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UPDATE 
Week ending August 8, 1999

+++ Brandenburg High Court blocks Berlin airport sale to Hochtief +++ CFM56 forces in on A318 +++ Strong performance by European aerospace industry +++ Dasa to buy $12 Million equity stake in SPACEHAB +++ UK: no offer fits strategic airlifter need +++ News in brief +++

Brandenburg High Court blocks Berlin airport sale to Hochtief
Oberlandesgericht Brandenburg hebt BBF-Verkauf an Hochtief-Konsortium auf

On August 2nd a Brandenburg law court invalidated the sale (privatization) of the Berlin Brandenburg Flughafen Holding (BBF) to the "preferred bidder" consortium of Hochtief Airport GmbH, ABB Airport Technologies, Frankfurt Airport AG and Berlin Bank AG. Now the procedure of privatization starts again, and the second competitor, the IVG-consortium (with Dorsch Consult, Vienna Airport AG and Caisse des Dépôts) has a new chance to bid. One of the reasons for the judgement was the fact that some of the people who had had to decide about the "buying consortium" possessed two political mandates such as Berlin's Finance Senator Annette Fugmann-Heesing (SPD). She was as well member of the Hochtief board of directors as of the BBF. Moreover, the chair judge critisized the preparing of the privatization as dissatisfactory which should have to be corrected now.

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CFM56 forces in on A318
A318 jetzt auch mit CFM56-Triebwerken

After hard pressure by airlines Airbus Industrie has been forced to scrap its single source Pratt & Whitney engine solution for the A318. On August 4, it signed a formal agreement with CFM International to adapt the CFM 56 engine for the A318. This follows the formal selection of the CFM56-5B engine by launch customer Air France to power its A318s. Offered initially with the Pratt & Whitney PW6000 engine, the agreement with CFM International gives A318 customers a choice between two engine types. Launched in April this year, the A318 equipped with PW6000s is to enter service in the last quarter of 2000, while the CFM-powered version will be delivered from the second half of 2003. So far, the A318 has obtained 109 orders and commitments.

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Strong performance by European aerospace industry
Gute Bilanz für Europas Luftfahrtindustrie

The European Association of Aerospace Industries (AECMA) has published its statistical data for 1998 during a press conference in Milan, Italy. The aerospace industry in Europe provides a substantial business potential with an outstanding balance of trade. In the context of European integration, the air transport and aerospace industry are gaining momentum. Dr Giorgio Zappa, President of AECMA and President of Alenia Aerospazio, highlighted the aerospace industry as a driving force for European integration and that it requires a European framework for its development. Steps taken by the European Union, such as the 5th Framework Programme for Research and Technology, the Galileo project and the mandate for setting up an European Aviation Safety Authority should provide European momentum to the industry.
1998 has been a successful year for the European Aerospace Industry with a continued growth of turnover by 6% up to 62.2 Billion ECU*, an order intake of 1.6 times turnover and a profit level rising to 6.6% of turnover from 4.2% in 1997. With a positive balance of trade of close to 10 Billion ECU in 1998 the aerospace industry leads by far all high-tech sectors in the EU. The R&D Expenditure amounts to 16% of turnover, which ranks the aerospace industry the first amongst all industries. The turnover growth has been achieved on the European domestic market and with exports to the US which increased by 30%, whilst exports to the rest of the world declined by 20%. Exports at 32 Billion ECU represent more than 50% of the turnover. Home government contracts account for about one quarter of the business.

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Dasa to buy $12 Million equity stake in SPACEHAB
SPACEHAB: Dasa will weitere Anteile erwerben

SPACEHAB, Inc. announced that Munich-based DaimlerChrysler Aerospace AG (Dasa) is buying a $12 million equity stake in the Washington-based commercial space services provider. Dasa has agreed to purchase 1.33 million shares of preferred stock. The preferred stock, convertible on a one-for-one basis into common stock, will increase Dasa's investment interest in SPACEHAB to approximately 11.5%. Dasa, which is the aerospace subsidiary of DaimlerChrysler, already owned one percent of SPACEHAB's outstanding common stock and the two companies enjoy a close working relationship. Dasa is a subcontractor on SPACEHAB's Integrated Cargo Carrier program, which was used by NASA to deliver unpressurized cargo to the International Space Station (ISS) during Discovery mission STS-96 in May. The increase of equity by Dasa in SPACEHAB expands and solidifies that relationship as both companies pursue opportunities related to commercial resupply and utilization of the ISS. Recently, Dasa's Space Infrastructure Division took over leadership in the initiative to industrialize operations and utilization of Europe's share in the ISS by submitting a proposal to the European Space Agency (ESA). Among various others, one potential area of cooperation is an advanced orbital propulsion system related to ISS servicing and station-based science and research.

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UK: no offer fits strategic airlifter need
Vorerst kein Großtransporter für Großbritannien

According to the UK Ministry of Defence, the five industry proposals to meet the requirement for a Short Term Strategic Airlift (STSA) capability have been carefully evaluated, but none is judged to offer an acceptable solution at an affordable cost, and so the competition will be terminated. Other options will now be urgently explored. Baroness Symons said: "The bids offered by five tenderers in response to the STSA requirement all had much to commend them, and I am most grateful to the bidders for their efforts. None, however, offered an acceptable combination of capability and cost, and we have reluctantly concluded that it would be unfair to invite the companies to expend further effort in the context of the current competition, which will now be terminated. "There remains an urgent need for additional airlift. The Department will now explore other approaches to improve our airlift capability in the short-term. There are a range of possible options for improving on our current arrangements for spot charter, and we shall aim to identify the most cost-effective of these. This will include exploring the scope for short-term chartering or leasing arrangements. Our target for determining the way ahead remains unchanged as early next year."
Plans were announced in the Strategic Defence Review (SDR) last July to acquire an improved strategic airlift capability in the short term, and five bids were received in January in response to the Invitation to Tender issued last autumn. The requirement remains urgent, and the Defence Procurement Agency will now seek ideas on alternative approaches from a range of companies. The intention remains to reach a decision on the way forward at the same time as the decision on the longer-term Future Transport Aircraft requirement to replace the balance of the RAF's ageing air transport fleet.

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NEWS IN BRIEF / KURZMELDUNGEN

On August 3, Bombardier Aerospace announced that Tyrolean Airways of Innsbruck, Austria had placed a firm order for two CRJ200 Series regional jet aircraft. The order represents the conversion of existing options. The contract is valued at approximately U.S. $47 million (Cdn $68 million). The order announced today will increase to 12 the number of CRJ200 aircraft in Tyrolean's fleet and brings Bombardier's orderbook total to 1,069 orders and options for its family of 50- and 70- passenger Canadair Regional Jet aircraft. "The CRJ200 Series has helped us meet the challenges of increased competition in Europe. It has proven to be particularly effective deployed on routes with high business travel potential where speed and frequency are key to successful revenue growth," said Fritz Feitl, president and CEO of Tyrolean Airways.
+++
British Aerospace has denied reports in German paper Frankfurter Allgemeine Zeitung that it is considering selling its voting rights in Airbus Industrie. The company is still working hard towards achieving a single corporate entitiy, a spokesman said.
+++
Press reports from Bangkok indicate that Thai prime minister Chuan Leekpai has approved the acquisition of second hand German Alpha Jets. However, it seems that the number has been cut from 50 to 25, in a move to please all sides and placate critics of the deal. It is said that the Alpha Jets, which are now stored for years after removal from Luftwaffe service, cost just 27000 US-Dollars each but will need 1,6 million Dollars in upgrades.
+++
Eleven months after the crash of a Swissair MD-11 off Nova Scotia, court proceedings on damages have begun at Philadelphia. 42 parties are claiming payouts of 42 billion US-Dollars. Defendants are Swissair, its US code-share partner Delta Air Lines and Boeing. A final report on the cause of the crash, which killed all 229 on board, is still months off.
+++
The British Government has given the go-ahead for a mission to land a British space craft emblazoned with the Union Jack on Mars. Beagle Two will deploy a robot "mole" to burrow into the Martian soil and look for signs of life. Most of the funding for the 25 million project has come from private industry, but it would have been grounded without extra Government backing. Science minister Lord Sainsbury was due to announce that about 5 million of taxpayers' money was to go towards the mission, providing the final financial boost it needed. The lander, brainchild of Professor Colin Pillinger, head of the Open University's Planetary Sciences Research Institute, will form part of the European Space Agency's Mars Express mission due for launch in 2003. Beagle Two, which is about the size of a microwave oven, will drop on to the surface of Mars while the ESA vehicle orbits the planet taking pictures.
+++
On August 4, Gulfstream Aerospace announced the completion and delivery of the 50th Gulfstream V, the world's first ultra-long range business aircraft. The Gulfstream V is in its third year of customer deliveries and continues to outpace the competition with a commanding lead in orders, which are approaching 150. "It is appropriate that Ted Forstmann receive this milestone 50th delivery for the Gulfstream V program," said Bill Boisture, president and chief operating officer for Gulfstream Aerospace. "Ted has been a long-standing customer of Gulfstream and a strong leader for this company the past six years. He knows personally that Gulfstream builds the finest business aircraft in the world today."
+++
On August 2, for the second time in less than two months, the Theater High Altitude Area Defense (THAAD) weapon system, managed by Lockheed Martin Missiles & Space, intercepted a target missile over White Sands Missile Range, NM. The successful test, conducted by the U.S. Army, Ballistic Missile Defense Organization (BMDO) and a contractor team led by Missiles & Space, moves the vital defensive missile system one step closer toward deployment.The intercept occurred outside the earth's atmosphere, over the central portion of the national missile test area.
+++
In a major milestone toward flight testing next year, Boeing has connected electrical power to its Joint Strike Fighter X-32A concept demonstrator. The X-32A is in final assembly and systems installation here. The cockpit's interior lighting, multifunction displays, heaters and several display panels were the first systems powered by an external source. Each system tested was fully operational. Electrical checkouts of the aircraft's avionics and subsystems are underway on a daily basis.
+++
Data Systems & Solutions, the new joint venture formed by Rolls-Royce and Science Applications International Corporation (SAIC), has won its first civil aerospace contract for a real-time engine condition monitoring (ECM) system. It will provide ECM to support German charter airline Condor's fleet of 13 Boeing 757-300 aircraft, powered by the Rolls-Royce RB211-535, as they enter into service in 1999 and 2000. The contract covers a ten-year period. Engine data is transmitted during flight to the Data Systems & Solutions engine health centre in Derby, United Kingdom, for processing. Information regarding the health of the engines is then sent back to Condor, giving its engineers early warning of any maintenance requirements. The same information is sent to Rolls-Royce, to anticipate Condor's support requirements. "We are confident that having the latest information available about the engines will help us reduce operating costs and add significant value to our maintenance planning," said Klaus Reymer, Manager of Boeing Aircraft Engineering and Production Planning for Condor. "The development and introduction of the ECM service is a result of excellent teamwork between Condor, Data Systems & Solutions and Rolls-Royce."
+++
Congestion in the air space over Europe is getting worse every year. One telling example is the increase in delays on approach. Last year the aircraft operated by Lufthansa and Lufthansa CityLine spent over 11,200 hours in holding patterns in German air space alone - the highest number since 1994. This caused additional fuel burn of 26,200 tons of kerosene, 25.4 percent higher than in 1997, and about twice the quantity of fuel conserved by Lufthansa through efficiency improvements. As a result, over 82,600 tons of CO2 polluted the environment unnecessarily.
+++
A new launch date of August 12 has been set for Arianespace Flight 118. This allows for the replacement of component hardware on the Flight 118 launch vehicle. The change-out involves four identical electrovalve interface units located on the Ariane 4 launcher's third stage cryogenic engine. This replacement was decided after an electrical system anomaly was detected during the checkout of a similar third stage cryogenic engine in Europe.
+++
The Aircraft Maintenance and Engineering Corporation (AMECO), Peking, a joint venture operating in the aircraft maintenance business, in which Air China has a 60 per-cent stake and Lufthansa 40 per cent, is anticipating further good results in the years ahead. "AMECO will evolve into one of the world's most successful aircraft maintenance and overhaul companies," said August-Wilhelm Henningsen, General Manager AMECO, during last weekend's 10th anniversary celebrations in Asia's biggest aircraft hangar in Beijing. In its last business year, AMECO posted revenues totalling 1,250 million CNY (150 million US-dollars). The company was founded in May 1989 with a share capital of 326.5 million yuan, then equivalent to about 88 million US-dollars. It was scheduled initially to operate up to the year 2004, the longest possible term allowed by law at the time for a Chinese joint venture.
+++
Brazilian regional jet maker Embraer said it was still far from finding a strategic partner after a local magazine reported over the weekend it was about to close a deal with France's Dassault Aviation . ``We have talked with several different companies on what will be an effective basis for a strategic alliance,'' Embraer's president and CEO Mauricio Botelho told a conference call.
+++
The millennium computer bug will not pose a safety risk for airline passengers but may cause irksome inconveniences like flight delays or a long wait for baggage, the world air transport group IATA said Thursday.
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Previous updates are still available:
Die News der letzten Wochen sind weiter abrufbar:

*August 1, 1999

*July 18, 1999 *July 11, 1999 *July 4, 1999

*June 27, 1999 *June 20, 1999 *June 13, 1999 *June 6, 1999

*May 30, 1999 *May 23, 1999 *May 16, 1999 *May 9, 1999 *May 2, 1999

*April 25, 1999 *April 18, 1999 *April 11, 1999 *April 4, 1999

*January to March 1999 *January to December 1998 *January to December 1997 *September to December 1996

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