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UPDATE
Week ending February 21, 1999

+++ Aerospatiale/Matra merger moves closer +++ Kosovo crisis: US sends more aircraft to Europe +++ Bombardier wins largest ever CRJ Sale +++ British Aerospace offers AVRO RJX +++ NATO starts execise Battle Griffin 99 +++ News in brief +++


Aerospatiale/Matra merger moves closer
Grünes Licht für Aerospatiale/Matra-Fusion

On February 13, the French prime minister Lionel Jospin and the minister of economy, finance and industry, Dominique Strauss-Khan have signed the Decree No 99-94 relative to the transfer from the public to the private sector of the equity of Aerospatiale SNI. According to the document, the minister of the economy, finance and industry will be responsible for execution of the decree, which clears the way for the implementation of the merger between Aerospatiale and Matra Hautes Technologies. "In accordance with the memorandum of agreement signed on July 22, 1998, this agreement will consolidate and strengthen France's expertise in aerospatiale and defense", a statement by Aerospatiale said.
Lagardère will be the prime strategic partner and largest private shareolder in the new company. Lagardère will aquire a 33% stake in the merged company and will benefit from specific rights related to its status as prime strategic partner, as stipulated in the shareholder's pact concluded between the French government and the Lagardère group. In exchange, Lagardère will transfer Matra Hautes Technologies to Aerospatiale and will pay the French state up to two billion French francs, consisting of a fixed payment of FF 850 million and up to an additional FF 1.15 billion, based on the performance of the Aérospatiale-Matra share vis a vis the CAC40 French index.
"In order to protect the national security interest, an ordinary share held by the state in the Aerospatiale company is transformed into a golden share," said the decree signed by Prime Minister Lionel Jospin. A state representative will sit on the Aerospatiale-Matra supervisory board as a non-executive officer, it said. The decree also gives the state the right of veto on sales of assets relating to the "prime contractor role, conception and integration of ballistic missiles and Aerospatiale's majority stakes in the capital of the companies Cilas, Sodern, Nucletudes and the Cosyde partnership."
The new company will be named Aerospatial-Matra and will have the status of a limited liability company with a supervisory board and a management board. Employees will have the opportunity to become shareholders in the company, which will be listed on the stock market. The supervisory board will be chaired by Jean-Luc Lagardère. The management board will be comprised Yves Michot, Chairman, and Philippe Camus, chief executive.
The agreement will be submitted to the "Commission des participations et des transferts" to ascertain its conformity. It will also be notified for approval by the European Commission in Brussels, and the employees representatives of Aerospatiale, of the companies that make up Matra Hautes Technologies, and the Lagardère group, the board of directors of Aerospatiale, the supervisory board of Lagardère and the general meeting of Lagardère. Aerospatiale stressed that, considering the complementary nature of the two groups, the merger will not result in any restructuring that will impact on employment.

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Kosovo crisis: US sends more aircraft to Europe
Mehr US-Flugzeuge verlegen nach Europa

As the deadline for results from the Kosovo peace-talks in Rambouilllet near Paris looms, NATO is stepping up preparations for possible military action in the Balkans. On February 17, US Defense Secretary William Cohen ordered 51 more aircraft to move to bases in Europe. A statement from the Pentagon said that 12 F-117 stealth fighters, 10 EA-6B Prowlers, four KC-10 tankers and 25 KC-135 tankers would leave for Europe within 48 hours. The Pentagon says the deployment is "a precautionary measure to assure that NATO has the capability to conduct operations should that prove necessary." The additional planes are part of the 260 aircraft the United States committed to support possible NATO airstrikes against targets in Yugoslavia.
It seems that the US is pushing for almost immediate airstrikes if Yugoslav President Slobodan Milosevic blocks a peace agreement with Albanian separatists by the Saturday deadline. NATO Secretary-General Javier Solana could order strikes without further consultations with the 16 NATO nations, if he is convinced the Yugoslav leader is the roadblock to peace.

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Bombardier wins largest ever CRJ Sale
Rekordauftrag für Bombardiers Canadair Regional Jet

Bombardier Aerospace announced its largest single sale of Canadair Regional Jet(R) aircraft to Northwest Airlines Inc. The contract is for 54 CRJ Series 200LR aircraft with an approximate list price of $1.3 billion U.S. Minneapolis-based Northwest has also secured options for up to 70 further 50-seat CRJ aircraft. Deliveries of the 54 aircraft on firm order are expected to begin in April 2000 and continue to mid-2004. "This is a great jet for our customers and for Northwest Airlines," said Mark Powers, Northwest vice president, finance and president, Northwest Aircraft. "The Canadair Regional Jet extends our ability to serve new markets and to provide improved service in many existing markets while providing our passengers with a quiet, appealing traveling environment." "At Bombardier, we are very proud that starting next year the Canadair Regional Jet will be a part of Northwest's operations," said Robert Gillespie, president, Bombardier Aerospace, Regional Aircraft. "The confidence that Northwest has demonstrated in the CRJ with an order of this magnitude is extremely gratifying." The Northwest contract raises the 50-passenger Canadair Regional Jet orderbook to 532 firm orders (290 of which have been delivered) and 240 options for a total of 772 aircraft units. In addition, Bombardier has recorded 96 firm orders and 138 options for its new 70-seat CRJ Series 700 bringing the overall CRJ family orderbook to 1,006 aircraft units, he said.

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British Aerospace offers AVRO RJX
Neue AVRO-Version wird angeboten

On February 16, British Aerospace Regional Aircraft announced that it has authority to conditionally 'offer' its new Avro RJX in 70-seat, 85-seat and 100-seat variants to airlines worldwide. This follows the achievement of pre-launch engineering goals and the selection of the powerplant. AlliedSignal's all new, two spool, through flow engine, the AS977-1A has been chosen for the Avro RJX-70, RJX-85 and RJX-100. In addition, risk-share terms have been agreed with the powerplant manufacturer. The Avro RJX will be the first regional aircraft application for the AS977. This engine will be even quieter than the LF507, currently on the Avro RJ -- some 18 EPNdB below existing Stage 3 requirements. It will also be extremely environmentally friendly, with very low gas emissions.
According to BAe, the new Avro RJX family will offer operators significant improvements over the existing Avro RJ including:- an increased range of about 17%, 5% additional thrust in climb, a 15% reduction in fuel burn and a reduction of approximately 20% in overall direct engine maintenance costs. The latter reflects the fact that the new AS977-1A will have 40% fewer engine parts. Overall, the new Avro RJX will be some 500lb (227 kg) lighter than the existing Avro RJ.
Subject to business conditions, project definition and the commitment of more risk share suppliers, British Aerospace Regional Aircraft is targeting a formal launch decision this autumn. This timescale requires the RJX Project Team to work towards CAA/FAA engine certification in December 2000, enabling airline service entry in May 2001.

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NATO starts exercise Battle Griffin 99
Übung Battle Griffin in Norwegen

From February 16 to March 3, Norway hosts one of the largest NATO exercises ever to have taken place in the country. About 20,000 soldiers from eight nations take part in Battle Griffin '99, demonstrating the Alliance' resolve and readiness to secure the collective security of its member countries. Non-Norwegian allied forces constitute about 35 per cent and contribute with an impressive number of aircraft and vessels. In all, about 45 naval vessels and 175 aircraft take part in Battle Griffin '99. More than 7,000 vehicles, in addition to trains and commercial shipping, are needed for transport.
The main objective is to practice established plans and procedures for the request, reception and deployment of NATO reinforcement forces to Norway in a crisis situation. The multinational forces include the US Norway Airlanded Marine Air Ground Task Force (NAL MAGTF), which is an important Allied reinforcement to Norway. Another significant operational objective is the Norwegian 6 Division's deployment from Troms to Central Norway. The exercise is held every third year to train NATO soldiers under cold weather conditions and in difficult terrain. This year Canada, Denmark, France, Germany, the Netherlands, Norway, United Kingdom and United States take part. For the exercise scenario, three artificial countries have been established covering the territory of the Kingdom of Norway. In the exercise setting, Norway was 50 years ago divided into these three sovereign countries along ethnic lines. The countries are Silverland, Copperland and Goldland.

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NEWS IN BRIEF / KURZMELDUNGEN

Singapore Airlines has signed a contract with Airbus Industrie for the purchase of up to 10 ultra-long range A340-500 aircraft, confirming a previously announced commitment for the new type. The contract covers firm orders for five aircraft plus five options, with deliveries scheduled to begin in the fourth quarter of 2002. All the aircraft on firm order will be delivered by the middle of 2003. Offering the longest range of any civil aircraft, the four engine A340-500 will be used by Singapore Airlines to develop the world's first non-stop transpacific operations out of South East Asia, linking Singapore directly with destinations such as Los Angeles and San Francisco. Representing distances of around 8,600 nautical miles / 15,900 kilometers, such routes are not possible with existing aircraft types.
+++
The Airbus Industrie A300-600ST Super Transporter has flown from Charles de Gaulle Airport to Narita Airport near Tokyo, operating a special charter flight to transport the 1831 painting, Liberty guiding the people (La Liberté guidant le Peuple) by Eugène Delacroix, which will be displayed at the Tokyo national Museum from 26 February to 28 March this year as part of the of the French year in Japan Program. Reproductions of the masterpiece are shown on both sides of the A300-600ST to mark the special operation. The A300600ST was chosen for this special mission because of its unrivalled volumetrio cargo capacity and ability to meet special requirements for unique freight consignments. The priceless Delacroix painting had to be packaged and transported upright in a special pressurized tank with isotherm protection, making the consignment 3.3 meters high and 3.9 meters in length, too larger to be carried by other freight aircraft.
+++
On February 25, the DRF (Deutsche Rettungsflugwacht) will inaugurate its new operations centre at the Baden-Airport in southwest Germany. The facility, which was built in less than a year, includes office space and a hangar where maintenance activities for the 23 helicopters and aircraft of the emergency medical services organisation will be centralised. Also, the two Learjet 35A will now be permanently based at Baden-Airport. Germany-wide, the DRF is operating 17 EMS stations. In 1998, 18000 rescue missions were flown.
+++
SATIC has contracted with the Sogerma Maintenance Centre for the assembly of a fifth Airbus A300-600ST Super Transporter freighter. The new aircraft will be delivered by the end of 2000 from the Sogerma plant in Toulouse. The fifth aircraft has proved necessary in response to the increase in Airbus production.Sogerma is also working on ATR maintenance and the cargo conversion of Airbus A300B2/B4s.
+++
Rohde & Schwarz has begun with the series preparation of the VHF/UHF main transceiver for the new TIGER combat and support helicopter. As with the Eurofighter Typhoon and NH-90 systems Rohde & Schwarz was able to win the order for the TIGER project and so underlined its position as a leading supplier of radiocommunications equipment for military aviation programs. At the 1998 ILA the German-French government contract for the series production of the TIGER helicopter was concluded, which meant the final adoption of bilateral implementation. In cooperation with Thomson of France Rohde & Schwarz will supply the VHF/UHF main transceiver featuring the modern SATURN (Second Generation of Anti-Jam Tactical UHF Radio for NATO) transmission method. The use of fast frequency hopping ensures maximum jam resistance. Thanks to VHF/UHF Transceiver XT621 P1 SATURN, the army aviation forces of Germany and France will for the first time be able to communicate via a digital transmission channel in the course of joint missions.
+++
SAR helicopters of the German navy (Marine) have flown 269 missions in 1998, rescuing or attending to 180 people in danger. Also, the Dornier 228LM surveillance aircraft flew 332 missions and detected 143 water pollutions in the North Sea and the Baltic. Both the SAR Sea Kings and the Dorniers are operated by the Marinefliegergeschwader 3 at Nordholz (near Cuxhaven).
+++
According to the German DFS (ATC organisation), there have been 2,32 million IFR flights in the airspace over the country in 1998, an increase of five per cent. Overflights had the biggest share of the movements, with 682000 or roughly 30 per cent, while intra-German flights accounted for 20 per cent. The APEG (Aircraft Proximity Evaluation Group) reported 17 near misses, nine of them in the high-risk Category A. Five of the incidents were cuased by ATC actions.
+++
Iberia, the Spanish carrier, has joined the oneworld airline alliance. Other members of the programme include American Airlines, British Airways, Canadian Airlines, Cathay Pacific and Qantas with Finnair to join later in the year. The addition of Iberia and Finnair to the alliance will bring the total number of passengers carried through the programme to 206 million, using a fleet of 1,783 aircraft to 680 destinations in 143 countries. Iberia's employees will have to undergo the oneworld training and communications programme before the airline becomes a full partner.
+++
Delta Air Lines, one of the largest airline in the United States, said it signed a definitive agreement to buy ASA Holdings Inc. the parent company of Atlantic Southeast Airlines, for about $700 million. Under terms of the deal, Delta will make a tender offer to purchase all outstanding common shares of ASA Holdings for $34 per share in cash. ASA Holdings has 28.5 million shares of common outstanding. Delta already owns nearly eight million of those ASA shares. Delta said ASA will become a wholly owned unit after the deal closes. The regional carrier will keep a separate work force and salary and benefits structure. Its labor agreements with the Air Line Pilots Association and the Association of Flight Attendants will remain in place, Delta said. The transaction will have a "minimal impact" on ASA employment, and there will be "no impact" on Delta employment, Delta said. Revenue gains are expected to come from more efficient operations, market growth, and better use of aircraft at both airlines. Atlantic Southeast is a large regional carrier, with its main hub in Atlanta, flying to 21 U.S. airports. ASA, which was founded in 1979, has a fleet of 88 aircraft with about 2,700 employees based in 40 cities.
+++
Trans World Airlines has posted its 10th consecutive annual loss. In the three months ended Dec. 31, the company's net loss widened to $79.1 million, or $1.30 a diluted share, compared with a loss of $31.2 million, or 62 cents a share, in the same period a year ago. Fourth-quarter results reflected $25 million in charges related to the retirement of TWA's 727 fleet and some DC9s. The airline said it may take more charges in 1999, with TWA expecting to slash 1,000 more workers from its 21,000-strong payroll, mostly through attrition and voluntary severance
++++
Airbus now sees demand for its A3XX starting in 2005 rather than in 2004, the company has said. Airbus still expected to start marketing the new Jumbo-sized airliner by the year-end, subject to board approval by its shareholders. The delay is mainly implicated by the slowdown in the air travel market due in part to the Asian crisis.
+++
Lufthansa's airport ground services unit, GlobeGround, said it had signed an agreement to buy Hudson General for $76 cash per share. Great Neck, N.Y.-based Hudson General, which handles baggage, fuelling and de-icing at three New York City airports and at airports across the United States and Canada, is the North American link for GlobeGround, which provides ground services at 80 airports worldwide.
+++
JCSAT-6 finally made it into orbit after numerous delays that began last summer. The craft was carried into space by a Lockheed Martin Atlas 2AS rocket at 8:45pm on February 15, after a launch countdown that wasn't without delays. The JCSAT-6 satellite, a HS-601 type built by Hughes Space and Communications Co., is planned to operate from 124 degrees East and provide digital television, Internet, data communications and telephone links to customers in Japan and East Asia. It carries a payload of 32 ku-band transponders.
+++
Lockheed Martin Tactical Aircraft Systems received authorization for executing an option for 18 additional F-16A/B Mid-Life Update (MLU) kits for the Belgian Air Force. The authorization was received on January 22, 1999, and is valued at $46 million. Delivery of the kits to Belgium is scheduled to begin in March 2002 and complete in June 2003. The kits will be installed by SABCA in Belgium. This latest buy brings the Belgian MLU total to 110 aircraft kits and total program orders to 360 kits, which includes the U.S. Air Force flight test aircraft. The other countries participating in the modification program are Denmark, the Netherlands and Norway. In addition, Portugal recently signed a Letter of Offer and Acceptance for 20 MLU kits along with 25 used USAF F-16A/B aircraft. Several other F-16A/B users are considering the MLU modification.
+++

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

*February 14, 1999 *February 7, 1999

*January 31, 1999 *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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Last updated February 18, 1999
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