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UPDATE 
Week ending November 21, 1999
+++ Swissair concludes alliance with American +++ Hubble placed in safe mode +++ Lufthansa profits down +++ Dasa Mako for UAE? +++ Saab to buy Celsius AB +++ No satellite damage through meteor shower +++ Eurofighter Simulation Systems (ESS) GmbH established +++ News in brief +++

Swissair concludes alliance with American
Swissair setzt auf American Airlines

American Airlines, Swissair and Sabena have concluded a ten-year cooperation agreement and are introducing codeshare flights to Chicago, Boston, Miami and Washington, from November 21. The three partners will apply to the United States Department of Transportation for antitrust immunity for their alliance. American Airlines, Swissair and Sabena have also reached agreement on their respective frequent flyer programmes. American Airlines President Don Carty is very pleased with the developments, stating, "We want to expand our cooperation to form an alliance that offers a comprehensive route network and outstanding customer service." Philippe Bruggisser, SAirGroup CEO also sees great significance in the speed and consistent pace at which the partnership with American Airlines is being pursued: "Over the course of 2000 we will dismantle the previous cooperation agreement we had with Delta Air Lines and increasingly focus on our new partner, American Airlines. We hope to be granted antitrust immunity, a step that will allow us to more closely coordinate timetables, fares and destinations and to offer the customers of this alliance a first-class product in terms of connections, through check-in and other services."
Over the coming year the airlines plan to expand this codeshare agreement to all transatlantic flights operating between Switzerland, Belgium and the USA, to all of American's onward destinations within the USA and to all of Swissair and Sabena's onward European connections. In the coming months discussions will also be held with other members of the Qualiflyer Group of European airlines, of which Swissair and Sabena are members, to further strengthen the new alliance network.

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Hubble placed in safe mode
Ausfälle beim Hubble-Teleskop

NASA's Hubble Space Telescope was placed into a safe hold at approximately 8:30 a.m. EST on November 13 when gyroscope 1 ceased operation. With only two operational gyros remaining, the science program will be suspended until completion of Servicing Mission 3A, currently scheduled for launch aboard Space Shuttle Discovery on Dec. 6, 1999. This gyro situation is not expected to impact the upcoming servicing mission. In fact, anticipation that another gyro could fail was the primary reason that Hubble managers scheduled an early repair mission and split the third servicing mission activities into two flights: Servicing Mission-3A (Dec. 6, 1999) and Servicing Mission-3B (Mid-2001). "This event underscores the wisdom of dividing the third HST Servicing Mission into two parts, with Servicing Mission 3A scheduled for December 1999 -- only 3 weeks of science data will be lost," said Dr. John Campbell, Hubble Space Telescope Program Manager at NASA's Goddard Space Flight Center, Greenbelt, MD. The safe-hold mode has been thoroughly tested and used twice since Hubble's launch in 1990. The telescope is not at risk. This protective safe mode allows ground control of the telescope, but with only two gyros working, Hubble cannot be aimed with the precision necessary for scientific observations of the sky.

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Lufthansa profits down
Geringere Gewinne bei Lufthansa

On November 18th the Lufthansa Group announced an operating profit of DM 1.03 billion during the first nine months of this year. "With this performance we remain pacemakers in the airline industry. The earnings result underscores Lufthansa's ambition to lead the field", said Lufthansa's Chairman and CEO Jürgen Weber. Following a difficult start, the course of business has improved more and more. "For the full year we anticipate an operating result of DM 1.3 billion," Mr Weber added. Like the rest of the airline industry, Lufthansa has been handicapped this year by adverse operating conditions. The overburdened air traffic control system, the war in Kosovo and capacity expansion by the airline industry as a whole in excess of market growth have had an impact on the course of business. With timely and anticipatory moves, Lufthansa initiated operational measures to safeguard profitability.
Concerning separate sectors of the Lufthansa concern, Lufthansa Cargo only earned two million DM instead of 175 million last year. LH Technic profit was down 12 million to 74 million DM, while the LSG catering business lost 13 million DM.

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Dasa Mako for UAE?
Kooperationsvertrag zwischen Dasa und VAE

On November 18 the Air Force and Air Defence of the United Arab Emirates (UAE) and Dasa signed two Memorandums of Understanding (MoU). The first MoU is to define details on future cooperation on the Mako Light Combat Aircraft and Advanced Trainer programme. Integrated teams of the UAE Air Force and Dasa Military Aircraft will evaluate all possible forms of collaboration on the project in particular by creating a strong technology base in the UAE in areas such as flight test, software development, test and integration to enable the UAE to become a partner and contributor in aviation technology to the programme. Dasa Military Aircraft has developed the basic modular concept for Mako and is currently investigating specific customer requests in detailed studies. The second MoU to be signed will establish a strategic dialogue on technology cooperation between the UAE Armed Forces and the Defence Division of DaimlerChrysler Aerospace. It is based on the governmental MoU signed by the UAE and Germany at IDEX '97 at Abu Dhabi which established the framework for long term co-operation. The UAE Armed Forces and Dasa will set up joint projects which will include technical and operational conferences, system engineering know-how, exchange of engineers, training, etc.

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Saab to buy Celsius AB
Neue Rüstungsfusion in Europa

In a new consolidation move, Saab has decided to buy Celsius for 600 million US-Dollars to create the leading Nordic Defense company. Saab will become a strong player in these growth areas with a broad product portfolio, stronger technological capability as well as more extensive research and development. The new Saab will have a broad base of key technologies and competencies in the most attractive areas of the Defense market, which will improve its position for the future. The new company will be sufficiently large to actively participate in international collaboration. Domestically, the combination will provide the optimal solution for any future guided weapons programs. "Combining Saab and Celsius is a strategically appropriate and important first step in light of the international development in the Defense industry. I see this as a necessary move in order to participate actively in the restructuring process. Furthermore, the transaction creates added value for Saab's shareholders, and creates a stronger Saab" says Anders Scharp, Chairman of the Saab Board of Directors.
British Aerospace and Investor, the major owners of Saab, who together have 55 per cent of the shares and 71 per cent of the votes in Saab, unanimously support the Offer. Synergies and financial effects A combination of Saab and Celsius will generate substantial synergies through improved use of resources and the effective exploitation of economies of scale. Saab estimates that yearly cost savings of approximately SEK 400 million per annum pre-tax can be achieved within three years after the merger. The non-recurring costs of achieving these savings are expected to be approximately SEK 600 million pre-tax.

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No satellite damage through meteor shower
Satelliten überstehen Leonidensturm umbeschadet

The spectacular Leonid meteor stream which was hitting Earth in the last few days seems to have left satellites in orbit unscathed. The storm at its peak reached between 1,800 to 2,200 meteorites per hour. Because of concerns for the many satellites in orbit, commercial and government satellite operators took precautions. To reduce the potential for damage some commercial operators turned satellite solar panels so only an edge was facing the storm, a process called slewing. Since electrostatic charges generated by meteor strikes can scramble electrical components, operators turned some subsystems off and refrained from sending anything but essential commands to the satellites. A spokesman for the Air Force's 50th Space Wing said the Air Force had studied the Leonids and, while they monitored the situation closely, they decided not to slew the solar panels, turn off systems or modify their command schedule. So far there appears to be no damage to any satellite.

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Eurofighter Simulation Systems (ESS) GmbH established
STN Atlas gründet Simulatorkonsortium

STN ATLAS Elektronik GmbH, a subsidiary of Rheinmetall DeTec AG, has established the company Eurofighter Simulation Systems GmbH (ESS) in cooperation with INDRA Sistemas (Spain), Meteor Construzioni Aeronautiche et Elettroniche (Italy), Thomson Training & Simulation (UK) and CAE GmbH/Stollberg. This joint venture company will develop and produce components required specifically for simulators to be used to train pilots of the Eurofighter Typhoon weapon system. Working in close cooperation with the air forces of Germany, the United Kingdom, Italy and Spain, ESS GmbH will develop, manufacture and put into operation the simulators for the multinational European Eurofighter program. The cooperation between these European partners will also help to ensure that sufficient consideration is given to the individual interests of the four participating nations. The development and utilization of high-tech products will strengthen the position of the European simulator industry and is an important step towards sustaining independence in Europe. ESS GmbH was already included in the concept and definition phase (that will continue until October 2000) while the joint venture was being established and collaborated closely with the customers on the general specification.

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NEWS IN BRIEF / KURZMELDUNGEN

The German government is checking whether to lend financial support for the planned Airbus A3XX. The odds are good, said Dietmar Mosdorf, State Secretary for aerosace affairs, in Berlin. Dasa has asked for 2,5 billion DM, it was revealed. Mosdorf expects a decision on the A3XX launch by next spring. Concerning the final assembly line, German workers committees hope that a good decision will be made in any case, with those not choosen getting more work on other parts of the programme.
+++
Japans HII launcher has failed again. The launch on November 15 was ended when the first stage engine quit 100 seconds earlier than planned, and the first stage was jettisoned 30 seconds early. Range safety then dictated destruction of the HII around 8 minutes after lift-off. The loss, including the two destroyed satellites, is estimated at 315 million Euro.
+++
In the run-up to the next WTO Ministerial Conference in Seattle 30 November - 3 December, IATA has pubished a discussion paper on liberalisation. Pierre Jeanniot, Director General of IATA, said : "There is no question that the air transport industry will continue to liberalise. Our main concern is that liberalisation proceeds in a manner which produces the best balance of benefits to consumers, airlines and the public interest." IATA believes that there is a need to educate trade negotiators about air transport and airlines about the GATS. Also, the International Civil Aviation Organization (ICAO) should continue to be the intergovernmental agency dealing with air transport. The Seattle Round offers the opportunity to clarify what is covered by the GATS and to develop better trade definitions for the air transport sector. Potential obstacles to market access, such as congestion, environmental measures and taxation, should be identified and addressed. The airline industry prefers to be dealt with on a sectoral basis and not as part of a package of services and goods. GATS is not the vehicle for fundamental reform at this time. Applying the Most Favoured Nation (MFN) principle could even hold back liberalisation if liberal treatment was not granted on a reciprocal basis. Finally, there is a belief that a hybrid system could emerge that would allow multilateral and bilateral arrangements to coexist depending on national and regional preferences and needs.
+++
A brand new Lockheed Martin C-130J Hurricane Hunter aircraft, assigned to the 53rd Weather Reconnaissance Squadron (WRS) at Keesler Air Force Base in Biloxi, Miss., is tracking Hurricane Lenny. The first new WC-130J was handed over to Air Force Reserve Command in September, but it is already operating in the Hurricane environment as part of its Qualification Test and Evaluation program. The aircraft was flown from Keesler AFB directly to Hurricane Lenny before landing at Homestead AFB, Fla. The WC-130J's first mission on November12 was 14.2 hours in length, and was followed by a 12.2-hour mission and a 13.5-hour mission. Crews on board the aircraft say that the new "Weatherbird's" performance is outstanding, and brings tremendous new capability to the hurricane tracking mission.
+++
Lockheed Martin Missiles & Space, Sunnyvale, Calif., was recently awarded a $700,000 contract from the Space and Naval Warfare Systems Command, to perform a concept study for the Navy's next generation communication satellite system. Missiles & Space was one of four companies to receive this competitive award that will run through April 2000. Under this contract, Missiles & Space will perform a concept study for the Advanced Narrowband System (ANS) / Mobile User Objective System (MUOS). MUOS is a government owned or controlled communication system composed of spacecraft, spacecraft control and network control elements. ANS, an overarching communications "system of systems", will consist of MUOS, commercial mobile subscriber services and possibly an airborne communications node.
+++
A flight experiment designed to measure the aeroelastic response of a small test wing, and to monitor in-flight gust intensity using a new laser-based device is being conducted at the NASA Dryden Flight Research Center, Edwards, Calif. This University of California, Los Angeles (UCLA) student experiment, led by graduate student Oscar Alvarez-Salazar, is called the Gust Monitoring and Aeroelasticity (GMA) experiment. The experiment seeks to investigate the dynamic response of a flexible wing to in-flight maneuvers and atmospheric wind gusts. In addition, the experiment is testing a new gust-monitoring device based on measurements of the forward scattering of a laser beam. This work will help understand aeroelastic wing flutter and the response of wings to gusts. Aeroelastic flutter is an unstable condition of aircraft wings at which the wings vibrate with increasing amplitude. Structural failure is typically unavoidable when this happens. The small test wing and a low-power laser are flown attached to the Flight Test Fixture-II (FTF-II) of Dryden's F-15B Aerodynamic Research Test Bed aircraft.
+++
French economics newspaper "Les Echos" has reported that British Aerospace is hampering the EADS efforts to complete its management team. They have supposedly blocked the nomination of Airbus chief executive Noel Forgeard as one of the directors of EADS, responsible for Airbus. This double-duty is not acceptable to BAe, as it could lead to conflicts of interest between the consortium and its largest shareholder.
+++
On November 18, the Alliant Aerospace Company successfully completed the first of three static test firings to qualify a solid rocket motor for Boeing's new Delta IV Medium-plus family of launch vehicles. The Delta IV vehicles are the latest derivative of the Delta family of rockets that has been lifting satellites into orbit since 1960. The new graphite epoxy motor for Delta IV, known as GEM-60, is designed to provide a lift capacity ranging between 12,890 and 14,475 pounds to geosynchronous transfer orbit (GTO).Alliant Aerospace Company is leasing the state-of-the-art Thiokol Propulsion test facilities near Brigham City, Utah, to test the new Delta IV motors. The company previously conducted all test-firing operations at a remote site 80 miles west of Salt Lake City named Tekoi.
+++
On November 17, Bombardier Aerospace signed a firm sales contract for a total of 12 Learjet 45, Learjet 60, Continental business jet and Special Edition aircraft with the ExecuJet Aviation Group. The total value of the transaction is approximately $145 million U.S. ($213 million Cdn). It includes five Learjet 45, two Learjet 60, four Continental and one Special Edition aircraft. Deliveries will begin in the year 2000. All of the aircraft are destined for operators in southern Africa and Scandinavia, two regions where Bombardier is represented by ExecuJet. The purchases are the largest to date made by the ExecuJet Aviation Group, a Swiss-based group active in the management, charter, leasing, sale and support of Bombardier business aircraft in Africa, the Middle East and Europe.
+++
France's Ministry of Defense recently issued a letter of order to Raytheon for an undisclosed number of Paveway II and Paveway III kits along with test equipment, spares and training support totaling approximately $100 million. The Paveway II kits will be used to adapt MK-82 500 lb. and MK-83 1,000 lb. warheads to full-up Paveway II Laser Guided Bombs (LGBs). The Paveway III kits will be used to adapt BLU-109 penetrator warheads, MK-82 500 lb. and MK-84 2,000 lb. warheads to Paveway III LGBs. The letter of order is expected to be formalized later this month. Contract deliveries will begin early next year pending U.S. government export approval and should be completed by October 2001.
+++
On November 16, a Raytheon and Thomson-CSF Consortium signed a 152 million Swiss Francs ($101 million) Phase IV/V contract with the Swiss Defence Procurement Agency (DPA) to continue implementation of the FLORAKO air defense system. The Phase IV/V contract includes new multifunction military radars, new monopulse secondary surveillance radars to be delivered by Thomson-CSF, modifications to military radar sites and integration of the new radars into the FLORAKO system. FLORAKO is being implemented and funded incrementally. In December 1997, the Raytheon-Thomson-CSF Consortium received a Phase I award for prototyping and risk reduction activities. A Phase II/III contract, which included the core system design, new primary and secondary surveillance radars, Air Defense hardware equipment and software and new voice and data communications was awarded to the Consortium in November, 1998.
+++
Gulfstream is taking a major step toward being the first aircraft manufacturer to offer customers an Enhanced Vision System (EVS). The EVS is a pioneering system using infrared imaging technology that improves the safety and utility of Gulfstream aircraft while taxiing, landing and in avoiding terrain in low visibility conditions. "The GulfstreamV test flights are proving that EVS will greatly enhance aviation safety in real-life conditions, including night situational awareness, terrain avoidance and approaches into unfamiliar airports." said Gary Freeman, senior experimental test pilot and EVS program pilot for Gulfstream. "We have flown the Gulfstream V test-bed aircraft on numerous approaches in a variety of inclement weather conditions. Gulfstream pilots will immediately be comfortable and delighted with the visual information provided to them by EVS."
+++
British Airways first half year results at UKP 240m before tax (as against UKP 385m last year) were much in line with expectations. The dividend was held. What worried the analysts was the downsizing of aircraft whilst the industry predicts growth, and the steady expansion of staff numbers. According to the Directory of British Aviation 1989/90 BA employed 43,000 people, in 1995 it was 55,000, and today it is 65,000. Yet the airline has been shedding routes to franchise operators. In ist report to shareholders BA says that it has cause for cautious optimism.
+++
SPACEHAB is strengthening its position as a supplier of commercial space services by expanding the Titusville, Florida, facilities of its wholly owned subsidiary Astrotech Space Operations. At a groundbreaking ceremony for a new payload processing facility that will double Astrotech's Florida operations, U.S. Rep. Dave Weldon (R-FL-15), cited the strategic importance of this expansion to the competitive position of Florida's Space Coast in the global space launch market.
+++
Fairchild Aerospace Corp. has delivered the first 328JET regional jet to a European airline, Gandalf. The aircraft will be flown between Milan/Bergamo and Paris/CDG three roundtrips per day. Gandalf has four 328JETs on firm order and holds options for five additional aircraft. Gandalf also operates three 328 turboprop aircraft, with a fourth 328 turboprop to be delivered by the end of November. Since deliveries began in August, 328JETs have also been delivered to Skyway Airlines, Shell Petroleum, Dogmoch, Ozark Airlines, Tyrolean Jet Service, and Hainan Airlines.
+++
A festive atmosphere accompanied the ceremony marking the SAirGroup's purchase of a 37.6-per-cent equity stake in the Polish airline LOT. The ceremony was attended by the Polish Finance Minister, Emil Wasacz, the President of LOT, Jan Litwinski, and SAirGroup CEO Philippe Bruggisser. The official contract signing took place in Warsaw onNMovember 18. The signing of the agreement at the Polish Treasury Ministry offices opens the significant market of Poland for the SAirGroup and generates greater access to Eastern Europe. Details of the strategic partnership call for LOT, which is emerging from state ownership, to become a member of the Qualiflyer Group alliance as of January 1, 2000.
+++
The cooperation agreement negotiated last summer between South African Airways and the SAirGroup was formally concluded in Johannesburg on November 19 in an official signing ceremony. As a result, the SAirGroup now holds a 20-per-cent equity stake in SAA. The signing follows the approval of the transaction by the competition authorities within the European Union, which was received on November 16. "This partnership between the SAirGroup and South African Airways is an excellent product of our government's privatisation policy," said Saki Macozoma, the CEO of Transnet, South African Airways' parent company. "Transnet has worked together very closely with the government to find the best possible partners for SAA. Our decision in favour of the SAirGroup was the result of a clear and highly competitive selection procedure. Swissair is one of the best airlines in the world, and has a top-quality network that provides an excellent fit with SAA's."
+++
For its customer United Parcel Service (UPS), Airbus Industrie has established a partnership with Lufthansa Technical Training (LTT) to produce a comprehensive training manual covering the electrical system, airframe, avionics and engines interface of the Airbus A300-600F. UPS plans to add this new Airbus type to its current fleet of more than 200 aircraft in July 2000. In close consultation with UPS training experts, LTT is creating documentation precision-tailored to the configuration of the new UPS freighter as part of the technical training of its maintenance personnel. The manual is being supplemented with multimedia elements for digital display. In addition, an extensive training program has been agreed upon in which, next year, two instructors from Lufthansa Technical Training will be training UPS technicians at the company's location in Louisville, Kentucky.
+++
At Lufthansa Technik's new VIP Center at the Lufthansa base in Hamburg, the first Boeing 777 arrived for completion of the cabin interiors. The unnamed Saudi-Arabian customer has also announced two Boeing Business Jets for the luxurious interiors of the Executive Jet - The XXL Class. "We've already converted all the standard Boeing and Airbus models into VIP aircraft, but the 'triple seven' is still a real challenge for us", acknowledged Jürgen Wilken, LHT's Senior Vice President Marketing and Sales, "especially in view of the owner's challenging time frame." Which is further evidence that the German MRO provider's unique technical competence in the completion of VIP aircraft is in high demand. The customer can expect from Lufthansa Technik the highest-quality workmanship at a fair market price.
+++

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

*November 14, 1999 *November 7, 1999

*October 31, 1999 *October 24, 1999 *October 17, 1999 *October 10, 1999 *October 3, 1999

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

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