FLUG REVUE update: Week ending 26 December 2004

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UPDATE
Week ending 26 December 2004

+++ A350 gets first order +++ JAL selects Boeing 7E7 +++ Ariane 5 launches Helios 2A +++ RAAF signs up for A330 tanker +++ Galileo gets money for first GPS-satellites +++ ESA's exploration programme "Aurora" gets further boost +++ Luftwaffe F-4F training in USA ends +++ Boeing Delty IV Heavy makes first flight +++ Bell 210 completes first flight +++ News in brief +++

A350 gets first order
Air Europa erster Kunde für A350

Air Europa of Spain is the first airline to commit to the A350-800, Airbus' new 245-seater aircraft only on offer since 10th December, after signing a Memorandum of Understanding for 10 aircraft and 2 further options. This decision comes after a rigorous evaluation of the aircraft's performance and efficiency with the aircraft due to be delivered between 2010 and 2012. Air Europa has selected GEnx engines from GE Aircraft Engines for the aircraft and will use a configuration of 300 to 330 seats. As part of Air Europa's plans to renew and expand its current fleet, it has signed a contract to receive one A340-200 leased from Airbus in 2005 and intends to lease two new A330-200s in the spring of 2006. "This commitment will without doubt be a key element in the complete renewal of the Air Europa wide-body fleet, making it one of the most modern fleet on the continent and allowing our company to continue with its growth strategy," stated Juan Jose Hidalgo, Executive President of the Globalia Group and parent company of Air Europa.

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JAL selects Boeing 7E7
7E7-Großauftrag von Japan Airlines

On Dec. 22, Boeing announced that Japan Airlines Corporation (JAL) has selected the Boeing 7E7 Dreamliner as its next generation mid-sized twin aisle aircraft. JAL's requirement for 30 firm deliveries and 20 options will be fulfilled with a combination of 7E7-3s and 7E7-8s. Deliveries are to begin in 2008, as replacements for JAL's Boeing 767s and Airbus A300-600s. The airline has not yet made a decision on which engines will power its planes. "In selecting the 7E7, Japan Airlines continues to demonstrate leadership and vision for the future of commercial aviation," said Boeing Commercial Airplanes President and Chief Executive Officer Alan Mulally. "The 7E7 will provide JAL the best in efficiency, economics, and reliability, and it will provide passengers with unprecedented levels of comfort while taking them where they want to go, when they want to go, non-stop, point-to-point anywhere in the world."
In joining the 7E7 launch group, JAL will be involved in the 7E7 family's future development. The 7E7 is being designed with airlines, passengers, investors and the environment in mind.
The 7E7 family includes three airplanes seating 200- to 300 passengers that will fly between 3,500 and 8,500 nautical miles (6,500 to 16,000 kilometers). The 7E7 will allow airlines to offer passengers more of what they want: affordable, comfortable, non-stop, point-to-point travel to more destinations around the world. The airplane will use 20 percent less fuel than today's airplanes of comparable size and provide customers with up to 45 percent more cargo revenue capacity. Passengers will find significant innovations including a new interior environment with higher humidity, wider seats and aisles, larger windows, and other conveniences.

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Ariane 5 launches Helios 2A
Aufklärungssatellit mit Ariane 5 gestartet

On 18 December, Arianespace's Ariane 5G launcher demonstrated its operational maturity and accuracy by placing a seven-satellite payload into Sun-synchronous orbit. Lifting off from the Spaceport in French Guiana at mid-day, the Ariane 5 Generic vehicle followed a northward trajectory to deploy its primary satellite payload - the Helios 2A military reconnaissance platform - in Sun-synchronous orbit, along with six auxiliary spacecraft. In contrast to missions to geostationary orbit that have a long launch window, today's northward flight had a precise moment for the ignition of its main cryogenic engine: 1:26 p.m., local Kourou time. The Ariane 5 was ready - and it lifted off right on time, under sunny French Guiana skies.
Helios 2A is the third spacecraft in the Helios observation satellite family to be launched by Ariane. Helios 1A was orbited in 1995 on Flight 75, followed by Helios 1B in December 1999 on Flight 124 - both of which used Ariane 4 launchers. The platform orbited today by Ariane 5 is the initial satellite in the second-generation Helios family. It weighed approximately 4,200 kg. at liftoff (9,240 lb.). The Helios 2A platform was developed and built in a French-led program with Belgium and Spain. Project manager is France's defense procurement agency (DGA), with the French CNES national space agency holding the lead responsibility for the satellite and its launch. Spacecraft manufacturer was EADS Astrium.
Ariane 5 released the Helios 2A spacecraft one hour after liftoff, which was followed by the rapid-sequence deployment of Flight 165's six auxiliary payloads from a ring-shaped dispenser plate called ASAP (the acronym for: Ariane Structure for Auxiliary Passengers). The deployment process started with Nanosat, a micro-satellite developed and built by the national aeronautical technology institute of Spain, INTA. It was followed rapidly by the simultaneous release of two Essaim electronic intelligence (ELINT) system demonstrator small-sats for the French DGA. The other two Essaim satellites then were separated. The sequence was completed when Parasol - a small satellite from CNES for the study of the Earth's climate - was released from Ariane 5.

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RAAF signs up for A330 tanker
Airbus-Tanker für Australien

On 20 December, the Department of Defence has signed a $1.4 billion contract with Spanish company, European Aeronautic Defence and Space Construcciones Aeronauticas S.A. (EADS CASA) to provide the Royal Australian Air Force with five new air-to-air refuelling aircraft, Defence Minister Robert Hill announced. "The new aircraft, to be known as Multi Role Tanker Transports, will be capable of refuelling F/A-18, F-111, Airborne Early Warning and Control, and Joint Strike Fighter aircraft as well as having a significant strategic airlift capability," Senator Hill said. "This contract signing is a significant step in replacing the Royal Australian Air Force's ageing Boeing 707 aircraft. "The aircraft will be fitted with electronic warfare self protection equipment and training simulators will also be provided." The new refuelling aircraft will be based on the Airbus commercial A330 aircraft that is currently operated by Qantas as part of its commercial fleet.
The basic A330 aircraft will be produced in Europe with four of the five being modified and converted into MRTT aircraft by Qantas in Brisbane. Qantas will also provide the through life support for the MRTT aircraft. "Australian industry will also be closely involved in the design work, project management, and production of aircraft components and engine parts for export," Senator Hill said. "Work to be undertaken by Australian industry and the associated technology to be transferred to Australia is expected to exceed $500 million over the life of the MRTT aircraft." The aircraft are scheduled to enter service in 2009. The contract schedule provides sufficient time for the aircraft to be extensively tested, facilities to be established and RAAF crews to be trained in order to ensure the MRTT capability is effectively introduced.

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Galileo gets money for first GPS-satellites
Neuer Vertrag für Galileo unterschrieben

The Galileo project is now under way, with the signing on 21 December of a second contract concerning the In-Orbit Validation phase, following that signed in July 2003 for two test satellites. The European Space Agency and Galileo Industries have signed a Euro150m contract, as a first stage towards signing an approximately Euro950m contract covering the overall IOV phase. "This marks a further step forward for Galileo", says Giuseppe Viriglio, Director of EU and Industrial Programmes at the Agency. "In line with the recent EU Transport Council green light for final deployment of the constellation, ESA is securing the foundations for this unique satellite locating and positioning system."
For Günter Stamerjohanns, chief executive officer of Galileo Industries: "This contract marks a key step towards completing this major European technology project. Galileo Industries is proud to be playing a leading part in meeting this enormous challenge." The contract provides the basis and the technical activities necessary for in-orbit validation of the Galileo system. It gives preliminary authorisation to proceed with the whole of this work, over a six-month period. This work notably concerns the management of the programme and the choice of engineering systems and technical support required to maintain the overall credibility of the scheduling and ensure system coherence. In-orbit validation involves the delivery of the first four satellites in the Galileo constellation of 30, along with a number of ground stations. Subsequently, the programme will enter its deployment phase, which will cover the entire network of ground infrastructure and the launch of the remaining 26 satellites which will complete the constellation.

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ESA's exploration programme "Aurora" gets further boost
Mehr Geld für ESA-Forschungsprogramm

The countries participating in the Preparatory European Space Exploration Programme "Aurora" have recently confirmed and increased their contributions. This preparatory phase has attracted additional contributions for the period 2005-2006. Sweden has now joined the programme. The subscribed envelope has nearly tripled, from the original Euro14.3m to around Euro41.5m currently. Italy has confirmed its interest and ambitions in space exploration by further increasing its participation. The United Kingdom will also contribute additional money. France, the third-largest contributor to the programme, is followed by Belgium, Spain and The Netherlands. Other participants are Austria, Switzerland and Portugal. Canada, a Cooperating State, also confirmed an increased contribution.
On 15 December, the ESA Council approved the Agency's budgets for 2005, including the budget for "Aurora". These developments enable major industrial activities to continue and will enable the work on preparing the full programme proposal to move ahead in line with original plans. Invitations to tender for industrial contracts will be issued starting next February. These include work for the ExoMars mission and the Mars Sample Return mission. Other activities will cover in-orbit assembly, rendez-vous and docking, habitation and life-support systems plus a broad range of technology development work. Industry will also be called upon to contribute to the definition of a European Space Exploration strategy and architecture.

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Luftwaffe F-4F training in USA ends
F-4F-Ausbildung in Holloman beendet

The US Air Force's last operational F-4 Phantom II squadron held its inactivation ceremony here Dec. 20. The inactivation of the 20th Fighter Squadron, known as the Silver Lobos, also signifies the end of a 33-year German-American joint fighter training program in the decades-old F-4E and F aircraft. "As we close the chapter on fighter squadron Phantoms flying over (Holloman), we must remember the book has truly not ended," said Brig. Gen. Kurt A. Cichowski, 49th Fighter Wing commander. "There still remains, yet unwritten, lines of prose dedicated to the pilots and crews who trained here, and the bonds of camaraderie forged from the mutual bonds of our two nations. There remains a future yet undocumented that will be traced to the Airmen who trained here, and the fantastic aircraft they flew together." During the ceremony, Lt. Gen. Klaus-Peter Stieglitz, German air force chief of staff, said, "The cooperation has been the longest-lasting military project between the U.S. Air Force and the Luftwaffe. The 20th FS will definitely be remembered for the understanding and friendship between our two air forces and nations. The German air force will continue to train its aviators here in the Tornado, a European-built fighter/bomber aircraft.

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Boeing Delty IV Heavy makes first flight
Erster Flug der Delta IV Heavy

The Boeing Delta IV Heavy made its first flight on 22 December achieving the major test objectives despite placing its demonstration satellite in a lower than expected orbit. The Delta IV Heavy lifted off from Space Launch Complex 37B, Cape Canaveral Air Force Station, Fla., at 4:50 p.m. EST, on a demonstration launch for the Air Force's Evolved Expendable Launch Vehicle (EELV) program. The demonstration satellite was deployed following a 5-hour and 50-minute flight. "The EELV program and Boeing invested in today's demonstration launch to ensure that the Delta IV Heavy, the only EELV Heavy variant available, is ready to launch our nation's most important national security payloads into space," said Dan Collins, vice president of Boeing Expendable Launch Systems. "While the demonstration satellite did not reach its intended orbit, we now have enough information and confidence in the Delta IV Heavy to move forward with preparations for the upcoming Defense Support Program launch in 2005."
A preliminary review of the data indicates that a shorter than expected first-stage burn led to the low orbit. However, according to the Air Force EELV program office, the primary flight objectives were accomplished in today's all-up test of the new launch vehicle. The heavy boost phase, the new five-meter upper stage and five-meter payload fairing, extended coast, upper stage third burn and payload separation, and activation and usage of Space Launch Complex 37B for a Heavy launch were all successfully demonstrated.

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Bell 210 completes first flight
Erstflug der Bell 210

The Bell 210 helicopter made it's first flight Saturday, Dec. 18, 2004, at the Bell subsidiary Edwards & Associates, located in Bristol, Tenn. This successful flight marks the first in a series of qualification flights as the Bell 210 goes thru FAA certification testing. Bell expects to attain FAA certification 1st Quarter 2005, with deliveries following soon after. The Bell 210 is a civil certified version of the U.S. Army UH-1H. Starting with a refurbished UH-1H fuselage, Bell Helicopter adds dynamic components from the Bell 212 (main rotor hub and blades, tail rotor, main and tail rotor support structure, transmission, rotating controls, and tail boom), and an FAA certified Honeywell T-53-517B engine providing a zero-time FAA certified single engine medium utility helicopter. "The Bell 210 is also the perfect solution for the many agencies that use the UH-1H in utility, Homeland Security, law enforcement or firefighting capacities," declared Bell CEO Mike Redenbaugh. "It combines great performance with an existing logistical base, an unbeatable DOC (Direct Operating Costs) and a tremendously low initial acquisition cost. Add to that complete FAA certification and the Bell 210 is truly the best total value proposition to be found in the market today," Mr. Redenbaugh explained.
The Bell 210 helicopter will satisfy the U.S. Army's requirement for a Light Utility Helicopter (LUH) in the TDA units as well as the Army National Guard. There are many missions now supported by the US Army with assets that are marked for reduction in the coming years that the Bell 210 could more economically perform. These Army Light Utility Helicopters will perform future utility missions for non-combat organizations (TDA), National Guard utility, drug interdiction efforts (RAID), MEDEVAC, and Homeland Defense (HLD) missions.

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NEWS IN BRIEF / KURZMELDUNGEN

SAGEM of France, Rheinmetall Defence Electronics (RDE) of Germany, and Bell Helicopter, Textron company have signed a Teaming Agreement to provide a next generation tactical VTOL UAV (VUAV) to the expeditionary forces of Europe. SAGEM, RDE and Bell Helicopter will combine their UAV expertise to provide a Vertical Takeoff and landing UAV system that will meet the tactical mission requirements of modern European expeditionary forces. The VUAV system will be based on a modified version of Bell's Eagle Eye VUAV air vehicle. SAGEM and RDE will furnish the ground and ship borne control stations, digital data links, EO/IR payloads, simulators and C4I integration. The agreement will reinforce the interoperability of the companies' current UAV systems and will ensure the new system fits into and is supportable within the existing UAV infrastructure of NATO and other European forces. Each company will contribute its unique expertise and individual experience to bring the project to fruition.
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Fraport AG Frankfurt Airport Services Worldwide has won the international bid for a contract to manage Cairo Airport in Egypt. Fraport received the maximum evaluation points in its bidding process for the Cairo contract as well as for a simultaneous bid for managing five Egyptian regional airports. Under the bidding rules, a company may only be awarded one of the two projects. From the outset, Fraport had indicated its preference for managing the Egyptian capital's international gateway. Fraport's management contract will run for eight years. Under the terms of the contract, Fraport is not required to invest in the either the Egyptian airport company or Cairo's airport infrastructure.
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On December 21, Frankfurt Airport welcomed its 50 millionth passenger for 2004, the first time that Germany's largest airport has topped the 50 million annual passenger figure. The record-breaking passenger, Ingelore Winkelmann-Sevastopoulos, arrived on the Lufthansa morning flight from San Francisco and was personally greeted by Fraport AG's executive board chairman Dr. Wilhelm Bender. The figure of 50 million passengers corresponds to twice the number of inhabitants living in Venezuela or Malaysia. Compared to mega cities, 50 million passengers would be five times the population of Cairo or Sao Paulo, for example. Only five years later, FRA topped the 40 million passenger level in 1997. If it had not been for the events of 9/11 in 2001, FRA would have already exceeded the 50 million figure three years ago.
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The Republic of Ghana ("Government") and the U.S. consortium, GIA-USA, LLC ("GIA"), are pleased to announce that definitive agreements have been signed creating a new airline based in Accra, Ghana. The new airline will be the national air carrier of Ghana, replacing the old national airline, which is currently winding down. The new company is named Ghana International Airlines Limited ("GIAL"). Ghe Board of Directors of GIAL has appointed a world class executive management team headed by Mr. J. Ralph Atkin, founder of SkyWest Airlines, Inc. in the USA, to immediately commence formation of the new airline with an impressive network of flights to and from Europe, North America and Africa using Kotoka International Airport in Accra as a hub.
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On 22 December 2004, the first series production EC 225 to roll off the Marignane assembly lines was officially delivered to the Ministerial Air Liaisons Group (GLAM) of the Algerian Republic. This helicopter in VIP livery will join the prestigious transport squadron, which serves the Presidency of the Algerian Republic. The choice of the Algerian Government confirms the success of the aircraft of the Super Puma/Cougar family, which have already been chosen by 32 heads of state or governments. The EC 225, the latest addition to the Super Puma/Cougar family of twin-engine, medium-sized aircraft in the 11-ton class performed its maiden flight in November 2000. Twenty-two aircraft from the EC 225/EC 725 family have already been ordered and the total number of orders for the Super Puma/Cougar - EC 225/EC 725 family has increased to 682 helicopters.
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Pratt & Whitney Canada's (P&WC) PW610F engine, selected to power Eclipse Aviation's Eclipse 500 very light jet (VLJ), has successfully completed its maiden flight on P&WC's Boeing 720 flying test bed (FTB), marking a significant milestone in its development program. "We are very pleased with the engine's performance during this first flight, and we are looking forward to continuing the PW610F engine FTB program to evaluate engine and FADEC operating characteristics," said John Wright, Vice President, Business Aviation and Military Engines, P&WC. The first flight of the PW610F engine took place December 16, and during the 6-hour flight, a number of tests were performed, including performance characterization and altitude re-light. The PW610F had previously completed more than 500 hours of ground testing.
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NASA has selected six Northrop Grumman proposals valued at approximately $137 million over four years to develop human and robotic technologies that would have pivotal roles in its Vision for Space Exploration. The awards cover a variety of company-proposed concepts to help NASA conduct sustainable and affordable exploration missions beyond low-Earth orbit. NASA's Office of Exploration Systems Research and Technology (ESR&T) is funding the proposals. Work is expected to begin in early 2005. Examples of technologies the company will develop for the initiative include: An insect-like robot to autonomously inspect and maintain exteriors of spacecraft, such as the Space Shuttle, International Space Station or the proposed Crew Exploration Vehicle; a restowable, heat-resistant "skirt" that deploys around a spacecraft just before reentry; an engine for a "space ferry" that would carry people and cargo between the Lunar surface and Lunar orbit as needed. The engine would be re-fueled from materials mined on the moon, improving affordability by greatly decreasing the use of one-time, expendable equipment.
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The Port Authority of New York and New Jersey Board of Commissioners has approved nearly $280 million to modernise Terminal B and related facilities at Newark Liberty International Airport. This program will enable the airport to accommodate a projected increase in air passengers within the next 15 years. Long-range forecasts indicate that air traffic will continue to grow at the airport and reach 45 million annual air passengers by 2021. The airport currently serves approximately 32 million annual passengers. Improvements will be made to provide for additional ticketing areas, expansion of the existing ticketing areas, passenger screening points and the construction of a new domestic baggage claim area, which will allow greater efficiency for the screening process and baggage handling. The Port Authority expects to begin the planning and design in 2005.
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Boeing and Etihad Airways confirmed the airline's definitive order for five Boeing 777-300ER (Extended Range) airplanes valued at $1.09 billion at list price. The airplanes will be delivered in 2005, with the first delivery scheduled for October followed by two each in November and December. They are the first Boeing airplanes Etihad has ordered, and the airline joins an expanding group of prominent carriers operating the 777 family. "We do our utmost to meet the needs of our discerning passengers and we're pleased to be adding the 777-300ER to our fleet," said Etihad Chairman H.E. Dr. Ahmed Bin Saif Al-Nahyan. "Our objective is to build upon our status as one of the world's top-quality airlines. We believe our reputation will be enhanced even further by making the most of the 777's wide, roomy cabin to create a distinctive experience for our guests."
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Boeing confirmed KLM Royal Dutch Airlines's announcement that the carrier is ordering two more Boeing 777-200ER jetliners, thereby increasing its Boeing 777 fleet to 12 airplanes. The airplanes will be delivered during the first quarter of 2006. KLM uses 777-200ERs, which fly up to 14,316 kilometers (7,730 nautical miles) to connect its Amsterdam base to New York, Tokyo, Cape Town and Nairobi among other international destinations.
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Boeing employees recently shipped components that a supplier partner in China will use to convert the prototype Boeing 747-400 Special Freighter. Here, employees remove air from packaging material to create a watertight liner for a crate that houses floor beams. Launched in January with an order from Cathay Pacific, the Special Freighter program transforms 747-400 passenger planes into freighters. In addition to Cathay Pacific, Japan Airlines International Co., Ltd, Korean Air, Nippon Cargo Airlines and Guggenheim Aviation Partners have placed 22 firm orders and hold 19 options for 747-400 Special Freighters.
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Northrop Grumman has completed integrating engineering model payload elements into a single-string prototype for the new Advanced Extremely High Frequency (EHF) military communications satellite, which allowed the company to successfully demonstrate performance capabilities. This is an important step towards early design verification of crucial components on the Advanced EHF military communications satellite. The company's Space Technology sector will provide the Advanced EHF payload to Lockheed Martin, prime contractor for the Advanced EHF system. Early integration and testing of the engineering model payload, software, satellite interfaces and user terminal simulators reduce risk associated with integrating and testing the two flight payloads for Advanced EHF satellites 1 and 2.
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A Boeing X-45A unmanned aircraft was controlled by a pilot-operator in Seattle, Wash., after launching from NASA's Dryden Flight Research Center, Edwards Air Force Base, Calif., on Dec. 9. "This shows our military can deploy unmanned combat aircraft from one location and control them from another," said Darryl Davis, Boeing Joint Unmanned Combat Air Systems (J-UCAS) X-45 vice president and program manager. "We're moving quickly toward delivering a 24/7 strike and reconnaissance capability to complement America 's manned fighter and bomber force." The test mission demonstrated safe and secure vehicle handoff from mission control to another control center through a SATCOM link. That capability will be critical when operating the X-45C, a more robust version of the aircraft being built in St. Louis.
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Aviation Partners Inc., the world's leading provider of Advanced Technology Blended Winglet Systems, received FAA Supplemental Type Certification for Hawker 800XP Blended Winglets on December 17, 2004. This follows earlier FAA certification of Blended Winglets for the Hawker 800. "Blended Winglets transform the standard 2600 nm Hawker 800XP to a 2780 nm capable aircraft," says Aviation Partners Inc. VP Sales, Gary Dunn. "A Blended Winglet Equipped Hawker 800 / Hawker 800XP will climb higher and cruise faster, at any given cruise weight, than the original airplane while saving 7% in fuel burn."
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Korea Aerospace Industries (KAI) began final assembly on the first production T-50 supersonic trainer on Dec. 17 at the company's modern aircraft manufacturing facilities at Sacheon, South Korea. "We are very excited about meeting this major program milestone right on plan," said N.S. Park, general manager of KAI's Sacheon plant. "The T-50 program continues to be very successful and tracking to schedule. We have finished the ground structural testing, and we are over 60 percent complete with our flight test program. The development program is validating an excellent design, and this has allowed us to proceed with production with no major changes.
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In a press conference on 21 December, the Philippine government said it has applied for a procedure with the Philippine courts for the physical expropriation of the new International Passenger Terminal 3 (IPT 3) at Manila's international airport. According to reports, the Philippine government has already taken over the terminal. The terminal building is owned by the PIATCO project company, in which Fraport AG holds a 30 per cent share. The terminal has still not been inaugurated. Fraport's Manila investment was completely written down for the 2002 fiscal year. Fraport regards the Philippine government's actions as a further blatant breach of law. On January 21, 2004, the Philippine Supreme Court declared that expropriation cannot happen without fair compensation being paid to PIATCO. Therefore, Fraport expects prompt compensation. Furthermore, as a German corporation Fraport has a claim for fair compensation under the German Philippine Investment Guarantee Treaty, especially in the case of expropriation. Since September 2003, Fraport's respective legal action against the Philippine government has been pending at the World Bank in Washington. Fraport expects that the initiated expropriation procedure strengthens Fraport's claim for fair compensation under international law. Because it is based on international law, the arbitration procedure underway in Washington remains unaffected by a Philippine court decision.
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Raytheon Company has delivered five STANDARD Missile-3 rounds to the Missile Defense Agency for deployment as a key element of the Aegis Ballistic Missile Defense System. The rounds are available for deployment on Aegis cruisers and destroyers to defend against short- to intermediate-range ballistic missile threats in the midcourse phase of flight or for flight testing. Raytheon marked the first SM-3 delivery with a ceremony in Tucson on Oct. 22.
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The European Commission has cleared under the EU Merger Regulation the proposed acquisition of SNECMA Group ("Snecma"), the French aerospace components company, by SAGEM S.A. ("Sagem"). After examining the operation carefully, the Commission concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it and has therefore approved the concentration. Sagem is active in telecommunications and electronics for defence and security. Snecma produces and markets aircraft and rocket engines and other equipment in the field of civil and military aeronautics and the space industry. The merger will create a major industrial and technology group that is active on the global stage in the civil aviation, defence, space, telecommunications and the electronics sectors. The Commission's examination of the deal showed that the horizontal overlaps between the activities of Sagem and Snecma are limited and that, for all products concerned, the combined firm will continue to face several strong, effective competitors with significant market shares.
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The Turkish government has signed a contract for a Sikorsky S-92 helicopter to serve head-of-state missions. Turkey joins Turkmenistan in selecting the S-92 as its head-of-state helicopter. Turkmenistan is buying two aircraft. To date, Sikorsky has orders, including options, for more than 60 S-92 helicopters, making it the most successful commercial launch in the company's history.
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Airline partners Air Berlin and NIKI Luftfahrt announced that the CFM56-5B engine will power the 70 firm, 40 option Airbus A320 aircraft ordered by the airlines in November. The engine order is valued at approximately $1.5 billion at list price, including spare engines. The CFM56-5B, which is the engine of choice for the Airbus A320 family, is produced by CFM International. CFM is a 50/50 joint company of Snecma Moteurs and General Electric Company and the world's leading supplier of commercial aircraft engines.
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The UK Ministry of Defence (MoD) announced that BAE SYSTEMS has been awarded a Design and Development Contract (DDC) for the Hawk 128 Advanced Jet Trainer (AJT). The contract is worth some £158.5M and covers the initial phase of development of Hawk as part of its evolution to meet the MoD's full capability requirement. The Hawk 128 is designed and built at BAE Systems' Brough factory on Humberside. The MoD will work closely with BAE Systems to manage the design of the avionics architecture, introduce a modern digital cockpit environment and deliver two trials aircraft to support the development and test flying. Exact aircraft numbers, delivery schedule and In-Service Date will all be set at the time of the main investment decision, currently planned for the first half of 2006.
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Jazeera Airways, the new, privately owned airline of Kuwait, has placed a firm order with Airbus for four A320s and taken options on four more, becoming a new customer. It plans to begin services in February 2005 with two leased Airbus A320s, serving key business and leisure destinations throughout the Middle East. Initial destinations include Dubai, Bahrain, Amman, Damascus, Beirut and Egypt, with further expansion planned to include cities in the Indian subcontinent. Deliveries of the ordered aircraft will begin in October 2005.
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Airbus has placed work packages for the market leading A320 Family with the Russian company Irkut. The contract is worth up to $ 200 Million over ten years and follows an extensive evaluation within the Russian Industry started in March 2004. Four significant work packages are included in this contract: the nose landing gear bay, keel beam, flap track and a floor grid section. Airbus also announced plans to furthermore expand its supplier base in Russia by sub-contracting more work packages in 2005 to the Russian aviation industry with a value up to $ 150 Million over ten years.
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Lufthansa has signed a contract with Airbus for a further seven A340-600 long-range aircraft. The German airline already operates 10 aircraft of the type together with 30 A340-300s and a growing fleet of A330-300s. Lufthansa also operates 72 Airbus A320 Family aircraft as well as 17 A300-600 and A310 aircraft. It also has an order for 15 A380s. The seven additional A340-600s now ordered by Lufthansa are scheduled for delivery in 2006 and 2007 and will be powered by Rolls Royce Trent 500 engines. The aircraft will expand the airline's capacity on long-range routes between Lufthansa's hubs in Frankfurt and Munich, and destinations in Asia and the Americas, meeting the increasing demand for the next few years.
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Space Systems/Loral (SS/L) announced that it has been selected by EchoStar Communications Corporation, Englewood, Colo., to build EchoStar XI, a new direct broadcast satellite (DBS) based on SS/L's 1300 platform that will support EchoStar's DISH Network and serve as backup to its existing fleet. EchoStar XI, anticipated to be delivered in early 2007, will be the fifth SS/L-built satellite in the EchoStar fleet. The contract is subject to standard bankruptcy court approval. EchoStar Communications Corporation serves more than 10.4 million satellite TV customers through its DISH Network, the fastest growing U.S. provider of advanced digital television services in the last four years. DISH Network offers hundreds of video and audio channels, Interactive TV, HDTV, sports and international programming, together with professional installation and 24-hour customer service.
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EADS announced last week that it expects overruns of EUR 1.45 billion in total non-recurring costs to completion of the A380 programme, inclusive of the A380 freighter due to be delivered in 2008. The amount of EUR 1.45 billion is the most recent estimate presented by Airbus CEO Noel Forgeard to the EADS Board of Directors following the full review of the A380 programme. The review also concluded that recurring costs are expected to be slightly better than originally anticipated in the A380 launch business case. It was confirmed that an Internal Rate of Return of close to 20 percent (EUR1 for $1.12) is expected. The impact of these cost overruns on the group's 2005 to 2007 operative planning is reflected in the 2005 guidance issued on December 10th 2004. EADS had announced in November that it expected self-financed Airbus R&D expenses to remain stable at the 2004 level in coming years. It currently plans Airbus R&D to be EUR 1.85 billion in 2005 and slightly less in each of 2006 and 2007, including development costs for the A350 and all programmes authorised to date.
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Kingfisher Airlines, India's new value-based carrier, has signed a contract with Airbus for 4 A320s and exercised 6 options making a total of 10 firm aircraft. In addition, Kingfisher Airlines will take 20 additional options making a total of 30 aircraft. It has also concluded an agreement to lease 4 A320s from debis Airfinance. Deliveries of the leased aircraft are due to begin in April 2005, while those of the ordered aircraft will start in September 05. All of the aircraft will be powered by International Aero Engines V2500s.
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Air Hong Kong (AHK) has signed a firm contract for 2 additional Airbus A300-600F Freighter aircraft with options for a further 2 of the aircraft type, adding to an existing order for six A300-600Fs signed in March 2003. Deliveries of the first purchased aircraft commenced in September 2004. The two additional A300-600F Freighter aircraft will be delivered in May and June 2006.
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