FLUG REVUE update: Week ending February 23, 2003

UPDATE
Week ending February 23, 2003

+++ Ariane 4 succeeds on last mission +++ Eurofighter series aircraft fly +++ Germany cuts Tiger and Tornado squadrons +++ US Navy wants Swiss F-5s +++ R-R/Lufthansa in Trent joint-venture +++ Lufthansa decides on more cuts +++ News in brief +++

Ariane 4 succeeds on last mission
Letzter Start der Ariane 4

On February 15, Arianespace orbited the Intelsat 907 communications satellite for international communications provider Intelsat. Intelsat 907 is the sixth Intelsat IX series satellite to be launched by Arianespace, and the 23rd Intelsat satellite orbited by Ariane. Intelsat's IX series is the latest generation of satellites deployed by this global communications provider. Arianespace and Intelsat have worked together since 1983. More than 60 percent of Intelsat's satellites in operation today were orbited by the European launcher, making the company Arianespace's leading customer.
A total of 116 Ariane 4 rockets were launched from June 1988 to February 2003. Ariane 4 placed 182 satellites in orbit for over 50 different operators. With the success of Flight 159, Ariane 4 performs 74 successful launches in a row. "The success of tonight reflects Europe's ability to mobilize its top production and operational teams to meet a common goal," said Jean-Yves Le Gall, Chief Executive Officer of Arianespace. "I extend my sincere thanks to all of our teams in Europe and French Guiana alike. Based on Ariane 4, we built a true commercial launch service ". The launch preparation campaign for the next Ariane mission began in Kourou on January 20. The launch is scheduled as from end of March 2003. The mission, designated Arianespace Flight 160, will orbit two communications satellites: Insat 3A for the Indian Space Research Organization (ISRO), and Galaxy XII for PanAmSat.

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Eurofighter series aircraft fly
Erstflüge der Serien-Eurofighter

Eurofighter GmbH announced the maiden flights of the first four Series Production Aircraft (SPA) in the four Eurofighter Partner Nations - Germany, Italy, Spain and the United Kingdom. This event is a milestone for the Eurofighter Typhoon programme as it approaches Entry to Service. The first Series Production Aircraft will now undergo a process of clearances for Type Acceptance leading to qualification of the Eurofighter Typhoon Weapon System. Training and Support for air crew and maintenance personnel has already begun at different locations across the partner nations in anticipation of Entry to Service. The Eurofighter Typhoon Weapon System will form the backbone of NATO Air Power for a new generation of swing/multi-role aircraft that will be in service for at least 40 years.
German Trainer 001 (GT001) flew on 13 February 2003, 15.43 CET (44 minutes) at the Manching test field, with Heinz Spoelgen, EADS Military Aircraft Eurofighter Typhoon Project Test Pilot and Lt. Col. Robert Hierl, German Air Force. GT001 is the first of 180 Eurofighter Typhoon aircraft planned for the German Air Force. Italian Trainer 001 (IT001) flew on 14 February 2003, 14.30 CET (50 minutes) at Caselle, withCpt. Marco Venanzetti, Alenia Aeronautica, Test Pilot and Cpt. Enrico Scarabotto, Alenia Aeronautica,Test Pilot. British Trainer 001 (BT001) flew on 14 February 2003, 16.37 GMT (21 minutes) at Warton, with Derek Reeh, BAE SYSTEMS, Director of Flight Operations and Archie Neill, BAE SYSTEMS Pilot and Typhoon Entry-into-Service Manager. Spanish Trainer 001 (ST001) flew on 17 February 2003 at Getafe with Eduardo Cuadrado Garcia, EADS-CASA Chief of Test Pilot Center at Getafe and Alfonso de Castro Tornero, EADS-CASA Eurofighter Test Pilot.

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Germany cuts Tiger and Tornado squadrons
Struck verkündet neue Einschnitte

Germany's defence minister Peter Struck announced new military cutbacks on Friday. Among the savings necessary to free up money for transforming the forces to an international mission stance are cuts in the buy of Tiger attack helicopters. A second tranche will not be ordered, bringing numbers down to 80. Struck said this should save about 700 million euros. Struck said about 1.7 billion euros would be saved by taking out of service 80 to 90 Tornado fighter aircraft by the end of 2005. Ten Albatros torpedo boats would also be retired by the end of 2005. Struck said the money saved should go towards projects like the purchase of new armoured personnel carriers, tactical air defence missile systems and unmanned reconnaissance aircraft. Struck said reductions in operational costs and other savings meant military investment could rise by 800 million euros in 2003. Investment should rise from 24.7 percent of the total defence budget in 2003 to at least 27 percent by 2006.

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US Navy wants Swiss F-5s
Schweizer F-5 für die US Navy

The government of Switzerland is being awarded an estimated $18,557,950 firm-fixed-price contract for the procurement of up to 32 low-flight-time F-5E Tiger aircraft. The base award of $570,950 is for the initial requirement of one aircraft. The contract consists of a basic award and five options. These F-5E Tiger aircraft will provide for a one-on-one replacement of current U.S. Navy Reserve F-5E aircraft. Revised fatigue life extended calculations necessitated restructuring of the previous overhaul program to provide for the cost-effective procurement of these replacement aircraft to achieve the CNO directed operational requirements through FY 2015. Work will be performed in Switzerland and is to be completed in August 2003. If all options are exercised, the work will be completed in September 2007. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured. The Naval Air Systems Command Headquarters, Patuxent River, Md., is the contracting activity

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R-R/Lufthansa in Trent joint-venture
Wartung für das Trent bei LH Technik

Lufthansa Technik AG and Rolls-Royce announced that they are to form a 50-50 joint venture specializing in repair and overhaul of three types of Rolls-Royce Trent engine. The new operation will be called N3 Engine Overhaul Services. The joint venture's operational site will be decided by 2004 on the basis of which European location offers the most competitive advantage. Subject to approval by the relevant competition authorities, N3 Engine Overhaul Services will start operations in 2007, overhauling state-of-the-art Trent engines for Airbus A330, A340-500/600 and A380 series aircraft for customers in Europe, the Americas and Africa. The joint venture workforce will grow to around 250 by the end of the first year of operations and is expected to increase to around 450 after three years. In its first year N3 Engine Overhaul Services expects to overhaul about 50 engines and to double that total within two years. The facility will have the capacity to handle 200 engines a year. The investment of the two partners for the joint venture totals more than 100 million Euros.

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Lufthansa decides on more cuts
Notmaßnahmen bei Lufthansa

As a consequence of the further deterioration in the economic situation, Lufthansa's Executive Board decided on far-reaching measures. They include an immediate hiring freeze as well as a capacity reduction by another ten aircraft in German and European traffic. Lufthansa had already decided to withdraw nine aircraft from the market in January. According to the current planning, in the next few weeks a total of 31 aircraft of Lufthansa AG and 15 others operated by Lufthansa CityLine and the regional partners will be taken out of service. In addition, the Executive Board has also requested all business segments to immediately present tangible measures aimed at securing the result. Before the end of this year, it is planned to create an additional cash-flow of at least 90 million Euro with a supplementary D-check initiative "Cash 100". Furthermore, it has been decided to make cuts in investments amounting to 200 million Euro. The hiring freeze in the group will be implemented at once.
The persisting adverse economic situation and the crisis in international air traffic have severely impaired our group's economic development. "The decline in business travelers and in average revenues in the Passenger Business since last fall, have intensified even further at the beginning of the new year. Despite slightly higher numbers of passengers, revenues in January 2003 were below those of the same month last year. In addition, the price of crude oil has reached new highs. There is an urgent need for action", says Lufthansa Chairman and CEO Jürgen Weber. "At the same time, the end of this trend has possibly not yet been reached", warns Jürgen Weber. "A war in Iraq would cause our passenger volume - and thus also our revenues - to shrink even further. That will make tough measures, which can be rapidly implemented, necessary", according to Weber.

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NEWS IN BRIEF / KURZMELDUNGEN

Meetings have taken place between NASA and Rosaviakosmos on overall resupply and crew exchange strategies for the ISS, and between NASA and ESA on the potential rearrangement of taxi flights with ESA astronauts within this situation; these discussions have not yet reached conclusions and will be pursued. Meanwhile the crew that was meant to fly on the next Shuttle flight are still in training, and in parallel a crew for the next Soyuz flight (in April) are being trained in case they have to become the next Expedition crew. On orbit, the present crew on the International Space Station is performing well and has been busy with the following activities: Nearing the three-month mark aboard the Station, the Expedition Six crew conducted science experiments, stowing gear and talking with the media. On 11 February the 22-minute burn of a docked Progress spacecraft's engines boosted the station's average altitude by about 9.2 kilometres. NASA ISS Science Officer Don Pettit worked on ESA's Microgravity Science Glovebox with advice from engineers on the ground. Last week, a circuit breaker tripped when Pettit installed replacement parts that arrived on the Progress. The equipment is now powered down until the ESA and industry experts develop a recovery plan to be implemented on orbit. On 13 February Pettit and Commander Ken Bowersox activated the station's Canadarm2 and performed a series of complex manoeuvres to verify the health of the robotic arm.
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Austrian Airlines group result for earnings before interest, tax, depreciation and rentals (EBITDAR) is expected to total EUR 463.3m, an increase of EUR 243.7m on the comparable result for the 2001 business year. The result from operating activities (EBIT) also saw a clear and sustained improvement – at EUR 41.4m, it rose by EUR 130.3m compared to the figure for the previous year. When the financial result of minus EUR 37.4m is taken into account (minus EUR 75.1m the previous year), profit before tax is expected to be plus EUR 4.0m. After setting this figure off against taxes on earnings (active tax deferral of plus EUR 39.0m) and the result due to minority shareholders (minus EUR 0.4m), the net profit for the year is expected to be plus EUR 42.6m. Chief Executive Officer Vagn Soerensen made the following statement on the result for 2002, his first full business year with Austrian Airlines Group: “By concentrating the strengths of everybody involved in securing the future of the Austrian Airlines Group, we have successfully begun our return into the profit zone. We have laid the foundation for our recovery and regained our self-confidence. From now on, we shall operate in the tough international air travel marketplace as a streamlined, more specialised competitor!” The Group succeeded in increasing cash flow in 2002 to a level of plus EUR 518.0m. It consequently exceeded the figure for the previous year by a full EUR 468.9m. On the basis of its consistent and extensive restructuring programme, the Group succeeded in forcing interest-bearing liabilities down by EUR 433.6m. As a result, net gearing (the degree of indebtedness) fell from 337.9 % to 290.2 %. In total, the Group also increased its equity ratio from 12.7 % to 14.6 %. The significant improvement of cash flow, lower liabilities and reduction in net gearing all served to strengthen the ability of the Austrian Airlines Group to withstand a crisis.
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Lockheed Martin rolled the 100th member of the C-130J Super Hercules family off the production line today at its manufacturing facility in Marietta, Ga. Coming just more than seven years after the inaugural flight of the first new-generation Hercules, the latest milestone aircraft, an HC130J, is slated for delivery to the U.S. Coast Guard later this spring. More than 1,500 employees in Marietta and hundreds of suppliers around the world work on the C130J program, the fifth most produced version in the Hercules lineage. The C-130J is the product of the longest, continuous, active military aircraft production line in history, which will celebrate its 50th anniversary in 2004. Coincidently, the 100th Super Hercules is rolled out just months before the world celebrates the 100th anniversary of powered flight.
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The European aircraft manufacturer Airbus announced the participation of three more leading Japanese companies in the A380 program. Yokogawa Electric Corporation, Casio Computers Co. Ltd., and Makino Milling Machines Co. Ltd. have agreed to supply equipment for the next-generation super jumbo program. Airbus President and CEO Noel Forgeard said, “It is an important step in our collaboration with Japan. We are moving from the obvious work in aero-structures level to a strong contribution in state-of-the-art technology. The support of Yokogawa, Casio, and Makino to the A380 program will surely enhance the success of the most advanced airliner program currently under development and launched in production.” In addition to the ten Japanese suppliers which were already announced in 2002, these contracts will raise the estimated revenue of Japan in the A380 program to well over US $2.15 billion in the years to come.
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The final Lockheed Martin F/A-22 Raptor air dominance fighter built for developmental flight testing was flown from the company's facilities in Marietta, Ga., recently to California. The aircraft will shortly join the U.S. Air Force's Flight Test Center (AFFTC) at Edwards Air Force Base. The flight testing is part of the program's Engineering and Manufacturing Development (EMD) phase. At Edwards, Raptor 4009 (Air Force serial number 91-009) will be assigned to the Air Force Operational Test & Evaluation Center (AFOTEC) detachment there. It will be used to demonstrate F/A-22 lethality, survivability and reliability during the program's critically important Dedicated Initial Operational Test & Evaluation (DIOT&E) phase, scheduled to begin this summer.
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AgustaWestland, a Finmeccanica and GKN company, announced that the final assembly of the first Agusta A109 Light Utility Helicopter (LUH) airframe for the South African Air Force, has started in South Africa at the Denel Aviation facilities. Denel Aviation, an aerospace division of Denel (Pty) Ltd, has been granted a license to manufacture 25 of the 30 A109 aircraft ordered by the South African Air Force. The AgustaWestland built A109 LUH demonstrator will start flight trails in South Africa during February 2003 with a view to test aircraft performance and modifications made for the harsh Southern African conditions. The trails and operation of the aircraft will be conducted from the Wonderboom Airport, situated north of Pretoria, South Africa.
The AgustaWestland and Denel partnership dates back to the Product Supply Agreement for the A109 LUH program signed in July 2000. The agreement provides for a phased multiple year program for the manufacturing and support of the complete A109 LUH airframe and systems in South Africa. Denel Aviation will be involved in the integration of subsystems, manufacture, final assembly, customization engineering and flight testing of the South African Air Force's helicopters.
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With the maiden flight of the A109LUH satisfactorily accomplished, AgustaWestland has started a complete campaign of flight tests in cold weather conditions with the support of Thales Avionics. AgustaWestland, a Finmeccanica and GKN company, and Thales Avionics are teamed in the A 109 Light Utility Helicopter Program with South Africa and Sweden as the first two majors export customers. In September 1999, the South African government approved the purchase of 30 A109 LUHs, and took an option for 10 additional helicopters. This decision was driven by several key factors, including the helicopter's technical capability, its value as a fully militarised machine, the local industry involvement and an attractive offer. In July 2001, Sweden made the decision to purchase 20 A 109 LUH comforting the first success of the helicopter.
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Arianespace announced the signature of a launch contract with U.S. operator WildBlue Communications, Inc., which follows the resumption of the WildBlue program. The WildBlue 1 satellite is schedule to be launched by Ariane from the Guiana Space Center - Europe's Spaceport in Kourou, French Guiana - in early 2005. WildBlue 1 is one of the first fully dedicated Ka-band satellites to offer consumer high-speed Internet service. "The contract signature with WildBlue confirms Arianespace's capability to provide reliable and regular launch services for telecommunications operators," said Arianespace CEO Jean-Yves Le Gall. "Arianespace is proud to support WildBlue Communications, Inc. and its partners in this venture to provide consumers with new broadband applications." WildBlue Communications, Inc. - which will be owned by Intelsat, Liberty Media and NRTC - will provide broadband service to rural and remote areas in the United States.
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Adam Aircraft announced that it has accomplished the maiden flight of its A500 aircraft, production-002. This is the second A500 built with production tooling. The A500 is a twin engine, inline thrust, pressurized, six seat aircraft. The initial flight of A500-002 took place at Centennial airport in Englewood, Colorado, on Thursday morning, February 13. The flight lasted approximately 35 minutes and reached an altitude of 13,000 feet. The test pilot reported delight with the performance and handling of the aircraft.
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BAE Systems and the UK Ministry of Defence (MoD) have agreed changes to the contract structure for both the Nimrod MRA4 maritime patrol aircraft programme and the Astute attack submarine programme. In December 2002, the company announced that additional issues had arisen in relation to these programmes and that it had become apparent that there were substantial schedule and cost implications. Under the terms of the agreement, the current contracts for design, development, production and support on each of the two programmes will be revised. These revisions will separate the Design and Development phase of each programme from the Production phase. Design and Development will be completed under new Target Cost Incentive Fee (TCIF) arrangements. Both programmes will be placed on a firm footing for the delivery of the Astute and Nimrod capabilities into service. BAE Systems and the MoD have established new Target Costs and Fee levels for both programmes, and have high levels of confidence of delivering the programmes within these new target levels. Up to the Target Cost level, cost saving will be shared by the customer and company as an additional Incentive Fee for the company. Any cost overruns above the Target Cost will be shared by the customer and the company, up to the maximum level established for the company by the agreement. The difficulties in the Nimrod programme stemmed principally from issues associated with delays in design causing an increasing concurrency between design, development, and production in the programme. Production work on the last 15 of the 18 Nimrods in the MRA4 programme will stop. This work will not be resumed until significant risk reduction has been accomplished, using the first three aircraft as development aircraft. Design and Development, including the completion of the three development aircraft currently in build, will be completed under new TCIF arrangements. Prices for the production of the last 15 aircraft will be established after Design and Development stability has been achieved.
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MBDA and SNPE Energetic Materials today formed Europe's largest tactical missile propulsion group with the creation of a 50/50 joint venture named Roxel. This joint venture between MBDA and SNPE Energetic Materials, comprising the former Rocket Motors Division (RORM) of Royal Ordnance plc in the UK and Celerg S.A. in France, has resulted in a new group which, with annual sales of 150 million euros and 800 employees, is the largest manufacturer of propulsion systems for tactical weapons in Europe and the third largest in the world. Roxel is jointly owned and controlled by its two parent companies MBDA (50%), Europe's leading missile systems company, and SNPE Matériaux Energétiques (50%), a wholly owned subsidiary of SNPE which is France's leading supplier of energetic materials, pharmaceuticals and chemicals.
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NASA released the top level requirements for the Orbital Space Plane (OSP), a next generation system of space vehicles designed to provide a crew rescue and crew transport capability to and from the International Space Station. These requirements set the foundation for the design of the vehicle and its associated systems. The Level I requirements for an OSP system were developed based on NASA's missions, as defined in the Integrated Space Transportation Plan, input from industry and Department of Defense partners participating in the program. The requirements were reviewed at multiple levels within NASA. The final review and approval process included the NASA Administrator, Deputy Administrator, Associate Administrator for the Office of Aerospace Technology, and the Associate Administrator, Office of Space Flight.
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“Saab has extended the validity of its offer of 24 Gripen for the Austrian military, which formally was valid until end of January. This will provide the new government with alternative options in the decision making in procuring fighters for its Armed Forces”, says Roger Lantz, director of the Gripen Team in Austria. In its letter to the purchasing department of the Ministry of Defence Saab furthermore asked for a possibility for the Gripen Team to submit an offer of 18 Gripen aircraft, as the former Austrian Government opted for a purchase of only 18 jets. The initial RFP (Request for Proposal) is still a requirement for 24 new jets. In response to recent press speculation, the Gripen Team would also like to confirm that an alternative offer, based upon recent experience in Hungary, would be possible together with the Swedish Government. This offer, if required by the new Government, would provide further substantial savings.
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The search for materials from the Space Shuttle Columbia accident is entering a new phase. NASA is consolidating two of the primary search coordination field offices and establishing four incident command posts and base camps. The search is intensifying based on initial success with grid-search techniques, and because spring vegetation growth is expected to make recovery efforts more difficult. Immediately after the accident, NASA established several different local command and coordination field offices at Barksdale Air Force Base at Shreveport, La., the Lufkin Emergency Operations Center in Lufkin, Texas, and Naval Air Station, Joint Reserve Base (Carswell Field), Fort Worth, Texas. The Lufkin, Barksdale and Carswell operations will be consolidated at Lufkin this week. The consolidation at Lufkin is designed for better coordination of search and recovery operations. Barksdale will continue to be the receiving and shipping point for Columbia materials being sent to NASA¹s Kennedy Space Center in Florida for final identification.
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Northrop Grumman Corporation announced that its board of directors has elected Ronald D. Sugar, the company's president and chief operating officer, as Northrop Grumman's next chief executive officer. Sugar, a 35-year defense industry veteran, will assume leadership of the nation's second largest defense contractor effective April 1, 2003. In addition to his election as CEO, he will retain the position of company president. The announcement culminates an orderly succession plan by the board of directors that accommodates the decision of Kent Kresa, Northrop Grumman's chairman and CEO, to retire after reaching the board's mandatory retirement age of 65 for senior executives. Kresa will continue as non-employee chairman until Oct. 1, 2003.
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Star Alliance is set for a major enhancement of its global coverage with the joining of Asiana Airlines on March 1, 2003. The Korean carrier will add a significant number of North Asian routes to the Star Alliance network, including its comprehensive domestic services as well as numerous routes to mainland China. “Our newest member Asiana Airlines is a premier carrier in the region, renowned for its customer service, innovation and leadership,” said Jaan Albrecht, CEO, Star Alliance. “We are proud to have Asiana on board. With the addition of this great airline, Star Alliance is taking a major step forward in North Asia. By having Asiana as a member, Star Alliance has now established a firm foothold in Korea which is one of the fastest-growing markets of the world.” Asiana's domestic network spans 12 cities and 18 routes, which will add a whole new dimension to the Star Alliance network. Almost eight million passengers are carried on Asiana's domestic flights each year.
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On Monday 17 February, the lifting process began for the very large metal roof on the new A380 final assembly hall in Toulouse. This roof lifting is a first in terms of size and weight. Indeed, the roof measures 115 by 250 metres (377 by 820 feet) and weighs some 7,500 tonnes. The lifting began on Monday at the speed of two metres per hour, and was completed on Tuesday morning. the roof, already assembled on the ground and equipped with heating, ventilation, lights and fire safety equipment, was lifted in one piece to its final height of 46 metres (151 feet) with jacks. This roof, which covers the structural part of the final assembly hall, represents about a third of the total covered area of the A380 final assembly line, which comes to ten hectares. Six other halls, each covering one hectare, will receive their roofs successively during the next few months.
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Lockheed Martin and Korea Aerospace Industries (KAI) announced today that the T-50 Golden Eagle advanced supersonic trainer achieved supersonic flight for the first time on Feb. 19. "The aircraft accelerated through the Mach (speed of sound) smoothly and quickly," said Major Choong Hwan Lee, Republic of Korea Air Force test pilot for the flight. "I observed no adverse flight or handling characteristics. I was able to hold the target speed of Mach 1.05 with plenty of excess power available, so I have no doubt this aircraft will be able to achieve its maximum design Mach of Mach 1.5." The milestone flight was accomplished on the No. 1 flight-test aircraft during the 60-minute flight from the air base at Sachon, South Korea. The top speed achieved was Mach 1.05 at an altitude of 40,000 feet. Full afterburner on the General Electric F404-GE-102 engine was used to accelerate to the target speed, then minimum afterburner was used to sustain the speed. Approximately one minute was spent in the supersonic regime.
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Pratt & Whitney successfully completed U.S. Federal Aviation Administration (FAA) FAR 25 flight testing at Boeing on the company's 94-inch fan PW4000 engine. The testing took place at Boeing Field in Seattle, Washington. The testing centered on the incorporation of a new high compressor case design that was FAA FAR 33 certified in November 2002. The new "ring case" design is a series of one-piece rings that replaces the original case that had been built with two to four segments around the circumference of the engine's high- pressure compressor. The new design is aimed at eliminating compressor surge at high power take-off, by providing more rigorous tip clearance control, and is based on Pratt & Whitney's 112-inch PW4000 engine design which has proven experience with 3 million hours and 1.5 million cycles of surge-free operation. The new design is being incorporated into new production engines and will be made available to airlines for incorporation at overhaul beginning this March.
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Pratt & Whitney Canada Corp. (P&WC) announced that Eclipse Aviation Corp. of Albuquerque, New Mexico, has selected PW610F engines to power its twin-engine Eclipse 500 jet. "We are delighted to be involved in this exciting aircraft program, which is bringing new value to the general aviation market," said Alain M. Bellemare, President, P&WC. "We believe our PW610F engine is a perfect match for the Eclipse 500." "This win is highly strategic for us," continued Mr. Bellemare. "It provides an excellent platform for our family of low-thrust range engines and strongly positions the PW600F in this fast emerging jet market segment. This new engine family is really making its mark with a second selection in less than two months." The PW610F engine selected for the Eclipse 500 is flat rated at 900 pounds of takeoff thrust at sea level to ISA +10°C with built-in growth capability and is controlled through a dual-channel FADEC. The engine type certification is scheduled for the first quarter of 2006.
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Embraer strongly welcomed the issuance by the WTO Dispute Settlement Body (DSB) of the Arbitral award authorizing Brazil to impose against Canada countermeasures totaling US$ 248 million, but remains concerned about potential Canadian noncompliance with WTO directions. The Arbitrators granted this amount following Canada's rejection of an earlier DSB instruction and its refusal to withdraw prohibited export subsidies granted to Bombardier, Canada's regional jet aircraft manufacturer. Commenting on DSB's action, Mauricio Botelho, President and CEO of Embraer, stated: “Embraer is pleased with the decision of the Arbitrators and the action of the DSB. This is a confirmation of the fact that Canada is subsidizing its regional jet industry and those subsidies distort the global market for regional jet aircraft. We further note that the Arbitrators rejected Canada's argument that its subsidy was appropriate because it was designed to meet a competing Brazilian offer. This action by the DSB is the final stage of this dispute and allows Brazil to have the mandate derived from last year's major victory against Canada.” Canada specifically targeted one of Brazil's most important exports regional jet aircraft. The DSB award confirms that Canada will have to comply with international rules that Brazil and other WTO Members follow.
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The Augsburg plant of the EADS Military Aircraft Business Unit started milling its first metal frames for the A380, the new superjumbo from Airbus, and by this it openend a new chapter in the aviation history of Swabia. Numerous representatives from the worlds of politics, economics and the media were testimonies when Plant Manager Dr. Lutz Bertling started the final cutting operation on a frame for the front part of the wing. At present worldwide unique technology in machining was jointly responsible that the location became a partner in this programme. Mayor Dr. Paul Wengert said in his speech, "Augsburg has a long tradition in being a city of aircraft production. We are proud of the fact that in the Augsburg plant of the biggest European aerospace company this tradition is continued so consistently, innovatively and future-oriented. With this the Augsburg location is strengthened considerably." Dr. Bertling described today as "an important milestone on the way to timely delivery of the first bathtub." So the aircraft manufacturers name this special part of the wing, which would be very hard to produce with conventional methods. The tripod technology used for cutting operations is worldwide unique. This ultramodern and efficient process was developed together with the machine tool manufacturer DS Technologie and Siemens, which was responsible for the control techniques.
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The Snecma Board of Directors met, with Chairman Jean-Paul Béchat presiding, to approve the 2002 financial statements which will be submitted to the Annual General Meeting of Shareholders, called for April 29, 2003. Despite the difficulties of the civil aviation market, the Snecma group maintained good business volumes in 2002, as it preserved or even increased market shares. Snecma recorded orders worth 5.3 billion euros in 2002, close to the 2001 total. At December 31, 2002, the order backlog stood at 10 billion euros, versus 9.2 billion euros a year earlier. Despite the slowdown in the civil aviation market, Snecma sustained good business volumes in 2002, as it delivered 750 CFM56 aircraft engines and 635 helicopter engines. It also won a number of new contracts, including CFM56 engines for Ryanair, braking and steering systems for the Airbus A380, and engines for the Kamov Ka226 helicopter. At the same time, Snecma continued its international expansion, for example bolstering its presence in Asia to move even closer to its customers. Snecma posted sales of 6,504 million euros in 2002, following the record set in 2001 of 6,893 million euros. This performance was due to a broader business portfolio, encompassing helicopter engines and support services in particular.
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Stork Aerospace has received the order for the design and (prototype) pre-production of the electrical wiring for the US F-35 Joint Strike Fighter from Lockheed Martin. The order, which will receive final signature tomorrow in Amsterdam, represents a value of $ 57 million. The work is scheduled to be completed in 2007. Fokker Elmo, part of Stork Aerospace, has received the order for the development of the wiring for the entire aircraft, including the mission systems. The order initially involves the development and production of complete sets for 14 of the 22 F-35 prototypes (the other 8 are not intended to fly). The awarding of this project to Stork Aerospace is an important step towards the final production phase in which the company will be able to contribute to the planned 3,000 aircraft to be built for the United States and United Kingdom. Demand for the aircraft internationally, including potential Netherlands orders, could push the total to more than 5,000.
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Korea Aerospace Industries (KAI) has signed a memorandum of understanding (MOU) on an exclusive military helicopter component provision contract worth $350 million with the U.S. aerospace giant Boeing. KAI said on Feb. 18 that its CEO Kil Hyoung-bo visited Boeing headquarters in the U.S. and signed a MOU with the U.S. firm to form a mid- to long-term strategic alliance while clinching a helicopter parts supply contract. Under the contract, KAI will exclusively manufacture and supply the fuselage, or the body frame, of Apache attack helicopter model AH-64 from 2004 until 2010. Moreover, the two parties agreed to pursue a deal for KAI to produce and supply fuselage of other flagship Boeing aircrafts.
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BAE Systems has achieved a major milestone in the development of the new Active Electronically Scanned Array (AESA) Seaspray 7000E airborne surveillance radar. A Seaspray 7000E radar, mounted in the rooftop radome at BAE Systems, new state of the art facility in Edinburgh, transmitted over the Firth of Forth for the first time and successfully detected and tracked airborne and naval targets of opportunity. The Seaspray 7000E radar system builds on the production standard Seaspray 3600 COTS open architecture, processor that is due to enter service in 2003. The functionality of the Seaspray radar is implemented in software, which facilitates the exploitation of the multi-mode capability of the new Seaspray 7000E AESA antenna.
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In 2002 Saab continued to produce good financial results, and the order backlog grew to its highest level ever. Saab's defense businesses developed well. Operating income and the operating margin, excluding capital gains, continued to rise in accordance with our forecast. For defense operations, 2002 was another year of good order bookings and a number of strategic breakthroughs, particularly in missiles. Order bookings in the latter area were higher than ever, entirely due to international successes. In defense electronics, simulation systems from Training Systems continued to defend a market-leading position. Saab was also selected to develop the tactical command system for the Nordic standard helicopter, a major order not only in monetary terms but also in that it demonstrates the value of our ability to develop and integrate advanced systems and gives us the opportunity to build contacts and expertise in the helicopter field. Last week Hungary amended its lease agreement for 14 Gripen fighters with the Swedish state. A number of new modifications, including air-to-air refueling capacity and onboard oxygen generation, will ensure that Hungary is one of the few NATO members with a fourth-generation, fully NATO-interoperable aircraft system. For the full-year 2003 we expect continued growth and improvement in our operating income and operating margin. Due to the normal variation in income during the year, I expect a relatively weak start to the year and a strong finish.
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Middle East Airlines (MEA) of Lebanon has taken delivery of the first of six A321s scheduled for delivery during the year 2003 from Airbus. As part of a ceremony held in Toulouse in the presence of His Excellency, Lebanese Minister of Transport Najib Mikati, the A321 was handed over to Middle East Airlines Chairman Director General Mohamed El Hout by Airbus President Noël Forgeard. Middle East Airlines already operates a leased Airbus fleet since the early '90s, which the new aircraft will progressively replace. MEA will also integrate three new leased long-range widebody twin A330-200s, due for delivery this year, as part of its fleet modernization plan.
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Snecma Polska, the new Polish subsidiary of the Snecma group of France, was officially inaugurated today in a ceremony attended by members of the Polish government. The plant is located on a 30,000 square meter site in Sedziszow Malopolski near Rzeszow, and has 15,000 square meters of floorspace. A wholly-owned subsidiary of Snecma, Snecma Polska is specialized in the production of aircraft engine parts. Its workforce is 100% Polish. Snecma chose the Podkarpacia region of Poland after a thorough comparison between several potential international locations. Poland, shortly to join the European Union, offered an attractive legal and economic environment, a skilled workforce, world-class academic and scientific institutions and an array of local companies that will provide production and engineering support for Snecma Polska.
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The Supreme Allied Commander Europe, General James L. Jones on 20 February, ordered the NATO Airborne Early Warning and Control Force to deploy to Turkey with their AWACS aircraft based in Geilenkirchen, Germany. SACEUR decision follows the NATO Defence Planning Committee announcement on 19 February, “authorising the military authorities to implement, as a matter of urgency, defensive measures to assist Turkey.” The deployment to Turkey will provide surveillance and early warning for defensive purposes, in order to maintain the integrity of Turkish airspace. The aircraft will operate out of their forward operating location, at the Turkish Air Force base in Konya.
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Capts. Frank Santoni and John Cashman taxied the new Boeing 777-300ER (extended range) airplane for the first time Feb. 20 at Paine Field in Everett, Wash. The test, one of many being conducted as the airplane prepares for first flight, provides data about the airplane's braking performance and handling characteristics on the ground. It ensures all the systems perform as designed while the airplane is in motion, providing the flight crew's final validation before first flight. The pilots during today's test conducted several low- and high-speed taxi runs, incrementally building speed to a maximum of 120 knots, or approximately 140 miles per hour (220 kilometers per hour). The airplane's gross weight for this test was 387,000 pounds (175,000 kilograms). First flight is expected to take place Feb. 24, depending on weather and other variables.
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From April 1 onwards, Lauda Air will be taking off for Dublin three times a week. Flights will depart from Vienna for the Irish metropolis every Tuesday, Thursday and Saturday, with the respective return flights on the same days. Due to the finely tuned flight scheduling, smooth connections to and from the Austrian provinces are guaranteed. Lauda Air will use a comfortable Boeing 737-800. The aircraft features 158 seats, 16 of which are in the award-winning Amadeus Class.
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Raytheon Company has successfully completed Contractor Acceptance and Inspection (CAI) for the Federal Aviation Administration's (FAA) Wide Area Augmentation System (WAAS). The FAA formally took delivery of the system on January 24, 2003, approximately two months ahead of schedule. This critical milestone clears the way for FAA to initiate Operational Test and Evaluation, with certification for instrument flight rule navigation to follow later this year. WAAS is a key component of the FAA's next-generation space-based navigation and landing system. The system consists of 25 reference stations, two master stations, and four uplink stations to two geosynchronous satellites, which together broadcast a GPS-like signal across the national airspace system. This signal augments the basic Global Positioning System signal to improve its accuracy, continuity, integrity and availability. "The system we delivered to the FAA represents a significant advance in aviation safety and efficiency," said Bob Eckel, vice president, Raytheon Air Traffic Management Systems. "Raytheon's proven systems integration capability combined with our ability to produce compliant safety critical software on time and on budget were key elements of this successful milestone."
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