FLUG REVUE update: Week ending May 16, 2004

UPDATE
Week ending 16 May 2004

+++ 30 Ariane 5 ordered +++ First series-production NH90 in the air +++ PHOENIX flies in Sweden +++ MEADS risk reduction concluded +++ New NATO satcom choosen +++ ILA positive after trade days +++ News in brief +++

30 Ariane 5 ordered
Vertrag für Ariane 5 unterzeichnet

At the Berlin Airshow, in the presence of the German Chancellor Gerhard Schröder and the French Minister of Research François d'Aubert, Jean-Yves Le Gall, CEO of Arianespace , Josef Kind and Hervé Guillou, respectively President and CEO of EADS SPACE Transportation, signed the contract for the production of 30 Ariane 5 launchers. Were also present at this ceremony: Jean-Jacques Dordain, General Director of ESA, Jean-Marie Luton, Chairman of the Board of Arianespace , the CEOs of the EADS Group Rainer Hertrich and Philippe Camus, as well as the CEO of EADS SPACE François Auque.
This contract, called "PA batch", will allow Arianespace to ensure its launch service continuity, to enhance its performance and competitiveness on the international launcher market. The first Ariane 5 of the PA batch will be launched in 2005. This batch will mainly consist of a configuration of standardised launchers Ariane 5 ECA. Besides this version of Ariane 5, the PA batch will also include Ariane 5 ES for the launches of the ATV (Automated Transfer Vehicle). The contract signature of the PA batch is the implementation of the new role of EADS SPACE Transportation as single prime contractor of the Ariane 5 system. Its commitment is to deliver an integrated launcher to Arianespace in French Guiana. This means that the company manages from now the whole range of relations and contracts with the subcontractors covering launch vehicle production. As a result, EADS SPACE Transportation oversees the European cost reduction initiative and enhances production capabilities. "As Europe secures its long-term space access, it also provides a basis for its industry to continue to play a crucial role in high technology and the attractive markets of the future," said Camus and Hertrich in Berlin. "The contract also highlights the new role of EADS Space Transportation as the sole prime contractor of the Ariane 5."

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First series-production NH90 in the air
NH90-Serienmaschine fliegt

Eurocopter and its partner companies in the NHIndustries consortium, Agusta and Stork Fokker, presented the first serial NH90 helicopter to come off the Eurocopter production line in Germany at the ILA Berlin Air Show on May 11th. The aircraft performed its maiden flight last week on May 4th at Eurocopter's Donauwörth facility in Germany. In the expert hands of Herbert Graser, Manfred Kuck (Test Pilots) and Laurent Palcy (Flight Test Engineer), the aircraft designated "TGEA01" flew 2 hours and 5 minutes, thus demonstrating the high degree of proficiency and mastery of the NH90 programme.
This event comes precisely four years after the official production go-ahead was given at ILA 2000 and is commemorated in a ceremony attended by the German Minister of Defence, Dr. Peter Struck, a large number of international, high-ranking government and military officials as well as industry and media representatives. Launch customer for this latest-technology, medium-size class helicopter will be the German Bundeswehr. NH90 is the biggest helicopter programme ever launched in Europe, with firm orders for presently 325 units and options for a further 86. By country, the order status is: 27 units on order by France; 80 units on order plus 54 on option by Germany; 116 units on order plus 1 on option by Italy; 20 units on order by the Netherlands; 10 units on order by Portugal; 20 units on order by Finland; 14 units on order plus 10 on option by Norway; 18 units on order plus 7 on option by Sweden; and 20 units on order plus 14 on option by Greece.
NHIndustries announce that on the 11th of May at ILA Berlin Airshow 2004, the Contractor Logistic Support (CLS) contract for Germany has been signed by the NAHEMA General Manager General P. Finocchio and the NHI General Manager G. Maitrepierre. This contract represents an additional step in the completion of the NH90 programme, by providing a support to the German Customer for its NH90 fleet during the first 3 years of operation. According to this contract Industry will provide all necessary services and spare parts in order to maintain in operational conditions the relevant German Army and German Air Force NH90 helicopters. This type of services has already been contracted by Italy, Norway and Sweden.

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PHOENIX flies in Sweden
Erstflug des PHOENIX-Gleiters

On 6 May, the first fully automatic flight of PHOENIX was a real success. The prototype of a future reusable space vehicle touched down safely on the runway of the test airport of Vidsel in northern Sweden. "This flight shows clearly that we are able to technically master the automatic landing of an unmanned reusable space vehicle," says Dr. Peter Kyr, PHOENIX project manager at EADS SPACE Transportation. A heavy-duty helicopter towed PHOENIX to an altitude of 2,400 metres and released it at an airspeed of 144 km/h. After a free flight phase, during which a top speed of almost 450 km/h was reached, PHOENIX made a perfect spot landing on the runway. PHOENIX corrected track deviations autonomously and precisely during the flight phase and on the ground. "This successful test flight is a decisive German contribution to the development of a future reusable space vehicle," says Josef Kind, President of EADS SPACE Transportation, in Bremen. "We have demonstrated our competence in the field of space transport systems and are really proud of it. It will be important to take advantage of this success and to build on it in the future. I have every trust in the Federal Government which has always supported this future technology at national level and within the framework of ESA," continues Mr. Kind.
The objective of the PHOENIX flight testing is to find out how the vehicle behaves during a steep landing approach and subsequent automatic touchdown. Three more test flights are planned for the next days, followed by detailed data analysis. Peter Kyr: "Based on the information gained, we will further optimise the system and prepare test flights from higher altitudes." These test flights could include jettisoning from so-called stratosphere balloons or supersonic jet aircraft at altitudes of up to 25 kilometres. Furthermore it will be essential to provide PHOENIX with a propulsion system of its own in the medium term.

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MEADS risk reduction concluded
Neues Luftabwehrsystem für Entwicklung bereit

A successful system demonstration on 6 May 2004 in Pratica di Mare near Rome (Italy) signalled the end of the three-year Risk Reduction Effort phase (RRE phase) for the MEADS ground-based air defence system. The required performance levels were achieved 100 percent. Representatives from the three countries involved in the MEADS program (Germany, Italy and the USA) took part in the system demonstration. For the first time the demonstration involved the use of a prototype of a new high-performance fire control radar and specially developed software together with the command centre, launcher and the PAC 3 (Patriot Advanced Capability 3) missile. The "roll-on/roll-off" capability of the newly developed launcher for the C130 transport aircraft was also demonstrated successfully.
"We and our partners at MEADS International, Lockheed Martin and MDBA Italy, are proud to have achieved the objectives set for the RRE phase by our customers. We have thus met one of the key requirements for concluding the trilateral development agreement for MEADS in the coming months", said Werner Kaltenegger, CEO of EADS/LFK, during a meeting of experts at ILA 2004. The RRE phase included system engineering tasks as well as the development and test of key technologies for MEADS in order to reduce the risks for the development phase. Additionally the integration of the PAC 3 missile into MEADS has been analysed.
The MEADS tasks are performed on the basis of an equal partnership. The financial share of the program is USA 55%, Germany 28% and Italy 17%. The technical work share of the companies involved - EADS/LFK (Germany), MBDA-IT (Italy) and Lockheed Martin (USA) - is in line with the percentages of the respective contributions to the costs. The European companies control their activities through the joint venture company euroMeads GmbH which, like Lockheed Martin, has a 50 percent share in MEADS International Inc.

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New NATO satcom choosen
NATO-Länder wählen neuen Satelliten

The Ministries of Defence of France, Italy and the United Kingdom have been jointly selected by NATO to provide its new Satellite Communications capability from 2005 through to 2019. The NATO Satcom Post-2000 capability requirement for SHF and UHF space segment is to be provided through the existing national programs - Syracuse in France, Sicral in Italy and Skynet in the UK. Paradigm Secure Communications, as the military satellite communication (Milsatcom) provider in the UK has supported the UK MOD and contributed to this innovative proposal for the provision of military communications services. Paradigm Secure Communications will play a major role in meeting the NATO requirement.
Through the national systems of France, Italy and the UK, NATO is now able to fulfill its ever-increasing milsatcom requirements. These new and highly capable systems will ensure coherence with the changing NATO crisis management role and will provide a fully deployable communications capability in support of such operations. Malcolm Peto, Managing Director for Paradigm Secure Communications, said, "This is excellent news for Paradigm and the European space industry. Paradigm signed a £2.5bn contract with the UK MOD for milsatcom services last year and this announcement really reinforces Paradigm's pre-eminent position both in milsatcom service provision and the international arena."

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ILA positive after trade days
Gute Bilanz für die ILA

At the halfway point the organisers of the International Aerospace Exhibition reported encouraging interim results. Large scale orders and finalised contracts, conference with high-ranking participants, and an extensive programme of visits by delegations from industry, politics and the armed forces marked the first few days of the ILA2004, where the basic mood was one of confidence regarding the continued development of this sector. Business conducted at the fair including the signing of contracts for 30 Ariane-5 launchers valued at three billion euros as well as the order placed by the American carrier "Spirit Airlines" for 15 aircraft from the A320 series ($ 900 mil.).
By this Thursday, after the fair had been open to national and international industry representatives for four days, some 69,000 trade visitors had attended this event at Berlin-Schönefeld Airport. This is in excess of the figure for the ILA2002, when three days were reserved exclusively for trade visitors. More trade visitors are expected over the next few days, when the ILA agenda will include further conferences and meetings as well as visits by various delegations.
A provisional survey has revealed that trade visitors are well satisfied and that they are making use of the ILA2004 for an in-depth exchange of information and to establish or strengthen business contacts. Among the foreign trade visitors more than 72 per cent came from EU member countries (including the new members), with a further seven per cent from North America and from the non-EU countries of Central and Eastern Europe. There was a positive assessment of the commercial results of their participation by some 86 per cent. Almost half of all the trade visitors were able to establish new business contacts. Well over half of all trade visitors stated that they exercised a significant influence on purchasing or procurement decisions in their companies. The trade visitors largely represented the following sectors: "Aerospace Industry", "Military/Border Protection Force/Police", "Suppliers" and "Airlines". The main focus of attention was on civil and military aviation. Trade visitors were also interested in "Space Flight and Space Business", "Materials" and "Training and Advanced Training".
Over 91 per cent of all trade visitors obtained a thoroughly positive overall impression of this year's event. Almost 94 per cent assessed the range of items on offer as very good to satisfactory. Approximately 93 per cent of trade visitors would recommend a visit to the ILA to their colleagues or business associates. And even at this early stage over four fifths of trade visitors announced their intention of attending the next ILA.

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NEWS IN BRIEF / KURZMELDUNGEN

Australian telecommunications carrier Optus has chosen Arianespace to orbit its D1 and D2 satellites. The satellites will be delivered into orbit by Ariane and Soyuz launchers from the Guiana Space Centre in Kourou, French Guiana. Optus D1 will be launched by an Ariane 5 launcher at the end of 2005, while Optus D2 will be launched by the first Soyuz to lift off from the Guiana Space Centre in 2007. Optus will also be the first customer to incorporate an alternate back-up launch vehicle as part of its launch program. This contract is a major landmark in Arianespace's strategy to offer comprehensive launch services solutions, using both Ariane and Soyuz in French Guiana, as well as the Launch Services Alliance that the company has established with Mitsubishi Heavy Industries and Boeing Launch Services. Optus' selection of Arianespace follows two previous successful launches for the carrier. Optus & Defence C1 was launched by Arianespace in June 2003 and Optus' A3 in 1987. Separately, Optus' parent company SingTel chose Arianespace to launch its ST-1 satellite in 1998.
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Australia has exercised options to purchase two additional Boeing 737-700 aircraft for Project Wedgetail, an airborne early warning and control (AEW&C) program. The value of the options is approximately $180 million. The options are part of the $1 billion-plus contract Boeing signed with the Commonwealth in 2000 for four 737-700 aircraft and six AEW&C systems. The agreement also provides for ground-based support segments for flight and mission crew training, a mission support segment, other support facilities and spare parts. Delivery of the first two 737 AEW&C aircraft to the Royal Australian Air Force is scheduled for 2006. The other four aircraft will be delivered by 2008.
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The Bremen-based space technology company OHB-System AG, and Elbit Systems Ltd. Haifa, Israel, an international defense company, through its subsidiary Elop Electro-Optics Industries Ltd., announced plans to set up a joint venture for common development and marketing of electro-optical systems and infrared payloads, suitable for deployment in space and for UAVs (Unmanned Airborne Vehicles). In the new venture, OHB ELectroOPtics, the system and mission experience of OHB is ideally combined with the competence acquired by ELOP in such fields as electro-optics and infrared technology. Marketing is set to focus in the European region. The new venture OHB ELectroOPtics will be headquartered in Bremen.
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The European EADS group and the Russian Irkut Corporation have signed a Strategic Framework Cooperation Agreement at the International Aerospace Exhibition ILA in Berlin. The purpose of this agreement is to set out the framework and principal areas for cooperation on which the parties agree to work together to establish a long term beneficial and stable partnership. "This agreement reflects the close working relationship between the two companies", said Philippe Camus and Rainer Hertrich, the CEOs of EADS. "Irkut and EADS will support each other in penetrating new markets."
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International Launch Services (ILS) is adding the launch of the AMC-16 satellite to its Atlas V manifest for the fourth quarter of 2004, resulting in a total of five planned missions this year for a single customer, SES Americom. The satellite had been scheduled for launch on ILS' Russian Proton vehicle during the first quarter of 2005, under a contract announced last month to provide three launches for SES companies. The contract included the option to switch the AMC-16 mission to ILS' Atlas rocket, built by Lockheed Martin. ILS is a U.S.-Russian joint venture between Lockheed Martin and Khrunichev State Research and Production Space Center, and leads the market in providing launch services to customers worldwide.
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Spirit Airlines of Fort Lauderdale, Florida, a new customer for Airbus, has signed a firm order to purchase 15 Airbus A320 Family aircraft, plus up to 50 options. The firm order consists of 11 A319s and four A321s. Also, the airline will lease four A321s, in addition to the 20 A319 and A321 aircraft it has already announced it will lease from International Lease Finance Corporation (ILFC). Altogether, this order has a potential for up to 65 purchased aircraft and 24 leased aircraft. All Spirit's Airbus aircraft will be powered by International Aero Engines V2500 engines. First delivery of an Airbus aircraft to Spirit will be a leased A321 in September 2004.
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In the future, the armed forces of the European states will increasingly base their operations on satellites. Thus, EADS Astrium, the leading European space company, is studying missions in the fields of application, i.e. communication, reconnaissance, early warning and missile defense. The enhanced evaluation of radar data from reconnaissance satellites with the help of a global 3D map is also under preparation. In many countries the use of satellites is of great importance to the military commanders. In Germany, however, this issue has only been discussed with high priority since the German Armed Forces support the international peacekeeping missions of the United Nations and NATO. A first step has been made by placing an order for the development of a reconnaissance satellite. Prior to the planned operation of the radar satellite system starting in 2006, the preparations for data evaluation on the ground are already in full swing. Support is to be provided by a global digital terrain model of unprecedented accuracy which - in accordance with a mission proposal by EADS Astrium - could be supplied by a tandem consisting of two identical TerraSAR-X satellites. Within a public-private partnership, the first TerraSAR-X radar satellite is being developed and built by EADS Astrium, Friedrichshafen, in cooperation with the German Aerospace Centre (DLR).
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Airbus has opened a new maintenance training center in Hamburg, Finkenwerder, for A320 Family aircraft. Maintenance engineers and mechanics worldwide can access a wide range of training such as full technical JAR 66 courses for light and heavy aircraft maintenance, lessons for ramp and transit agents and general familiarization courses. In addition Airbus will use the new facilities to train its own technical staff from mainly its Hamburg plant. Around 2,500 trainees a year can be trained in the new facilities. The newly built center covers approximately 5,000 square meters on two floors. It is equipped with several maintenance training devices, two mock-ups of auxiliary power units and twelve lecture rooms. The A318, A319 and A321 assembly line in Hamburg is in close proximity to the new training center, which will give trainees a practical insight, and contribute to the overall quality of the courses.
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Teal Group announced publication of its new Worldwide Mission Model: 2004-2013 at the Berlin Air Show ILA 2004. The study counts a total of 1,209 payloads proposed for launch to Earth orbit during the next 10 years, down 14% from last year's total of 1,410 payloads for 2003-2012. The Model breaks out the data by more than a dozen fields such as payload, payload type, mass, orbit, prime contractor, customer, country, launch vehicle, and launch site. It provides a framework from which to make projections about the future of space based on the relatively "hard information" available on a wide range of payloads, including satellites, microgravity experiments capsules, and manned missions. It is a snapshot of what has been proposed for production and launch as of this writing. "This is the third year in a row that the number of payloads has dropped," says Marco Caceres, lead analyst for Teal Group's World Space Systems Briefing, the 1,400-page, monthly-updated competitive intelligence service in which the Model is published (for more information on the service, call 703-573-5374 or fax 703-573-0559). "We peaked in 2001 when we identified 2,160 payloads proposed for launch during 2001-2010." About 49% of the payloads are of US origin. Of those, 60% are proposed by the US Government and 37.2% by US commercial ventures. Slightly under 3% are university payloads, mostly nanosatellites or picosatellites. Some 20.6% of the payloads are European, 13.7% from Asia & Pacific Rim countries, and 9.7% Russian. The remainder are a mix of international payloads or payloads from other regions, including Latin America & Caribbean and Africa & Middle East.
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On 9 May, the second Embraer 190 commercial jet made its first flight at Embraer's São José dos Campos headquarters and successfully performed a range of systems validation tests. The airplane took off at 11:48 am (local time) for a 2:10-hour mission. The first Embraer 190, which first flew on March 12, continues its flight test campaign at the Gavião Peixoto facility, in the interior of the state of São Paulo. The second aircraft of this model will be involved in a thorough evaluation of GE's new CF34-10E engines following its first flight. Four aircraft will be involved in the certification campaign. As of March 31, 2004, the Embraer 170/190 family had logged 258 firm orders and 342 options.
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The Republic of Singapore Air Force's (RSAF) Apache Longbow attack helicopter detachment in the United States (US) was recently declared operationally ready, after going through an operational build-up certification program with the US Army. Speaking to the media after his visit to the RSAF Apache Longbow attack helicopter detachment at the Silver Bell Army Heliport in Arizona on 9 May, Minister for Defence, Rear-Admiral (RADM) (NS) Teo Chee Hean, said the helicopters will help the military realize its vision of a third-generation SAF, where information dominance, precision weapons and network-centric warfare will the order of the day.
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Army special operations forces received their first MH-47G Chinook helicopter during a rollout ceremony at aircraft manufacturer Boeing's compound in Ridley Park, May 6. The military's newest rotary-wing airframe, updated and better equipped than its Chinook predecessors, will be flown exclusively by the 160th Special Operations Aviation Regiment (Airborne), headquartered at Fort Campbell, Ky. To kick off the event, an older MH-47D model flew directly over the thousands of Boeing employees who had gathered to watch the ceremony. Landing nearby, the Chinook discharged its cargo of three special operations Soldiers and a Ground Mobility Vehicle, which rolled slowly across the flight ramp as the door to a hangar opened and the new brand-new MH-47G was rolled out.
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EADS North America has been selected as part of the Science Applications International Corporation's (SAIC) winning team selected by North Atlantic Treaty Organizations (NATO) Headquarters' to support it's Supreme Allied Commander Transformation (SACT) Experimentation Campaign. The SAIC/EADS team will be providing engineering and technical services in the areas of concept definition, research, analysis, and assessment for alternative transformation resolution. Working as an integrated part of the NATO Headquarters' SACT staff, the SAIC/EADS team will assist with developing recommendations based on joint warfighting experimentation and improving interoperability to reduce redundancy, synchronize technology fielding, develop joint strategic, operational, and if required, tactical concepts. Tom Enders, CEO of EADS Defense and Security Systems Division added, "Our System Design Center's capabilities are directly applicable to this new task. It is exciting to be involved in the first industrial project of Allied Command Transformation." Personnel from both SAIC and EADS working on the experimentation program will be located at NATO's Supreme Allied Commander Transformation headquarters, based in Norfolk, VA., and will be a part of NATO's Joint Experimentation, Exercise and Assessment (JEEA) team. The JEEA team is tasked with assisting with the transformation of NATO through a series of experiments to refine and bring new operational concepts to operational maturity.
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The rockets' red glare recently gave proof that not only is the H-1 Upgrade Program still here but has achieved 2,000 flight hours amid weapons accuracy testing and operational assessment by the Fleet. H-1 Upgrades flight test directors aren't sure if the milestone hour mark came May 6 during AH-1Z rocket accuracy testing conducted at the Army's Yuma Proving Ground in Arizona by Marine Corps Maj. Jon Selby and Bell Helicopter test pilot Herb Moran, or during UH-1Y external loads testing conducted here the same day by Marine Corps Maj. Pat Lindauer and Bell Helicopter test pilot Troy Caudill.
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The Frost and Sullivan 2004 World Electronic Warfare (EW) Self-protection and Decoys Market report estimates that the total spending for EW systems in 2003 was approximately $3.9 billion. Total revenues are only expected to rise slightly to approximately $4.2 billion by 2009. Although defense spending has seen growth over the last several years, it is uncertain that this growth can be sustained indefinitely. Changing economic and military situations could have varying affects on growth possibilities. The ongoing operations in Afghanistan for the war on terror and military operations in Iraq have provided the Bush administration with an opportunity to pursue increased funding for the military. However, the burden of maintaining an occupation force in Iraq, operations in Afghanistan, the expense of developing a national missile defense system, the slow recovery from recession, tax cuts and other operations associated with fighting the war on terrorism have created one of the largest deficits in the country's recent history. The growing defense budget is beginning to be viewed with concern as the country's budget deficit continues to grow. The burgeoning defense bill associated with the war on terrorism at home and abroad, a complete review of procurement programs and other potential program issues are forcing the administration to take a hard look at what is needed and what must be cut.
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Orbital Recovery signed a long-term, exclusive launch services contract for the ConeXpress Orbital Life Extension Vehicle (CX OLEV (tm)) a unique spacecraft that will be deployed by Ariane 5 to serve as an orbital space tug. This agreement inked with Arianespace at the Berlin Air Show covers the initial flight of a CX OLEV(tm) in 2007, followed by four additional launches beginning in 2008. Orbital Recovery Ltd. will order further flights in sets of three missions. The ConeXpress Orbital Life Extension Vehicle will be carried as a secondary payload on Ariane 5. Its liftoff mass will be approximately 1,200-1,400 kg. Developed by European industry, CX OLEV is designed to extend the useful lifetime of multi-million dollar telecommunications satellites by 10 years or more, and also is capable of rescuing satellites stranded in incorrect orbits.
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Raytheon Company has successfully integrated and demonstrated its SeaVue maritime surveillance radar and AAS-52 Multi-spectral Targeting System (MTS-A) aboard a General Atomics Aeronautical Systems Mariner unmanned aerial vehicle (UAV), a derivative of the Generals Atomics Predator B UAV. "The successful April flight demonstration from El Mirage, Calif., is a perfect example of what a motivated team can accomplish," said Jack Kelble, president of Raytheon Space and Airborne Systems. "In order to meet an important demonstration request, we installed and integrated the SeaVue and MTS-A mission systems, and then performed the necessary flight verification tests in only three weeks. This is a remarkable engineering achievement."
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The Eurocopter helicopters (EC 135 and EC 155) deployed by the Federal Border Police (FBP) will be equipped with the HELLAS obstacle warning system developed by EADS Defence Electronics to enhance the pilots' safety under difficult mission conditions. According to an announcement made by the company at the International Aerospace Exhibition (ILA) in Berlin, EADS Defence Electronics has been awarded a follow-up order for a further 18 Hellas systems. The border police helicopters of the type EC 135 and EC 155 currently in service are to be equipped with the 25 systems from the first delivery and with those from the current order.
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LTU is optimistic to retrun to the black in 2004. The charter airline has said that it had a 86, 3 per cent load factor for 2003. Passenger numbers were up 1,4 per cent to 5,6 million while turnover was down 2,9 per cent to 802 million Euro. Losses were reduced, said managing director Jürgen Marbach. For 2004, Marbach hopes for a 4,3 per cent rise in turnover and 2,7 per cent more passenger.
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Four major Original Equipment Manufacturers (OEMs) have agreed to explore the possibilities of a greater co-operation in the field of customer services. Diehl Avionik Systeme, Liebherr-Aerospace, Thales and Zodiac acting through IN-Services signed a Memorandum of Understanding (MoU) in Toulouse, France, on April 30th, 2004. This agreement is a key milestone towards the creation of a joint venture between the four companies, and future partnership with others OEMs who have expressed an interest to become members of OEM Services. The joint venture is expected to be set-up by the second semester of 2004. The purpose of this initiative is the provision of a complete range of competitive services such as: world-wide support network to Airbus A380 operators; component management and maintenance services to Airlines operating Airbus Single Aisle or Long-Range aircraft.
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Space Imaging, the world's leading provider of Earth imagery and related services to commercial and government markets, announced that it has signed an agreement with the Satellite Center for Regional Operations (SCOR), a commercial arm of the Polish government located in Warsaw, Poland, to establish a ground station capable of tasking, collection, processing, exploitation, and archiving of high-resolution IKONOS satellite imagery data for the Polish Ministry of Defense. The ground station will be operated by SCOR with support from the Polish Military Property Agency and Techmex, a commercial computer and technology company in Poland. SCOR is expected to begin IKONOS satellite imaging operations within the next few months. The Polish regional operations center (ROC) including the receiving antenna and processing facility will be located in Komorow, Poland. As IKONOS passes through a 4,600-km diameter communications circle centered on the ground station, SCOR will be able to autonomously task the IKONOS satellite and directly downlink imagery into a 5.4-meter receiving antenna. This provides Poland, one of the European Union's newest members, with immediate access to high-quality satellite imagery.
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On Monday, May 17, flight LH 452 from Munich to Los Angeles will usher in a new era in mobile communications. In a world premiere, Lufthansa passengers aboard the Airbus A340-300 D-AIGB "Recklinghausen" will be able to experience high-speed broadband Internet connectivity on a routine flight at cruising altitude. The aircraft is equipped with the Lufthansa FlyNet system, which in conjunction with services provided by Connexion by Boeing permits unrestricted in-flight Internet access with a laptop or other mobile terminals via wireless LAN (WLAN). Using the satellite connection provided by Connexion by Boeing, Lufthansa passengers can surf the Web, send e-mails with attachments or set up a secure data connection via a Virtual Private Network (VPN) to their company's Intranet or mail server. Connexion by Boeing offers FlyNet users thirty minutes' Internet access for US $ 9.95, and an additional 25 cents per minute thereafter. The flat rate for an entire flight is US $ 29.95. Passengers will also gain access to the free FlyNet onboard internet portal, which contains over a thousand pages of constantly updated news, weather, travel and lifestyle information. The portal will also offer shopping possibilities, Lufthansa and Miles & More information. The technical development and operation of the FlyNet portal as well as the editorial content in German and English and the ad-selling of the portal are provided by TOMORROW FOCUS AG. FlyNet has already been installed on five A340-300s. After the start of the service on the route Munich - Los Angeles further destinations, for example in Asia, will follow. By the spring of 2006 Lufthansa's entire long-haul fleet of 80 Airbus A340, A330 and Boeing 747-400 aircraft will be equipped with the technology. Lufthansa Technik received the necessary civil aviation authority approval for all the system components, and also became the first aviation company worldwide to gain operational certification for a WLAN connection on an aircraft. Lufthansa Systems is responsible for developing the software for synchronizing the portal server onboard with the ground system.
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Boeing has successfully completed testing of a newly developed composite rotor blade for use on the AH-64D Apache Longbow multi-role combat helicopter. Developmental tests on the Affordable Apache Rotor Program (AARP) blade have shown that the blade not only meets the program's cost reduction target, but will be stronger and last longer than existing blades, an improvement expected to reduce overall operating costs for the AH-64A Apache and AH-64D Apache Longbow. Flight tests at the Boeing rotorcraft facility in Mesa, Ariz., also verified the new blade design will achieve targeted improvements in aircraft performance with a higher cruise speed, more payload capability and a higher climb rate in combat mission configuration. AARP blades incorporate stainless steel leading edges, providing structural strength and erosion protection. The blades are designed to have more than twice the fatigue life of the standard metal blades now in service on Apaches.
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L-3 Communications announced that its Integrated Systems division (L-3 IS) has begun work on the first stage of a three-year Assessment Phase program for the United Kingdom Ministry of Defence (MOD) to compete for a major upgrade of the Royal Air Force fleet of Nimrod R Mk1 aircraft. The Assessment Phase contract value is approximately $3.6 million (GBP 2 million). The contract, recently signed in a ceremony in the United Kingdom, marks the beginning of a planned 13-year acquisition program worth more than $700 million (GBP 400 million) to the winning contractor. Designated 'Project Helix', the upgrade focuses on maintaining the capability of the Nimrod R out to 2025, and includes the aircraft mission systems, associated ground stations and training facilities.
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Air Berlin is expanding its City-Shuttle network with flights from Berlin-Tegel to Warsaw, startin on June 4. At first, the connection is served on Mondays, Wednesdays, Fridays and Sundays.
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ATR (Avions de Transport Régional) has launched an Ageing Structures Programme for its ATR 42 and ATR 72 aircraft to attain, in early 2005, the extension of the "Design Objective Life" for all ATR family aircraft models from the original 70,000 to 105,000 cycles. This would represent, with an average yearly utilization of 2,500 flight hours, an "economic life" of over 40 years. The advanced and performance related criteria adopted by ATR designers during the aircraft design phase led to an aircraft with a light-weight airframe, high structural integrity and outstanding performance in terms of durability and low maintenance costs. The program was launched as a result of the work undertaken by ATR airframe engineers, working with customers and Airworthiness Authorities, which has demonstrated the excellent resistance to ageing of the ATR airframe. The world-wide ATR fleet in operation has reached the 12 million flight hours mark.
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EADS Sogerma Services and Armor Holdings announced at the ILA Berlin Air Show that they are working together to pursue joint business opportunities for crew seats on civil and military aircraft, as well as for armoured kits used in airborne applications. This collaboration leverages the expertise of two industry leaders for fixed-wing and helicopter programs, combining Sogerma's experience in aircraft interiors integration and fixed-wing crew seating with the lightweight armour expertise of Armor Holdings Aerospace & Defense Group's subsidiary, Simula, Inc.
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Test flights of the new Airbus A310 MRT Tanker (MRTT) aircraft of the Deutsche Luftwaffe, tail code 10+27, now are taking place in Dresden. The Airbus A310, wich will be shown at the ILA 2004, is the first of four aircraft to be converted to and certified as a tanker version for the German Air Force by the "A310 MRTT Luftwaffe" consortium, consisting of Lufthansa Technik and Airbus Deutschland, under the terms of a contract signed with the Federal Office of Defense Technology and Procurement (BWB) December 2000. The consortium is contracted to supply four tanker conversions to the German Air Force and further two conversions of A310 Polaris to the Canadian Air Force. Three of the conversions are being carried out by Lufthansa Technik in Hamburg, the other three having been subcontracted by Airbus Deutschland to EADS Elbe Flugzeugwerke in Dresden. The tanker program will run to the middle of 2005.
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Raytheon has been awarded a U.S. Air Force contract to conduct a utility evaluation of the Lock-On-After-Launch(tm) (LOAL) variant of the AGM-65 Maverick missile. The $5.3 million contract, awarded by the Air Force Research Laboratory's Munitions Directorate at Eglin Air Force Base, Fla., includes up to six captive flight missions. The purpose of the flight missions is to evaluate the functional capability and utility of the newest Maverick missile concept, which provides man-in-the-loop end-game control for precise attacks at greater standoff range against stationary and moving targets. Flight missions will be conducted by the 46th Test Wing and monitored by the 53rd Wing, both at Eglin.
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The Director of NASA's Engineering and Safety Center (NESC), based at NASA's Langley Research Center, Hampton, Va., reported on the results of initial assessments. The NESC was created after the Space Shuttle Columbia accident to serve as a source of expertise for evaluating the merits of technical concerns identified by agency employees. Assessments are performed from a source of funding not directly linked to any single NASA program or project and therefore free from any programmatic bias of schedule or cost. Results of four NESC Pathfinder studies were shared with senior NASA leaders and posted to NASA Web sites. The reporting approach, actively sharing lessons learned, is modeled after a similar method used by the U.S. Navy Board of Inspection and Survey. "I feel very good about what we've accomplished in our first six months," said NESC Director Ralph Roe. "We have a talented core of people working within NESC and an outstanding group of people we can call upon when needed. We have positive feedback from the partnerships we've begun with industry and academia. We've completed our first four technical assessments. We're working on several new major activities, and requests for our services keep coming in," he added.
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Embraer celebrated delivery of its 800th jet of the ERJ 145 family, a landmark for one of the world's most successful airline products. The 50-seat ERJ 145 aircraft was delivered to U.S. customer Chautauqua Airlines, which operates all models of the ERJ 145 family. "Delivery of the 800th jet of the ERJ 145 family confirms the outstanding record and worldwide recognition of this product line. It is additionally gratifying that this aircraft is being placed into service by Chautauqua Airlines, Air Transport World's 2004 Regional Airline of the Year," said Maurício Botelho, President and CEO of Embraer. "We are pleased with the continued and strong market acceptance for aircraft of this family, whose rugged design has proved perfectly suitable for regional airline market applications. The Embraer team, driven by the goal of fulfilling every customer requirement, has created an airliner that won over renowned companies and today carries passengers in markets around the world." One year ago, Alitalia took delivery of the 700th jet of the ERJ 145 family. As of March 31, 2004, the ERJ 145 family had logged 913 firm orders and 462 options.
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Rockwell Collins, in collaboration with Innovative Media Solutions, has announced it will provide British Airways with eOffload, an Internet-based service that manages in-flight entertainment (IFE) use and information. Bitish Airways joins a growing list of airlines to enjoy the benefits of eOffload. This service provides access to passenger IFE usage and analysis of system information and is supported by Rockwell Collins' enCompass in-flight entertainment service. "By choosing Rockwell Collins as its IFE data management provider, British Airways will be able to make better informed content decisions, track passenger trends and preferences, and refine its content offering," said Neil James, director, Rockwell Collins enCompass. "Airlines recognize the value of having timely access to passenger usage and IFE data. We believe eOffload offers them a truly cost-effective data management solution.''
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DASSAULT AVIATION and RUAG Aerospace Services GmbH have signed an agreement covering commercial and industrial aspects of the cooperation on the Alpha Jet aircraft. RUAG Aerospace Services GmbH, located in Oberpfaffenhofen, Germany, by the acquisition in 2002 of part of Fairchild-Dornier aviation activities, including those related to the Alpha Jet aircraft, continues now with DASSAULT AVIATION the support and maintenance responsibility of the world Alpha Jet aircraft fleet. In the future concepts of training activities, the Alpha Jet aircraft will continue to play a key role. By this agreement, DASSAULT AVIATION and RUAG Aerospace Services GmbH guarantee a long term support of the world wide Alpha Jet fleet.
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TAP Maintenance & Engineering will provide overhaul services for CFM56-7B engines that power the Boeing B737NG fleet of VARIG under a five year contract, it was announced. The non exclusive basis general terms agreement for engine shop maintenance services between VARIG and TAP Maintenance & Engineering was signed today at ILA Air Show 2004, in Berlin, Germany, and marks the entrance of TAP M&E into the rising CFM56-7B overhaul market.
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The world's largest transport aircraft, the four-engined Antonov 124-100, is on show at the ILA for the first time. In the presence of the ambassador of the Ukraine and the head of the Ukrainian air force the company announced that this aircraft is being demonstrated at the ILA to the German Minister of Defence and the chiefs of staff of various European air forces at the request of the "High Level Group" (HLG) of NATO. With this presentation Antonov is seeking to persuade the European members of NATO to purchase the Antonov 124 as an interim solution until the planned European transport aircraft , the A 400 M, is ready for service. It is intended to draw up the conditions for a formal invitation to tender at the next meeting of NATO in June 2004. A total of 26 of the Antonov 124-100 have been manufactured and are now in service in the Ukraine. Over the past two years this machine has flown 670 missions on behalf of the German contingent in Afghanistan and has carried some 43,000 tonnes of materials.
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During the ILA TIPS-Industries, a consortium comprising EADS, Galileo Avionica, General Dynamics Canada, Indra, Northrop Grumman and Thales, announced that it has been selected by NATO to develop a comprehensive ground reconnaissance system known as AGS (Alliance Ground Surveillance). Over the next decade TIPS (The Transatlantic Solution for NATO AGS) will provide a system enabling the alliance to carry out ground surveillance using a fleet of manned and unmanned reconnaissance aircraft. The new system will be operated and owned jointly by the members of NATO. A decision on which aircraft to include in this fleet will be made following trials, the first of which have already been conducted using a specially converted Airbus 321 and the "Global Hawk" pilotless aircraft. As has already been announced, the shape of this programme is now being defined, and this will involve calculations to determine the precise costs and the make-up of the fleet. The award of design and development contracts with NATO can be expected during the first quarter of 2005. The first airborne radar is due for delivery in 2007 and the entire system should be operational by 2010.
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This year could see the go-ahead for commercial production of the Dornier Seastar amphibian. It is being presented at the ILA by Conrado Dornier, Chairman of Dornier Seawings AG, and will be taking part in the daily flying displays. Equipped to carry twelve passengers, this twin-engined aircraft is made of composite fibre and is therefore largely immune to corrosion. It has now received individual certification and will be based in Valencia in the summer where it will be used for coastal patrols and VIP flights. There is interest among investors in Asia, the Middle East and in other European countries too in setting up regular production of this aircraft.
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Iren Dornier, grandson of the legendary aviation designer Claude Dornier, landed at the ILA in a unique aircraft. The three-engined Do 24 ATT (the letters stand for the German term "Amphibious Testbed") was rebuilt in the early 1980s and is a modification of one of the last Do 24 flying boats. It had been in service with the Spanish Air Force since 1944, when it was refitted with new wings, more powerful turboprop engines and additional landing gear. Following trial flights it was sent to a museum on loan. Last year it was dismantled and shipped to the Philippines, where Iren Dornier operates a local carrier, South East Asia Airlines. It was made airworthy again there and has now returned to Germany. It will be taking part in the daily flying displays at the ILA. The younger Dornier will be undertaking a round-the-world flight on behalf of Unicef, familiarising young people with technology and helping to give them "courage and confidence".
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The new gliding parachute being presented by ESG Elektroniksystem- und Logistik GmbH at the ILA consists of some 60 sub-systems. The Special High Altitude Parachute System (SHAPS) is currently undergoing development by Dräger Aerospace GmbH on behalf of the KSK special forces unit and other specialist units of the German armed forces. In addition to the parachute itself the ancillary equipment includes a number of other items for supplying oxygen, and for communication and navigational purposes, all of which are intended to enhance the effectiveness of paratroopers.
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EADS has ambitions to be the international industry leader in terms of turnover, a claim that has been reiterated by its CEO Philippe Camus. During the first quarter of this year the company, the second largest aerospace and defence group after Boeing, reported a large improvement in its business results. Figures were provided at a well-attended press conference held during the ILA. Between January and March an EBIT (before allowing for company depreciation and extraordinary items) of 198 million euros was achieved, 52 per cent higher than in the equivalent period in the previous year. At the same time there was a nine per cent increase in sales to 6 billion dollars, and net profits amounted to 49 million euros. These figures confirm the forecasts for 2004. For the year as a whole, assuming sales of around 30 billion euros, an EBIT of 1.8 billion euros is being forecast. By 2007 / 2008 sales are expected to rise to 40 billion euros. Following its involvement with the Chinese helicopter manufacturer AVIC, EADS is also considering taking a stake in the Russian Irkut group, Philippe Camus announced. Global activities will, however, be concentrated on China and Japan, as well as on the US defence market. The ILA2004 has been an exceptional success for EADS, CEO Rainer Hertrich reported, referring, for example, to the signing of an agreement for 30 Ariane V launchers, the presentation of the first production NH90 helicopter and of the Eurohawk, as well as the start of test flights by the Airbus tanker MRTT
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In addition to the orders for 180 of the latest military transport aircraft, the A400 M, from seven European countries, Airbus Military Aircraft Company believes that there is a potential market for a further 200 of these aircraft. This was revealed by company representatives on Wednesday during a press conference at the ILA. These figures are based on a 50 per cent market share and do not include the demand from the USA, China or the states of the former Soviet Union. Airbus Military believes that replacements will be needed for 1,450 transport aircraft in the A400M category around the world. Since the programme was launched a number of significant changes have arisen in the concept of this aircraft, production of which will commence early next year with the first metalworking stages. For example the angle of the wings has been increased by two degrees to increase the amount of fuel that can be carried. The airborne refuelling nozzles have been relocated to a position above the pilot. The A400M will be the first aircraft to use down-between-engines technology, in which the impellers of the two engines on each wing rotate in opposite directions, thereby improving the aerodynamics and enabling the tail fin to be reduced in size by 17 per cent.
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During the ILA Raytheon International announced that it is part of a group, including Siemens, Lufthansa-Technik and Alenia Marconi Systems, which is bidding for the NATO contract to set up an extensive ground reconnaissance system. Despite an initial decision in favour of TIPS-Industries, there are still hopes of getting involved in this project. Whereas TIPS-Industries plans a combination of a specially equipped Airbus 321 and unmanned Global Hawk drones, Ratheon and its partners are relying on a combination of a specially equipped business aircraft such as the Global Express from Bombardier and the Predictor drone, which has been developed by General Atomics. Raytheon claims that its own programme would cost 1.7 billion euros less than that of its competitor. With such savings Raytheon is hopeful that NATO will yet reconsider its decision.
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At the end of April this year an agreement was reached between Diehl und Thales to extend their partnership. Consequently Diehl Luftfahrt Elektronik GmbH (DLE) will become integrated in Diehl Avionik Systeme, in which Thales holds a 49 per cent stake. This was announced publicly for the first time by Manfred Kennel, Spokesman for the Board, at midday today (12 May) at the ILA2004. The integration process will take place at the beginning of 2006. Kennel also pointed out that DLE, as the world market leader in cabin lighting systems, supplies not only the European manufacturer Airbus but also Boeing in the USA. The stakes held by Diehl and Thales in DLE, now that the latter also incorporates Diehl Avionik Systeme GmbH, remain unchanged. For Diehl Avionik Systeme its integration within DLE supplements and expands its production programme. This includes cockpit and display systems as well as flight controls, cabin and supply systems, cabin lighting and safety systems.
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The first Airbus A320 was handed over on Tuesday afternoon in front of the Lufthansa Technik hangar to the new low-fare airline Wizz Air, and will make its first flight on 19 May from Kattowitz to London. The jet is the first of six that have been leased from debis AirFinance and have been converted and repainted by Lufthansa Technik. "Within just a few weeks we transformed the Airbus into a brand new aircraft", said Wilhelm Henningsen, Chairman of the Board of LHT. "We are delighted to take delivery of our first aircraft, especially as this is taking place in Berlin, a city of such major importance in European history", said the General Manager of the Hungarian airline, József Váradi. The company plans to establish a European network, starting from Kattowitz and Budapest.
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A premiere at the ILA: one of the three remaining airworthy "Super-Constellations" landed at the ILA following its flight from the USA via Basel. Known affectionately as the "Super-Connie", it was used by numerous airlines on transatlantic and Pacific flights during the 1960s. The example on show in Schönefeld was built in 1955 and was originally in service with the US Air Force, was subsequently used for air freight and was finally rescued from the scrapyard by an American aviation enthusiast. The association that has been set up in Basel, the Super Constellation Flyers, has acquired the aircraft under a lease-purchase agreement. They collected it from California on 28 April and flew it to its new home in Basel, where it landed on 8 May. The aircraft is flown by American and Swiss commercial pilots, with just enough space in the cockpit for the flight engineer too. The new owner intends to exhibit the aircraft at various aviation events and to also use it for excursion flights, but these will be restricted to association members only. However, membership is open to everyone for a fee of just 80 euros. The association's aim is to eventually fit authentic seats as used on passenger aircraft at the time.
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Two years ago at the ILA2002 agreement was reached with EADS to produce a joint study into the commercial opportunities on the international market for the Russian amphibian, the Be-200, and the decision has now been made to produce a version powered by the Rolls-Royce BR715. This was announced by Victor A. Kobzev, Director General of Beriev Aircraft Company, following discussions at this year's fair. He believes that a worldwide demand exists for 320 of these twin-jet rescue and fire-fighting aircraft, with a growing market in the Far East in particular. The Russian ministry with responsibility for dealing with major catastrophes has now taken delivery of the first of a total of the seven aircraft that have been ordered in the basic version, with options to purchase a further eight jets. Type certification for a passenger version with between 74 and 102 seats is expected in the middle of this year, Kobzev reports. Interest from various quarters has been expressed in an aircraft designated the Be-310, and actual negotiations are now in progress, according to the Director General. The Be-2500 giant transporter, on the other hand, is still a long way off, although Kobzev says that studies have shown that it is technically feasible Be-2500. This massive six-engined aircraft (wingspan 125 metres, length 115 metres) would have a take-off weight of 2,500 tonnes, and would be able to carry payloads of up to 1,000 tonnes over distances of up to 16,000 kilometres, making it a serious competitor to ocean freighters. However, as the head of Beriev pointed out, such a project could only be implemented by co-operation on an international scale.
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On 13 May Diamond Aircraft received type certification for its diesel-powered touring aircraft, the Twin Star, which was presented to the company at the ILA by the European Aviation Safety Agency (EASA). Developed in just two and a half years, the twin-engined four seater is one of the new generation of touring aircraft that has been designed to meet three criteria: carbon composite technology, turbo diesel technology and a glass cockpit. With its diesel engines it is extremely economical, with a fuel consumption of just 29.6 litres per hour. It has a cruising speed of 311 kph and a range of 1,912 kilometres. The success of this new design can be gauged from the interest shown by potential buyers. Around the world 317 have already been sold, 123 in April alone. For the American market Diamond Aircraft can offer a version powered by standard Lycoming engines, which made its first flight on 22 April this year and, like the diesel-engined Twin Star, can be seen at the ILA. The Lycoming-powered Twin Star is expected to receive certification next year. +++
The Swiss aircraft manufacturer Pilatus is again presenting one of its most successful products, the PC-12, at the ILA, but anyone interested in acquiring one of these multi-role, single-engined turboprop aircraft will have to wait. Almost the entire production run for the year of 70 aircraft is already sold, the company reports. There are now nearly 500 of these aircraft around the world. According to the CEO of Pilatus, Oscar J. Schwenk, one of the main factors in the sales success of this model is that it is so economical to operate. Word-of-mouth recommendations from satisfied customers have proved to be its best selling point.
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The Russian scientific centre TsAGI, the German aerospace industry association Bundesverband der Deutschen Luft- und Raumfahrtindustrie and the German aerospace centre Deutsche Zentrum für Luft- und Raumfahrt are organising a meeting at the ILA with the title "Combining Forces: Russia in European Aviation Research Programmes", at which experts from the EU and the aviation industries in Europe and Russia explored the possibilities for collaboration. The discussions centred on environmental issues, air safety and the possibilities for reducing aeronautical engineering costs. The TsAGI is a state-run research facility operated by the Russian Federation and, in addition to its research programmes it also provides aviation aeronautical engineering backed by government expertise.
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On 11 May 2004, under the agreement signed between IBCOL Helicopter Services GmbH and the Land Baden-Württemberg, the fifth and final MD902 Explorer was handed over to the Police Helicopter Squadron at Stuttgart Airfield, General Manager Wolfgang Schad reported at the ILA2004. "This delivery successfully completes the very extensive development and construction programme." He adds that some extensive development work and protracted certification processes were needed in order to integrate the tactical systems and equipment used by the police.
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One of the stars among the historic aircraft on show at the ILA is the Messerschmitt M 17. This two-seater was commissioned by the Messerschmitt Foundation and constructed by the Ausgburg-based Bitz company, a specialist in replicas. It is made of plywood and one of its outstanding features is the rediscovered Bristol motor which had been installed in the original M 17. The sports aircraft, which made its maiden flight in 1925 in Bamberg, was built by the young Willy Messerschmitt. Its excellent handling characteristics enabled Messerschmitt to win numerous competitions. With prize money totalling 10,000 Reichsmarks he founded his own aircraft factory which built many famous civil and military aircraft during the years that followed. Simple and robust, this aeroplane had some unusual features. For example, the pilot's seat was very basic and narrow and was placed behind the passenger. This meant that his view forward was obstructed and he was only able to judge his position by looking to either side. The replica, which can also be seen in the air at the ILA, made its first flight on 14 April this year.
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Scientists-including leading national security experts and a member of Congress called on the administration to halt its upcoming deployment of a missile defense system, and on Congress to require operationally realistic testing before deployment. The scientists released a new study by the Union of Concerned Scientists (UCS)-Technical Realities: An Analysis of the 2004 Deployment of a U.S. National Missile Defense System-that finds the system would be ineffective against a real attack and that there is no technical justification for its deployment. The system, which could be deployed as early as this summer, is intended to defend the United States against attacks by long-range ballistic missiles. Because none of the flight intercept tests have provided any data relevant to a real attack, the report analyzes the technical capabilities of the system components-the radars and interceptors. "Our technical analysis of this proposed system shows there is no basis to believe that it will have any defensive capability," stated Dr. Lisbeth Gronlund, a physicist and co-director of the UCS Global Security Program. "The administration's claims that the defense will be highly effective are false and irresponsible."
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Following the Thales new Board of Directors' meeting on 12 May 2004, Denis Ranque, Chairman and Chief Executive Officer, requested a meeting of the Thales Works Council on the same day, in order to inform it of the evolution of the Group's organisation, in line with what was decided in December 2003. This meeting launches the information and consultation process on that project. The goal is to align Thales' organisation with its growth and competitiveness strategy in its Defense, Aerospace and Security activities: strengthening international operations management; better exploiting dual technologies; regrouping assets in Security and Services; simplifying structures and reducing overheads. The projects presented to the Works Council include the creation of six Divisions, instead of the current Business Areas and Business Groups. This would result from the grouping of Thales' activities into the following areas: Aerospace, Air Systems, Naval, Land and Joint Systems, Security, and Services. In addition, the Country structures will be homogeneously organised under "International Operations".
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Lufthansa continued its upward trajectory in the first quarter of 2004. The product and quality offensive initiated by Chairman and CEO Wolfgang Mayrhuber was systematically continued. At the same time Lufthansa invested in its fleet and service, pursued an active portfolio management strategy and lowered costs. "We are better, leaner and more efficient," Wolfgang Mayrhuber said when presenting the figures for the first quarter. All the signs are pointing to the expected growth of the airline sector. "The upswing is palpble, and as a leading network carrier Lufthansa is well prepared for it. Mayrhuber's goal for Lufthansa is to achieve further growth in the profitable intercontinental traffic sector -- both on its own and in conjunction with its partners. Lufthansa's customers will enjoy top quality and best network density worldwide. The Group has done its homework. Lufthansa is resolutely implementing its action programme, and the task of restructuring LSG and Thomas Cook has been initiated. "In future our all-round aviation group will orient itself even more stringently to economic and strategic criteria," Lufthansa's Chairman of the Executive Board and CEO commented. "Our active portfolio management policy, as illustrated by the sale of Amadeus und LGM, is the reflection of a clear strategy: we are concentrating on the core competencies of our business segments." Following the successful conclusion of a new collective bargaining agreement at Lufthansa CityLine for the cabin crews of 80 aircraft, talks are now being held with the trade unions for other areas. In the first quarter, when air traffic is traditionally at its lowest ebb, Lufthansa once again demonstrated its strengths. "Following the first-quarter operating loss of 419 million euro in 2003, this year's operating result of -116 million euro represents a considerable improvement and underscores our position as one of the leading airlines," Mayrhuber said. The net result, too, is much better: it increased year on year by 418 million euro to 62 million euro.
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From January to March 2004, revenues at Fraport AG Frankfurt Airport Services Worldwide grew by 3.9 percent to Euro 446.2 million. Despite special effects, the Group's EBITDA (earnings before interest, tax, depreciation and amortization) reached €99.4 million, equaling the previous year's level. The increase in revenues was primarily attributable to the noticeable growth in traffic. Group-wide, the number of passengers reached 15.2 million, 9.8 percent more than in the same period last year. Frankfurt Airport (FRA), the Group's most important location, served 11.3 million passengers - 6.8 percent more than in the first quarter of 2003. Antalya Airport (AYT) recorded 34.0 percent more passengers and Frankfurt-Hahn Airport (HHN) 24.5 percent more. Aircraft movements (takeoffs and landings) at FRA were similar to the previous year's level due to the use of larger aircraft. In contrast, Frankfurt's airfreight and airmail tonnage rose by 6.4 percent to 430,675 metric tons. At Frankfurt Airport, the company earned Euro 9 million more in airport charges than in the comparable period last year, because of this positive traffic development. Furthermore, revenues from security services increased. However, revenue growth was depressed by around €7 million due to special effects: Because of a change in accounting policies, noise abatement charges have not been shown in the operating results since the third quarter of 2003, while first quarter 2003 results still included these charges in the amount of Euro4.7 million. Proceeds from military flight operations dropped by Euro 2.3 million.
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