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UPDATE
Week ending 9 May 2004

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A380 assembly hall opened +++ MP-RTIP contract for Northrop Grummnan +++ Arianespace back in the black +++ European DELTA mission concludes with Soyuz landing +++ ILA to open with renewed optimism +++ Boeing 757 Special Freighter launched +++ SWISS struggles on +++ News in Brief +++


A380 assembly hall opened
Fertigungshalle für Super-Airbus eingeweiht

Airbus' A380 assembly facility in Toulouse, France, will was inaugurated by French Prime Minister Jean-Pierre Raffarin on May 7, at a ceremony attended by more than 3,000 guests, including customers, government officials, suppliers and employees. The Airbus A380 assembly building is one of the largest in the world, measuring 490m by 250 m, with a height of 46 m. It is the largest of several buildings on the site which, together, incorporate more than 32,000 tons of steel – the equivalent of four Eiffel towers or the Millau viaduct - plus 250,000 cubic meters of concrete.
Airbus A380 sections are joined together at a single station – an Airbus first – with the aircraft then moving on its own wheels into one of three stations in another part of the building for testing. The facility incorporates room for expansion, with a second A380 assembly station and a further three test-stations that will initially be available as hangars. It also incorporates offices on several levels.
Other buildings on the site currently include the Airbus A380 static-test facility and a general purpose hangar. The site will later also be equipped with parking for ten A380s. Airbus facilities on the site represent a total investment of 360 million euros.
The Airbus A380 forming the backdrop to the ceremony is a structural test specimen which will never fly. Instead it will undergo years of static-strength testing, eventually to destruction, as a check on design calculations. These trials will take place in a purpose-built hangar nearby. Final assembly of the first flying A380 will begin shortly. This aircraft will undergo a whole series of ground-based tests, beginning this summer, prior to flight-trials, which are due to begin in early 2005. The Airbus A380 will begin carrying passengers in 2006, when it enters airline service, initially with Singapore Airlines.

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MP-RTIP contract for Northrop Grummnan
AGS-Radar: Entwicklungsauftrag erteilt

The U.S. Air Force's ability to track and identify stationary and moving vehicles, and low-flying cruise missiles will increase dramatically using a new airborne radar system being developed by Northrop Grumman Corporation. The company will develop, integrate and test the Multi-Platform Radar Technology Insertion Program (MP-RTIP) radar under a new six-year, $888 million contract awarded by the Air Force's Electronic Systems Center. The contract marks the beginning of Phase II of the MP-RTIP program, also known as the system development and demonstration (SDD) phase. Northrop Grumman, the MP-RTIP prime contractor, designed the radar during Phase I of the program, a three-year, $410 million effort that began in December 2000.
MP-RTIP is a modular, active electronically scanned array radar system that can be scaled in size for integration on manned and unmanned airborne platforms. The Air Force plans to deploy the radar on its RQ-4B Global Hawk unmanned aerial reconnaissance system and the E-10A/Multi-Sensor Command and Control Aircraft (MC2A). The radar builds on the capabilities of its predecessors, the Joint Surveillance Target Attack Radar System (Joint STARS) and Global Hawk, and gives commanders the unprecedented ability to simultaneously conduct air-to-air and air-to-ground combat missions over a wide geographic area.
"MP-RTIP's advanced target detection, identification and tracking capabilities are central to helping the E-10A and Global Hawk reach their potential as critical nodes in the Air Force's command and control constellation," said Gary Ervin, sector vice president of Northrop Grumman's Air Combat Systems, a business unit of its Integrated Systems sector. Northrop Grumman Integrated Systems leads the overall MP-RTIP system development and demonstration effort. The company's Electronic Systems sector is working with Raytheon Space & Airborne Systems to develop and produce the MP-RTIP hardware. Integrated Systems will integrate the radar on both Global Hawk and the E-10A aircraft.

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Arianespace back in the black
Wieder Gewinn für Arianespace

At the general assembly of Arianespace shareholders the company's financial results for 2003 were approved. Sales for 2003 were 559 million euros, resulting in a net profit of 9.2 million euros. Despite a continuingly difficult commercial market and extremely aggressive competition, these figures were the result of: The reaffirmation of support for Europe's launch industry by European Space Agency member states, with the implementation of a return to flight plan for the Ariane 5 ECA, as well as the European Guaranteed Access to Space (EGAS) program; the restructuring Europe's launcher industry, which enabled the readjustment of Ariane 5 production costs to bring them back in line with market pricing; increased flexibility for Arianespace customers through development of the European family of vehicles - Ariane, Soyuz and Vega - and the establishment of the Launch Services Alliance, which associates Arianespace with Boeing Launch Services and Mitsubishi Heavy Industries; the internal reorganization of the company itself, which now has more than 250 employees grouped into three sectors focused on sales, programs and finance, and which is perfectly suited to serve as the European Space Agency's sole contractor for launch services.
In 2003, Arianespace won 8 of the 17 launch services contracts open to competition, thus reaffirming its role as the world's leading launch services provider. The current backlog for Arianespace is 33 satellites to be launched, valued at more than three billion euros.

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European DELTA mission concludes with Soyuz landing
ESA-Astronaut von ISS-Mission zurück

The 11-day DELTA mission to the International Space Station (ISS) came to a successful conclusion when the Soyuz TMA-3 command module, carrying Dutch ESA astronaut André Kuipers and the ISS Expedition 8 crew, touched down early this morning near the town of Arkalyk in Kazakhstan at 07:12 local time (02:12 Central European Summer Time) after a return flight of just over three hours. The mission, which included nine days on the International Space Station, was faultlessly executed, with the achievement of all of major objectives. The intensive experiment programme was successfully carried out, the ISS Expedition 8 crew was relieved and the Soyuz TMA-3 spacecraft, stationed at the ISS for the past six months to act as the crew lifeboat, was replaced.
After the hatch between Soyuz TMA-3 and the ISS was closed yesterday, about 6 ½ hours before today's landing, the crew carried out the standard procedures and checks prior to undocking. Some 3 hours later, the spacecraft undocked from the ISS with Kuipers as Flight Engineer, sitting on the left of Russian Federal Space Agency cosmonaut Alexander Kaleri, the Soyuz Commander. Kaleri and the second Flight Engineer, Michael Foale (NASA), were the returning Expedition 8 crew who had been stationed on the ISS since 20 October. During those six months Michael Foale had been the ISS Commander.
During the DELTA mission, André Kuipers carried out one of the most extensive experiment programmes undertaken by a European astronaut so far on the International Space Station, in the fields of human physiology, biology, microbiology, physical science, Earth observation, education and technology. Many of these experiments were developed by Dutch researchers and built by Dutch industry and research institutions.

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ILA to open with renewed optimism
Luftfahrtschau in Berlin hält Position

Keen interest by exhibitors from home and abroad, the most extensive programme of conferences at any trade fair of this kind, the largest number of aircraft on the ground and in the air, and attendance by high-ranking delegations from business, politics and the armed forces: from 10 to 16 May the International Aerospace Exhibition ILA2004 in Berlin-Brandenburg will continue its record of success as one of the world's leading trade fairs for every area of business involving the aerospace sector.
Despite a difficult economic situation the ILA2004 remains remarkably successful and stands comparison with the records set at the event in 2002. A total of 987 exhibitors from 43 countries (2002: 1,067 from 41 countries) will occupy the southern section of Berlin-Schönefeld Airport to present the entire range of products and services featuring current and future developments in aerospace technology. Approximately 42 per cent of exhibitors are from abroad. Five outdoor display areas covering a total of 94,000 square metres (2002: 92.000 m²) are available for national and international presentations by the industry as well as twelve exhibition halls with 48,000 square metres of display space (2002: 49,000 m²). In addition 57 chalet units have been set up directly in front of the airfield itself for use by selected customers and VIPs. Over 330 aircraft, including helicopters, have already been registered (2002: 340) at the ILA2004, a larger number than at any other international aerospace trade show. With more than 70 accompanying conferences (2002: 64) the programme of meetings taking place at the ILA2004 is also more extensive than at any other international air show.
The organisers of the ILA, Bundesverband der Deutschen Luft- und Raumfahrtindustrie (BDLI) e.V., representing the German aerospace industry, and Messe Berlin GmbH, are equally positive in their assessments of this event. “Despite the worldwide crisis affecting the industry over the past three years this ILA2004 looks set to continue its record of successes. It is taking place at the start of the upturn that we in the European aerospace industry are expecting”, according to the BDLI Chief Executive Hans-Joachim Gante. And in the words of Stefan Grave, Messe Berlin's ILA Project Director: “The ILA in particular confirms that the Berlin/Brandenburg region, as a venue for high-tech trade fairs, attracts experts and trade visitors as well as exerting a particular fascination on the general public. The ILA gives a boost to business and science in the entire region, and in particular it also underlines the importance of Berlin/Brandenburg as a centre for the ongoing development of aviation.”
Topics of particular interest to the industry at this year's ILA include the expansion of NATO and the EU, which will feature in the discussions at all the conferences on the subject of security policy, production of the super-jumbo Airbus A380, which will open up a new chapter in civil aviation, the launch of the programme for the development of the A400M military transport, which is expected to provide some 40,000 jobs in Europe, and the introduction of Galileo, the European satellite navigation system, which has the potential to create as many as 100,000 additional jobs in the service sector and in the production of new equipment. Attention will also be focused on transatlantic joint ventures (Euro/Global Hawk, MEADS), European projects (Airbus, A400M, Eurofighter, Tiger, NH90) and partnerships with Russia (EADS+).
So far over 330 aircraft have been registered at the ILA2004, making it a must-see for aviation enthusiasts and the technically-minded. Depending on availability several different Airbus models will be on show at the ILA. They range from the world's longest commercial aircraft, at 75.30 metres, the A340-600, and the Beluga A300-600 ST, the transport aircraft with the largest capacity (1,400 cubic metres), to the smallest member of the highly successful Airbus family, the A318. The roll-out of the first Airbus A320-200 belonging to the new low-cost Hungarian carrier Wizz Air will take place on 11 May. The largest-ever production aircraft, the Antonov An124-100, will be on display for the first time at the ILA. This Ukrainian-built freighter can carry by far the largest payload of any aircraft (some 150 tonnes). At the other end of the scale is the CriCri, the world's smallest twin-engined aircraft, which can also be seen at the ILA2004.

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Boeing 757 Special Freighter launched
Neue 757-Version gestartet

OnApril 29, Boeing, Singapore Technologies Aerospace Ltd (ST Aero) and Israel Aircraft Industries (IAI) announced a new conversion option for cargo operators - the 757-200 Special Freighter. The Boeing 757-200 Special Freighter provides an ideal replacement for the very popular yet older 727-200 freighter. It will carry approximately 20 percent more freight at the same trip cost.
"We are pleased that ST Aero and IAI are offering air cargo operators a passenger-to-freighter conversion solution that will help them take advantage of the rising air cargo market," said Mike Stewart, vice president of freighter conversions for Boeing Commercial Aviation Services. "We've worked together very successfully on other engineering and modification programs, and I fully expect our excellent relationship to continue on this latest endeavour."
The three companies are building upon experience they gained converting 34 Boeing 757-200 passenger airplanes to freighters for DHL Worldwide Express. For this new program, Boeing will license its 757-200 data to ST Aero and IAI, who will, in turn, develop and market a new supplemental type certificate. ST Aero and IAI expect to introduce the first Boeing 757-200 for conversion by the third quarter of 2005. The companies estimate the cargo industry will need 200 to 300 medium standard-body freighters in the next 20 years, and most of those will come from passenger-to-freighter conversions.

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SWISS struggles on
Weitere Verluste bei SWISS

Swiss International Air Lines (Group) generated consolidated income from operating activities of CHF 846 million in the first three months of the 2004 business year and posted earnings before interest and taxes (EBIT) of minus CHF 69 million for the period. SWISS thus effected a reduction of some 65 per cent in its first-quarter operating deficit compared to the minus CHF 199 million posted for the prior-year period. Liquidity amounted to CHF 419 million on March 31, 2004, above plans. SWISS's consistent pur-suit of its corporate restructuring activities is having an increasingly positive impact on its future business performance as well, as the full benefit of these endeavours will be felt in the course of 2004 and 2005. The first-quarter results – which were achieved in what are traditionally the weakest three months of the year in revenue terms – also re-flect a general recovery throughout the air transport market.
SWISS reported earnings before interest and taxes (EBIT) of minus CHF 69 million for the first three months of 2004 on total income from operating activities of CHF 846 million. The earn-ings result is a 65.3% improvement on the minus CHF 199 million EBIT recorded for the prior-year period. After the financial result, income taxes and group-related items, SWISS posted a net loss for the period of CHF 78 million. By comparison, the group sustained a CHF 200 mil-lion net less for the first quarter of 2003. The consolidated balance sheet showed cash and cash equivalents of CHF 414 million and fixed-term deposits amounting to CHF 5 million on March 31, 2004. Cash and cash equiva-lents declined CHF 89 million in the course of the first quarter. Cash flow from operating ac-tivities amounted to minus CHF 5 million, compared to minus CHF 197 million for the same period a year ago.
The encouraging operating cash flow performance was achieved through a combination of active cash management and more favourable business trends. Since no Airbus A340s to be operated under finance leases were delivered in the period – the eighth aircraft to join the fleet was not acquired until April 28 – the net cash used in investing activities was limited to CHF 40 million. Much of this amount stems from various investments relating to the introduction of the new Airbus A340 to the SWISS aircraft fleet. These included interior installations such as the inflight entertainment system, rotable spares, other technical components and consum-ables.
As already communicated in the media release on its 2003 annual results, SWISS is confident of holding cash and cash equivalents of more than CHF 250 million at what is expected to be its lowest liquidity point in the second quarter of 2004. The company's active cash manage-ment again contributed positively to the development of liquidity in the first quarter of 2004.
At the same time, SWISS is continuing its negotiations with the major Swiss banks and other international financial institutions to secure additional liquidity which would cushion it from un-foreseen events and enable it to take optimum advantage of new business opportunities. SWISS cannot, however, currently put a date on when such negotiations are likely to be con-cluded.
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NEWS IN BRIEF / KURZMELDUNGEN

Europe's growing family of commercial launch vehicles will position Arianespace as a potential international partner in America's long-term plan for increased space exploration. This was the message of Philippe Berterottière, Arianespace Senior Vice President - Sales, Marketing and Customer Programs, during testimony today at public hearings in New York for The President's Commission on the Implementation of U.S. Space Exploration Policy. Underscoring Arianespace's track record since its creation in 1980 as the world's first commercial launch services provider, Berterottière said the company has signed more than 250 contracts and lofted the majority of the world's commercial satellites in geostationary orbit today. Ariane 5 initially was developed as a man-rated launch system to carry Europe's Hermes spaceplane, and it orbited the European Atmospheric Reentry Demonstrator (ARD) - a system that could be used to return scientific experiments and other cargo from the International Space Station. The Ariane 5 also will begin orbiting the large European Automated Transfer Vehicle (ATV) for vital re-supply and re-boost of the International Space Station (ISS). The first ATV should be tested late next year, with an additional 6-8 already under contract for launch. "With fewer shuttle missions now expected, additional ATVs may be needed for servicing and maintaining the ISS," Berterottière told the commission.
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The MARSIS team has advised ESA to delay the deployment of the MARSIS radar instrument on board Mars Express, scheduled for this week. New and improved computer models suggest that, during deployment, the radar booms may swing back and forth with larger amplitudes than previously expected. If this happened, the booms might come too close to delicate components of the spacecraft body. Further simulations and tests are under way to better understand the situation. The two main radar booms are 20-metre long hollow cylinders, of 2.5 centimetres diameter, folded up in a box like a concertina (accordion). When the box is opened, the elastic energy of the compressed glass-fibre booms will let them unfold like a jack-in-the-box.
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Raytheon has been awarded a $232.7 million contract to begin full-rate production of the Evolved SEASPARROW Missile (ESSM) for the U.S. Navy and nine other allied nations. An international cooperative upgrade of the RIM-7 NATO SEASPARROW Missile, ESSM provides self-defense battlespace and firepower against high-speed, highly maneuverable anti-ship missiles. The contract calls for production of 368 missiles and associated spares for Australia, Canada, Denmark, the Netherlands, Norway and the U.S. By October 2006. Fifty-percent of the work will be done by Raytheon and 50 percent by the program's international partners.
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Boeing delivered its last new 757-300 passenger airplane to Continental Airlines Chairman and CEO Gordon Bethune and about 100 Continental employees and guests. Continental now operates 10 757-300s and more than 40 757-200s. Launched in 1996, the 757-300, at 178 feet 7 inches, is the longest single-aisle twinjet ever produced. Boeing will build the final 757, a 757-200, in October. Boeing has delivered more than 1,038 757 airplanes to 55 customers during the past 22 years
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The Romanian national carrier TAROM has signed a firm contract for the purchase of four A318 aircraft, further strengthening Airbus' presence in Central and Eastern Europe. This contract also renews the partnership between Tarom and Airbus which began in 1992, when the A310 became the first wide-body to be operated by the Bucharest-based airline. Now, nearly 12 years on, Tarom has opted for the newest and smallest member of the Airbus' single-aisle family to help it increase passenger capacity in the 100-seater category. With deliveries scheduled between end 2006 and end 2007, the airline, which operates domestic and international flights via Bucharest, plans to use its A318 aircraft specifically on medium haul routes in Europe. TAROM will select the engines type to equip its A318 aircraft at a later stage.
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On 6 May, Mrs Erna Hennicot-Schoepges, Minister for Culture, Higher Education and Research of the Grand Duchy of Luxembourg, and Mr Jean-Jacques Dordain, Director General of ESA, signed the Agreement on Luxembourg's accession to the ESA Convention. Under this agreement, Luxembourg becomes a full Member State of ESA by December 2005 at the latest, after a transition period. Luxembourg has been participating in ESA's ARTES telecommunications programme since September 2000 and formally applied to become an ESA Member State in December 2003.
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Boeing and European freight carrier Cargolux Airlines International finalized an order for Cargolux's 14th Boeing 747-400 freighter on the same day last week that the Luxembourg-based carrier took delivery of its newest 747-400F. The airplane delivered last week is named after the city of Bertrange. It is Cargolux's 13th 747-400F. The carrier will receive its 14th in October 2005.
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Boeing announced it has acquired Frontier Systems, developer of the A-160 Hummingbird and Maverick unmanned aerial vehicles (UAV). Frontier's platforms and technologies add to Boeing's portfolio and capabilities in unmanned systems that include the Joint Unmanned Combat Air System X-45, ScanEagle and other concepts under development. Terms of the acquisition have not been disclosed. The A-160 Hummingbird, a vertical take-off-and-landing UAV, has been designed to fly up to 2,500 plus nautical miles with 30 to 40 hour endurance. Its modular payload design can carry up to 1,000 pounds. The A-160 offers range and endurance unprecedented in the history of helicopter UAV design. It will provide reconnaissance, surveillance, target acquisition, communication relay, precision re-supply, sensor delivery and eventually precision attack capabilities.
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The NATO C3 Agency has now completed the source selection for NATO's new Satellite Capability in the SHF and UHF frequency bands. Proposals were submitted by the U.S. and a Joint Consortium of France, Italy and the United Kingdom and assessed in accordance with the standard NATO procedure for International Competitive Bidding. The proposal submitted by the Joint Consortium was determined to be the lowest priced, technically compliant bid. The capability will be furnished through a service provision arrangement, whereby the three Nations will satisfy the NATO requirements from within their own national military Satellite Communications Programmes for 15 years, from 2005 through to 2019. The price offered by the Consortium is within the NATO funding ceiling of Euro 457 million. The winning offer will utilise the capacity of the satellites provided by the French SYRACUSE series, the Italian SICRAL constellation and the U.K. SKYNET 4/5.
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Lockheed Martin announced that it has been selected by the United Kingdom's Ministry of Defence (MoD) for an assessment phase contract to compete for a major upgrade of the Royal Air Force (RAF) fleet of Nimrod R Mk1 aircraft. Designated 'Project Helix,' this intelligence upgrade to the British Nimrod platform focuses on maintaining the capability of the Nimrod R out to 2025 and includes upgrades to the aircraft mission systems, associated ground stations and training facilities. The Project Helix program has a projected value in excess of £400 million (approximately US$700m) over a 13-year period. The Nimrod R is the RAF electronic reconnaissance aircraft that examines routine radio and radar emissions and provides electronic combat support to military commanders.
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General Electric Company's CF6-80C2 engine, one of aviation's most successful wide-body aircraft engines, has surpassed 100 million flight hours since entering service in 1985. And it has no signs of slowing down. Based on the engine fleet's current flying rate of 866,000 flight hours per month, the engine will reach another 100 million flight hours in less than 10 years. “We are thrilled about the performance and staying power of the CF6-80C2,” said Colleen Athans, general manager for the CF6 Project. “The engine has demonstrated best-in-class reliability and cost of ownership for our global airline customers. We look forward to the next 100 million hours of distinguished performance.” The CF6-80C2 engine is one of the world's most reliable and popular jet engines. It powers the Airbus A300 and A310, and Boeing's 767, 747 and MD-11 aircraft with more than 3,300 engines in service at 125 airlines.
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Jean-Cyril Spinetta, Chairman and CEO of Air France, and Leo van Wijk, President and CEO of KLM, have expressed their great satisfaction following the success of the recommended public offer of exchange for KLM ordinary shares. At a press conference held at Paris-Charles de Gaulle airport, the two chairmen announced: "The merger of our two airlines is now a done deal. Today is an important date for the world airline industry and marks an essential step forward in the process of sector consolidation in Europe. The new entity, which will be the world's largest airline group by turnover (19.2 billion euros) and a world leader in its three core businesses: Passengers, Cargo and Maintenance, has the potential to develop powerful synergies. The complementary nature of the two airlines, which will each retain their brands and unique values, will ensure that the new group is more attractive for passengers, as they will gain access to an enhanced offering, and will create substantial shareholder value." The synergies already identified are scheduled to gain momentum and have a positive impact on the Group's consolidated operating profit of some 400 to 500 million euros as of the fifth year. The synergies are to be achieved through optimized networks, improved deployment of passenger and cargo activity, and an expanded maintenance offering together with cost savings in supplies, sales distribution and Information Technology. Air France and KLM are to step up services between Amsterdam and French regional airports and between Paris and Dutch regional airports with the launch of three new services: Amsterdam-Bordeaux, Amsterdam-Marseille and CDG-Rotterdam. Air France and KLM are also seeking to maximize the complementary nature of their medium-haul networks.
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Pratt & Whitney Canada Corp. (P&WC) has successfully completed the first run of its new PW610F turbine engine selected by Eclipse Aviation Corporation to power the twin-engine Eclipse 500 Very Light Jet (VLJ). The PW610F engine, the smallest member of P&WC's newest engine family, the PW600, achieved its rated takeoff thrust of 900 pounds after only five hours during the test run, which took place May 4, 2004. The development engine also completed key performance and characteristic testing. "This first run of a PW610F development engine at full takeoff thrust represents an important milestone in this exciting development program," said Alain M. Bellemare, President, P&WC. "The PW610F is on track to undergo flight trials on P&WC's flying test bed in August, 2004 and deliveries of the first prototype engines to Eclipse are expected to begin in early December."
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Lockheed Martin has been selected to develop the Joint Common Missile (JCM) system, the next generation air-to-ground missile that will be carried on U.S. Armed Forces rotary- and fixed-wing platforms. The contract is worth approximately $5 billion dollars over the life of the program. Lockheed Martin received an initial contract valued at $53 million to commence work on the program's system design and development (SDD) phase. The systems design and development contract includes a 14-month risk reduction phase and a 36-month testing/integration phase to ready the JCM for initial production. The first JCMs are expected to reach the field in 2010. The U.S. Army, Navy and Marine Corps are expected to procure up to 54,000 JCM rounds to replace the Longbow/Hellfire missiles on the Apache, Cobra, and Strikehawk helicopters and the Maverick missile on the F/A-18 Hornet jet fighter, at a total contract lifetime value of approximately $5 billion. The United Kingdom's Ministry of Defence has also expressed potential interest in co-developing and producing the new missile.
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Boeing confirmed an order by China Airlines for two Boeing 747-400 Freighters, valued at approximately $425 million at list prices. The new airplanes are scheduled for delivery in 2006. In total, China Airlines has purchased 38 747-400s, 21 freighters and 17 passenger models. The airline has ordered more 747-400 Freighters than any other airline and currently has one of the world's largest 747-400 Freighter fleets.
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Serco has followed BAE Systems and withdrawn from a £1 billion Ministry of Defence contract, citing uncertainties around the tender and delays in awarding other deals. Serco's decision to withdraw from the contract follows that by BAE who two weeks ago withdrew from the same contract because of possible conflicts of interest. Both companies were partners in a consortium bidding for the Military Flying Training System (MFTS) deal to train pilots and crew for all arms of the military.
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In its continued drive toward more efficient measures to service aviation training customers, United Services announced a strategic alliance with Alteon Training L.L.C., a subsidiary of The Boeing Company, to expand Airbus 320 training services at United's Denver Training Center. Alteon, formerly Flight Safety Boeing Training International, is the aviation training industry leader with a global network of training centers and solutions. Alteon and United are partnering to offer Airbus training to Alteon's extensive third-party customer base, and the two companies will combine resources to deliver the training.
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On 4 May, Sea Launch Company successfully delivered the DIRECTV 7S broadcast satellite to orbit from its ocean-based platform on the Equator, marking ten consecutive successes for this highly reliable system. Early data indicate the spacecraft is in excellent condition. The Sea Launch Zenit-3SL rocket lifted off at 5:42 am PDT (12:42 GMT) from the Odyssey Launch Platform, positioned at 154 degrees West Longitude, precisely on schedule. All systems performed nominally throughout the flight. The Block DM-SL upper stage inserted the 5,483 kg (12,063 lb.) DIRECTV 7S satellite into geosynchronous transfer orbit, on its way to a final orbital position at 119 degrees West Longitude. A ground station in Weilheim, Germany, acquired the spacecraft's first signal, shortly after spacecraft separation, as planned. DIRECTV 7S, the second spot beam satellite in the DIRECTV fleet, will use highly focused spot beam technology to provide DIRECTV with the capacity to deliver local channels to 41 additional markets, expanding local channel coverage to a total of 106 markets. Built by Space Systems/Loral (SS/L) at their state-of-the-art manufacturing facility in Palo Alto, Calif., the 1300-series spacecraft is one of several high capacity direct-to-home (DTH) broadcast satellites SS/L has produced for DIRECTV, the leading U.S. digital television provider. This is Sea Launch's second mission for DIRECTV and third for Loral. The first DIRECTV launch was on October 9, 1999, when Sea Launch successfully placed DIRECTV 1R into orbit. The most recent launch for Loral was Telstar 14/Estrela do Sul 1 on January 10, 2004.
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Lufthansa CityLine has reached agreement with the Vereinigung Cockpit pilots' union and UFO flight attendants union on new pay deals for 1,600 cockpit and cabin crews. The master pay agreement for cockpit and cabin personnel has been fundamentally revised to raise the productivity of the fleet and increase flexibility in duty-roster planning. This agreement lasts for 33 months and remains in force up to 31 December 2006. The pay accords have each been prolonged without any salary increases by 30 months. "We have markedly improved the competitiveness of Lufthansa CityLine and the future prospects of the Lufthansa Group in regional air traffic. With these innovative pay accords, we have made a major advance on the path towards more flexible working times and higher productivity: They afford planning security to both the company and its staff," said Wolfgang Mayrhuber, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG.
All in all, the measures improving flexibility and productivity as well as the long-term pay deals will save more than 40 million euros in the cost base of Lufthansa CityLine by the end of 2006. They break new ground in the Lufthansa Group's regional traffic business and constitute a significant contribution towards the target of lastingly improving results by 1.2 billion euros set in the Action Plan adopted last year.
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L-3 Communications Coleman Aerospace (L-3 Coleman Aerospace), a division of L-3 Cmmunications, announced that it has successfully launched a Long Range Air Launch Target (LRALT) missile for the USAF Space and Missile Systems Center (SMC). The test occurred at approximately 12:06 a.m. EDT, May 3, 2004, over the broad ocean area of the Pacific. The LRALT missile was carried and released by a USAF C-17 aircraft that was staged out of the Pacific Missile Range Facility (PMRF) in Hawaii. The LRALT vehicle was designed, manufactured and tested at L-3 Coleman Aerospace's facility in Orlando, FL. Preliminary analysis of flight data indicates that all mission objectives were met.
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On April 22, during a flight by one of VMX-22's Block A (newest model) MV-22s, the V-22 fleet surpassed the 2,000-flight hour milestone since the program's return to flight in May of 2002. The mark includes hours flown by the MV-22 Integrated Test Team based at NAS Patuxent River, Maryland, the CV-22 ITT based at Edwards AFB, California, and VMX-22, the Osprey Test and Evaluation squadron based at MCAS New River, North Carolina.
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As the scope of battlefield threats continues to expand, so does the versatility of a high-energy laser system to defeat them. The U.S. Army's Mobile Tactical High Energy Laser (MTHEL) testbed destroyed a rocket on May 4 that's larger, faster and that flies higher than previous threats destroyed by the laser weapon demonstrator. Northrop Grumman Corporation (NYSE: NOC) built the demonstrator for the Army and the Israel Ministry of Defence (IMoD). Tuesday's successful intercept and destruction of the large-caliber rocket carrying a live warhead took place at 12:45 p.m. MDT during a live-fire test of the MTHEL testbed at the Army's White Sands Missile Range, N.M. The large-caliber rocket is capable of twice the range, achieves more than three times the altitude, and carries a much larger warhead than previous targets. Many countries already possess large-caliber rockets.        The destroyed rocket is representative of threats faced by U.S. and Israeli forces.
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Boeing officials delivered the 7,000th Harpoon missile to the Egyptian Navy at the Boeing facility in St. Charles, Mo., Tuesday. During a handover ceremony, both Boeing and U.S. Navy representatives congratulated the allied Naval service and thanked them for their support and friendship for more than 30 years. "Harpoon is used by 27 nations, including the U.S., and is Naval Systems Command's largest international program for the last two years," said Captain David Dunaway, PMA 201 program manager for the Navy. "The timeless design of the Harpoon is evident through its successful history and viable performance in the field over the past 30 years."
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During the visit of Chinese prime minister Wen Jiabao in Germany, some important industrial contracts were signed at Berlin. Among them was an order for 20 Dornier 328JET regional airliners for Hainan Airlines, which already operates the type. The 328JET is built at Oberpfaffenhofen by AvCraft.
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Deutsche Lufthansa AG is selling the Lufthansa Gebäudemanagement (LGM) group to Hochtief Facility Management GmbH with effect from 1 June 2004, pending approval by the regulatory authorities. The acquisition of the LGM group will make Hochtief one of the leading European providers of integrated facility management services with 4,500 employees and total revenues of around 450 million euros. LGM currently employs some 2,200 people, who are responsible for the group's customers in Germany, Ireland, Poland, Hungary and South Africa. Last year the company achieved sales of more than 180 million euros.
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Deutsche Lufthansa AG is setting up a dedicated securities portfolio fund to cover its domestic company pension commitments within 10 - 15 years and progressively remove them from its balance sheet. At the end of 2003 the Group's pension provisions totalled 4.3 billion euro. "With the outsourcing of our retirement benefit obligations our staff will receive additional funded cover for their company pension entitlements that is in line with international standards. At the same time this is a major initiative to enhance our transparency and increase the comparability of our balance sheet," said Dr. Karl-Ludwig Kley, Chief Financial Officer of Deutsche Lufthansa AG. In a first step an on-balance-sheet master fund will be set up to which resources will be allocated annually from the cash flow. The first allocation to this fund is scheduled in the third quarter of 2004. In the long term it is planned to remove the fund from the balance sheet under an external contractual trust arrangement. The fund's resources will thus be segregated from Lufthansa's other business assets and dedicated exclusively to covering its pension commitments. The outsourcing of Lufthansa's retirement benefit obligations is to be completed at the latest by 2020.
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In eastern Europe, Lufthansa Technik AG has become a major cooperation partner in the technical servicing of western-built aircraft. Following expansion of the European Union on May 1st, Lufthansa Technik is further broadening that time-tested cooperation. As an example, the German company recently announced that it will be joining with LOT Polish Airlines to provide a complete line of components for Embraer regional jets to customers throughout Europe. “For Lufthansa Technik, cooperation with the countries of eastern Europe has a long tradition, and our market position there is good,” says Dimitri Zaitsev, sales manager for eastern Europe and the CIS. “On the basis of our existing partnerships – and of course in the countries that have newly joined the EU – we are ready to give further support to an aviation market that is bound to grow in the course of the coming decade.” In partnership with the airline of new EU member Poland, LOT Polish Airlines, Lufthansa Technik will now be offering a complete line of components for Embraer regional jets. With the signing several weeks ago of the cooperation agreement between MRO provider Lufthansa Technik and Embraer operator LOT, the two will be able to offer a full and favorably priced product line for Europe's growing fleets of Embraer regional jets. Moreover, Star Alliance member LOT is itself a Lufthansa Technik customer for servicing of the components of its Boeing 737 fleet.
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The China Flight Inspection Center of Air Traffic Management Bureau of General Aviation of Civil Aviation of China has signed contracts for two Citation XLS business jets. The Citation XLS will be based at Beijing's Capital City Airport and will be used for flight inspection missions. Both aircraft are scheduled to deliver in the second quarter of 2005. Although a Citation Excel has been operating in China for several years, this marks the first delivery of the Citation XLS, the successor to the Citation Excel, to China.
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The first CP-140 Aurora, modernized with state of the art navigation and flight instruments avionics, successfully completed its maiden test flight in Halifax. This flight is a significant milestone for the Navigation and Flight Instruments Project, a major sub-project within the Aurora Incremental Modernization Project. The Navigation and Flight Instruments Project contract was awarded to CMC Electronics of Ottawa in August 2000. The flight testing is being conducted by CMC Electronics together with IMP Aerospace of Halifax and a DND flight test team.
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The German airline Air Berlin has signed a new contract with Lufthansa Technik AG for the engine maintenance and overhaul of its Boeing 737 Next Generation (NG) fleet over the upcoming five years. Lufthansa Technik's Powerplant Services in Hamburg will be servicing the CFM56-7 engines of the carrier's 34 Boeing 737-800 under an Engine Service Agreement.
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Commenting on current trading by easyJet, Ray Webster, Chief Executive Officer said: "Our business model continues to capitalise on its strong market position and the growing demand for low-cost air travel in Europe. Given our scale, the company is clearly positioned to benefit well into the future."Demand in the first half of April was in line with our expectations, but softened in the second half due to continued competitive pressure and a weaker-than-expected Easter. Consequently, for the full month of April the load factor was down 3 percentage points although passenger numbers were up 14% at 1,947,675 and fares were down 5%, partially accounted for by timing differences between Easter and the May Bank Holiday. For May, passenger numbers are tracking slightly lower than our expectations, but are currently as we anticipated for June. "We are currently seeing unprofitable and unrealistic pricing by airlines, across all sectors of the European industry, seeking to grow or maintain their market share. We are reacting vigorously to this activity, continuing to extend our reach, growing capacity by some 20% this year, maintaining our leading market position and optimising the use of our scale. "At the time of our AGM in February we were cautiously optimistic about the full year result. However, given the increasingly competitive marketplace it is appropriate now to be cautious about the performance for the full financial year. Nevertheless, easyJet continues to strengthen its leading position and we expect to make continued and sustainable progress."
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