalability. It is a fault-tolerant system with hot stand-by and guaranteed continuity of service in degraded mode to ensure operational availability around the dock.
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The plan on joint export promotion of 'BrahMos' missile systems was signed on April 6, 2004 in Moscow among Rosoboronexport State Corp, NPO Mash and BrahMos Aerospace Ltd. The document was inked by Mr. Andrey Beliyaninov, general director of Rosoboronexport, Mr. Herbert Efremov, general director of NPO Mash and Dr. A.Sivathanu Pillai, managing director of BrahMos Aerospace Ltd. The plan visualizes undertaking of joint marketing activities, aimed at promotion of 'BrahMos' missile systems of ship-born and air-born applications to foreign markets. NPO Mash Federal State Unitary Enterprise (Reutov-Town, Moscow region) is one of the leading developers and manufacturers of missile and space systems in Russia. In 2001 NPO Mash and Rosoboronexport Corp signed the General Agreement of cooperation on promotion of NPO Mash's products and services to foreign markets.
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Hamilton Sundstrand, a United Technologies subsidiary, and EADS Sogerma Services, a business unit of EADS, announced they will establish a joint venture for repair and overhaul of aircraft APU (auxiliary power unit) systems and accessories, subject to government and regulatory approvals. The joint venture, named Revima APU, will be located in Caudebec-en-Caux, near Rouen, France, and is expected to generate approximately $70 million in revenues once integration is completed. Terms of the transaction were not disclosed. The Revima APU joint venture will benefit from EADS Revima's comprehensive APU repair and overhaul capability, and will allow original equipment manufacturer Hamilton Sundstrand to consolidate its APU and accessory repair activity into one facility in the region. Hamilton Sundstrand's APU business, known as Power Systems, is based in San Diego, California, USA, and also markets some of its products under the name APIC.
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Kaman Aerospace announced that Superior Helicopter LLC, of Grants Pass, Oregon, has taken delivery of its fifth K-MAX helicopter with a new capability. The helicopter will operate the world's biggest aerial saw, named the Aussie SkySaw, a power saw that was designed specifically for the K-MAX. Equipped with 10 blades, each three-feet in diameter, the new SkySaw will be primarily used for power line sidewall trimming worldwide. Superior expects to begin operating the SkySaw commercially later this year.We have flown our K-MAX helicopters over 29,000 flight hours and we are very pleased with their consistent reliability and performance, said Gary Jantzer, vice president, Superior Helicopter. Just as we have done with the SkySaw, we will continue to explore opportunities that match the K-MAXs unique lifting capabilities.
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Lockheed Martin has signed a contract valued at more than $73 million to provide three KC-130J Weapon Systems Trainers (WSTs) to the U.S. Marine Corps. The simulators will support training requirements for aircrews of the KC-130J, a medium-sized transport and tanker used for airlift and aerial refueling operations of both tactical aircraft and helicopters.
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The Board of Commissioners has authorised a series of aeronautical improvements designed to maintain runways, taxiways and related infrastructure at JFK International Airport in a state of good repair while also preparing the airport for the next generation of quieter, more-efficient aircraft - the double-deck, 555-seat Airbus 380. Port Authority Chairman Anthony R. Coscia said: "Our system of airports is designed to serve air travellers as efficiently as possible. By making these necessary improvements, we simultaneously maintain JFK's infrastructure in world-class condition while also meeting our mandate to accommodate passenger growth with larger aircraft instead of adding flights." Port Authority Vice Chairman Charles A. Gargano said: "Making these improvements to JFK is vital if we are to remain economically competitive - locally, nationally and globally. Our continuing commitment to making airport improvements and enhancements will encourage and sustain growth as we usher in a new era in efficient aircraft design and air travel."
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In response to strong cargo market demand, China Airlines announced additional order of two Boeing 747-400F freighters, which are scheduled to be delivered in 2006. By 2007, the carrier will operate a cargo fleet of 21 freighters. China Airlines plans to take delivery of two B747-400 passenger jets and two B747-400 freighters this year and will have 30 B747-400s by the end of 2004. According to International Air Transport Association (IATA) forecast, air cargo demand for Taiwan will enjoy an average annual growth rate at 7% during 2003 and 2007. In the first quarter of 2004, China Airlines¡¦ cargo volume soared by 20.9% compared to the same period last year in terms of FRTK.
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The European Commission has approved the acquisition of the Danish company FLS Aerospace by SR Technics (SRT). Both companies are active in the aircraft maintenance, repair and overhaul (MRO) business. The analysis of the transaction has confirmed the highly competitive nature of the market and has shown that consumers will continue to benefit from sufficient choice in the sector. On 27 February 2004, SRT notified its purchase of FLS Aerospace UK, FLS Aerospace IRL, FLS Aerospace DK and Sheerwalk services Limited. The analysis carried out by the Commission indicated the existence of distinct aircraft MRO markets based on the level of service required and the aircraft type concerned, and that these markets are generally European-wide. For those markets where the parties have overlapping activities, SRT's post-merger share of the market for MRO services will not raise any competitive concern given the moderate nature of the market share additions from FLSA.
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