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UPDATE
Week ending July 7, 2002

+++ Mid-air collision over Germany +++ Eurofighter Typhoon selected by Austria +++ Fairchild Dornier will be sold off in parts +++ Northrop Grumman buys TRW +++ Fosset achieves solo balloon flight +++ News in brief +++


Mid-air collision over Germany
Flugzeugzusammenstoß über dem Bodensee

On Monday, at 11:35 p.m., a Bashkirian Airlines Tupolev Tu-154 and a Boeing 757 of DHL collided over southern Germany at 35,000 feet, sending tons of fiery debris and bodies to the ground just north of the Lake Constance resort town of Überlingen. No one was injured on the ground although debris fell near homes along a 15-mile arc of villages outside Überlingen. The accident, which killed 71 people, among them many children, has sparked a thorough investigation which concentrates on possible failures of the Swiss Skyguide ATC organisation which is responsible for the sector involved.
During the week it emerged that a collision warning system at a Zurich air traffic control center was out of service when two planes being guided by the facility collided. And in a violation of Swiss regulations, only one air traffic controller was on duty when the anti-collision system was down. There were only five planes in the Swiss sector when the crash occurred, investigators said.
The single controller on duty that night first alerted the Russian plane to the possibility of an imminent crash 50 seconds before impact. The Russian captain, a 31-year veteran, began a steep descent 25 seconds later, following a second warning. Shortly after the Russian plane began to descend, the DHL jet also descended, bringing the two planes back into each other's paths. Investigators believe the DHL pilot may have been responding to emergency instructions from a computer-based collision avoidance system aboard the plane.
At 11:23 p.m., 12 minutes before the crash, the Brussels-bound Boeing 757-200 cargo plane entered Swiss airspace, having taken off from Bergamo in northern Italy, according to German investigators. Seven minutes later, at 11:30 p.m., air traffic controllers in Munich handed over control of the Russian Tupolev 154 to the facility in Zurich, investigators said. For the next four minutes and 10 seconds, until the first warning, the controller took no action. Under ordinary procedures, he would have checked in with both planes as they entered Swiss airspace, according to Germany's Federal Bureau for the Investigation of Aircraft Accidents. It is not known whether he did so.

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Eurofighter Typhoon selected by Austria
Österreich wählt Eurofighter

On Monday, the Austrian cabinet decided to begin exclusive contract negotiations for the procurement of up to 24 Eurofighter Typhoon combat aircraft to meet a requirement of the Austrian Bundesheer for a next generation fighter. The expected value of the programme is in the region of 2 billion Euro. The decision by the Austrian Government follows an intense competition for the replacement of the existing Draken fleet that are approaching the end of their operational lives. The intention is to replace the Draken with an advanced multi-role aircraft that will represent a quantum leap in capability for the Austrian Bundesheer.
The campaign for Austria has been led by EADS Military Aircraft on behalf of the Eurofighter Consortium comprising Alenia Aeronautica, BAE SYSTEMS, EADS-CASA and EADS-Deutschland. Both the Saab/BAE Gripen and the Lockheed Martin F-16 were in the running, which centered on offsets. It also was a power play between the defence and finance ministers in Austria. The Gripen had long been considered a front runner, but Eurofighter gained ground recently. Nethertheless it is surprising that the most expensive solution was choosen in view of the statements that there actually is difficulty in finding the money for the deal and less than enthusiastic popular views on the fighter buy in large factions of the population.

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Fairchild Dornier will be sold off in parts
Insolvenzverfahren für Regionalflugzeughersteller eröffnet

After no new investors could be secured, the bankruptcy proceeding for Fairchild Dornier officially opened on July 1. The company will now be broken up and sold in pieces. Administrator Eberhard Braun said there are potential buyers for the company's 70-seat 728 jet program, its maintenance division and its operation that supplies parts to major aircraft maker Airbus. About 1,800 of the company's 3,700 workers will be laid off and offered three months of training for new jobs at 80 percent of their previous pay, he said, speaking at a news conference at the company's Oberpfhaffenhofen base. If an investor can be found to take over the 728 project, some 1,000 of those would be called back to work.

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Northrop Grumman buys TRW
Neue Rüstungsfusion in USA

Northrop Grumman Corporation and TRW jointly announced that they have entered into a definitive merger agreement. The combination will position Northrop Grumman as the nation's second largest defense contractor with projected annual revenues of more than $26 billion and approximately 123,000 employees. Following the separation of TRW's automotive business and completion of the sale of TRW's Aeronautical Systems business, Northrop Grumman will be a Fortune 100 company. Under the terms of the agreement, unanimously approved by the boards of directors of both companies, Northrop Grumman will acquire TRW for $60 per share in common stock in a transaction valued at approximately $7.8 billion, plus the assumption of TRW's net debt at the time of closing.
After completion of the merger, Northrop Grumman plans to separate TRW's automotive business, either through a sale or a spin-off of the business to shareholders. TRW's previously announced agreement to sell its Aeronautical Systems business to Goodrich Corporation for $1.5 billion will remain unaffected by today's announcement. Kent Kresa, chairman and chief executive officer of Northrop Grumman, said, "Today is a great day for Northrop Grumman and TRW. We're bringing together the superior technology and outstanding talent of two of our nation's premier defense companies, creating a powerful and highly competitive enterprise with excellent growth prospects. Today's acquisition adds the last critical node of space to our robust and well-diversified defense platform and systems capabilities that operate on the ground, at sea and in the air. We believe this transaction provides tremendous value to our shareholders, employees and customers.”

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Fosset achieves solo balloon flight
Alleine um die Welt im Ballon

In another attempt, Steve Fosset has finally achieved his goal of flying around the world in a balloon as a solo pilot. He landed back in Australia on July 3. Fossett landed safely and unharmed, although the process was far from perfect. Via telephone, he explained during a press conference at Washington University in St. Louis that both the weather and the technical difficulties made for a rough landing. "It was a very dangerous situation with the landing," explained Fossett. First, the landing site had ground winds approaching 20 knots, when ideally they would have none. This problem was compounded when the balloon envelope would not detach from the capsule, meaning that it could have "dragged forever," according to Fossett. Fortunately ground team members, such as Project Manager Tim Cole, were able to help Fossett pull the ripcord that detached the capsule from the rest of the balloon. Though the landing was more dangerous than he had hoped, Fossett said that the impact itself was actually very smooth, even less than one would feel jumping from a tabletop. "The impact was really not too serious," said Fossett.
Despite the risky landing, Fossett was in high spirits and still plans on attempting to fly a glider into the stratosphere by the end of July or the beginning of August. But for now, he will assist the team in Australia with transporting the balloon before heading to a press conference in Sydney. While Fossett plans on heading home within the next day, the capsule of Bud Light Spirit of Freedom will travel on one more adventure. Fossett said that he received confirmation yesterday that it will be kept in the National Air and Space Museum at the Smithsonian Institution in Washington, D.C. It will be hung next to the "Spirit of St. Louis," the plane that Lindbergh made famous when he used it to become the first person to cross the Atlantic Ocean in an airplane.

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NEWS IN BRIEF – KURZMELDUNGEN

The German parliament budget committee has approved production preparation and production of the Taurus stand-off missile for the Luftwaffe. 600 missiles will be procured at a cost of 570 million Euros. This will secure 400 jobs at LFK GmbH up to 2009.
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The Tornado bombers of the Luftwaffe will get their service life extended from 4000 to 8000 hours. Also, the avionic will be upgraded. Total work packages for 150 million Euros have been approved on July 3 by the Bundestag budget committee.
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Honeywell announced it has acquired the assets of Chadwick-Helmuth of El Monte, California, a leading supplier of vibration monitoring equipment for helicopters. Financial terms of the transaction were not disclosed. "The acquisition of the Chadwick-Helmuth business is an important step towards our goal of providing the aerospace industry's most complete solution for flight safety and vehicle health monitoring, and it also provides a growth path to take vibration monitoring technology to applications outside aerospace," said Frank Daly, President, Honeywell Air Transport Systems.
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NASA's Comet Nucleus Tour (CONTOUR) spacecraft – set to provide the closest look yet at the “heart” of a comet–successfully launched at 2:47 a.m. EDT aboard a Boeing Delta II rocket from Cape Canaveral Air Force Station, Fla. Designed and built by The Johns Hopkins University Applied Physics Laboratory (APL) in Laurel, Md., the 2,138-pound (970-kilogram) spacecraft was placed into an elliptical Earth orbit 63 minutes after launch. About 19 minutes later the mission operations team at APL acquired a signal from the spacecraft through the Deep Space Network antenna station in Goldstone, Calif., and by 5:45 a.m. EDT Mission Director Dr. Robert W. Farquhar of the Applied Physics Lab confirmed the craft was operating normally and ready to carry out its early orbit maneuvers. “CONTOUR's launch was a spectacular start to an important project,” says Dr. Stamatios M. Krimigis, head of the APL Space Department. “CONTOUR is next in the growing lineup of missions to explore small planetary bodies – such as comets and asteroids – and we expect it will add much to what little we know about these ancient samples of the solar system's original materials.” CONTOUR will orbit Earth until Aug. 15, when it's scheduled to fire its main engine and enter a comet-chasing orbit around the sun. The mission's flexible four-year plan includes encounters with comets Encke (Nov. 12, 2003) and Schwassmann-Wachmann 3 (June 19, 2006), though it can add an encounter with a “new” and scientifically valuable comet from the outer solar system, should one be discovered in time for CONTOUR to fly past it. CONTOUR's four scientific instruments will take detailed pictures and measure the chemical makeup of each comet's nucleus – a chunk of ice and rock – while analyzing the surrounding gas and dust.
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Airbus celebrated the official kick-off of a new technology programme entitled Aircraft WIng with Advanced Technology OpeRation (AWIATOR). Airbus is contributing 60 per cent of the 80 million Euro budget and will provide key parts of the programme management. The four-year project, co-funded by a consortium of 23 partners from Europe and many subcontractors, will validate advanced technologies for wing design applications on future transport aircraft. "Airbus is committed to maintaining its leadership in technology and to do so, we continue to invest in research that is of direct benefit to our core business," said Airbus Chief Operating Officer Gustav Humbert. "We rely on an international research network of partners from centres of excellence all over Europe and around the world." A large variety of technologies will be investigated, down-selected, developed and finally flight-tested on Airbus' flying testbed A340, MSN 001. AWIATOR aims to achieve a five to seven per cent reduction in drag, a two per cent reduction in fuel burn over long-range flights and a noise reduction of two EPNdB.
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Australian defence company ADI announced it had signed two contracts with Eurocopter International Pacific (EIP) for key computer and support projects for the Army's 22 Tiger armed reconnaissance helicopters. Under the two deals worth $150 million, ADI will provide systems engineering and project management activities covering ADI's key role in customising Tiger mission systems, including the software to meet local operating conditions. ADI also will develop the communications system for the helicopter, provide fixed and deployable ground mission equipment systems and supply the software support facility in Australia. ADI managing director Jean-Georges Malcor and EIP chief executive officer Joseph Saporito said the two contracts would significantly boost Australian industry involvement in the project and deliver crucial leading edge capabilities to Australia.
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Air New Zealand is acquiring 15 new Airbus A320 aircraft and purchase rights on a further 20 A320 aircraft, exercisable over the next 10 years, under an agreement signed with Airbus. "We are bringing in a new aircraft type to support a strategic change in the service and products we will be offering to short-haul international travellers on Air New Zealand's Tasman and South Pacific routes," the Managing Director and CEO of the Group Ralph Norris said in announcing the A320 acquisition deal. "The Airbus aircraft will give us new capabilities for our short-haul international operations in terms of range, passenger and cargo carrying capacity, seat and cabin configurations, and in-flight services. "We currently use a mix of Boeing 767 and 737 type aircraft on our short-haul international services and consolidation on a single type aircraft will simplify both operation and support service requirements. Introducing Airbus A320 aircraft to our fleet will also expand our engineering capability and enable our ANZES engineering unit to increase its range of third party contract services.
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Robinson delivered its first R44 Police Helicopter in China to the Zheng Zhou Public Security Bureau following the China Police Expo 2002 earlier this month. Prominent Technology Enterprise Ltd. (PTE), Robinson's authorized dealer in China, delivered the helicopter to the Zheng Zhou Police. PTE Director and Manager Wilson Liao stated the agency is anxious to begin using its new R44.
+++
NASA has extended to May 2007 its six-and-a-half-year $2.4 billion contract with ATK Thiokol Propulsion in Brigham City, Utah, for the production and refurbishment of 70 Reusable Solid Rocket Motors for the Space Shuttle Program. Under the modified contract, Thiokol will produce and refurbish 35 Reusable Solid Rocket Motor flight sets (70 motors) and three flight support motors. The modification adds $429 million to the contract. The contract, issued in October 1998, is the sixth in a series of contracts for the design, development, production and refurbishment of Solid Rocket Motors for the Space Shuttle Program and represents a continuing relationship between NASA's Marshall Space Flight Center in Huntsville, Ala., and Thiokol. Marshall is home to the Space Shuttle's Reusable Solid Rocket Motor Project Office.
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Data released by the Society of British Aerospace Companies (SBAC) shows that the UK Aerospace Industry's overall performance in 2001 was in line with expectations, showing a slight decline in total turnover in real terms of £18.42 billion (down 1.5% on 2000). Order intake was down by 5% to £18.42 billion and employment was down by 2.5% to 147,090 reflecting the general thrust to improve productivity, rather than being the result of the impact of September 11th. Positive areas are that operating profit rose from 6% to 7% reflecting the increasing competitiveness of the UK Aerospace industry, and the continuing strength of UK aerospace exports was evident at 63% of turnover. The balance of trade for aerospace remains positive with a £2.8 billion surplus in 2001 ­ aerospace exports account for 7% of all exported goods in the UK. “Turnover of UK owned assets overseas increased to £7.21 billion with nearly 61,000 employees based abroad, a growth of a third in the last year. In terms of turnover, this equates to the world's sixth largest aerospace industry,” says David Marshall, Director General of the SBAC.
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NASA's Kennedy Space Center, Fla., has extended the period of performance of the Payload Ground Operations Contract (PGOC) held for the last 15 years by Boeing at Kennedy Space Center. The contract expires June 30, 2002. This cost-plus-award-fee extension through September 30, 2002, is valued at $25.3 million and brings the total contract value to almost $2 billion. The extension provides for ground support, test, integration and de-integration of space shuttle and expendable launch vehicle payloads, including flight elements of the International Space Station; operation and maintenance of associated facilities and ground systems; and support of the government's top priorities of safety, mission success, and payload-developer/customer satisfaction.
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A significant stage has just been passed within the context of the ATV (Automated Transfer Vehicle) structural and thermal test campaign, with solar array deployment tests successfully completed. Dedicated to service the International Space Station (ISS) and to periodically raise its orbit, the ATV is the first vehicle developed by Europe that shall carry out rendezvous and docking with a space station. It will be launched by Ariane 5. EADS Launch Vehicles is Prime Contractor for the development of the ATV for the European Space Agency (ESA). As such, it has been conducting since early-December 2001 structural and thermal tests on the STM (Structural and Thermal Model), ATV's first test model, at the ESTEC facility in the Netherlands After acoustic and dynamic tests had been successfully completed, full solar array deployment was tested in June, 2002. It aimed at demonstrating that the deployment mechanism was correctly operating after it had completely undergone the preceding series of tests. The ATV's electrical power supply is based on four deploying and revolving solar panels (6.7 m long and 1.1 m wide each), always facing the sun. This makes the ATV independent during free flight, and most of the time it is connected to the ISS, so that it rarely needs to call on the station's electrical power. The test was a full success and demonstrated by it the solidity of the whole vehicle design and equipment.
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Northrop Grumman has selected the Pratt & Whitney/Seven Q Seven team to supply an integrated propulsion pod system (PPS) featuring the P&W JT8D-219 for re-engining the Joint Surveillance Target Attack Radar Systems (Joint STARS) fleet. The new engines are more powerful and fuel efficient, reducing the amount of in-flight refueling and increasing time-on-station for the warfighter. Additionally, improvements will be seen in overall aircraft reliability and reduced sustainment costs. Under the direction of the U.S. Air Force, Northrop Grumman Integrated Systems' Airborne Ground Surveillance and Battle Management Systems business area, the prime-integrating contractor for Joint STARS, conducted a best value source selection using full and open competition among engine suppliers. Pending availability of funds, the re-engining program will be implemented through an operating lease arrangement. The Air Force E-8C Joint STARS weapon system uses refurbished Boeing 707-300C series aircraft, which are currently powered by TF33-PW-102 (commercial JT3D) engines.
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During his three-day state visit to the Federal Republic of Germany the Australian Prime Minister, His Excellency John Howard, reserved some time in his busy schedule to visit a special display of the Franco-German helicopter manufacturer, Eurocopter, set up for him and his delegation at Munich Airport on July 3rd. The state visit was aimed at further improving the economic and trade relations between the two countries. Eurocopter and its parent company, EADS (European Aeronautic Defence and Space Company), are among Australia's major industrial partners. H.E. John Howard was met at Munich Airport by Axel Arendt, Chief Financial Officer and Member of the Executive Committee of EADS, Jean-Francois Bigay, President of Eurocopter, and Frank Dorn, Executive Vice President Governmental Helicopters of Eurocopter. He was then guided to a display of Europe's new combat helicopter, the Tiger, which is being procured by Australia as its new Armed Reconnaissance Helicopter (ARH), and an EC 120 light single-engine helicopter for which Eurocopter will set up an assembly line at Australian Aerospace in Brisbane, Australia. Also on display was an EC 135 light twin-engined helicopter which is particularly successful in law enforcement and emergency medical services.
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Air Force investigators have determined structural failure caused an Air Force RQ-4A Global Hawk aircraft to crash Dec. 30, 2001, at a deployed location in support of Operation Enduring Freedom. The Global Hawk, an unmanned reconnaissance aircraft, was destroyed upon impact about 80 miles from its operating location. No one was injured in the accident. The aircraft was assigned to the 12th Expeditionary Reconnaissance Squadron, but its parent unit is the 9th Reconnaissance Wing at Beale Air Force Base, Calif. According to an Air Combat Command Accident Investigation Report released today, the primary cause of the accident was the structural failure of the right V-tail and ruddervator assembly due to massive delamination of the main spar. This was the result of a control rod failure due to being bent by coming in contact with an improperly
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GKN Aerospace Services, the aerospace division of GKN plc, has been awarded the contract by Airbus UK for the design and manufacture of the Wing Trailing Edge panels for the Airbus A380 superjumbo. The contract is worth an estimated $600m to GKN over the assumed 600 aircraft life of the programme. GKN Aerospace Services is already involved in the design of the important midbox structure for the A380 wing and the manufacture of the composite flap track beams that are also structural wing components. This award brings the total estimated value of work secured by GKN on the A380 to more than $800m.
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As stated by Airbus CEO Noël Forgeard on various occasions over the past months, Airbus is now, at the end of the second quarter of the year, in a position to confirm its delivery forecast for 2003. After a very thorough analysis and an extensive evaluation of all contractual commitments, Airbus confirms that, in current market conditions, it expects to deliver 300 aircraft next year, of which some 70 are widebody airliners and 230 are single aisles. This is in the upper range of our former forecast, and will enable Airbus to maintain about the same level of deliveries as in 2002. This confirmation of the 2003 deliveries has been reviewed and approved by the Airbus shareholders.
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In a Communication the European Commission assesses developments in the air transport insurance sector after airlines were left without insurance in the aftermath of the 11 September 2001 terrorist attacks in the US. The Commission welcomes developments in the air transport industry to establish a mutual insurance scheme, both at international and at European level. Until the Commission completes, in time for the October Transport Council, its analysis of opportunities arising in the commercial insurance sector and its examination of the possible establishment of a mutual fund scheme, Member States may opt for an extension of current government insurance schemes. These measures must be duly notified to the Commission. The Commission's Communication presents an update of developments in the insurance market and undertakes a first assessment of the various initiatives undertaken by the insurance and air transport industry at European and international level. Taking into account the conclusions of the 17 June Transport Council, the Commission's approach towards a possible way forward is set against the following criteria: the commercial insurance market should not be unnecessarily restricted; government exposure should be limited as much as possible and mutualisation schemes should be thoroughly assessed. Establishment of a mutual fund. The Commission considers that the air transport sector should work further on mutual fund solutions, whether at European (EUROTIME) and/or at international level (International Civil Aviation Organisation). Such a scheme has to be compatible with the competition and state aid rules of the Community as well as with the GATS provisions. It also has to provide a clear exit strategy for government involvement. The merits of the ICAO and the EUROTIME schemes will be discussed at the October 2002 Transport Council.
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German technology firm Jenoptik AG said it and European Aeronautic Defence & Space Co. will combine their facility-management units, creating a business with more than 300 million euros in sales. Jenoptik said it will merge M+W Zander Facility Management GmbH with EADS unit D.I.B., forming a company with about 2,100 employees. The German firm will own 69.1% of the new company, while EADS will have the remaining 30.9%. "This merger will lead to one of the largest independent facility-management companies in Europe," Jenoptik said in a statement.
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Lufthansa Cargo AG is selling its 25 per cent stake in the DHL International delivery service to Deutsche Post World Net. The agreement has been approved by the Executive and Supervisory Boards of both companies. On conclusion of the contract and following approval by the cartel authorities, the shares will be transferred to Deutsche Post World Net. The purchase price is 550 million euros, plus a deferred payment of 60 million euros under a debtor-warrant agreement. Lufthansa will accumulate book profits of about 400 million euros in the current financial year from the sale of its minority shareholding in DHL. Deutsche Post World Net is an important customer for Lufthansa Cargo and in the past few years the collaboration between the two companies has proved very positive. Although Lufthansa Cargo will no longer have an equity interest in DHL, it will pursue and strengthen its intensive cooperation with Deutsche Post World Net and DHL. "The disposal of our stake in DHL does not represent a change in strategy. It is a sensible move towards adapting our portfolio and will now enable us to realise the growth in value of this shareholding," said Lufthansa CEO and Chairman Jürgen Weber. In the future, Lufthansa Cargo will successfully expand its business via partnerships, Weber added.
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An US Air Force civilian received the German air force, or Luftwaffe, distinguished service cross in silver July 1 for his efforts developing and maintaining relationships with the German service. The award recipient is Kermit Quick, an international programs chief who works for the intelligence, surveillance and reconnaissance division for the deputy chief of staff for air and space operations at the Pentagon. The medal was presented by Lt. Gen. Gerhard Back, German air force chief of staff, in a ceremony at the German air force command post in Dulles, Va. Quick has worked with the Germans for nearly 20 years as an Air Force civilian. He is also a retired Air Force colonel with 30 years combined active and reserve duty.
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*June 30, 2002 *June 23, 2002 *June 16, 2002 *June 9, 2002

*May 26, 2002 *May 19, 2002 *May 12, 2002 *May 5, 2002

*April 28, 2002 *April 21, 2002 *April 14, 2002 *April 7, 2002

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