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UPDATE 
Week ending May 14, 2000
+++ EU approves EADS +++ LTU buys Airbus for fleet renewal +++ Astrium wins contract for three Inmarsat I-4 +++ Fighter competitions in Europe: The latest +++ European airlines create Online Travel Portal +++ SAirGroup strengthens position in France +++ Air traffic needs assured radio frequencies +++ News in brief +++

EU approves EADS
EADS erhält grünes Licht von der EU

On May 11, he European Commission cleared the way for the European Aeronautic Defence and Space Company (EADS). The three partner companies are now moving full speed ahead in their preparations for the establishment of the new company and the initial public offering, which are planned to take place simultaneously. This was announced by Aerospatiale Matra (Paris), Construcciones Aeronáuticas S.A. (CASA, Madrid) and DaimlerChrysler Aerospace AG (Dasa, Munich) immediately after the decision had become known. "We are perfectly on schedule", said Philippe Camus, President of Aerospatiale Matra and Co-CEO designate of the future EADS and Rainer Hertrich, President and CEO of Dasa and also Co-CEO designate. "As planned, the company can be founded and the initial public offering can take place this summer. Investors will therefore soon have the opportunity to participate in the market success of Airbus, Ariane, Eurofighter, Tiger, Rafale, military transport aircraft and other high-tech programmes of this first transnational European aerospace group."
The European Commission insisted that an alternative independent supply source had to be established for certain carbon fibre composite parts (central tubes, antenna reflectors) used in telecommunications satellites. Aerospatiale Matra, Dasa and CASA have thus undertaken to provide related and necessary equipment together with adequate support so that suitable purchasers can design and manufacture such composite structures. These undertaking will be implemented in accordance with all applicable laws and regulations. "These concessions will by no means affect the capability of EADS to serve its customers in the satellite business", emphasized Camus and Hertrich. "EADS will continue to be a technology leader and will deliver state of the art products to commercial and institutional customers."
Decisions from the French "Commission des Participations et des Transferts" and from Aerospatiale Matra and Dasa shareholders are the last steps to come before the final establishment of EADS.

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LTU buys Airbus for fleet renewal
Airbus-Flotte für LTU

LTU of Germany will acquire a total of 25 Airbus Industrie aircraft as part of an innovative and extensive fleet renewal program aimed at harmonizing the airline's fleet while increasing profitability. LTU plans to acquire 18 A320 Family aircraft, including both the A320 and the larger A321, as well as seven A330-200 long-range widebody twins. LTU took the first step in this major program when it signed a contract with Airbus Industrie in Dusseldorf for the purchase of six A320 Family aircraft. The Airbus aircraft will provide LTU with an optimum of performance, revenue potential and cost structure, while accommodating passengers in superior single-aisle and widebody cabins. The airline will operate the Airbus single-aisle aircraft on medium-haul routes from German airports to holiday destinations in the Canary Islands, the Mediterranean and the Middle East. LTU will operate the A320s with 174 seats, while the A321s will have a capacity of 212 passengers, all in a comfortable single-class layout. LTU's A330-200s will complement its existing fleet of A330-300s. The airline will exploit the full performance and revenue potential of the long-range twin-engined A330-200 widebody jets in intercontinental routes from Germany to North America, the Caribbean, African and Asia. LTU will operate an all-Airbus fleet by the end of 2003.

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Astrium wins contract for three Inmarsat I-4
Inmarsat-Auftrag für Astrium

Following an international competition, the Inmarsat Board has selected Matra Marconi Space, now Astrium, to build the three Inmarsat I-4 satellites for its mobile data system. The contract was signed in London on 11 May 2000. Two of the spacecraft will be launched in 2003 and will be operational in 2004. The third will remain on the ground as a spare. The Inmarsat I-4 satellites will based on EUROSTAR 3000, a powerful version of the companies successful EUROSTAR satellite series thirty of which have now been ordered. With a mass of more than 5 tonnes and a payload power of around 9 kW, the Inmarsat I-4 spacecraft are larger and more powerful than any other geomobile satellites. Inmarsat I-4 programme is a US$ 1.4 billion investment, approved by the Inmarsat board, for the whole system including the construction of three satellites, launch, insurance and ground segment. " I am extremely pleased with this new contract from Inmarsat. It is the largest commercial contract ever awarded to Matra Marconi Space and the first for Astrium " said Armand Carlier, Chairman and CEO of Astrium. " Inmarsat is a major customer for us and we are delighted with their continued confidence in us, having built their three MARECS and four Inmarsat-2 spacecraft, and supplied the advanced payload for the five Inmarsat-3 satellites. We were happy to offer our headstart programme which will significantly reduce the time to market for this new service. We are providing an innovative, but realistic and pragmatic solution with proven viability relative to current global mobile hand-held systems.

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Fighter competitions in Europe: The latest
Kampfflugzeug-Pläne in Oslo und Prag

On May 10, the Czech government decided to make the next step in its search for a new supersonic fighter. Ministers will prepare conditions for a tender to select a supplier for 36 aircraft. Defence Minister Vladimir Vetchy was quoted as saying that he, along with the finance, foreign affairs, and the trade and industry ministers will submit a plan for selecting the aircraft supplier by September 30. Vetchy said that the decision, expected to be the largest purchase of any kind by a Czech government totalling in the hundreds of millions of dollars, should be taken in consultation with both houses of parliament and other government agencies. Potential bidders include the British-Swedish consortium of BAe and SAAB maker of the JAS 39 Gripen; U.S. firms McDonnell-Douglas/Boeing with F/A-18 Hornets and Lockheed Martin with F-16s, French Dassault with the Mirage 2000-5 and Germany's DASA representing the Eurofighter consortium.
Meanwhile, the Norwegian government confirmed on May 12 that it was planning to scrap a plan to buy 20 new fighters. "The government has proposed that the acquisition of 20 new jet fighters...should not be carried out," the Finance Ministry said in a statement attached to a revised 2000 budget. "Even though fighters will still have high priority in the Norwegian Armed Forces, it would not be right to acquire new jet fighters in coming years," it said. Norway had narrowed its decision on what fighter jets to buy under a 10.7 billion crowns investment plan to an updated version of the F-16 or Eurofighters.

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European airlines create Online Travel Portal
E-Commerce: Fluggesellschaften kooperieren

Lufthansa is to join forces with ten major airlines to create the first European, multi-airline, online travel market. The new site will offer the general public access to the most up-to-date fare information, including the airlines' lowest branded fares. It is expected to attract a significant proportion of total on-line travel sales in Europe within the next two years. The other partners in the new venture are Air France, British Airways, Alitalia, KLM, Iberia, SAS, Aer Lingus, Austrian Airlines Group, British Midland and Finnair. The site - to be named in the coming months - will offer independent travellers the most comprehensive range of flights to, from and within Europe. They will also be able to book hotels, car hire, insurance and other travel services through the site. Speaking on behalf of the member airlines, Jürgen Weber, Chief Executive of Lufthansa, said: "This site will revolutionise the way European customers arrange their travel plans.From the comfort of their own armchair, they'll now have access in their own language to the biggest international route network and some of the lowest fares available, as well as a one-stop-shop for all their travel needs."
The new venture, which is expected to launch towards the end of this year, will be managed independently of the airlines. The member airlines will remain competitors and will not share pricing or proprietary information with each other. The site is expected to significantly cut the cost of selling and distributing tickets for the member companies.

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ILFC places major Airbus order
Airbus-Großauftrag von ILFC

In response to market demand, International Lease Finance Corporation (ILFC) has signed a contract for the firm purchase of 50 Airbus Industrie aircraft. This order includes 40 A320 Family aircraft, seven A330-200s, and three A340-600s, bringing the total of Airbus aircraft ordered by ILFC to 391, and strengthening its position as the largest single customer of the consortium. "The strong and continuing airline lease demand for all Airbus types, with their unique degree of commonality, makes this follow-on order a necessary and logical step for ILFC", says John L. Plueger, Executive Vice President and COO. "It is also important to note that ILFC has been very successful in securing placements of Airbus aircraft several years in advance of their delivery, for both the single-aisle and the large capacity intercontinental aircraft such as the A340-600. This supports our analysis of the inherent present and future economic values of these products, which encouraged us to order a significant number of A330/A340 widebodies alongside the 40 single-aisle aircraft."

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SAirGroup strengthens position in France
Air Liberté rückt näher an die Swissair

The SAirGroup is pleased to learn of the successful outcome of negotiations between Taitbout Antibes and British Airways on the sale of Air Liberté. Taitbout Antibes will take a 100-per-cent stake in Air Liberté Holding Participations Aéronautiques. Taitbout is a subsidiary of Marine Wendel and Group Alpha which, together with the SAirGroup, owns the French airline AOM and also possesses a stake in Air Littoral. The French partners and SairGroup see a great amount of synergy potential in the three French airlines, AOM, Air Littoral and Air Liberté, that could be broadly taken advantage of within The Qualiflyer Group alliance. The SAirGroup and Marine Wendel own 49 and 51 per cent of AOM respectively. The SAirGroup also holds a 49-per-cent stake in Air Littoral while Taitbout Antibes, holds an 18-per-cent stake in the airline. It is the intention of the French partners of SAirGroup to generate close cooperation among the three French airlines and to take optimal advantage of the synergies to be gained in fleet and network sectors within the framework of the Qualiflyer Group alliance. A concept known as the Airline Management Company France (AMCF), in which AOM, Air Littoral, Swissair and Sabena will cooperate more closely in France in sales and marketing, is ongoing. The French air transport market is one of the largest in Europe and is constantly growing. The French partners and SAirGroup want to enhance the standing of the Paris-Orly hub, making it a significant centre for air travel and further underpinning the Qualiflyer Group's multi-hub strategy.

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Air traffic needs assured radio frequencies
Luftverkehr kämpft um Frequenzen

"We must protect the safety and operational efficiency of aviation. Delegates at the World Radio Conference in Istanbul must ensure the radio frequency spectrum used by aviation is not re-allocated to the telecommunications industry. The growth of the two industries must be compatible and must preserve aviation safety," said IATA Director General Pierre J. Jeanniot. Government representatives at the Conference will decide over the next four weeks whether to re-allocate radio frequency bands between users. Civil aviation does not own the crucial frequencies it has always relied on for its safe and efficient operations and could lose them to the rapidly growing telecommunications industry, with the unacceptable risk of interference in air transport operations.
Sharing the aviation radio frequencies with mobile telecommunications services could have an immediate and future impact on aviation communications, navigation, and surveillance services. These are critical to aviation, as it relies on new technologies such as satellite-based communications to increase safety and reduce both air traffic control delays and aviation's impact on the environment. IATA urges all parties involved in the WRC in Istanbul to work towards protecting aviation's essential airwaves and supporting aviation's proposals.

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NEWS IN BRIEF / KURZMELDUNGEN

A Global Positioning System (GPS) satellite built by Lockheed Martin Space Systems, Sunnyvale, CA, was successfully launched on May 10 from Cape Canaveral Air Station, FL. This was the third successful launch of the new-generation replenishment spacecraft, designated GPS IIR. The Company will supply 17 more of these satellites to the U.S. Air Force Space and Missile Systems Center, Los Angeles Air Force Base, CA, over the next five years. The GPS IIR satellites are compatible with the current system but offer improved performance. Increased navigation accuracy and longer autonomous satellite operation without ground control corrections will improve service for the Air Force customer and other users.
+++
JMC Airlines has placed an order for two Boeing 757-300 jetliners. The Manchester, England-based airline is the fifth customer to announce its choice of the new 757-300, which entered service last year. This order was accounted for in cumulative order totals published recently by Boeing. Until this announcement, the customer for the order was listed as "unidentified". JMC Airlines is the first holiday carrier in the U.K. to order the new Boeing 757-300. The model already is in service with Condor Flugdienst of Germany and Arkia Israeli Airlines. Icelandair has two 757-300s on order and American Trans plans to acquire 10. JMC will use the 757-300 to carry up to 280 passengers per flight.
+++
Continuing on its path of route expansion, New York City (JFK)-based jetBlue Airways has signed a firm order for the purchase of seven Airbus Industrie A320s, exercising options on its contract announced with the aircraft manufacturer in April 1999. At that time, the low-fare airline firm-ordered 25 A320 aircraft, plus a further 25 options and 25 purchase rights on A320 Family aircraft. "Since our very first flight, our passengers have praised our service, our fares, and our choice in aircraft," said David Neeleman,
jetBlue's Chief Executive Officer. "Our fleet of A320s has allowed us to offer our customers the most comfortable ride in the sky, and the economics of the aircraft have helped us to offer unrivalled ticket prices."
+++
Bombardier Aerospace announced that its new Q400 airliner established turboprop time-to-climb records in three flights from Davis Airfield in Muskogee, Oklahoma. The records have been submitted to the Fédération Aéronautique Internationale in Paris, France, for validation. The records cover time to three altitudes in three different weight categories. The Q400 climbed to 3,000, 6,000 and 9,000 metres (9,843, 19,685 and 29,527 feet) in each weight category, including one flight in the "unlimited weight" category to 9,000 m. The records claimed for flights to 9,000 m include: C1i weight class, 16,000 to 20,000 kg (35,274 to 44,092 pounds), seven minutes, two seconds, or 59 seconds faster than the eight minutes, one second established by the Saab 2000 in 1993. C1j weight class, 20,000 to 25,000 kg (44,092 to 55,115 pounds), eight minutes, 21 seconds, or three minutes, four seconds faster than the previous record of 11 minutes, 25 seconds held by the Grumman E2C Hawkeye military aircraft. C1k weight class, 25,000 to 35,000 kg (55,115 to 77,161 pounds), 11 minutes, 41 seconds. There was no current record in this category.
+++
Bombardier Aerospace announced that Italian regional airline Air Dolomiti has signed a firm order for three CRJ200 Series LR (Long Range) regional jets for its European route network. Air Dolomiti, with operational bases in Trieste and Verona, will become the 12th European airline and the first in Italy to put the CRJ into service. The order is valued at approximately $72.5 million US ($108 million Cdn). The aircraft are scheduled for delivery late in 2000 and early in 2001. Air Dolomiti also secured options on three additional CRJ aircraft which may include either 50-passenger CRJ200 Series or 70-passenger CRJ700 Series aircraft.
++++
Air Mauritius, the largest carrier of the Indian Ocean, has decided to order two Airbus Industrie A319s for the development of its regional and African route network. The national carrier's decision to select the A319 was driven by the cost-efficiency and comfort of Airbus Industrie's best-selling A320 Family. Mr. Nashir Mallam-Hasham, Air Mauritius Chairman and Managing Director said "The A319 fleet integrates well with our existing fleet and is well tailored for our regional network. It will meet our customers' expectations." Air Mauritius already operates a fleet of five Airbus Industrie four-engine A340-300 wide-bodies on its extensive intercontinental network and stands to gain still further from the commonality that exists between all Airbus Industrie's fly-by-wire aircraft. As a new type operator with the A319, Air Mauritius will be able to achieve considerable cost-savings in training and maintenance.
+++
Midwest Airlines, an Egyptian carrier operating out of Cairo and owned by the Lakah family, signed a contract with Airbus Industrie for the firm order of two A320s and two options. The airline's decision to select the A320 over competing aircraft once again reflects the unbeatable cost-efficiency and comfort of the best-selling A320 Family.
+++
On May 9, representatives of Boeing and Alenia Spazio signed a teaming agreement to reinforce their ongoing commitment to the future of the International Space Station (ISS). This agreement establishes the framework for present and future ISS opportunities and represents a new era of cooperation for the two companies. "Boeing involvement with Alenia Spazio provides an excellent opportunity to integrate substantial competencies and focus on creating best-value solutions for our customers," said Brewster Shaw, Boeing ISS vice president and general manager. Under the teaming agreement, Boeing and Alenia Spazio will expand their efforts, ensuring an integrated approach for the long-term support of ISS. The agreement comprises a range of logistics support activities, effective utilization and implementation of the Alenia Spazio-designed and -built Multi-Purpose Logistics Module, and supplies a framework for future space-related initiatives.
+++
Raytheon Company and debis Capital Services announced that debis has agreed to purchase up to $800 million of general aviation and corporate aviation finance receivables generated at Raytheon Aircraft Company (RAC). The transaction involves more than 300 aircraft-related loans and leases. The two companies are also working towards implementing a global "customer financing" agreement, in which debis will offer a broad array of financial products to Raytheon aircraft customers worldwide. "This sale and the financing partnership with debis Capital Services will allow Raytheon to focus on building and marketing world-class aircraft while preserving our financing capacity for other strategic opportunities," said Franklyn A. Caine, chief financial officer of Raytheon Company. "Raytheon will also be able to leverage debis' financial strength and capabilities to support RAC's customers around the world."
+++
On May 12, the current crew of Russia's Mir space station performed a five-hour spacewalk to inspect a broken solar panel and test a cosmic version of super glue designed to seal cracks in the aging craft. Cosmonauts Sergei Zalyotin and Alexander Kaleri returned safely to the station after checking the station's outer surface and applying the glue to a special test panel. The 14-year-old station began slowly leaking air shortly before the previous crew returned to Earth in August, leaving Mir unmanned until the April 6 arrival of Zalyotin and Kaleri. The cosmonauts fixed the air leak last month, Mission Control spokesman Valery Lyndin said. The crew also filmed the parts of the station worst affected by aging, and removed an experimental panel attached to Mir during a previous spacewalk.
+++
The second C27J Spartan flew from Alenia Aerospazio's Flight Test facilities at Turin-Caselle airport in Turin, Italy on May 12. The 4115 aircraft is the first C-27J manufactured to the full production configuration at the Alenia facilities in Turin, Italy. The new avionics systems, propulsion system, aircraft general systems, and an advanced technology cockpit provide the pilots with the situational awareness and aircraft performance required for tactical airlift operations. Piloted by Comandante Gianluca Evangelisti, Chief Transport Aircraft Test Pilot, and Comandante Agostino Frediani, the aircraft flew for approximately one hour testing the new aircraft systems. It took off at 10:40 AM, climbed to 15,000 feet, and landed at 11:50 AM. The flight returned Code One -- all planned testing was completed with no problems reported.
+++
On May 9, the U.S. Federal Aviation Administration has granted Boeing an amended type certificate and a production certificate of airworthiness for the MD-10 freighter. The company simultaneously delivered the first of 89 MD-10s to FedEx, the MD-10's launch customer, at a joint FAA-Boeing-FedEx ceremony at Williams-Gateway Airport in Mesa, Arizona. "MD-10" is the designation given to modified DC-10 airplanes that incorporate the Boeing Advanced Common Flight deck (ACF). The MD-10 instrument panel layout is identical to that in the Boeing MD-11 with a two-crew flight deck. Because of the significant similarities between the MD-10 and MD-11 flight decks, pilots can be qualified to fly the two airplanes interchangeably. The amended type certificate allows modification of DC-10 airplanes into MD-10 airplanes, while the production certificate of airworthiness is required for the airplane to go into service. FedEx launched the program in 1997 with an agreement to retrofit 70 DC-10s and the option to retrofit an additional 50 DC-10s. Boeing offered the MD-10 program to the owners of all 413 DC-10s in service or storage, giving the program the potential to become the largest airplane modification effort in commercial airplane history.
+++
The US Air Force successfully launched a Titan IVB rocket May 8 carrying a Defense Support Program satellite from Space Launch Complex 40 at Cape Canaveral. The Titan IVB successfully completed its portion of the mission about nine minutes after liftoff when it separated from the DSP satellite and the inertial upper stage that boosted it into orbit. Approximately seven hours after liftoff, the spacecraft separated from the IUS and was deployed into orbit. Both the Titan IVB and the inertial upper stage appeared to perform as expected. Air Force Space Command-operated Defense Support Program satellites are a key part of North America's early warning systems. In their 22,000-mile geosynchronous orbits, DSP satellites help protect the United States and its allies by detecting missile launches, space launches and nuclear detonations.
+++
The forty-fourth annual shareholders' meeting of Austrian Airlines AG passed a resolution to distribute a 7% dividend for the 1999 business year (EUR 0.51 per share), unchanged from the previous year. Austrian Airlines AG's result from ordinary business activity (EGT) amounted to ATS 457 million (EUR 33.2 million); for the Group, this was ATS 510.7 million (EUR 37.1 million). A resolution of the shareholders' meeting authorized the Austrian Airlines managing board to redeem shares of the company totaling up to 10% of the stated capital within a period of 18 months from the passing of the resolution. This authorization is a precaution in case a redemption of shares would support a future advantageous situation both for shareholders and the corporation. There is no plan for an immediate redemption of shares. Altogether, out of a balance sheet profit of ATS 245.7 million (EUR 17.9 million), ATS 238.6 million (EUR 17.3 million) will be distributed as a dividend; and the remaining profit of ATS 7.1 million (EUR 518.779) will be carried forward to the new accounting period.
+++
The upgraded MiG-29 Sniper demonstrator aircraft flew for the first time on May 5, at the Aerostar Bacau factory. DaimlerChrysler Aerospace's chief test pilot, Wolfgang Schirdewann, was at the controls during the 42-minute flight. Aerostar, DaimlerChrysler and Israel's Elbit developed the Sniper as an upgrade for about 18 MiG-29 "Fulcrum-A" in service with Romanian and other Eastern European air forces. The Sniper's improved onboard systems will be fully compatible with NATO and ICAO standards. The redesigned cockpit features a far more efficient man-machine interface. A new on-board computer supports an expanded range of weapons options, as well as built-in growth potential.
+++
Frankfurt Airport is planning a public share offering in 2001, but current owners Hessen, Frankfurt and Germany will remain majority owners, it was announced. Frankfurt Airport has reported its best results ever for 1999. Turnover was 2,6 billion Dm, with profits of 349 million DM before taxes. There were 46 million passengers, 7,3 per cent more than in 1998. 49 per cent of those are on connecting flights.
+++

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

*May 7, 2000

*April 30, 2000 *April 16, 2000 *April 9, 2000 *April 2, 2000

*March 26, 2000 *March 19, 2000 *March 12, 2000 *March 5, 2000

*February 27, 2000 *February 20, 2000 *February 13, 2000 *February 6, 2000

*January 30, 2000 *January 23, 2000 *January 16, 2000 *January 9, 2000

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

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