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 UPDATE - Week ending 26 March 2006
 
+++ EU publishes list of unsafe airlines +++ NATO strategic airlift agreement enters into force +++ IATA sees airline profits in 2007 +++ Lufthansa lifts operating profit to 577 million Euros +++ News in brief +++


EU publishes list of unsafe airlines
Schwarze Liste veröffentlicht

On 22 March, the European Commission has adopted the first EU list of airlines which are banned in the European Union. This black list of unsafe airlines will now be published on the Commission's website. The black list has been compiled on the basis of national contributions and after an in-depth analysis with Member State experts. The list consists of 92 companies which face a complete ban and 3 companies which face operational restrictions. From now on the principle will apply that companies banned in one Member State are banned in the whole EU. “The European Union now has a coherent approach to banning airlines”, said Jacques Barrot, Vice-President of the Commission responsible for transport. “This black list will keep dubious airlines out of Europe. It will also make sure that all airlines operating in Europe's sky meet the highest safety standards”.
The adoption by the Commission follows from the unanimous opinion of the Aviation Safety Committee of Member State experts on 15 March 2006. This first EU black list of unsafe airlines is based on regulation (EC) No 2111/2005 which came into force on 16 January. Member States have informed the Commission since then of any flight bans or operating restrictions in their territory and of the reasons for such bans. The Commission invited all the airlines concerned to express their points of view and contacted the civil aviation authorities responsible for their regulatory oversight. Some airlines submitted their comments in writing, while others presented them orally to the Commission and to the Aviation Safety Committee.
Bans and operational restrictions are only imposed based on evidence of violation of objective and transparent criteria which are published in the above mentioned regulation. These criteria focus on the results of checks carried out in European airports; the use of poorly maintained, antiquated or obsolete aircraft; the inability of the airlines to rectify shortcomings identified during inspections; and the inability of the authority responsible for overseeing an airline to perform its task properly.
Member States reported that five countries have an inadequate system for regulatory oversight. One important consequence of the black list will be to root out the practice of flags of convenience whereby some countries issue Air Operation Certificates to dubious airline companies.
The Commission also intends to continue with technical assistance programmes for third country civil aviation authorities. The black list will help focussing cooperation programmes on countries that are willing to meet international safety standards but lack necessary resources. Over the past five years the Commission has spent almost €80 million on such programmes.
The bans that are now imposed throughout the EU concern both passenger flights and cargo companies. The Commission decision also imposes operational restrictions on three companies which can no longer fly into the EU with specified types of aircraft. The European black list will have a real impact on aviation safety in the European Union. In addition to its punitive effect the black list will encourage all airlines operating in Europe to comply fully with safety standards and will dissuade unscrupulous airlines from starting up services in Europe. It will avoid discrepancies between national flight bans and restrictions. Through its wide publication the list will have an impact world-wide. The Commission advises people to avoid travelling with these airlines in other parts of the world.
The black list is a first step. The list will be updated as often as is necessary and at least every three months. The Commission has today also adopted the rules for updating the list. If an airline feels that it should be taken off the list because it again complies with safety standards, it should contact the Commission or a Member State. The Committee of Aviation Safety experts will assess the evidence provided by the airline or its supervisory authority. The Commission will take its final decision based on the Committee's opinion.
The same procedure applies if an airline should be added to the list. Herein, the Commission can act at the request of a Member State or on its own initiative, a right which it did not have for drawing up the first list which is based exclusively on national contributions. The Commission will act upon information gathered by its own services, the European Aviation Safety Agency (EASA), Member States or the International Civil Aviation Organisation.

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NATO strategic airlift agreement enters into force
An-124 für NATO in Leipzig stationiert

Deputy NATO Secretary General Minuto Rizzo travelled to Leipzig, Germany, on 23 March, for a ceremony to mark the entry into force of a multinational contract on a Strategic Airlift Interim Solution. The event was hosted by German Defence Minister Franz Josef Jung, since Germany has taken the lead on this initiative. Thanks to a multinational contract, Russian and Ukrainian Antonov aircraft are to be used as an interim solution to meet shortfalls in European strategic airlift capabilities, pending deliveries of Airbus A400M aircraft, expected to start in 2010. On 23 January, 15 NATO countries signed a contract with Ruslan SALIS GmbH, a subsidiary of the Russian company Volga Dnepr, based in Leipzig. The 15 original signatories – Canada, the Czech Republic, Germany, Denmark, Finland, France, Hungary, Luxembourg, the Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia and the United Kingdom – were joined by Sweden on 23 March.
The contract provides for two AN-124-100 aircraft on full-time charter, two more on six days notice and another two on nine days notice. This multinational arrangement allows the countries participating in the Strategic Airlift Interim Solution (SALIS) programme to meet commitments to strengthen capabilities in both the NATO and EU frameworks.
The contract's initial duration is for three years with a possibility to extend it further. The aircraft, which were made available from the beginning of February, are drawn from the Russian company, Volga-Dnepr, and Ukraine's ADB. The contract is administered by the NATO Maintenance and Supply Agency and its operation is managed by the SALIS Coordination Centre in Eindhoven, the Netherlands. The countries concerned have committed to using the aircraft for a minimum of 2000 flying hours per year.
The SALIS plan evolved from the signing of a letter of intent to develop a multinational consortium to arrange for strategic airlift by NATO defence ministers in June 2003. Strategic airlift is a key capability enabling the rapid deployment of troops and equipment to where they are needed. In recent years, NATO's ongoing operation in Afghanistan, its logistical support to the African Union's mission in Darfur, and the earthquake disaster-relief operation for Pakistan have highlighted the need for strategic airlift which can handle outsized cargo. A single AN-124-100 can transport up to 120 tons of cargo.
Volga-Dnepr and ADB already provide AN-124-100 aircraft to support the Afghanistan mission, with weekly sorties from Germany to Afghanistan and back, under contractual arrangements with the Allied Movement Coordination Center at Supreme Headquarters Allied Powers Europe.
Moreover, a memorandum of understanding on strategic airlift between NATO and Ukraine is pending ratification with the Ukrainian parliament. Similarly, a framework agreement on air transport and the necessary implementing arrangements is being developed with Russia. Progress on the air transport agreement with Russia is dependent on the ratification by the Russian parliament of the Status of Forces Agreement (SOFA), signed by the Russian foreign minister in April 2004. The SOFA provides a reciprocal legal framework for the treatment of NATO and Partner troops, including Russian troops, operating in or transiting through one another's territory, covering issues related to documentation, juridical questions, taxation, customs and other technical details.

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IATA sees airline profits in 2007
Rückkehr zu Gewinnen?

The International Air Transport Association (IATA) has announced that it expects airlines globally to lose US$2.2 billion in 2006 and to post profits of US$7.2 billion in 2007. The quarterly revision is a significant improvement on the previous forecast of a US$4.3 billion loss in 2006 and a profit of US$6.2 billion in 2007. Giovanni Bisignani, IATA's director General and CEO said, "There is a new cautious optimism emerging in the industry. Improved economic prospects in Europe and Asia combined with an improving situation in the US will lead to reduced losses in 2006 and strengthened profitability in 2007. While the trend is positive, we are nowhere near sustainability. A profit of US$7.2 billion is only a 3% return on capital invested. Improved cost efficiency should be at the top of the agenda for everyone in the airline industry.
At the same time, governments must get out the way of a hyper-competitive airline industry on commercial issues and take a much closer look at the efficiency of airport monopolies."  Bisignani announced the new forecast in a speech delivered at the Wings Club in New York. The revised forecasts are based on crude oil prices of US$57 per barrel (Brent) in 2006 and US$52 per barrel in 2007. "Oil remains the single biggest challenge for airline profitability. Strong demand gives little hope of significantly reduced prices this year. What is disappointing is the response of the oil industry. Instead of expanding refinery capacity, the oil companies plan to return a quarter of a trillion dollars to investors over the next two years. Airlines alone have contributed a US$14 billion to this windfall profit. It is time that governments stepped in to encourage investment in new refinery capacity along with research into alternative fuel sources," said Bisignani.
North American carriers will cut their losses from US$10.8 billion in 2005 to US$ 5.4 billion in 2006. This is largely the result of a 3% reduction in domestic capacity (November 2005-January 2006) in that is giving US airlines increased pricing power in domestic markets. Significant capacity was re-deployed to international markets resulting in an 8.4% increase in international operations by US carriers during 2005. "Restructuring in the US industry has produced some impressive results, including a 34% increase in productivity. None-the-less, at 33% of operating costs US labour costs are higher than their competitors in both Europe and Asia. More work needs to be done," said Bisignani.
Asia-Pacific's carriers will continue to post the largest absolute profits in the industry at US$2 billion. This is down from the US$2.9 billion posted in 2005. "Low labour costs and strong long-haul markets is their secret," said Bisignani. European carriers will follow a similar pattern with profitability reducing from US$1.8 billion in 2005 to US$1.4 billion in 2006. "Consolidation and strong fuel hedging programmes supported profitability. The higher price of fuel will hit them harder in 2006," said Bisignani.

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Lufthansa lifts operating profit to 577 million euros
Gewinnzuwachs bei Lufthansa

The Lufthansa Group increased operating profit in 2005 by 50 per cent to 577 million euros. “We are strategically well positioned and are operating successfully against tough competition. We are growing, we have become more profitable, and we have invested in future-promising products and quality,”, said CEO Mayrhuber. All six business segments returned an operating profit. The leisure travel group Thomas Cook and the in-flight caterer LSG achieved the turnaround. Lufthansa is established on a firm financial footing and has further strengthened its balance sheet. The Group still commands substantial liquidity. Shareholders will also benefit from the year's good results: The Executive and Supervisory Board are to propose a per-share dividend of 0.50 euro (previous year: 0.30 euro) at the Annual General Meeting.
The Group's focus is still on the customer, said Mayrhuber. “Our strategy as a full-line provider is paying off. We lay on individual services for individual needs – purpose-designed for every requirement.” With the introduction of the Lufthansa Private Jet Service, Lufthansa has expanded its à la carte portfolio of services designed to meet every need in the aviation industry. “Customers are full of praise for our Business Class, they are delighted with our service in First Class. Our premium strategy is vindicated by the figures,” said the Chairman. The number of passengers flying First Class was up by 20 per cent last year. Lufthansa is also gaining ground in the bargain-fare segment, he observed.
Buoyed by the success of the “betterFly“ discount fares offered initially out of Hamburg, that tariff concept is now to be extended to the whole of Germany. From 3 April, Lufthansa is to offer round-trip flights to all European destinations at the attractive price of 99 euros, including taxes and charges. “We are focusing more sharply this year on European traffic. Competition spurs us on. We face up to competition, whatever its origin.” Lufthansa is also investing more in quality, Mayrhuber emphasised. Aircraft on short to medium-haul flights are being fitted out with new and more comfortable seats in both classes in the cabin.
Lufthansa still attaches high priority to the cost cutting and efficiency improvement measures envisaged in its Action Plan. Within that plan, the Group achieved its target of improving results by 780 million euros in 2005. It will attain its ultimate target totalling 1.2 billion euros by the end of the year, Mayrhuber said. Even then, the Group must continue seeking additional cost-saving options. “Costs must fall, efficiency must rise further.” In the 2006 business year, the Executive Board is expecting an operating result at least on the level of the previous year. It is targeting an operating profit in the medium term of 1 billion euros by 2008.
In 2005 Lufthansa generated total revenue of 18.1 billion euros, which was 6.5 per cent more than in 2004. The Group's airlines pushed up their combined traffic revenue by 8.0 per cent to 13.9 billion euros. Successful capacity and sales management significantly raised average yields in passenger business (+3.5 per cent) and freight business (+10.8 per cent). Other operating income fell by 11.9 per cent to 1.5 billion euros. One reason for this was that the book profits of 331 million euros were 25.8 per cent lower than in 2004. Of this total, 182 million euros came from the sale of the remaining shareholding in Amadeus Global Travel Distribution S.A. and 107 million euros from the disposal of Loyalty Partner GmbH. In 2005 operating expenses totalled 19.0 billion euros and were 6.5 per cent higher than in 2004. The year-on-year rise was mainly due to the dramatic surge in the price of kerosene. Fuel costs soared to a record peak of 2.7 billion euros; this was 843 million euros or 46.3 per cent more than in 2004. The fuel price hedging measures were once again very successful and yielded savings of 278 million euros.

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NEWS IN BRIEF / KURZMELDUNGEN

Munich - MTU Aero Engines Holding AG in 2005 stayed on its growth track. Fiscal 2005 sales rose 12 %, from 1,918.0 million Euro to 2,148.6 million Euro. This gain went hand in hand with an overproportional increase in operating profit   to 233 million Euro, up by 35 % over the year before (2004: 172.2 million Euro). The cash flow from operational activites nearly quadrupled, from 72.9 million Euro to 290.1 million Euro. "MTU Aero Engines in 2005 continued its growth track, showing strong gains in earnings. We have well met our objectives; we have grown faster than our markets and substantially reduced debt," noted Udo Stark, MTU Aero Engines Holding AG chief executive officer. As of December 31, 2005, the order book stood at 3,649 million Euro, or 1.7 times the 2005 sales. Compared with year-end 2004, this reflects a 241 million Euro increase, up 7.1 %. The growth is attributable chiefly to the commercial engine business, where the order backlog grew 21.4 %, to 1,844 million Euro. This came as a result notably of successful marketing campaigns for the GP7000 (A380) and V2500 (A320 family) engines. For the new PW6000 (A318) engine, LAN Chile was won as the launch customer. In the commercial engine maintenance, repair and overhaul (MRO) segment, the order value of contractually committed engine work last fiscal year grew 943 million Euro, to 2,896 million Euro. Contributing to this growth has also been a ten-year agreement inked with U.S. airline JetBlue. MTU notably improved its operating profit by 35 %, from 172.2 million Euro in the previous year to 233.0 million Euro in 2005. "We've seen a very positive trend in commercial MRO earnings, where operating profit jumped 69 % compared with the year before," explained chief financial officer Reiner Winkler. "The OEM segment likewise showed improved operating profit, up by 24 %."
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Finnair has become the first airline to select the Rolls-Royce Trent 1700 to power its fleet of nine firm, plus four option, Airbus A350-900s in a deal worth $470 million at list prices. Deliveries are scheduled to begin in 2012. Finnair, a new large engines customer for Rolls-Royce, becomes the 53rd airline or leasing company to choose versions of the Trent engine series. The A350s will replace Finnair's current long-haul fleet of MD-11s. The Helsinki-based airline intends to use its Trent-powered A350s to support its business growth strategy. The aircraft will be operated on its expanding long haul services, particularly to the Far East, as the airline positions Finland as the Asian gateway to Europe. Jukka Hienonen, Chief Executive Officer at Finnair, said: “The Trent 1700 offers us the best operating economics as we continue to grow our business with the best modern technologies. Our selection criteria was based on cost and performance, and the Trent 1700 is a great match for these requirements.”
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US Army and Air Force officials announced March 17 that a new Joint Cargo Aircraft, designed to enhance the combat readiness of both services, will be developed by a combined team. Fielding of the new aircraft is expected within two years.  The Request for Proposals was released March 17 after the Acquisition Strategy Report was signed that morning, according to Pentagon officials. A Joint Program Office, comprised of personnel from both branches of service, will open Oct. 1 in Huntsville, Ala., with the Army taking the lead.  “This is a big day for both of us in terms of joint cooperation and capability,” said Brig. Gen. Stephen D. Mundt, Army Aviation director. “This aviation program is going to bring tremendous capability to both of our services and, more importantly, to the Department of Defense.”  Air Force Brig. Gen. Andrew Dichter, deputy director of Operational Capability Requirements, underscored Mundt's enthusiasm for the new program and added that the program is an important example of the value of the joint capability and integration system (JCIDS). “The Army and the Air Force have not always agreed, particularly at the beginning of this program,” he said. “But joint doctrine has always provided the ability for each service to have organic lift capability: the Army's Sherpas, the Marine Corps' KC-130 and the Navy's COD are good examples of this. And the Air Force and the Army are committed to taking the new Joint Cargo Aircraft program, develop this important capability and deliver it to the joint warfighter.”  He anticipates that an MOA will be approved by each service's vice chief of staff by May 1.  
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EgyptAir has ordered 6 shipsets of Aviation Partners Boeing Blended Winglets to be installed as Buyer Furnished Equipment (BFE) on new deliveries of Boeing 737-800s. The first 2 installations will take place in September and November 2006 with the balance of the order to complete by 2008. EgyptAir has also taken 6 options for additional Blended Winglet Equipped 737-800s.
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Frankfurt Airport's Summer Timetable 2006, which goes into effect on March 26, will offer 4,625 departure flights per week just for scheduled passenger services alone. This represents an increase of two percent compared to the corresponding timetable last year - despite the existing capacity shortage. In particular, intercontinental connections will increase by five percent to 945 departures per week - further underscoring Frankfurt Airport's (FRA) role as a leading international air transportation hub. The number of European connections will increase by 1.7 percent to 2,940 per week, while domestic flights will grow by 0.3 percent to 740 per week. The total number of scheduled passenger airlines, destinations, and countries remains practically unchanged. For the Summer Timetable 2006, FRA will be served by 129 airlines flying to 304 destinations in 112 countries. New Lufthansa destinations via FRA include Westerland/Sylt (GWT) in Germany, Bahrain (BAH), and Astana (TSE) in Kazakhstan. Air Berlin will be adding Zürich (ZRH) to its route network. A number of airlines will be expanding their flight frequencies on various routes. For example, United Airlines (UAL/UA) will increase its daily flights to Washington, D.C., from two to three. Lufthansa will offer daily services on its routes to Hyderabad (HYD) and Bangalore (BLR) in India. South African Airlines (SAA/SA) will offer daily services non-stop to Cape Town (CPT). New services in the booming Chinese market include the inauguration of China Eastern Airlines' (CES/MU) Frankfurt to Shanghai (PVG) route, five times per week.
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The fleet of C-17 Globemaster III airlifters built by Boeing has reached one million flying hours -- the equivalent of one of the advanced cargo jets flying every minute of every day continuously for more than 114 years. A mission today evacuating injured U.S. troops from Iraq and transporting them to Germany for medical treatment helped the aircraft reach this million-hour milestone. The Air Force selected this C-17 and its crew, comprised of active duty U.S. Air Force (USAF), Air National Guard, Air Force Reserve and Royal Air Force members, to represent the entire fleet. The Air Force originally anticipated the C-17 fleet would have intense 30-day surge periods only a few times in the aircraft's lifetime. But since the war on terrorism began nearly five years ago, the fleet has been surging continuously. Relief for natural disasters like earthquakes, hurricanes and the 2004 Indian Ocean tsunami has added to the demand.
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After the official handing over of the first series-system of the Rheinmetall reconnaissance drone 'KZO' ("Kleinfluggerät Zielortung") to the German Army, EADS Defence Electronics has now started the series production of the 'KZO' data-link system. The data-link system guarantees a world-wide unrivalled jamming resistance in the data-transfer between the drone and the ground station. "Our data-link contains world-wide unrivalled capabilities which can be used on the most differing aerial devices. This is the most modern technology for the future topic unmanned air vehicles" stated Bernhard Gerwert, CEO of EADS Defence Electronics. The data link system consists of an Air Data Terminal (ADT) in the drone and a Ground Data Terminal (GDT) on the ground. In doing this, the extremely small and compact ADT was specified using special miniaturisation techniques especially for unmanned aerial vehicles. It permits interference-free real-time data-transfer of large quantities of data over more than 120 km.
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Cessna announced the first flight of the Citation Encore+, a significant step toward the anticipated certification of the airplane in the early fourth quarter of this year. Equipped with its new dual-channel FADEC engines and full Pro Line 21 avionics suite, the first production unit Encore+ took to off from Rockwell Collins' facility in Cedar Rapids, Iowa, at 11:40 a.m. (CST). “During the one-hour and nine-minute test flight, the pilots flew an aggressive flight profile to test basic stability, flap and landing gear extension and retraction, controllability, trim actuation, engine operating characteristics and basic autopilot operation,” said Lynn Young, Citation Encore+ program manager. “We've set an ambitious certification schedule since we announced the Encore+ only five months ago at the National Business Aviation Association (NBAA) convention. We are pleased this first flight adheres to our schedule, marking a major milestone that moves us toward on-time customer deliveries in the first quarter of 2007.”
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NASA's Exploration Systems Mission Directorate in Washington has issued a Request for Information. It asks the aerospace industry for input regarding the strategy of a key element of a new spacecraft intended to lift American explorers toward the moon and Mars. The component is the second or upper stage of the Crew Launch Vehicle, the successor to the space shuttle and the anticipated flagship in NASA's next-generation space fleet. The upper stage is in development by the Constellation Systems Launch Vehicles Project Office at NASA's Marshall Space Flight Center in Huntsville, Ala. The upper stage component is expected to be propelled by a J-2X engine fueled with liquid oxygen and liquid hydrogen. The J-2X is an evolved and improved version of the powerful upper stage engine that propelled the Apollo-era Saturn 1B and Saturn V rockets to the moon. In the request NASA encourages respondents to offer ideas to anticipated technical and business challenges. NASA would like to know the possible benefits from combining proposed avionics or on-board electrical flight controls and guidance systems into the procurement of overall upper-stage production support. NASA also seeks feedback related to design and specification sharing among participants, commonality of design tools and software, methods of reducing component life-cycle costs, and seamless transition of contractual arrangements.
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Lockheed Martin and the U.S. Air Force recently qualified an upgraded version of its Paveway II Laser Guided Bomb (LGB) through comprehensive flight testing to meet current U.S. Air Force and U.S. Navy joint performance specifications. The qualification followed extensive joint service testing in accordance with the services' performance requirements. By incorporating a variety of Lockheed Martin's continuous product improvement initiatives, the updated LGB improves reliability and accuracy through subsystem performance improvements. "This upgrade is a successful follow-on to our original, combat-proven design," said John Pericci, business development director at Lockheed Martin Missiles and Fire Control. "The upgraded LGB was qualified after completing a rigorous flight test program. Although these tests challenged the capabilities of the GBU-10 airframe, Lockheed Martin exceeded requirements." Lockheed Martin is currently in production of the GBU-10, -12 and -16 for the U.S. Air Force, U.S. Navy and international customers.
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The constant rise of OHB Group's total revenues in past years to a current level of EUR 117.1 million (previous year EUR 114.1 million) is part of the company's ongoing growth story. The over-proportionate earnings growth achieved in the past five years represents the other part of the profitable growth story. The 2006 net profit rose by 75 % to EUR 10.7 million year-on-year (EUR 6.1 million). The Management and Supervisory Board will propose a dividend payment of Cent 20 per share (previous year Cent 12 per share) to the Annual General Meeting. It is planned to pay out a dividend for the year 2006 in the next fiscal year as well. The successful acquisition and integration of MT Aerospace AG (previously MAN Technologie AG) into the OHB Group required a reorganization of the Group and have resulted in a balanced distribution of services rendered. The new division Aerospace Transportation + Aerospace Structures and the Space + Security division both contribute some 44 % to the Group's total revenues, whereas Telematics + Satellite Services contribute the remaining 12 %. The new record level in terms of cash and cash equivalents of EUR 95.1 million as of December 31, 2005 (previous year EUR 58.7 million) mainly profited from the integration of the MT Aerospace. The order backlog has almost quadrupled to EUR 417.5 million (previous year EUR 110.8 million) as of December 31, 2005. This guarantees an excellent capacity utilization for the current fiscal year 2006. The Management Board anticipates a strong rise in earnings per share by almost 40% to some Cent 50 per share in 2006 as well. This compares with an adjusted figure of Cent 36 per share in the previous year (adjusted for the one-time special income from the accounting difference on the liability side due to the initial consolidation of MT Aerospace AG).
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The Lockheed Martin-led A-10 Prime Team has delivered a new weapons delivery system to the U.S. Air Force's A-10C flight-test program. Called the Digital Stores Management System (DSMS), the new system is integrated with the Sniper and LITENING targeting pods to give the aircraft a 'smart' weapons capability for its close air support role. "The new system automates many of the weapons control functions that A-10 pilots today perform manually," said Roger Il Grande, A-10 program director at Lockheed Martin Systems Integration - Owego. "Integrated with either targeting pod, the DSMS will vastly improve an A-10 pilot's ability to identify targets, and provide laser guidance of precision air-to-ground weapons." The U.S. Air Force has designated the Joint Direct Attack Munitions and the Wind Corrected Munitions Dispenser guidance kits for the A-10C aircraft. Each kit converts existing free-fall bombs into accurately guided "smart" weapons, allowing pilots to attack from higher altitudes and in adverse weather conditions.
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NASA's Space Technology 5 successfully launched at 9:04 a.m. EST, from Vandenberg Air Force Base, Calif., on a Pegasus XL rocket. ST5 is testing new micro-spacecraft technologies and operations' techniques. The three spacecraft will conduct science validation using measurements of the Earth's magnetic field collected by the miniature boom-mounted magnetometers on each. Initial contact with ST5 was made at 9:27 a.m. EST, as the spacecraft passed over the McMurdo Ground Station in Antarctica. Art Azarbarzin, ST5 project manager at NASA's Goddard Space Flight Center, Greenbelt, Md., described next week's planned activities for the spacecraft. "During the first day, we ensure the three craft are correctly operating. During the next few days, we deploy and test the magnetometer booms. Finally we prepare them for the science demonstration and make any necessary orientation adjustments," Azarbarzin said. Miniaturized components and technologies are integrated into each of the ST5 micro-satellites. Each micro-satellite weighs approximately 25 kilograms (55 pounds) when fully fueled and is about the size of a 13 inch television.
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The first five Hungarian Air Force Gripen aircraft arrived in Hungary. The five Gripen multi-role fighters, the latest C and D versions of the aircraft, are the first of fourteen ordered by Hungary. The aircraft were flown by four pilots from the Hungarian Air Force and three from the Swedish Air Force. The flight, which departed from FMV´s facility outside Linköping, lasted for about two hours. “The flight went very well. The Gripen aircraft was easy to handle and everything functioned perfectly”, - said Hungarian Air Force Lieutenant Colonel Gabor Toth after landing at the Kecskémet air base in Hungary, where the Gripens will be based. The remaining nine Gripen aircraft will be delivered to Hungary progressively until December 2007.
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QinetiQ has secured a contract worth up to £2.5m with the United States Air Forces Europe (USAFE) for air combat training of US aircrews. The contract is similar to QinetiQ's Long Term Partnering Agreement (LTPA) with the UK MOD to operate its test and evaluation ranges over a 25-year period as, like the LTPA, it includes options to provide range services over a multi-year period. USAFE is responsible for combat weapons training of US aircrew assigned to its units based in Europe. The training focuses on precision guided munitions and air to air and air to ground missiles and the contract with QinetiQ will allow a large portion of the training to be completed within Europe.
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Lockheed Martin and aircraft maker EADS CASA rolled out the first production airframe of the HC-235A medium-range surveillance maritime patrol aircraft. Produced in Spain with substantial U.S. content, including avionics, propulsion and integrated subsystems, the HC-235A is the first new aircraft developed for the U.S. Coast Guard's Integrated Deepwater System program under contract to Integrated Coast Guard Systems (ICGS).  The first aircraft was unveiled at the EADS CASA plant in San Pablo (Seville) at a ceremony attended by the U.S. ambassador to Spain, the vice commandant of the Coast Guard, and senior company executives representing EADS CASA, EADS North America, Lockheed Martin and ICGS, as well as various government officials from both countries. This ceremony marked a significant milestone in development and delivery of the new aircraft for the Coast Guard.  "The HC-235A is an integral component of the Coast Guard's plan for achieving enhanced maritime domain awareness," said Leo Mackay, president of ICGS. "Linked with other Deepwater surface, air and shore system assets through a common operating picture, the aircraft becomes a vital node in the network to help the Coast Guard fulfill its maritime surveillance mission requirements and improve its overall homeland security capabilities."  
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Expedition 12 Commander Bill McArthur and Flight Engineer Valery Tokarev took a short ride away from the International Space Station. They flew their Soyuz spacecraft from one docking port to another to prepare for the arrival of the next station crew. The crew left the station unoccupied for approximately 22 minutes, as they relocated their Soyuz vehicle. Tokarev undocked the Soyuz at 1:49 a.m. EST from the Earth-facing port of Zarya, while the station orbited 220 miles above the south Atlantic Ocean. He re-docked at the aft of the Zvezda module at 2:11 a.m. EST, as the station was over Libya. Tokarev, in the center seat of the Soyuz, disengaged the hooks and latches holding the craft to Zarya and backed it approximately 114 feet away from the complex. With McArthur seated to his left, Tokarev piloted the Soyuz about 80 feet along the station and about 82 feet behind the aft docking port, resulting in about a 213-foot total distance traveled. Once behind Zvezda, Tokarev closed in on the docking port. A few minutes after the Soyuz linked with Zvezda, hooks and latches engaged, establishing a firm connection. The crew re-entered the station at approximately 5:30 a.m. EST. The Soyuz move clears the Zarya port for the March 31 arrival of the Expedition 13 crew and a Brazilian Space Agency astronaut on another Soyuz vehicle. When the Expedition 12 crew leaves after handover activities on April 8, the Zvezda port will be available for the April arrival of a Progress cargo vehicle. On Nov. 18, McArthur and Tokarev relocated their Soyuz spacecraft from the Pirs docking port to Zarya. That move eased operations out of Pirs for a Russian spacewalk conducted on Feb. 3.
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The Finnish military is to receive the first four examples of its new NHIndustries NH90 tactical transport helicopters by the end of the year. Deliveries of what will eventually be a fleet of 20 NH90s have been hampered for almost two years by the lack of Finnish type approval.Colonel Mika Soininen, the head of the army aviation department, told STT that the FDF would take delivery of the first aircraft in France in September. The first helicopter will be put through its paces in the so-called ready for acceptance test flights in June. Col Soininen added that the aircraft might receive type approval already in July. Acceptance checks would then last for about two months. However, the timetable is conditional upon the timely completion of test flights of the first NH90 assembled for Germany.
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DynCorp International and TEMSCO Helicopters, Inc., have announced their partnership in the installation and certification of the Pratt & Whitney Canada PT6C-67D Turboengine for the 205A-1. Company principals Chris DiGesualdo, president of DynCorp International Field Technical Services and senior vice president of DynCorp International, and Joe Hicks, senior vice president and director of operations of TEMSCO Helicopters made the joint announcement. Bob Berto CEO and Roy Hornbaker, director of maintenance, were also on hand for TEMSCO. Building on the success of DynCorp International's Global Eagle Upgrades – Pratt & Whitney Canada PT6C-67D – Program for the UH-1H, the installation of the PT6 in the 205A-1 will allow commercial operators to fly higher, hotter and more economically while staying on station longer. TEMSCO Helicopters is providing the 205A-1 airframe to DynCorp International, who will carry out the design, test and STC certification. This initial project is expected to be completed in early 2007.
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Strategic redeployment of Delta Air Lines' existing fleet of aircraft will enable the airline to strengthen its position as the leading global carrier across the Atlantic without the purchase of a single aircraft. In addition to the eight Boeing 767-300ER and five Boeing 767-400 aircraft being redeployed from domestic to international service to support growth across the Atlantic this summer, Delta still has more than a dozen additional widebody aircraft operating in its domestic network, fuelling the potential for further global expansion. Speaking to a group of European journalists assembled this week for a Delta media conference in Atlanta, Delta Chief Operating Officer Jim Whitehurst said, “Increasing the scope of Delta's international operations is a key element of our business plan, which is designed to enable Delta to emerge from Chapter 11 protection next year and to position our airline for long-term success.” Since January 2005, Delta has added or announced plans to add more than 50 new routes between the United States and international destinations, including 11 new routes across the Atlantic slated to begin by June. This year's international expansion – the largest in Delta's history – has brought a number of significant milestones as the airline builds on its position as a leading global carrier. With the July 2006 schedule, Delta will be the world's No. 1 airline in terms of departures, destinations and available seat miles between the United States and destinations across Europe, India and Israel.  In December 2006, Delta also will become the only major U.S. carrier to operate service to Africa with the launch of its service between Atlanta and Johannesburg via Dakar, Senegal (subject to foreign government approvals).
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International Communications Group (ICG) announced that it has successfully completed testing of its new ACARS-compliant (Aircraft Communication Addressing and Reporting System), Iridium-based messaging solution and delivered initial production equipment. “We have developed a solution that enables simple, plug-and-play replacement of aging Aero-C satellite communication equipment which is nearing obsolescence. Our equipment works with existing, already-installed avionics, thereby eliminating the need for additional third-party equipment and special translation devices or software,” said Armin Jabs, president of ICG. “The ICG, ACARS-capable, Iridium package offers the benefits of global communications associated with Iridium and reliable, robust service associated with ACARS, all in a compact, lightweight, low-drag airborne satellite terminal.” ICG and ARINC are the first to successfully demonstrate and deliver ACARS-compliant, Iridium-based messaging with production equipment. Test transmissions included text messages, graphical weather, flight plan uplinks and other common messages.
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Malaysia Airlines System's (MAS) cargo operation (MASkargo) took delivery of its first Boeing 747-400 Freighter. The airplane departed Everett's Paine Field late last night and is the first of two 747-400Fs that MASkargo will receive this year.
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Northrop Grumman Corporation has been selected by the U.S. Department of Defense to design the first-ever supersonic flying wing aircraft that can vary the sweep of its wing for the most efficient flight performance.  The Defense Advanced Research Projects Agency (DARPA) has awarded a contract to Northrop Grumman's Integrated Systems sector for the first phase of its Oblique Flying Wing (OFW) program, which aims to design and conduct flight tests of an experimental tailless, supersonic, variable-sweep flying wing. DARPA's goal is to demonstrate that such aircraft are feasible so that similar designs can be considered for future military missions.  “The selection of Northrop Grumman for the Oblique Flying Wing program recognizes our long tradition of innovation and technical ability,'' said Charlie Guthrie, director of Advanced Capabilities Development for Integrated Systems' Western Region. “We look forward to working with DARPA and its government team to make aviation history.''  The oblique flying wing would vary its wing sweep (the angle of the wing's leading edge relative to the direction of flight) depending on its speed. At low speeds the wing sweep is relatively low, providing an efficient aerodynamic design. At high speeds the wing is highly swept, reducing supersonic wave drag.  
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Embraer and Royal Jordanian Airlines have signed a contract for the acquisition by the airline of seven firm EMBRAER 195s, with deliveries due to start in the fourth quarter of 2006. The EMBRAER 195 will be configured to carry 100 passengers in a two-class layout, with 12 seats in Crown Class and 88 seats in Economy Class, with a pitch of 42" and 33", respectively. The aircraft will be deployed on routes to the Middle East, Africa and into Europe. "Embraer's new generation EMBRAER 195s will provide Royal Jordanian with the ability to truly develop Amman as a hub for the region. These aircraft will allow Royal Jordanian to increase frequency and enter new routes at the lowest possible cost. For our passengers, the EMBRAER 195 will offer a level of comfort and service that is consistent with the rest of Royal Jordanian's fleet," said Mr. Samer Majali, Royal Jordanian's President and Chief Executive Officer. "We will be introducing the EMBRAER 195 into our operations over the next two years, with the first delivery in October of this year."
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EADS Defence & Security Systems has received a contract from the European Purchasing Authority OCCAR (Organisation Conjointe de Coopération matiere d'Armement) for the adaptation, production investment phase and supply of the mission computer "EuroGrid" for the Spanish/French Tiger combat helicopter variant. The contract which has been signed with EADS Defence Electronics has a volume of nearly Euro 20 millions. The EuroGrid system includes both the tactical mission computer as well as the flight data recorder. This device has already been successfully used in the German, French and Australian Tiger variants. "EuroGrid was developed and produced for the demands on the Tiger and NH90 helicopters and reduces the work load on the pilot considerably," stated Bernhard Gerwert, Head of EADS Defence Electronics.
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Flying within Europe will soon be cheaper than ever for Lufthansa customers. On 3 April the airline is launching its new “betterFly” fares. From that date, flights can be booked for as little as 99 euros – return fare, including taxes and charges. The offer applies to all Lufthansa nonstop flights from any German airport to destinations in EU countries, Switzerland, Norway and Turkey. The special feature of this bargain-price fare is that passengers can take advantage of the complete Lufthansa quality product. “betterFly” fares have no minimum stay or advance booking requirements. In addition, passengers will have the miles they have flown credited to their Miles & More account and can enjoy the full service that comes with a Lufthansa flight. Never before has it been so cheap to fly with a quality airline to Athens, Lisbon or Riga.
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Rockwell Collins SAT-2100 high speed data satellite communication system has been selected as a supplier furnished equipment option on Airbus A318, A319, A320 and A321 aircraft. The certification, expected in January 2007, will mark the first Airbus certification for the SAT-2100. "Real-time information and connectivity provided by the SAT-2100 system will result in significantly enhanced efficiency and information for both the aircraft crew and passengers," said said Bryan Vester, senior director airline marketing , Air Transport Systems for Rockwell Collins. Small, lightweight, reliable and economical, the Rockwell Collins SAT-2100 system provides multi-channel voice, facsimile and data capability within a single 8 MCU package. The SAT-2100 also enables up to two simultaneous Swift64 or Swift Broadband channels using its HST-2110 companion.
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Mesa Air Group announced it will begin operating interisland flights as go! beginning June 9, 2006 and will be offering one-way fares of $39. "We are delighted to initiate service in Hawaii. Our goal is to provide local families, friends and business people with a fun, high-quality and low-cost airline for travel between the islands," said Jonathan Ornstein, Chairman and CEO of Mesa Air Group, Inc. "We have the absolute lowest fares between the islands and we encourage people to take advantage of them. Reservations can be made by visiting our website at www.iflygo.com or by calling toll-free (888) IFLYGO2." go! is entering Hawaii with one-way fares as low as $39. Passengers who register for go! Miles are able to earn go! Miles redeemable for future travel and can earn 500 miles for registering online. "We chose the name go! because that's exactly what we think people want: a reliable, quick, no-hassle way to get from point to point across the state," added Ornstein. "We are thrilled to be here and are glad we can bring with us a variety of job opportunities."
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The RUAG technology group, which has production facilities in Switzerland, Germany and Sweden, achieved a good operating result (EBIT) in the 2005 financial year. Although it succeeded in outdoing its 2004 figure, extraordinary factors are nevertheless forcing the company to post its first-ever loss. In its seventh year of operation as a public limited company, the Group achieved a good operating result of CHF 61 million (previous year CHF 53 million). However, two extraordinary factors had a severe impact on the figure. The first was the flooding on 22/23 August, which destroyed entire sections of the Group's Altdorf (Switzerland) facility, causing damage valued at CHF 150 million. This natural disaster affected EBIT (earnings before interest and taxes) by CHF 35 million. The second was the closure of metal processing activities at the Thun site, which reduced EBIT by a further CHF 7 million. By mid-2007 RUAG will have completed its phased withdrawal from its loss-generating large calibre ammunition production activities (losses amounted to CHF 16 million in 2005 and to CHF 9 million in the previous year). Taken together, the aforementioned factors resulted in a loss of CHF 19 million (vs. a CHF 26 million profit in 2004). Sales fell slightly by 0.7% year-on-year from CHF 1,202 million to CHF 1,194 million. While aerospace and small calibre ammunition activities held steady at the previous year's level and Electronics grew, large calibre ammunition production lost further ground. Foreign markets generated 53% of sales, thus overtaking the Swiss market; Europe's share of the total increased from 41 to 43%. At 38% (37% in previous year) civilian business continued to grow. In the defence technology sector, sales to RUAG's biggest single customer, the Swiss Federal Department of Defence, Civil Protection and Sport (DDPS), on behalf of the Swiss Armed Forces, stabilized at 39%.
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RUAG Aerospace's Emmen facility will be manufacturing the sheeting for the joint between the A380's wings and fuselage on behalf of EADS Deutschland GmbH's Augsburg plant. The total order is worth around CHF 30 million. A Basic Agreement covering the manufacture of 600 shipset components for the port and starboard wings has been signed in the past few days. The scope of delivery will include various components (sheeting with cut-outs for landing lights, connection plates and profiles). The wing assemblies will be used by Airbus UK Ltd. to manufacture wings in Toulouse. The order enables RUAG to further strengthen its position as a single-source supplier for the Airbus 380.
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Missions to distant planets, developments in satellite communications and the continued strength of the satellite broadcast sector, have helped to boost the UK space industry's turnover from £4.1bn in 2002/3 to £4.8bn in 2004/5, Science Minister Lord Sainsbury announced today.  And 70 per cent of companies said they expected even more growth in the next two years.  Lord Sainsbury said: "This is very positive news for our space industry. The nation's scientists and engineers prove themselves time and time again - through missions to discover more about the Universe and advances in satellite communications, with leading roles in satellite navigation and pioneering new Earth observation techniques.  "We are all beneficiaries of space in some way - whether we're using satellite navigation to find our way, catching up on the weather forecast or even watching satellite TV. And those benefits are even more wide-reaching-from monitoring disasters like last year's Hurricane Katrina to predicting climate change and global warming.  "This survey highlights the important role our industry plays - at the forefront of some of the most exciting and significant space missions and programmes."  The size and health of the UK space industry 2006 was commissioned by the British National Space Centre. It covers the financial years 2003/4 and 2004/5 and 227 companies were involved.
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Airbus, leading aircraft manufacturer and Technology Partners, Polish foundation of major applied research organisations announced their intention to sign a Memorandum of Understanding (MOU) on research and technology projects. Thus Airbus continues to strengthen its partnership with Poland.  This agreement will be based on aerospace research and technology developments and is planned to begin this year. In the context of the European Programmes for Research and Technology Development, research projects have been identified in a number of fields including, surface technologies, materials science, ergonomics and environmental technologies, mathematical modelling and measurement and testing.  This multi-year co-operation will bring mutual benefits to both parties as it provides a chance for Polish scientific, industrial, university experts and Airbus to create innovative solutions by using advanced technology that may later be applied in the aeronautic industry.  As a European company, Airbus has been benefiting from Polish expertise in aircraft production for almost nine years and continues to expand its co-operation with Polish aviation industry. Airbus and its main shareholder EADS (European Aeronautic Defence and Space company) will continue to lead as the most important investor and customer for the Polish aerospace industry with an estimated USD 140 million worth of investment and purchase in Poland between 1998 and 2008.  
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General Electric Company's best-selling GEnx engine -- with already more than 575 engines ordered for three new commercial aircraft -- demonstrated 80,500 lbs. of takeoff thrust during ground testing at GE's outdoor testing facility in Peebles, Ohio.  Ground testing on the GEnx engine began with idle runs on March 19, and then reached 80,500 lbs. of standard day sea-level takeoff thrust on March 21.  The GEnx engine is scheduled to certify at maximum takeoff thrust of 75,000 lbs. in 2007 with entry into service in 2008 on the Boeing 787 Dreamliner. In total, seven GEnx engines will be used in the certification program for this engine.  "It is exciting to see the GEnx come to life," said Tom Brisken, general manager of the GEnx program. "Engine assembly was flawless, and engine testing began three days ahead of schedule. We are extremely pleased with initial test results and are looking forward to validating the GEnx technology."  Built with production standard hardware, the first engine to test (FETT) is equipped with 1600 instrumentation devices that monitor the engine performance throughout the testing process. This phase of testing on the engine will verify its electric starting, operating characteristics, mechanical integrity, and performance and operability with full generator loads.  The engine's maturation program will accumulate more than 15,000 cycles by entry into service and 50,000 cycles total. With a range of thrust from 53,000 to 75,000 lbs, this GEnx engine will power all versions of the 787 Dreamliner with a common bill of material.
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CAE has been awarded a contract to provide the world's first full-flight simulator for the new ARJ21 regional jet being developed by China's AVIC I Commercial Aircraft Co. (ACAC). With a list price value of approximately C$15 million, the contract brings the total number of full-flight simulators that CAE has sold this fiscal year to twenty-one.  The first aircraft to be entirely designed and built in China, the ARJ21 regional jet is a 90-seat class of aircraft and is expected to enter into service in 2009. Current plans by ACAC call for the production of 340 ARJ21 jets for China's domestic market and 160 for the international market by 2026.
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Swiss International Air Lines (Group) increased its total income from operating activities to CHF 3732 million in 2005 (prior year: CHF 3642 million). Despite the higher price of jet fuel, the net result from operating activities (EBIT) before restructuring costs was improved to minus CHF 14 million (prior year: minus CHF 122 million). In addition to restructuring costs of CHF 41 million, results for 2005 were reduced by currency exchange value adjustments (non-cash book losses) of CHF 65 million on outstanding US dollar-denominated debt. It is principally to these two factors that the higher year-on-year net loss of CHF 178 million (prior year: minus CHF 140 million) can be ascribed. SWISS reports a net result from operating activities (EBIT) before restructuring costs of minus CHF 38 million for the fourth quarter of 2005 (prior-year period: minus CHF 123 million) and a net loss for the period of CHF 97 million (prior-year period: minus CHF 123 million). SWISS held cash and cash equivalents of CHF 558 million on December 31, 2005 (December 31, 2004: CHF 481 million).
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A £1m million QinetiQ scramjet experiment was successfully launched today, March 25, 2006, at Woomera, 500km north of Adelaide, South Australia at approximately 1.45pm local time (03:15 GMT). A University of Queensland-led project, named HyShot III, successfully launched QinetiQ's scramjet engine which was attached to a Terrier-Orion rocket. It is hoped that scramjet will have attained an estimated Mach 8 (or about 8000km/hr) flight speed as it fell back to Earth. The rocket and the scramjet were taken up to an altitude of 314km during a 10-minute flight. The complex mission involves launching the scramjet to a certain altitude before it is then re-oriented to point backwards to the Earth. The scramjet experiment was set to take place in a tiny six-second window shortly before impact. An international team of researchers is presently analysing data from the experiment. QinetiQ researcher Rachel Owen said that it looked like everything had gone according to plan that the vehicle had followed a "nominal trajectory" and landed 400 km down the range. She said the launch had been very exciting and she was very proud to see the scramjet fly. The scramjet engine, which has been developed by defence and security company QinetiQ on behalf of the UK MoD, will spearhead the first of three international collaborative flights to launch in Australia this year.
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