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 UPDATE - Week ending 25 March 2007
+++ EU ministers approve Open Skies +++ First Eurofighter for Austria flies +++ EADS and Russian UAC cooperate on A350 +++ First A400M central-rear fuselage arrives at EADS CASA +++ Europe and Russia confirm closer space cooperation +++ Tiefensee: Galileo is in a crisis +++ News in brief +++

EU ministers approve Open Skies
Mehr Wettbewerb im Transatlantikverkehr

EU transport ministers unanimously backed the new Open Skies deal on transatlantic flights, being negotiated by the European Commission. Transport Commissioner Jacques Barrot warmly welcomed the agreement. "This is good for passengers and good for airlines. It is good for the European Union and its individual Member States, for the United States and for the entire transatlantic economy.
"I am grateful to the transport ministers of the EU for the confidence they have expressed in me and my team from start to finish in what has been a long and tough negotiation." The deal opens up the aviation market on flights between Europe and the US to more competition and Mr Barrot said that the unity shown at today's meeting would strengthen the EU's hand in the next phase of negotiations.
"This first phase of our transatlantic agreement is not a dead-end. I am confident that the process we have started today will continue onwards to deliver greater freedom for investors in aviation, even closer cooperation between the two sides and a healthier air transport industry in general, not just across the Atlantic, but in due course with other countries all over the World", he said.

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First Eurofighter for Austria flies
Erstes Exportflugzeug fertig

On 21 March, the first Eurofighter Typhoon for an export Nation has successfully concluded its first flight at EADS Military Air Systems in Manching, Germany. Austrian Singleseater AS001, the first of 18 aircraft to be delivered by the Eurofighter consortium of Alenia Aeronautica, BAE SYSTEMS, EADS CASA and EADS Germany to the Austrian Air Force, was piloted by EADS Eurofighter Testpilot Chris Worning and took off at 11.15 local time. During the flight, the aircraft was taken through a series of basic handling manoeuvres before touching down after approximately 1 hour. On landing, the pilot commented: "The aircraft handled impeccably as expected. The industrial consortium behind this next generation aircraft have already delivered unrivalled capability to the Partner Air Forces, and now Austria will begin to realise the force-multiplying benefits of this world-class weapon system that is already in operation in four nations."
Eurofighter GmbH CEO, Aloysius Rauen, comments: "The flight of AS001 as the first Austrian Eurofighter Typhoon and the first export Eurofighter Typhoon, is a major milestone in the programme. This achievement is the result of a successful cooperation of all Partner companies and suppliers, and demonstrates the ability of this international partnership to deliver to contract specification in Export." AS001 is a Block 5 standard aircraft, representing the last build standard of Tranche 1. Under the terms of the contract, Austria will receive in total 18 aircraft. Deliveries are scheduled to be completed in 2009.
As Austria is supported in the acceptance process by the German Ministry of Defence, the Austrian aircraft are temporarily adorned with German national markings and registration numbers over the original Austrian Air Force designation (98+40 instead of 7L+WA). The second aircraft for Austria, AS002, was rolled out only a few days earlier and is now undergoing final checks before engine runs and the addition of Air Force colour scheme to the aircraft. First flight is scheduled for April 2007.
The four Nation Eurofighter Typhoon test fleet has achieved the 5,000th flying hour. The milestone flight, piloted by Capt. Carlos Esteban Pinilla EADS CASA Eurofighter test pilot on Monday 19 March at Morón, saw IPA4 undertake environmental data gathering with a Meteor air-to-air missile. With aircraft development work now centred on future capabilities, the focus of the test fleet is about to change. The test fleet will focus on testing and evaluation of new software to improve the capability of sub-systems thus increasing the overall weapon system performance.
Five Development Aircraft (DA) have already completed their contracted tasks. The last in-service DA, is DA7 which is continuing to work alongside the five Instrumented Production Aircraft (IPA) and Instrumented Series Production Aircraft One (ISPA1). The focus for the Flight Test Programme is on completing the Final Operational Capability standard to close the Main Development Contract and finalising the work on the Infra-Red Search and Track (IRST)/ Forward-Looking Infra-Red (FLIR), the new helmet plus further air-to-ground testing. Also work on the integration of a Laser Designator Pod (under contract for the Royal Air Force) shall continue. Aerodynamic testing has already been done by IPA3 at EADS Military Air Systems.
DA5 is in the process of being readied for first flights with the CAESAR electronic scanning radar antenna, the enhanced radar under development by the EURORADAR consortium as a potential replacement for the CAPTOR radar. The flights will be conducted at EADS Military Air Systems' facility in Manching, Germany.

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EADS and Russian UAC cooperate on A350
Zusammenarbeit beim A350 mit Russland

EADS and Russia's United Aircraft Corporation (UAC) have signed four agreements which further specify cooperation programmes under discussion between the partners. The agreements are based on the findings of a top-level working group which has been set up end of last year.
The first agreement covers the partnership in the Airbus A350XWB programme. Airbus is offering a five percent airframe participation to the Russian industry. The discussions about which components of the aircraft will be designed and built in Russia are still ongoing.
The second agreement provides for the establishment of a joint venture located in Dresden, which will have the task of setting up freighter conversion centres for the Airbus A320 Family at Lukhovitsy near Moscow in Russia and the German site.
The third agreement foresees a joint study of the transport aircraft market and possible cooperation between EADS and the Russian industry in this field.
The fourth agreement defines a shareholder change in the Engineering Centre Airbus Russia (ECAR): UAC will purchase the Kaskol Group shareholding.
The agreements were signed by EADS CEO Tom Enders, Airbus COO Fabrice Brégier and EADS EFW CEO Andreas Sperl on behalf of EADS, UAC President Alexey Fedorov on behalf of UAC.
The Russian flag carrier Aeroflot signed today the Memorandum of Understanding for 22 Airbus A350XWB aircraft. Aeroflot's decision brings the total number of orders and commitments for the Airbus A350XWB to 248. Aeroflot will also further increase its Airbus fleet with ten new A330-200s, which will be acquired on operating lease.

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First A400M central-rear fuselage arrives at EADS CASA
Erster A400M-Rumpf für Strukturtests geliefert

On Monday, 19 May, the central-rear fuselage (IFA) of the A400M was placed on jigs. This large component of 16.5 ton and 29 meter long is the first fuselage manufactured in Bremen, Germany, for the static structural test to be carried out at the Military Transport Aircraft Division of EADS facilities in Madrid.
The different sections of this fuselage have mainly been produced by TAI (Turkey), Airbus (Germany), EADS Military Aircraft Systems (Germany) and Sogerma (France), in accordance with their participation in the A400M programme.
The integration of the nose with the central-rear fuselage (IFA) will also take place in at EADS facilities in Getafe, in the same test hangar, under the responsibility and supervision of personnel from the Final Assembly Line (FAL) in Seville.

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Europe and Russia confirm closer space cooperation
Verstärkte Zusammenarbeit in der Raumfahrt

Europe and Russia are strengthening their cooperation in space. The Head of the Federal Space Agency of the Russian Federation (Roscosmos), Anatoly Perminov, ESA Director General, Jean-Jacques Dordain, and European Commission Director General Heinz Zourek met today at Roscosmos in Moscow within the framework of the Tripartite Space Dialogue between the European Commission, European Space Agency and Roscosmos.
Set up in March 2006 in Brussels, the Space Dialogue initiative encompasses space applications (satellite navigation, Earth observation and satellite communications), access to space (launchers and future space transportation systems), space science and space technology development.  
Mr Dordain, Director General of ESA, said, “Space cooperation is an important element in overall Europe-Russia cooperation. This meeting has proved very useful as concrete work plans have been established”. He added that, “The cooperation between Europe and Russia in the area of launchers should serve as a model for cooperation in other areas such as exploration, space science and space applications. If the two sides pool their resources, the result will be even more outstanding than it is today”.
The work plans that stemmed from this meeting highlight, among other things, actions in the area of Earth observation, satellite navigation and space communication. In the area of Earth observation, for instance, the parties engaged in setting up a specific data exchange mechanism; in the field of satellite navigation, compatibility and interoperability between Russian and European systems will be addressed and, concerning space communications, the parties agreed to promote applications reaching out to other entities that are not necessarily involved in space.

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Tiefensee: Galileo is in a crisis
Probleme mit dem Euopäischen GPS-System

“Galileo has not yet overcome its difficulties. It is true that the industry has made some moves in the right direction. The concession contract has been concluded. But the consortium has yet to resolve elementary issues. Thus, for instance, decisions within the consortium can only be taken by unanimity. But we need a consortium company that is capable of negotiating and taking decisions, so that the blockades are not continued. That is why Galileo is still in a crisis”, said the Federal Minister of Transport, Building and Urban Affairs, Wolfgang Tiefensee, at the EU Transport Council in Brussels on 22 March.
There have been major delays in the negotiations on the concession for the European Galileo satellite navigation system. This is due primarily to inadequate organizational and management structures within the bidding consortium and to disagreements regarding the distribution of work shares. For this reason, Mr Tiefensee, in his capacity as EU Council President, today presented to his European counterparts a package of concrete measures to resolve the current blockade, and made it clear that any further delay in this major European innovative project is unacceptable.
“At its meeting today, the EU Transport Council reached agreement on a way to ensure the speedy continuation of the Galileo project. In the Conclusions, which were adopted at my suggestion, the European Commission is requested to develop scenarios by June as to how Galileo can – if necessary – be realized in a different way. Because it would appear likely that we will face similar delays to the project in the future. Likewise, the consortium has been given a deadline – 10 May – by which they are to have solved their internal problems and overcome any blockades. In addition, I expect the European Commission to embrace the political leadership role it has been given and to do everything it can to remove the existing obstacles”, said Mr Tiefensee.

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NEWS IN BRIEF / KURZMELDUNGEN

Currently, the Technical Department of the DRF (Deutsche Rettungsflugwacht e.V./German Air Rescue) is conducting maintenance for a major Portuguese client. Three helicopters of type BO 105 are maintained in the maintenance facil-ity in Rheinmünster and subsequently equipped for their use in the Brazilian rain forest. The experienced aircraft techni-cians of the DRF convert the cockpits from VFR to IFR tech-nology and install load hooks and seats. In addition, they provide the helicopters with high landing constructions and varnish the helicopters according to the client's colouring and design specifications.
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Boeing and Virgin Blue Holdings, Ltd., confirmed that the Brisbane- based company has ordered six Boeing 777-300ER (Extended Range) jetliners, with options for six more, and will lease one additional 777-300ER. The new airplanes will allow Virgin Blue to establish its new long-haul airline, providing service from Australia to the United States and other destinations. The six-airplane order is valued at US$1.5 billion at list prices. Virgin Blue currently operates an all-Boeing fleet of 53 Next-Generation 737s. In addition, Boeing said that Virgin Blue had exercised options for five 737-800s that were attributed to an unidentified customer on Boeing's Orders and Deliveries Web site in late 2006. These airplanes are valued at $350 million. Virgin Blue stated during its recently announced half-yearly results that the new long-haul operation would begin with a limited network initially focusing on the United States, using a business model similar to its current value-based operation. The airline noted that it already has the regulator approval process under way.
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UK business aviation services company PremiAir Aviation Group was purchased from Sir Robert McAlpine by the von Essen Group of companies. The acquisition by von Essen follows a long and successful relationship between the two companies where PremiAir has managed von Essen's large fleet of business helicopters and jets. David McRobert, PremiAir's Managing Director, commented "we are delighted by the acquisition. We've developed a great relationship with von Essen and its entrepreneurial Chairman, Andrew Davis. PremiAir see's exciting growth opportunities, particularly within business aviation, which von Essen investment will help secure. Von Essen's luxury hotel collection is a very exciting business that continues to deliver exceptional growth. There are great synergies between von Essen's luxury markets and PremiAir's and there are going to be some very interesting business opportunities ahead".
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Embraer has signed with Alpi Eagles to deliver five EMBRAER 195 jets, as part of the Italian airline's expansion plan for Europe, which has also taken options on another five aircraft and purchase rights for six additional units. The contract value, if all options and purchase rights are exercised, at list price, could come to US$ 584 million. This order was already included in Embraer's orderbook as "Undisclosed". The EMBRAER 195 will be serving the airline's intra-European network routes, configured in a single-class, 122-seat interior. The airline is the world's launch customer for the high-capacity version of the EMBRAER 195, which was announced in July 2006, at the Farnborough Air Show, in London, U.K., along with similar versions of the other models of the E-Jets family (EMBRAER 170, EMBRAER 175 and EMBRAER 190).
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Boeing delivered the 200th T-45C Goshawk to the U.S. Navy. The fully integrated T-45 Training System, which includes the two-seat carrier-suitable aircraft, high-fidelity operational and instrument flight simulators, computer-assisted classroom instruction and a management asset that tracks all training activities, is the only system available that trains specifically to perform carrier landings. More than 3,000 Navy and Marine Corps fighter pilots have received instruction on the system at naval air stations in Meridian, Miss., and Kingsville, Tex., before earning their coveted "Wings of Gold."
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Tenix Aerospace and Defence announced it has teamed with Northrop Grumman and Saab Systems in a bid to become the Industry Capability Partner for Phase 1b of the Australian AIR 7000 project.  Under the $1 billion plus programme Australia plans to acquire a Multi-mission Unmanned Aerial System (MUAS). Tenix Aerospace and Defence is pleased to lead this unmatched team of defence and aerospace systems integration specialists,” said Ian Sharp, Executive General Manager Tenix Aerospace and Defence. “We are confident the team has the experience in UAV systems and understanding of Australian C4ISR requirements to ably assist government to bring its top-tier unmanned aerial capability to reality.” In 2006 the Australian government announced plans to cooperate with the U.S. Navy to develop an MUAS as part of the Broad Area Maritime Surveillance (BAMS) program.  The Australian government has the option to purchase the air vehicle and sensor package chosen for BAMS.  
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CGTM, a Turbomeca (SAFRAN Group) subsidiary and Global Air Strategy Ltd. have signed a Memorandum of Understanding. This Memorandum deals with the shared fulfillment of helicopter customization or upgrade programs, as well as the distribution of aeronautical equipment from the CGTM catalogue to the Brazilian market. This agreement confers a local structure on CGTM, to carry out helicopter modification programs in Brazil, whether it be in the context of helicopter upgrade or customization requirements. Thus, the close proximity and the responsiveness to service Brazilian customers are further reinforced.
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Technest Holdings, a defense and homeland security company, announced it received an award from the Department of Defense to fund a Phase I Small Business Innovation Research ("SBIR") grant for research and development of 3D-Nav, the Company's three-dimensional terrain modeling sensor-display system that may improve navigation of helicopter landings during brown-out conditions. The 3D-Nav system will conduct three-dimensional terrain modeling to facilitate safe landings under brown-out conditions. During the landing process, the 3D-Nav system will automatically display and update the terrain model in real time while generating the navigation control signals needed to avoid obstacles and rollovers. Brown-out conditions occur when a helicopter's rotors stir up dust from the ground, reducing visibility and causing vertigo in some pilots. Brownouts have affected desert air missions during recent military campaigns in both Afghanistan and Iraq.
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Boeing announced that launch customer Cargolux has placed a follow-on order for three Boeing 747-8 Freighters, valued at $845 million at list prices, and added two options. This brings the Luxembourg-based cargo operator's total 747-8 Freighter order to 13 airplanes, two options and 10 purchase rights. Boeing launched the 747-8 on November 14, 2005, with orders from Cargolux of Luxembourg and Nippon Cargo Airlines (NCA) of Japan. The program now has 87 orders for both the freighter and passenger versions combined.
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NASA's Glenn Research Center will conduct integrated environmental testing of the Orion crew exploration vehicle in the Space Power Facility at the center's Plum Brook Station in Sandusky, Ohio. The environmental tests are designed to demonstrate the ability of Orion hardware to meet specified performance requirements in simulated environmental conditions such as those experienced during launch, in-orbit operations and re-entry. Thermal, acoustic and mechanical vibration and electromagnetic compatibility testing will be conducted on Orion's full assembly. The launch abort system, crew module, service module and spacecraft adapter will be tested. The work is valued at approximately $63 million during a five-year period from 2007 to 2011. During this period, the Space Power Facility will be augmented with a number of capabilities, including a new acoustic chamber and a mechanical vibration test stand. Specialized equipment that will enable electromagnetic test capabilities also will be added to the thermal vacuum chamber.
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A Raytheon radar warning receiver has been selected by the Royal Australian Air Force for its F/A-18 tactical aircraft fleet as an integral part of the Hornet Upgrade Program. The RAAF intends to procure 66 ALR-67(V)3 systems as part of a continuing production contract Raytheon has with the U.S. Navy's Naval Air Systems Command, Patuxent River, Md. To kick off the program, Raytheon recently received a $6.3 million antenna contract from the Navy in support of the RAAF program. The contract includes delivery of 20 antenna sets for the RAAF and forward antenna development effort for the RAAF and the Finland Air Force. The ALR-67(V)3, which is the radar warning receiver on Navy F/A-18E/F carrier-based tactical aircraft, completed its successful initial deployment in Operation Iraqi Freedom. The receiver provides sophisticated digital technology to detect and identify threat radar emitters, thereby enhancing the survivability of aircraft equipped with the system. The integration of the ALR-67(V)3 will provide the RAAF with a state-of-the-art digital radar warning receiver that is fully integrated with the Hornet's avionics systems.
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The US Department of Transportation (DOT) tentatively approved Virgin America's application to start a new U.S. airline, finding the carrier is owned and controlled by U.S. citizens and is fit to operate as a domestic airline. The DOT Order proposes that Virgin America finalize changes already offered by the company to address concerns about its citizenship, and to satisfy certain other pre-launch conditions. "We worked very hard to address the Department's initial concerns, and are pleased that they have recognized our extensive work and good faith commitment to meet and exceed those requirements," said Virgin America CEO Fred Reid. "We plan to meet with our shareholders immediately to address the Department's proposed conditions." Virgin America said it hoped to receive final DOT approval in anticipation of a mid-summer launch from its base at San Francisco International Airport to New York's John F. Kennedy Airport. Four additional cities -- Los Angeles, San Diego, Las Vegas and Washington D.C. -- are planned to be added within nine months of the company's first flight. "Today's order puts us one giant step closer to flying," said Virgin America spokesman Gareth Edmondson-Jones. "We look forward to finally getting our wings -- it will be a huge win for our employees, investors, supporters, and the traveling public."
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After many years of pioneering with well-known parties as the Dutch Aerospace Laboratory (NLR) to create a flying and driving vehicle John Bakker has formed a management team and is recruiting employees to start PAL-V Europe. A number of investors have been found to back the start-up and currently initiatives are taken towards more investors to speed up market launch. John Bakker has invested 6 years of his time in developing a vehicle concept that can fly as well as drive: PAL-V (Personal Air and Land Vehicle). A dream Henry Ford already had when he built the first car. This will be a revolution in door to door mobility in the near future. In countries with underdeveloped infrastructure it means safe and faster transportation but also in developed countries it will safe people lots of time. The market response is huge. Already 2 mln hits have been recorded on the website. Daily mails are received from people that want to buy one. People have professional applications like surveillance, mobility for aid organisations, aid in post war situations, but also for private use bringing faster transportation or just big fun. The PAL-V is a solution to increasing congestion in our cities, highways and skyways. On the ground, the slim line, aerodynamic 3-wheel vehicle is as comfortable as a luxury car. But has the agility of a motorbike, thanks to its patented cutting-edge 'tilting' system. The single rotor and propeller are folded away until the PAL-V is ready to fly. Airborne, the PAL-V flies under the 4,000 feet (1,500 m) floor of commercial air space. With land and air space reaching capacity, this is some of the last free space. The PAL-V is highly fuel-efficient and powered by an environmentally certified car engine. It can run on petrol like a conventional car but can also run on biodiesel or bio-ethanol. It can reach speeds of up to 200 km/h both on land and in the air.
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The Australian Department of Defence has selected the Rolls-Royce Turbomeca RTM322 to power another 34 MRH90 Multi-Role Helicopters. This brings the total number of RTM322 engines ordered by Australia to 92, taking into account the original order for the first batch of 12 twin-engined helicopters.
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Vought Aircraft Industries, a program partner on the Boeing 787 Dreamliner team, is on track to deliver its first production ship set next month. The delivery will include aft fuselage section 47, which measures 19 feet in diameter and 23 feet long, and fuselage section 48, measuring 14 feet in diameter and 15 feet long. The combined section represents 23 percent of the 787's entire fuselage structure.
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The second test launch of Falcon 1 took place on 20 March at 6:10 pm California time.  The launch was a failur, but according to Space X, some major test points were accomplished. Given that the primary objectives were demonstrating responsive launch and gathering test data in advance of our first operational satellite launch later this year, the outcome was great.  Operationally responsive (i.e. fast) launch has become an increasingly important national security objective, so demonstrating rapid loading of propellants and launch in less than an hour, as well as a rapid recycle following the first engine ignition are major accomplishments. We retired almost all of the significant development risk items, in particular: 1st stage ascent past max dynamic pressure; avionics operation in vacuum and under radiation; stage separation; 2nd stage ignition; fairing separation; 2nd stage nozzle/chamber at steady state temp in vacuum. Falcon flew far beyond the "edge" of space, typically thought of as around 60 miles.  Our altitude was approximately 200 miles, which is just 50 miles below the International Space Station.  The second stage didn't achieve full orbital velocity, due to a roll excitation late in the burn, but that should be a comparatively easy fix once we examine the flight data.  Since it is impossible to ground test the second stage under the same conditions it would see in spaceflight, this anomaly was also something that would have been very hard to determine without a test launch. All in all, this test has flight proven 95+ percent of the Falcon 1 systems, which bodes really well for our upcoming flights of Falcon 1 and Falcon 9, which uses similar hardware.  We do not expect any significant delay in the upcoming flights at this point.  The Dept of Defense satellite launch is currently scheduled for late Summer and the Malaysian satellite for the Fall.
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Helicopter Support has received certification to support American Eurocopter's AS350, AS355, EC120, and BO105 aircraft line. HSI is a wholly owned subsidiary of Sikorsky. “This certification by American Eurocopter further fortifies our one-stop shop capabilities.  We are excited about expanding our portfolio of services and look forward to doing business with Eurocopter operators throughout the U.S. and South America,” said Adam Schierholz, HSI's Director of Business Development.
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The joint ESA/UNESCO Open Initiative to conserve hundreds of natural and cultural World Heritage sites using Earth observation satellites gets additional backing as the International Astronautical Federation joins the growing number of space entities to pledge support to the project. The Open Initiative, agreed upon by ESA and UNESCO (United Nations Educational, Scientific and Cultural Organisation) in 2001, involves satellites monitoring UNESCO World Heritage sites as unique and varied as the Great Barrier Reef and the Great Wall of China in order to provide early warnings of conditions that could threaten them, such as natural catastrophes, atmospheric contamination and changes in land use. The signing of the partnership between the International Astronautical Federation (IAF) and UNESCO took place today at UNESCO headquarters in Paris, France. ESA's Stephen Briggs, Head of Earth Observation Science and Applications Department, opened the ceremony with his thoughts on how Earth-observing satellites have benefited humanity.  
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The 555-passenger, double-deck Airbus A380 created a stir across the U.S. this week, starting with Monday's dual landing at LAX and JFK airports. The planes were in the U.S. for the first time for a series of route-proving exercises. First delivery of the A380 is slated for October 2007 to Singapore Airlines. New York City Mayor Michael Bloomberg toured the visiting superjumbo Airbus A380 at John F. Kennedy International Airport early Wednesday morning, shortly before the 21st Century double-decker widebody took to the skies over the Big Apple in a short demonstration flight for a group of invited guests and media. Shown here in a walk-around tour with Airbus Chief Flight Test Engineer Fernando Alonzo (l) and Airbus COO Customers John Leahy (r), Mayor Bloomberg, a recognized aviation enthusiast, visited the exterior and interior of the world's largest passenger aircraft. The 555-seat A380 touched down in the U.S. for the first time on Monday, with dual landings at JFK and Los Angeles International Airport (LAX). The A380 offers unparalleled comfort, economic efficiency and environmental friendliness to the commercial airline industry, which expects to see a near tripling of passengers worldwide over the next 20 years. The A380 departs JFK Wednesday evening but will return to the U.S. Sunday night. On Monday, March 26, Washington Dulles International Airport will host a group of invited guests in a tour and demonstration flight around the Washington area. The double-deck A380 visited JFK this week as part of its first visit to the United States in a route proving exercise that brought the world' largest commercial jet to JFK, Chicago O'Hare, LAX, and Dulles International Airport.
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AgustaWestland and Linfox announced that the Royal Australian Navy (RAN) has chosen the A109 Power light twin helicopter to provide its aircrew with improved training capabilities. Three helicopters will be dedicated to operational conversion training for air crew transitioning from the AS350 Squirrel to the heavier Sea King, Seahawk and Seasprite aircraft. The aircraft will also be used for training pilots to perform shipborne operations. The helicopters will be leased by Raytheon Australia to the Royal Australian Navy who will use the aircraft at HMAS Albatross, Nowra, New South Wales, under a four-year contract.
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Leaders of Europe's air transportation industry will meet with high-ranking European politicians in mid-April at the European Aviation Summit 2007. Organized within the framework of Germany's EU Presidency, the European Aviation Summit will be held on April 16 at Frankfurt am Main's Alte Oper historic opera house. More than 300 participants – including top decision makers from airports, airlines, industry associations and institutions – are expected to attend this summit, which is being organized by the German Air Transport Initiative in cooperation with Germany's Ministry of Transport. Dr. Wilhelm Bender, Fraport AG's executive board chairman, will deliver the welcome address and Germany's transport minister, Wolfgang Tiefensee, the opening address. Further speakers will include Jacques Barrot, vice president of the EU Commission, Wolfgang Mayrhuber, executive board chairman of Deutsche Lufthansa AG, Dr. Philipp Goedeking, Partner in Roland Berger Consulting, and Dr. Matthias Ruete, the European Commission's general director in Brussels. Three panel discussions will focus on current issues facing European air transport policy, such as unification of European air traffic control (Single European Sky), capacity expansion and security. Furthermore, attention will be given to environmental issues and the compatibility of economy and ecology against the background of intensive competition in global air transportation. Jörg Hennerkes, state secretary at Germany's federal transport ministry, will present the closing statement. Hesse Prime Minister Roland Koch will speak at a special evening reception for the European Aviation Summit 2007 delegates
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Volvo Aero and the Swedish Government are each investing SEK 63 M when the government authority Vinnova distributes money for the first time to a commercial demonstrator program in the aerospace industry. The investment will be used in the company's development of lightweight components for more fuel efficient and thereby more environmentally compatible aircraft engines. Volvo Aero's application “Swedish demonstrator for environmentally compatible aircraft engines” is receiving part financing from Vinnova of SEK 63 M, which will be paid in installments from 2007 through 2010. Volvo Aero will invest the same amount during the period. Vinnova's decision is positive for Volvo Aero, which has worked for sometime for Sweden to gain a national program to develop more environmentally compatible air transport. “The reply was highly pleasing, since Sweden has never previously had a commercial demonstrator program in aviation. Aviation faces major challenges to deal with environmentally,” states Volvo Aero's President Olof Person. “We can contribute with lightweight technology so that the aviation industry combined shall achieve the emissions targets agreed by the entire industry in Europe.” Vinnova's aim with the so-called “Aviation technology and demonstrator program (Swedish acronym FLUD) is to promote sustainable growth in Sweden through needs-motivated research.
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The global network connecting Munich with destinations all over the world will gain three attractive routes in the new summer timetable. When the summer timetable takes effect, Lufthansa will launch a daily- non-stop service to Denver. Three flights a week will depart from Munich for the South Korean port city of Busan via Seoul, the capital. South African Airways is set to make a comeback at Munich Airport. At the beginning of July, the South African carrier will start by offering three weekly flights to Johannesburg, and in October the airline will add four more departures to establish a daily service. For the new timetable period from March 25 to October 27, airlines have booked slots for a total of 265,000 take-offs and landings – an increase of more than 4 percent over last summer. In the summer season a total of 239 destinations around the world will be served from Munich, with 57 long-haul routes, 163 European destinations and 19 connections within Germany.
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Boeing has been awarded the second phase of a $27 million U.S. Air Force contract for the Small Diameter Bomb I Focused Lethality Munition (SDB I FLM) Joint Capability Technology Demonstration program. During the $17.7 million second phase, Boeing will integrate the FLM warhead into the SDB I weapon, perform a series of ground and flight tests, and manufacture a limited number of FLM weapons. "FLM is a significant advancement in low-collateral damage weaponry," said Boeing SDB Program Manager Dan Jaspering. "It will allow the warfighter to hit a lot of targets while minimizing the area of potential damage surrounding them." The FLM warhead, developed by Lawrence Livermore National Laboratory and the U.S Air Force Research Laboratory, features an advanced, multi-phase blast explosive and a composite carbon fiber warhead case, allowing for pinpoint strikes with low collateral damage.
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Jules Verne, the first of five Automated Transfer Vehicles (ATV), stands on the brink of flight. Its hardware is 100 percent assembled and ready to fly. The inaugural mission, set for the second half of 2007, will follow an extensive three-year test campaign. Prime contractor and ESA teams are working overtime to finish the testing of the most complex spaceship ever developed in Europe. During the coming crucial months, this state-of-the-art programme faces three key concurrent objectives: to fully prepare for Flight Operations, to fine-tune the interfaces with the International Space Station and the Station partners, and to prepare Ariane 5 for launching its largest payload to date. For the past months, the main challenge of ATV qualification testing has been to run parallel test campaigns involving a variety of interfaces with different partners. The primary objective of this complex and time-consuming strategy is to ensure that ATV's hardware and software can handle all possible nominal and off-nominal scenarios that Jules Verne might face during its flight. For instance, at the RSC-Energia plant outside Moscow - the manufacturing site for the ATV docking mechanism, the refuelling system and the associated electronics - major computer simulations have been underway from December through to March at the GDC (Ground Debugging Complex). There, a powerful simulator purposely introduces several failure scenarios and creates artificially degraded situations that the ATV architecture must cope with, while respecting the tough requirements of human spaceflight. The objective is to test the final version of the software used, firstly to interface between the ATV and the Russian module when they initiate rendezvous and docking, as well as the software used later after docking to allow the Russian module to take control the ATV propulsion system for re-boost and attitude control of the 220-tonne ISS. Tests have included actual communications hardware and GPS simulators.
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LAN Airlines (LAN) has signed a firm contract with Airbus for the acquisition of 15 additional A320 Family aircraft. This is a confirmation of the options that were announced in October 2005. To date, Santiago (Chile) headquartered LAN and its affiliates operate 34 Airbus aircraft including 15 A319s, 15 A320s and four A340s.
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The Austrian carrier NIKI has received its first Airbus A319 at the occasion of a delivery ceremony in Hamburg. The A319 selected by NIKI is the first A320 Family aircraft worldwide delivered with the new state of the art cabin interior, making the aircraft quieter, lighter, brighter and more spacious. With this A319, the successful Vienna-based low cost carrier further expands its all Airbus fleet, which already consists of five A320s and one A321. NIKI will employ the A319 on routes to European cities and holiday destinations. The airline, founded in 2003, operates in partnership with Air Berlin, another major Airbus customer. NIKI has selected CFM International CFM56-5B engines for its A319. In terms of cabin configuration, the airline has chosen a spacious single class cabin layout for up to 150 passengers, offering passengers even more comfort with the increased personal space of the new cabin.
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ABX Air said it has agreed to purchase a Boeing 767-223 aircraft formerly operated by American Airlines and will convert it from passenger to freighter configuration. "We intend to seize opportunities to add to our Boeing 767 fleet when they become available under attractive terms," ABX Air President and CEO Joe Hete said. "This purchase reflects our confidence in both the economic value of 767s as highly efficient, mid-size freighters, as well as continued strong demand from shippers for the flexible, high quality airfreight services that ABX Air provides." ABX Air's cost to purchase and modify the aircraft will be about $20 million. It is expected to be available for service in ABX Air's ACMI charter business by early 2008.
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Responding to recent media reports, Air Force officials clarified their intent to comply with the Government Accountability Office's (GAO) February 26 recommendation concerning the protested CSAR-X contract award. Since the GAO announced its decision to sustain protest of the award of contract FA8629-07-C-2350 to the Boeing Company, the Air Force has been working to develop a suitable way ahead. "Recent reports in the media have not fully captured the complexities of this process," said Brig. Gen. Michelle Johnson, Director of Public Affairs for the Air Force. "We intend to pursue a course of action that complies with the GAO recommendation and is fair to all offerors." The Air Force intends to issue an amendment to the Request for Proposal to clarify its intent with respect to the evaluation of Operations and Support (O&S) costs. The Air Force will issue an amendment after the GAO clarifies any remaining issues. The Air Force will ensure that all offerors are made aware of how Air Force manpower standards are applied and how the Air Force will assess CSAR-X manpower-associated O&S costs. The Air Force has requested that GAO clarify whether any of the other issues contested during the protest, but not addressed in the GAO decision, are sustained or denied. The Air Force believes such information is important for purposes of complying with the GAO decision in a way that is transparent and fair to all offerors. The Air Force will fully consider and respond appropriately to the GAO's decision on reconsideration. The Air Force intends to allow the GAO adequate time to issue its decision in response to the request for reconsideration. Air Force officials said they understand that the GAO intends to issue its decision by June 15. The Air Force will consider and respond appropriately to the GAO's decision. If the evaluation of the revised proposals results in a change to the CSAR-X Best Value Source Selection decision, the Air Force will make any necessary changes in contract award. "The Air Force remains committed to a fair, open and transparent process while working to resolve this protest," said Sue Payton, Air Force Service Acquisition Executive. "Additionally, we have a moral obligation to deliberately and expeditiously deliver the Combat Search and Rescue capability the warfighter needs to protect those who are in the fight today, and in the future, in operations around the world."
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Embraer recorded fourth quarter 2006 net sales of US$1,084.1 million and net sales for fiscal year 2006 of US$3,807.4 million. Net Income for the fourth quarter of 2006 and full-year totaled US$124.4 million and US$390.1 million, equivalent to diluted earnings per ADS of US$0.6698 and US$2.1006 respectively. The firm order backlog as of December 31, 2006, increased 11.3% over the previous quarter totaling US$14.8 billion, a record high. In the fourth quarter of 2006, Embraer announced 75 new firm orders for the Commercial Aviation segment and achieved more than 225 new firm orders in 2006. New customers such as Northwest in the USA, Virgin Blue in Australia, Sirte Oil in Libya, Air Caraibes in Guadeloupe and Kenya Airways were added to our firm order backlog in the last quarter of 2006. Sales for the Executive jets segment continue to grow, especially for the Phenom family with more than 350 firm orders as of December 31, 2006. The EMBRAER 170/190 E-jets currently has 619 firm orders and 568 options booked. Due to difficulties with the production ramp-up of the EMBRAER 190 and EMBRAER 195 aircraft, especially those related to their wing assembly and supply chain delays, 37 aircraft were delivered in the last quarter of the year, and totaled 130 aircraft delivered in 2006. In light of the actions taken to solve these problems and the solutions pursued, Embraer revised its delivery forecast from 150 to 165-170 aircraft in 2007. Net revenues for the fourth quarter of 2006 were US$1,084.1 million, compared to net revenues of US$1,189.9 million in 2005. Net revenues for fiscal year 2006 totaled US$3,807.4 million, compared to US$3,829.9 million in 2005. The decrease is mainly related to the number of aircraft delivered due to the reported production ramp-up difficulties the Company faced during 2006. The gross margin was 27.5% in the fourth quarter of 2006, compared to 28.2% in the same period last year and for fiscal year 2006 the results were 28.1% compared to 30.2% in 2005. Income from operations reached US$76.3 million in the fourth quarter of 2006, 33.3% down from the US$114.4 million recorded in the same period last year. This decrease is due to the lower number of deliveries in the quarter and higher operating expenses as reported in the past quarters. In 2006, income from operations totaled US$307.7 million, showing a decrease compared to US$507.8 million in 2005, for the same reasons. The decrease in operating results led to lower levels of net income and net margin, which were US$124.4 million and 11.5% in 4Q06 compared to US$156.0 million and 13.1% in 4Q05, respectively. When we compare fiscal year results, net income decreased from US$445.7 million in 2005 to US$390.1 million in 2006, and net margins represented 11.6% and 10.2% respectively.
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The European Union has submitted its first written submission in the EU WTO challenge to US government subsidies to Boeing. The EU's submission exposes in detail the massive, long-standing and WTO-inconsistent subsidisation of Boeing's civil aircraft division. More than US$ 23 billion worth of subsidies have been and will be granted at the federal (NASA and Department of Defence R&D support, Foreign Sales Corporation subsidies), state (Washington and Kansas tax breaks and infrastructure support) and local (Chicago, Everett, Wichita, Cook County, Snohomish County) level for the past two decades and up to 2024. The EU's first written submission is not public at this time, but the EU will make a non-confidential version of its first written submission available to the public in due course. The US is now scheduled to present its written defence on 14 June 2007. The first panel hearing will take place on 11 July 2007 in Geneva. The issuance of the final Panel report to the Parties is due on 7 April 2008 (but could slip into later in 2008, as it has in other complex cases). The EU submission is filed the day after the first Panel meeting regarding the US challenge to EU support for Airbus was concluded on 21 March 2007. After another round of submissions and hearings, the issuance of the final Panel report to the Parties in that case is due on 31 October 2007 (but, as in the EU case, could be delayed).
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The European Commission has opened an investigation, under the EC Treaty rules on state aid (Article 88(2)), into public funding that Spain intends to give to Industria de Turbo Propulsores (ITP), a producer of aero engines and gas turbines. The aid would finance ITP's participation in the development of the low-pressure turbine for the Trent 1000 aero engine, currently being developed by Rolls-Royce for the Boeing B787. The investigation will allow the Commission to clarify the loan's impact on competition, in particular if the public intervention creates an incentive for the firm to carry out more Research and Development (R&D). The opening of an in-depth investigation gives interested parties the opportunity to comment on the proposed measures. It does not prejudge the outcome of the procedure. EU Competition Commissioner Neelie Kroes said: “We need to assess thoroughly whether the positive effects of the aid outweigh its possible negative effects on competition". The five-year-project (2005-09) is focused on the low-pressure turbine of the Trent 1000 engine, which Rolls-Royce is developing with a number of partners in order to equip the Boeing 787. The engine is expected to be certified in July 2007 and will enter into service in 2008. The aid would be granted by an agency of the Spanish Ministry of Industry, Commerce and Tourism -the Centro para el Desarrollo Tecnólogico Industrial (CDTI)- through a €27 million loan. The public support is intended to reduce the risk linked to this type of projects, where returns on investment are uncertain and slow. The project is expected to be carried out in Zamudio (Vizcaya, Basque country), Ajalvir and San Fernando de Henares (Region of Madrid), which are assisted areas according to the Spanish regional aid map.  
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BAE Systems and Rolls-Royce have signed a Memorandum of Understanding (MoU) with the aim of identifying opportunities for alignment and for progressing joint initiatives in order to deliver improved performance to the UK Ministry of Defence (MoD) and other worldwide customers. Ian King, Chief Operating Officer, UK and Rest of World within BAE Systems, commented: “The MoU builds on an excellent long standing relationship between the two companies and positions us both to work together in a way which reflects the UK's Defence Industrial Strategy and strengthens our solutions to the benefit of our UK customer and our respective shareholders.” Martin Fausset, Managing Director of Rolls-Royce Defence Aerospace said: “The innovative nature of this agreement is indicative of the positive progress that the UK MoD and industry have been making in implementing the principles of the Defence Industrial Strategy. We believe that by aligning our resources we can deliver a quantum leap in capability for our customers and better meet their requirements.” The principles of the MoU can be used to address the requirements of all customers, and in particular will focus on building upon the success achieved in two availability contracts held by BAE Systems and Rolls-Royce supporting the UK's RB199-powered Tornado fleet.  
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The Australian Parliamentary Secretary to the Minister for Defence, Mr Peter Lindsay, today released a public report on the outcomes of the North West Shelf Unmanned Aerial System Trial conducted by Defence late last year. Mr Lindsay said the report confirmed the ability to employ Unmanned Aerial Vehicles (UAVs) in a maritime surveillance role to help protect Australia's North West Shelf area. “The trial demonstrated that it was possible to deploy an unmanned aircraft to work with patrol boats and other Defence and civilian assets in an effective way to carry out maritime surveillance in an Australian environment,” Mr Lindsay said. The North West Shelf Unmanned Aerial System Trial was conducted to investigate a joint surveillance capability involving a Mariner Demonstrator UAV, an Armidale Class Patrol Boat, a Border Protection Command aircraft and land forces of the Pilbara Regiment. “The report shows that the Mariner UAV demonstrated its ability to execute all elements of the maritime surveillance operations, including monitoring of suspicious vessels and activating the response elements to deal with the threat,” Mr Lindsay said.  
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The GP7200-powered A380 flight test program has completed half of its planned test objectives, accumulating 98 flights and just over 300 flying hours. The engine continues to demonstrate excellent reliability and performance, with GP7200 fuel consumption consistently performing at levels better than specification. "The GP7200-powered A380 continues to perform as we execute this rigorous flight test program," said Bruce Hughes, president of the Engine Alliance. "These tests are demonstrating that the GP7200 is the most fuel-efficient engine for the A380 and we look forward to providing that value to our customers when the engine enters service next year." As the GP7200 continues flight testing, the engine will undergo natural icing testing over the Alps in late March and April, and noise testing in Moron de la Frontera, Spain in May. During the summer months the GP7200 flight-test team will complete acoustic and fatigue testing and autopilot/autoland certification, followed by a 150-hour functional and reliability route-proving demonstration in September and October. FAR 25 and EASA aircraft certification are expected in December of this year.  
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Spairliners GmbH, the A380 Component Support Joint Venture between Air France and Lufthansa Technik, has announced the successful finalisation of its IT development project. The Hamburg-based company now owns a state-of-the-art IT solution close to SAP standard, based on the latest release (mySAP ERP 2005), communicating with partner systems by modern web-service technology and offering a user friendly web application to communicate with the customers. “Our processes are fully defined and implemented. Now, we are ready to support the A380, when the first commercial flights takes off”, states Jean-Luc Fattelay, CEO of Spairliners. “The excellent result of the IT development project clearly demonstrate that a joint approach of Air France and Lufthansa Technik creates indeed significant added value in the supply chain management”, adds CFO Dr. Georg Fanta.
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The EU Transport Council, meeting under the German Council Presidency in Brussels, addressed the issue of emissions trading in aviation. The Federal Minister of Transport, Building and Urban Affairs, Wolfgang Tiefensee, emphasized: “Since international aviation is currently exempt from the agreements of the Kyoto Protocol on the reduction of emissions of greenhouse gases, other ways of limiting greenhouse gas emissions from aviation have to be sought. One way of getting the aviation industry to play its part in tackling climate change is to include aviation in the European emissions trading scheme. The directive proposed by the Commission is thus a step in the right direction. At the next ICAO Assembly in the autumn, there is likely to be a heated debate on the issue of including third countries with or without their consent. That is why it is important that Europe goes into the negotiations at the ICAO Assembly with a clear and uniform line and that the Ministers of Transport agree on a common basic position here.” “With our discussion, we Transport Ministers have moved one step closer to finding a uniform basic position for the discussion, which is expected to be heated, at the assembly of the International Civil Aviation Organization in Montreal this autumn. Including aviation in emissions trading is a good way of limiting greenhouse gas emissions from air transport and getting the aviation sector to play its part in tackling climate change. It is true that the aviation industry has, in the past, helped to limit emissions by improvements in engine technology. However, these measures alone are not adequate”, said Mr Tiefensee in Brussels. “We will continue the discussion at the June Council, and my aim is that we can then also agree on our position for the negotiations at the ICAO Council.
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The Royal Airforce of the Netherlands and the Lufthansa Technical Training GmbH (LTT) have signed a contract regarding training of airforce maintenance staff in compliance with the EASA Part-66 regulations. The signing took place on March 20th at the airbase of Eindhoven. By doing so a strategic alliance for joint training in the Netherlands has been tightened. In the first instance, the cooperation is limited to a seven year period. Starting in September, Lufthansa Technical Training will conduct basic training (CAT A1, A3, B1.1, B1.3 and B2) for aircraft mechanics of the Netherlands airforce.
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Rolls-Royce and Bombardier celebrated delivery of the 500th BR710 engine with a ceremony on March 22 at Bombardier's manufacturing facility in Toronto, Canada.  The BR710 engine powers the high- speed Bombardier Global 5000 and ultra-long range Global Express XRS business aircraft. Dr. Michael Haidinger, Chairman of Rolls-Royce Deutschland, where the BR710 is designed and built, presented Bombardier with a BR710 fan blade recognizing the milestone delivery. Dr. Haidinger said: "An important foundation of the success story of Rolls-Royce Deutschland is the excellent long-time relationship with Bombardier. The 500th BR710 engine delivered to our Canadian customer is not only a further milestone of this extremely successful engine program -- it also manifests Bombardier's confidence in us." Bombardier launched its Global business jet family in 1993 with the Global Express aircraft, offering passenger seating of up to eight and a range up to 6,010 nautical miles. The Bombardier Global 5000 jet was launched in 2002, soon followed by the Global Express XRS business jet launch in 2003.
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MD Helicopters has announced recent management changes.  Randy Walti has been named General Counsel of the company, John Calabrese has been named Chief Financial Officer (interim), and Giles Wright has been named Vice President, Supply Chain.  Lynn Tilton continues to serve as the Chief Executive Officer along with Ted Gee as Chief Operating Officer. No longer serving the company are former President, Chuck Vehlow, Chief Financial Officer, Peter Hokanson, and head of sales, David Oglesbee. Tilton will continue in her current capacity as CEO and will provide direct guidance to the senior executive team.  In addition, the Quality team will continue its independent reporting to Tilton.  Gee will oversee day-to-day operating activities at MDHI, including all production, development, engineering, and supply chain activities.
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