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UPDATE 
Week ending January 31, 1999
+++ Dasa reports on excellent 1998 +++ Boeing 757-300 certified +++ BDLI and AIAC sign cooperation agreement +++ Dornier delivers modern helicopter obstacle warning systems +++ Boeing back in profit in 1998 +++ Lockheed Martin reports 1998 financial results +++ Air France nears privatization +++ News in brief +++

Dasa reports on excellent 1998
1998 brachte gute Ergebnisse für die Dasa

On January 28, Dasa reported its first results for 1998. The company claimed that, strengthened by a highly successful business year 1998, it continues to be in an excellent position for the cross-border steps it is aiming for in the restructuring of Europe's aerospace and defense industry. "This still holds true, even after the announced changes in the British defense industry," stressed Dasa President and CEO Dr. Manfred Bischoff before the press in Munich. "We will be energetically pursuing our European and transatlantic options in the current year," he stated.
The company owed its favorable position at the start of the new year not least to the new peak figures reached in revenues and incoming orders and the good overall result achieved in 1998. "We have once again topped the previous year's figures and, thanks to our consistently market- and profit-oriented policies, were able to utilize the boom in our industry to achieve optimal business success," Bischoff announced. "This has in turn enabled us to create 1,600 additional jobs, thus giving numerous young people the opportunity to start a professional career in the aerospace industry. And Dasa is seeking to take on 800 additional engineers this year."
He noted that all business units were contributing to the excellent figures and indicated that for 1998 he expects an operating profit that will lie considerably above that of the previous year. In the first nine months of the 1998 business year, the operating profit had already reached DM 592 million (year-end 1997: DM 432 mill.). However, the peak figures for total revenues and incoming orders have already been established. In 1998, overall revenues rose by twelve percent to DM 17. 2 billion (previous year: DM 15.3 bn), and incoming orders showed a rise of 39 percent, reaching DM 27,0 billion (DM 19.4 bn).
The main contributing factors here were the record orders for 556 (460) Airbus aircraft and, along with this upward trend in the aircraft business, the rise in sales of aircraft engines by Dasa's Munich-based subsidiary MTU München, who are also under contract to supply engines for the Eurofighter, the first tranche of which is currently in series production.

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Boeing 757-300 certified
FAA- und JAA-Zulassung für die Boeing 757-300

On January 27, the U.S. Federal Aviation Administration (FAA) has awarded Boeing a type certificate and a production certificate for the 757-300, the newest member of the 757 family. At the same time, Europe's Joint Aviation Authorities (JAA) has recommended 757-300 type validation. The individual European countries will award the actual type certificates. Both approvals were received on the scheduled days set forth last year, says the company.
To obtain certification, Boeing used three 757-300s to conduct a 5.5-month flight-test program. Together, the airplanes completed 356 flights, 1,286 hours of ground testing and 912 hours of flight testing. The 757-300 flight-test program packed more flight-test hours into a shorter period than any other major Boeing airplane derivative since the 737-400 in 1988. In comparison, the flight-test program of the Boeing 777-300, another derivative airplane, lasted nearly eight months. The Boeing 737-600's flight-test program was 6.5 months. The first delivery of the 757-300 to German charter carrier Condor is scheduled for March 1999.

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BDLI and AIAC sign cooperation agreement
Zusammenarbeit zwischen BDLI und Kanadischem Verband

The associations representing the aerospace industries of Germany and Canada have signed a Memorandum of Understanding designed to intensify collaboration between the two organizations. The importance of the agreement concluded between the Aerospace Industries Association of Canada (AIAC) and the German Aerospace Industries Association (BDLI) was underscored by the presence at the signing ceremony of Canadian Trade Minister Sergio Marchi and his counterpart at the German Federal Ministry of Economics and Technology, Dr. Werner Müller. Under this agreement, the two industry associations will identify specific initiatives which will lead to increased trade and investment flows between Canada and Germany. By enhancing cooperation, joint efforts and technology collaboration, the partner organizations will work to increase awareness of the value of aerospace with special emphasis on the benefits to be realized by small and medium-sized enterprises.

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Dornier delivers modern helicopter obstacle warning systems
Hinderniswarnsysteme für den BGS von Dornier

A new laser radar warns helicopter pilots of nearly invisible but, in the worst of cases, deadly obstacles. The device even detects wires only five-millimetre-thick. With Hellas, the new helicopter obstacle warning system from DaimlerChrysler Aerospace (Dasa/Munich), such accidents can be avoided. The Federal Border Guard has ordered 25 units for its new helicopters, the EC 135 and EC 155 Eurocopter models. This was reported by the Defense and Civil Systems Business Unit at Dornier GmbH in Friedrichshafen. Additionally, seven test and maintenance units for the new Hellas warning systems (Hellas = Helicopter Laser Radar) were ordered from Dornier. The helicopter fleet modernisation programme on the basis of Hellas is to be completed by 2002.
The Hellas warning system was successfully tested on different helicopter models (CH-53, UH-1D, Bk 117) under diverse approach and visibility conditions until production standard was achieved. The new warning system detects five-millimetre thick wires and this from a distance of several hundred metres. Optical and acoustic signals inform the pilot of en-route obstacles. In addition, the copilot has the possibility of obtaining more specific information from an integrated display in the cockpit. These digital map devices, also a Dornier development, show the obstacle information on a colour map.

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Boeing back in profit in 1998
Wieder Gewinne für Boeing

Boeing reported sales for the full year of 1998 of $ 56.2 billion and net earnings of $ 1,120 million, or $ 1.15 per share. Comparable figures for 1997 were sales of $ 45.8 billion and a net loss of $ 178 million, or $.18 per share. Excluding the fourth quarter 1997 special charge mentioned above, 1997 earnings were $698 million, or $.71 per share. The Commercial Aircraft revenues for the full year of 1998 were $ 35.5 billion, an increase of $ 8.6 billion over 1997. A total of 559 jet aircraft were delivered, (not including four 757/C-32A aircraft for the U.S. Government), compared with 374 in the full year of 1997. The overall earnings from operations margin for the Commercial Aircraft segment, excluding forward losses, valuation adjustments and research and development expense, was approximately 4 percent for 1998 compared with approximately 5 percent in 1997. This lower margin was principally attributable to the model mix of aircraft deliveries that included 15 more 777s and 162 more Next-Generation 737s in 1998 than during 1997, lower price-escalation trends and continued pricing pressures. Earnings from operations margin for 1999 will continue to reflect the relatively high percentage of 777 and Next-Generation 737 deliveries, continued pricing pressures and lower price-escalation trends. New commercial aircraft programs have lower gross profit margins due to higher unit production costs in the early years of a program. Additionally, no gross profit has yet been recognized for the Next-Generation 737 program, for which losses had previously been recognized, including $ 350 million pretax in the first quarter of 1998.

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Lockheed Martin reports 1998 financial results
Ergebnisse 1998 von Lockheed Martin

Lockheed Martin reported net earnings of $1.18 billion for 1998, compared with $1.29 billion for 1997. Net sales were $26.26 billion, versus $28.07 billion in 1997. Sales comparisons reflect the divestiture of a commercial information technology (IT) product distribution business from the Information & Services segment and a commercial aerostructures business in November 1997 and the sale of a commercial electronics manufacturing business in January 1998. "1998 was a year of strong performance by our Electronics businesses and disappointing performances primarily by the Space & Strategic Missiles segment and our commercial information products companies. Overall sales and earnings growth were below our expectations, reflecting these performance issues as well as delays of commercial space launches and military aircraft deliveries from 1998 into 1999. On the other hand, cash flow exceeded expectations. Free cash flow for the year was $1.57 billion, well above our $1 billion target, driven by lower net tax payments, reduced capital expenditures, and lower working capital requirements," said Vance Coffman, Chairman and Chief Executive Officer of Lockheed Martin.

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Air France nears privatization
Privatisierung der Air France vor der heißen Phase

One of Europe's last government-owned airlines nears privatization as France prepares to float 17% of Air France shares on the stock market. The French government, which owns 94.2% of the airline, disclosed its intentions and further announced that expected earnings from the sale should be about $707 million. The sale is widely regarded as the government's initial step toward full privatization. As described by Air France officials, the government will sell off 13.5 million of the 184 million shares to the general public and approximately 15.8 million shares to banks and investment funds. Air France employees, who have off and on staged strikes about the impact of privatization are to receive some 3 million shares of the airline. According to the French newspaper Le Monde, it is expected that the French government share of the airline could drop to as little as half by the end of 1999. Only about five years ago, the cherished French airline was saddled with more than $ 3.5 billion in debts, forcing the government to bail it out. The bailout was approved, as necessary by the European Commission, but only with French agreement to end its government ownership and the airline's push to cut costs. Air France pilots agreed last year to pay freezes in exchange for shares of Air France when it went public.

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NEWS IN BRIEF / KURZMELDUNGEN

On January 27 at around 3 pm, two Panavia Tornados of the Luftwaffe collided in mid-air some 30 km north of Norderney and crashed into the North Sea. While one crew was rescued and transfered to a hospital, the other two pilots are presumed to be dead, though they could not be found by the next afternoon. Both Tornados were from Jagdbombergeschwader 38 at Jever. The German armed forces have now lost over 30 of their swing-wing fighter-bombers.
+++
British Aerospace Regional Aircraft has signed an agreement with Aegean Aviation of Athens, Greece, for the sale of two Avro RJ100 aircraft with an option for two more. Deliveries are scheduled for April and May with entry into airline service planned for June 1999. The order, including options, is valued in excess of US$100m. Aegean will expand its activities in the recently deregulated Greek market for domestic scheduled services. The aircraft will be configured for a 100-seat business class layout and will be based in Athens. Initial plans are to serve Thessaloniki, Heraklion, Chania and Rhodes.
+++
Bayern Chemie is currently testing a ramjet engine for new mediu-range air-to-air missiles. The work is relevant in regard to the German Euraam programme as well as the European Meteor bid for the RAF. Accoridn to the company, recent tests have shown very good results, and the engine case was in very good shape after the firing, which included all phases of light from boost to sustaining. Bayern Chemie is a joint venture of Dasa and Thomson-CSF.
+++
On January 27, Taiwan successfully launched its first satellite on a Lockheed Martin Athena 1 rocket from the Cape Canaveral Air Station in Florida. The satellite, Rocsat-1, is the first of three planned satellites and will be used for carrying out communications experiments and observing ocean color and lightning in the ionosphere. The latter two satellites are due to fly in 2002.
+++
Lockheed Martin Electronics & Missiles has received a $25.15 million U.S. Air Force modification to an existing $7.6 million contract to upgrade the Low Light Level Television (LLLTV) system for the AC-130H Spectre Gunship used by the Air Force Special Operations Command. If all options are exercised, the contract could be worth up to $33 million and extend over four years. The LLLTV system enables the Spectre to covertly illuminate targets during night operations for the aircraft's battery of 20-, 40- and 105-mm guns. Using the system, crewmembers can shine a laser "flashlight" on potential ground targets -- a beam that is invisible to the naked eye, but not to the image intensifying cameras which display the target as a TV image used for fire control.
+++
Air Transport World Magazine, the leading monthly magazine covering the global airline industry, selected Atlanta-based Delta Air Lines as its Airline of the Year for 1998. The editors praised Delta for its dynamic leadership, superb profit margins and renewed commitment to passenger service, which is reflected in its return to the top ranks of U.S. airlines in terms of on-time performance, baggage handling and passenger satisfaction, as measured by the U.S. Dept. of Transportation.
+++
Tyrolean Airlines was selected as Air Transport Worlds Regional Airline of the Year. According to the magazine, Tyrolean "has been consistently profitable, inventive and growth-oriented since beginning operations in 1980." Belying the notion that regional airlines skimp on service, ATW noted that Tyrolean spends more money on catering and service than on fuel in order to meet the exacting demands of the business flier.
+++
SkyWest Airlines of St. George, Utah has placed a firm order with Bombardier Aerospace for 25 Canadair Regional Jet Series 200LR aircraft. The airline has taken options on an additional 25 of the 50-passenger twinjets. Value of the firm ordered aircraft is approximately $560 million U.S. ($852 million Cdn.) Deliveries will begin in mid-2000 and continue until December 2002. SkyWest was the first U.S. airline to sign on with the Canadair Regional Jet program, with a memorandum of understanding in March 1989 before the program was officially launched. The MOU was converted to a firm order for 10 CRJ Series 100ER aircraft which was announced on August 17, 1993. The CRJ entered revenue service with SkyWest on March 24, 1994 from its hub at Salt Lake City, Utah.
+++
Iridium World Communications Ltd., the first worldwide satellite telephone service, posted a big $440 million loss in the fourth quarter, on $186,000 in revenue. This dismal figures beat expectations after a $140 million advertising campaign last fall. The company has run into a series of delays in launching the global communications service and may risk losing its advertising investment. Most recently, it acknowledged a five-week delay due to a shortage of telephones and pagers during its first two months of operations.
+++
A Boeing-led team, including Northrop Grumman, British Aerospace Australia and Boeing Australia Limited, has submitted its response to a Request for Tender for Australia's Project Wedgetail, an airborne early warning & control (AEW&C) system. The response, which details the team's solution to meet the AEW&C requirements of the Royal Australian Air Force (RAAF), includes seven 737 AEW&C systems, plus ground support segments for flight and mission crew training, mission support and system modification support. Source selection is expected by mid-1999.
+++
On January 27, Lockheed Martin Aeronautical Systems (LMAS) tendered an offer for the supply of an Airborne Early Warning And Control capability to the Australian Defence Force (ADF). Responding to the Royal Australian Air Force Project AIR5077 Request for Tender, the LMAS offer is for six to seven C-130J-30 aircraft modified to accommodate an advanced derivative of Northrop Grumman Corporation's (NGC) Hawkeye 2000 AEW&C Mission System. Centerpiece of the system is an advanced UHF radar developed by Lockheed Martin Ocean, Radar and Sensor System (LMOR&SS). The tender includes a full family of training and support systems, and provision of an Initial Support Period for RAAF AEW&C operations.
+++
Akzo Nobel of the Netherlands has acquired from The Dexter Corporation their 40 percent participation in the the US company AD Aerospace Finishes (ADAF) joint venture for an undisclosed sum. From now on, this business will carry out its activities under the name Akzo Nobel Aerospace Coatings.
+++
Troubled Indonesian flag carrier Garuda Indonesia expects a net profit of 280 billion rupiah ($30 million) in 1999 against an estimated 400 billion rupiah net loss in 1998, a spokesman said. Revenue for 1999 is projected at seven trillion rupiah, the spokesman told reporters. He said the airline, which celebrated its 50th anniversary last week, plans to continue with its streamlining programme, concentrating on profitable routes and operating with fewer types of aircraft. "We believe that a solid consolidation programme, by maximising the profitable routes and operating with a restricted number of aeroplanes, could bring profits to us," he said. Debt-ridden Garuda has been badly battered by Indonesia's economic downturn and the plunge of the rupiah because much of its operating costs are in dollars while revenue is in rupiah. It has returned several leased planes and cut back its routes, and now just flies to three cities in Europe with a total fleet of 40 aircraft, mostly Boeings and Airbus. The airline has also laid off at least 2,000 workers as part of its restructuring programme.
+++
On January 21, NASA announced that it will delay this month's planned shipment of its Chandra X-ray Observatory from prime contractor TRW Space and Electronics Group, Redondo Beach, CA, to NASA's Kennedy Space Center , FL. The postponement will allow TRW to evaluate and correct a potential problem with several printed circuit boards in the observatory's command and data management system. TRW notified NASA of the potential problem last week after another spacecraft being built by the company experienced a failure during testing that was attributed to similar printed circuit boards.
+++
British Aerospace Asset Management Inc.-Turboprops (AMT) completed its three-year strategic program to stabilize its turboprop portfolio during 1998. Overseeing the management of 379 aircraft, Asset Management reduced its idle fleet to 10% of the total portfolio. Completing 43 new leases and 21 sales during last year, the AMT ground fleet now stands at 31 units. In addition, 26 lease extensions were completed. Total value of AMT's 1998 business is $114 million. A total of 12 customers acquired 21 aircraft in cash deals valued at $26 million, including ten Jetstream 31s, seven J32EPs, two Jetstream 41s, one ATP and one HS748. Among this sale business were transactions in Australia with Flight West Airlines and PearlJet Corporation; in North America with Alberta Citylink, Mid America Jet and Southern Pride Trucking; and in Europe with Love Air, Air Kilroe and Sun-Air.
+++
On January 28, Lockheed Martin Aeronautical Systems delivered six new, standard model C-130Js to the U.S. Air Force. These six aircraft are destined for the U.S. Air Force Reserve's new training wing at Keesler Air Force Base in Mississippi and, following operational test and evaluation, the Maryland Air National Guard.
+++
There are again rumours that Russia will have to delay launch of the living quarters of the International Space Station to late September from July. This was denied in Moscow, but Yuri Grigoryew, deputy chief designer of Energiya, a Russian company that is building the module, conceded that there could be a delay of about a month.
+++
Sigmar Mosdorf, State Secretary and Coordinator for Aerospace Affairs in the Geman government, has announced a new 1,2 billion DM research programme, running from 1999 to 2002. But the government will only provide 20 per cent of the money, with industry expected to shoulder 60 per cent and local states contributing another 20 per cent. Main aims would be technologies applicable to a 500-seat Megaliner, airliners of 50 to 200 seats, a silent all-weather helicopter and more efficient and clean turbofans.
+++
German aerospace industry association BDLI is concerned that further cuts in space funding by the German government will weaken the position of the industry and endanger its number two position in Europe.
+++
Augsburg Airways has reached profitability in 1998, the company claims. Passenger numbers of the regional airline soaed 86 per cent to 574000, while turnover doubled to 140 million DM. In 1999, consolidation will be the prime aim, says managing director Olaf Dlugi, but in the next five years there will be a 350 million DM investment in the fleet to boost aircraft numbers to 22. Augsburg Airways flies both as a Lufthansa partner and on its own routes.
+++
Airlines belonging to the Lufthansa group have transported 40,5 million passengers in 1998, an increase of 8,8 per cent compared to 1997. The best performer was Lufthansa CityLine with an increse of 14,5 per cent. On the other hand, Lufthansa Cargos tonne kilometre numbers fell 0,4 per cent to 1,7 million. Measure to optimise schedules are under way. In total, load factors were 70,4 per cent, while seat load factors are up a bit to 73,0 per cent. Lufthansa aircraft made 618615 flights in 1998.
+++
The German Green party will try to introduce a tax on aviation fuel in the EC. This is among the aims for this years election of the European Parliament.
+++

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Previous updates are still available:
Die News der letzten Wochen sind weiter abrufbar:

*January 24, 1999 *January 17, 1999 *January 10, 1999

*December 20, 1998 *December 13, 1998 *December 6, 1998

*November 29, 1998 *November 22, 1998 *November 15, 1998 *November 8, 1998 *November 1, 1998

*October 25, 1998 *October 18, 1998

*January to September 1998 *January to December 1997 *September to December 1996

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