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UPDATE 
Week ending May 20, 2001
+++ New German space programme unveiled +++ RAF gets first C-17 +++ Restructuring plan for the ATR Programme +++ United to form business jets subsidiary +++ Lufthansa Cargo profits boost in 2000 +++ Proton launches PAS-10 +++ PW206 reftit for Bavarian EC 135s +++ EADS Aeroframe Services opens in Lake Charles +++ News in brief +++

New German space programme unveiled
Bundesregierung verabschiedet Raumfahrtprogramm

On its weekly cabinet meeting, the Geman government has approved a new space programme - the first in 20 years. "This will be the solid reference for academics and industry", said Edelgard Bulmahn, the education and research minister. She added that Gemany will honour the former governments commitment to provide 41 per cent of European investment in the Space Station, reluctantly, it is said. Otherwise, Bulmahrn prefers to invest in more economic relevant space activities, as well as programmes with benefits to Earth preservation etc. National programmes will get 310 million DM a year.
The eight main topics outlined in the space programme paper are: earth monitoring, with satellites like Envisat; telecommunications; navigation, like Galileo; space science; space infrastructures; weightlessness research initiatives; space tranportation means like Ariane; and technolgies for space.

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RAF gets first C-17
Erste C-17 für die Royal Air Force

On May 17, Boeing delivered the first of four C-17 Globemaster III military cargo aircraft to the United Kingdom Royal Air Force RAF) during ceremonies at the company's assembly facility in Long Beach. The aircraft was then flown to Charleston Air Force Base in South Carolina, where it will pick up support equipment. It is scheduled to arrive at its home station, RAF Brize Norton, on May 23. Squadron Leader Malcolm Brecht, commander of the
RAF's 99th Squadron, was at the controls for its delivery flight. Participating in the ceremony were David Gould, deputy chief of Defense Procurement for the United Kingdom; Jerry Daniels, president and chief executive officer of Boeing Military Aircraft and Missile Systems; and Maj. Gen. Paul Essex, director of Global Reach Programs for the Office of the Assistant Secretary of the Air Force for Acquisition. All four U.K. C-17s will be delivered this summer. They are being acquired on a seven-year lease arrangement, with training and maintenance support through a separate contract with the U.S. Air Force and Boeing.

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Restructuring plan for the ATR Programme
Umbau des ATR-Konsortiums

Alenia chairman Giorgio Zappa and the head of EADS Aeronautics Division, Dietrich Russell, have finalised their plan for the restructuring of the ATR programme and submitted it to the boards of Alenia/Finmeccanica and EADS ATR for approval. This plan was presented to management and the unions on 10 May 2001. It calls for the establishment of "ATR Integrated" as of June 1 2001, subject to the accord of the management and employees' representatives, scheduled for May 23. ATR Integrated will be formed out of the industrial operations (production, engineering, purchasing) of EADS ATR, the engineering and purchasing operations related to the ATR programme handled by Alenia and the sales and marketing operations currently handled by the ATR consortium.
The new entity will be formed as a "Groupement d'Intérêt Economique" or GIE (a French legal construct for companies that do not make profits or losses in their own right), but with certain modifications which give it a greater degree of operational autonomy. All personnel will retain their present status. The workforce will thus consist of a mix of staff assigned by the members of the consortium and "direct" ATR staff. Looking beyond the new agreement, thought will then be given to the possibility of developing the consortium into a fully fledged company. Through this move, Alenia and EADS have demonstrated their mutual will to strengthen the ATR programme by providing a framework within which to enhance its operational parameters and efficiency.

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United to form business jets subsidiary
Geschäftsreisejetangebot von United

On 17 May, UAL Corporation, the holding company whose primary subsidiary is United Airlines, said that its Board of Directors has authorized it to enter the business aviation market by establishing a stand-alone business devoted to fractional ownership of business jets. The company will negotiate with manufactures definitive orders and/or options for a substantial number of business aircraft, leading toward the operation of approximately 200 business aircraft by 2005. Commenting on the new fractional ownership business, United Airlines Chairman and Chief Executive Officer James E. Goodwin, said, "The business aviation industry has seen dramatic growth over the last 10 years, reflecting the needs of the market and particularly, the needs of our corporate customers. We believe that given our operational excellence and our 75 years of aviation experience, we are positioned to supply a unique product, blending that experience and excellence with a quality product and the very highest standards of customer service consistent with those found in the world's finest hotels. While the new fractional ownership business will be funded by and linked to United's operating capabilities, it will otherwise be fully separate from United.

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Lufthansa Cargo profits boost in 2000
Rekordgewinne bei Lufthansa Cargo

Lufthansa Cargo AG turned in the best-ever performance in its history in the 2000 business year. The logistics services provider and one of the strongest growing companies in the Lufthansa Group further expanded its lead in the international airfreight and logistics market. Profits from operating activities rose year-on-year by 173.1 million euros to a total of 227.5 million euros. This is a fourfold increase on the year-earlier level and impressively demonstrates the company's competitiveness. Revenues were up by 23.2 per cent to a total of 2,564 million euros. The bulk of the total is made up of revenues from operating activities, which increased to 2,542 million euros (plus 23.3 per cent). In a global comparison, Lufthansa Cargo again successfully cemented its leading position in the international airfreight business. Compared with the average 9 per cent attained by IATA member-airlines, fuelled largely as in the previous year by the positive development of Asian carriers, Lufthansa Cargo - with a growth rate of 8 per cent - ranked among the world's high-growth cargo carriers. It again outperformed the carriers in the Association of European Airlines (AEA), which grew on average by barely 7 per cent. "Excellent results in the 2000 business year have vindicated our strategy. We have profited, above all, from the measures we took in previous years to set the company in the right direction," said Lufthansa Cargo Chairman Jean-Peter Jansen at today's annual press conference in Mainz. "Our efforts have had the gratifying effect of further improving company value. We have also gained in weight within the Lufthansa Group."

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Proton launches PAS-10
Erster Proton-Start des Jahres

A Russian-built Proton K rocket successfully launched the PAS-10 communications satellite for PanAmSat Corp. on May 14, marking the first mission of the year for International Launch Services (ILS). Liftoff from Baikonur's Pad 23 occurred at 7:11 a.m. local time (01:11 GMT, 9:11 p.m. May 14 EDT). The mission lasted 6 hours and 33 minutes, at which time the satellite was separated from the launch vehicle into geosynchronous transfer orbit. PanAmSat will position the Boeing 601HP model satellite at 68.5 degrees East longitude to provide communications services in Europe, Asia, Africa and the Middle East. "It's another excellent launch for Proton and ILS," noted ILS President Mark Albrecht. Last year, the Proton flew 14 times, all successfully. Eight of those were commercial missions for ILS and six were Russian federal launches. "It's great to see Proton continuing its winning streak, and just a month after successfully flying the first of its Proton M/Breeze M vehicles," Albrecht said.

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PW206 reftit for Bavarian EC 135s
Neue Triebwerke für bayerische Hubschrauber

Pratt & Whitney Canada Corp. (P&WC) is pleased to announce that the Bavarian Police have decided to outfit their nine PW206B-powered Eurocopter EC135 helicopters with PW206B2 engines, starting in September 2001. This represents the first engine retrofit program for the Eurocopter EC135. "We have extensive experience with Pratt & Whitney Canada and trust that the PW206B2 engine will bring added capability to our aircraft," said Karlheinz Maier, Technical Director for the Bavarian Police. The P&WC-powered EC135 helicopters were delivered to the Bavarian Police in 1997. They are used for 24-hour police and EMS duties, which include special winch, night flying, FLIR, camera and night vision goggles training in the Bavarian Alpine region. In March 2001, the fleet collectively reached 10,000 flight hours. The PW206B2 is the latest growth variant of the PW200 engine family. Thermodynamically rated at 708 SHP continuous OEI (One-Engine Inoperative) and 816 SHP 30 second OEI, the PW206B2 engine will enable the EC135 to operate at higher Category "A" take-off weights, namely 2.835 tonnes up to 25 degrees C at sea level (ISA +10 degrees C conditions). The PW200 engine family powered over 70 per cent of all new light-twin helicopter deliveries in the year 2000, making P&WC the market leader in this segment.

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EADS Aeroframe Services opens in Lake Charles
Wartungseinrichtung der EADS in USA eröffnet

The U.S. joint venture between EADS Sogerma, a wholly owned subsidiary of EADS, European Aeronautic Defence and Space Company, and Northrop Grumman Corporation marked the official opening of its state-of-the-art heavy maintenance and modification facility on Wednesday at Chennault International Airport. EADS Aeroframe Services, LLC, the joint venture between the two aerospace and defense giants announced in October 2000, is investing $14 million in a modern facility for the maintenance, repair and overhaul (MRO) of large commercial aircraft. "This venture with Northrop Grumman allows EADS to provide full support networks to its customers of the Americas, and to its family of aircraft, beginning with the Airbus line,'' said Philippe Camus, chief executive officer of EADS. "The American market is extremely important to us, and Aeroframe Services is part of our commitment to expanding US-European industrial co-operation.'' EADS CEO Philippe Camus attended a formal opening and tour of the refurbished and expanded facilities at the Lake Charles airport, along with Yves Richard, chairman and CEO of EADS-Sogerma, Eric Schulz, president and CEO of EADS Aeroframe Services, and Martin Dandridge, corporate vice president, and executive vice president, Northrop Grumman Integrated Systems Sector.

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NEWS IN BRIEF / KURZMELDUNGEN

BAE SYSTEMS in support of the Advanced Threat Infrared Countermeasures/Common Missile Warning System (ATIRCM/CMWS), has completed a rigorous series of live fire tests. The tests, conducted by the U.S. Army at White Sands Missile Range, New Mexico, April 4-24, 2000, complete another major phase of the U.S. Government Development Test/Operational Test (DT/OT) program -- a critical requirement for the Low Rate Initial Production (LRIP) decision early next year. ATIRCM/CMWS is the next-generation countermeasure to protect aircraft from infrared-guided missiles. During the tests, live missiles were fired at an infrared source located near the ATIRCM jammer and CMWS sensors -- both of which were mounted on a cable car simulating an airborne vehicle such as a helicopter. Ten test flights were successfully completed, with missiles launched from different angles and ranges. Scenarios involved both single missiles and multiple missiles launched simultaneously, and at various distances.
+++
On May 11, the Boeing Joint Strike Fighter X-32B landed at Naval Air Station Patuxent River, Md., on schedule, marking the aircraft's entry into the final phase of a flight-test program that will validate the Boeing direct-lift approach to the program's short-takeoff-and-vertical- landing (STOVL) requirement. "We're very pleased to be at Patuxent River and expect our test program here to be very successful, as it was at Edwards," said Frank Statkus, Boeing vice president and JSF general manager. "X-32B flight testing at Pax will build on our long and successful history of working with the U.S. Navy in an integrated test team environment." Statkus said milestones in the coming weeks, including the first hover and vertical landing, will further prove the company's direct-lift design is simple, reliable, low risk and the best system for the STOVL flight requirement.
+++
The Nordic decision regarding the planned joint helicopter purchase could be postponed until 2005, according to the Finnish Defence Minister Jan-Erik Enestam. Enestam is apparently ready to present a proposal according to which the helicopter purchase would be carried out in four years.
+++
XCEL Power Systems Ltd. has won a contract from BAE Systems Ltd. for the supply of a High Voltage Power Supply Unit for the Integrated Helmet System to be fitted to the Eurocopter UH-Tiger Helicopter. The first phase of the contract is already under way with deliveries commencing in Quarter 3, 2001. The contract value is approximately $1,200,000 and is deliverable over a 20 month period.
+++
NASA today announced the first round of contract awards in an agency initiative to find a more affordable and reliable highway into space. The Space Launch Initiative (SLI) is a research and development effort designed to substantially improve safety and reduce the high cost of space travel. The studies initiated with these awards are not intended to provide a specific vehicle design. This first step marks the beginning of a process that will lead to the development of a common set of alternative technologies that NASA will make available to all U.S. companies. These cutting-edge developments will be used for future government and commercial launch systems and space transportation operations. The SLI investment is expected to pay off with full-scale spacecraft development options by mid-decade. "A second-generation reusable launch vehicle will open up the space frontier and significantly improve life on Earth," said Art Stephenson, director of NASA's Marshall Space Flight Center, Huntsville, AL, which is leading the program.
+++
During a festive celebration in Seattle, Boeing delivered the first 737-900 to launch customer Alaska Airlines. The new airplane, posing at right with another 737-900 destined for Alaska, is the first of 11 such airplanes Alaska will receive between May and April 2003 and the first of three the airline will receive this month. The 737-900 will be the largest airplane in Alaska Airline's fleet.
+++
A U.S. Navy TRIDENT II D5 Fleet Ballistic Missiles (FBM), built by Lockheed Martin Space Systems Co. Missiles & Space Operations, Sunnyvale, Calif., was successfully launched in a test conducted today from the USS KENTUCKY (SSBN 737) at the Eastern Test Range off the Florida coast. The test was another in a continuing series of operational evaluation tests conducted by the Navy to monitor the safety, reliability, readiness and performance of the TRIDENT II D5 Strategic Weapon System (SWS). The missile represented the 91st consecutive successful test of the TRIDENT II D5 Submarine Launched Ballistic Missile (SLBM) and continue the impressive string of successful test launches that began in December 1989.
+++
Following meetings of the Boards of Directors of Alcatel and Thales, an agreement has been reached between the two groups, under which Alcatel will acquire the 48.83% stake in Alcatel Space currently held by Thales, bringing its participation up to 100%. The price of the transaction will amount to 795 million euros, to be paid half in cash and half in Thales shares. This will reduce Alcatel's stake in Thales from 25.3% to approximately 20%. The operation, which will be referred to the European Commission for approval, will not affect the relations between shareholders as outlined in the Thales shareholders' agreement. The resulting balance among shareholdings remains satisfactory. The agreement enables Alcatel, which has managed Alcatel Space since its creation, to strengthen its interests in this strategic sector. Alcatel considers satellite systems associated with terrestrial telecommunications networks as a key component in the information transmission chain.
+++
Lockheed Martin Astronautics has selected a new Low Shock Separation System from Saab Ericsson Space for their Atlas V launch vehicle. The low shock separation system will reduce the launcher induced satellite shock environment several orders of magnitude, while at the same time being capable of supporting future growth in satellite mass. A ten-year contract has been signed between the companies covering two types of standard separation system diameters. Saab Ericsson Space has supported the Atlas with its standard separation system since the commercialisation of Atlas in the late eighties. The Saab Ericsson Space separation systems has a flight record of more than 260 in-orbit-separations with a success rate of 100%. Saab Ericsson Space is an independent supplier of space equipment. The company develops and manufactures computers, antenna systems, microwave electronics and guidance and separation systems for launch vehicles and satellites.
+++
Boeing announced it has made substantial progress toward key milestones in the X-37 reusable spaceplane program, initiated under a cooperative agreement signed with NASA in July 1999. Beyond significant fabrication and assembly results, the program has successfully conducted flight tests of the X-40A, a vehicle designed to verify the flight dynamics of the X-37 and reduce risk on the program. The Boeing-built X-40A Space Maneuver Vehicle, an 85 percent scale version of X-37, recently completed its fifth straight successful test flight at NASA's Dryden Flight Research Center. During the flights, the unmanned X-40A is dropped from a Chinook helicopter from 15,000 feet, and it autonomously acquires the runway and lands in a mode similar to a conventional aircraft. The X-40A uses the GN&C (Guidance, Navigation & Control) algorithms, software, CADS (Calculated Air Data System), SIGI (Space Integrated GPS/INS) and aerodynamic performance maneuvers of the X-37 as well as its mobile FOCC (Flight Operations Control Center). The X-40A will perform a total of seven drop tests to support the low-speed atmospheric flight dynamics of the X-37.
+++
Embraer delivered the first ERJ 135 regional jet to SA Airlink, less than five months after signing a contract with the South African airline. SA Airlink closed a deal with Embraer in December last year for the acquisition of 70 ERJ 135s (37 passengers), of which 30 were firm orders and 40 were purchase options. For this year another four aircraft are scheduled for delivery. All aircraft firm-order deliveries are expected to take place over a period of eight years, with the possibility of conversion to the ERJ 145 (50 passenger) and ERJ 170 (70 passenger) models. The contract is worth more than US$ 900 million. The negotiation was formalized during the official visit to Embraer of the President of the Republic of South Africa Mr. Thabo Mbeki on December 14, 2000.
+++
According to Airbus' latest Global Market Forecast, the airlines of Finland and the Baltic states will require a total of 128 new aircraft worth around US$ 8 billion over the next 20 years. The entire airline fleet in Finland and the Baltic states will more than double from around 55 today to almost 133 aircraft in 2019. During the same period, 50 of the aircraft currently in service will have to be replaced as they reach the end of their economic lives, while 83 will be needed for growth. Passenger traffic carried by the airlines of Northern Europe is expected to triple in the next 20 years with an average annual growth rate of 5.2 per cent. This is significantly higher than the average annual 4.9 per cent Airbus predicts for the growth of the traffic world-wide. In particular, traffic on routes between Northern Europe and dynamic Asian regions will more than triple, with a predicted growth rate of 6.5 per cent on average each year.
+++
In the first step to transition to an all-Airbus fleet, Frontier Airlines has taken delivery of its first A319. The aircraft departed Airbus' Hamburg, Germany facilities on 10 May and arrived in Goodyear, Ariz., U.S., where it will undergo route proving prior to entering revenue service in June. The aircraft also featured the new Frontier aircraft paint scheme, unveiled by the airline in January 2001. Frontier has ordered a total of seven A319s and five A318s from Airbus with options for nine more aircraft. Additionally, the airline will lease 15 A319s from General Electric Capital Aviation Services (GECAS) and one A318 from International Lease Finance Corporation (ILFC).
+++
An agreement was signed in which Volvo Aero becomes a risk and revenue sharing partner in two Rolls-Royce engine programs, the Trent 500 for the Airbus A340-500/-600 and the Trent 900, for the new Airbus A380. "This is a very important agreement and a substantial addition to our current product portfolio,'' comments Fred Bodin, president at Volvo Aero. Volvo Aero and Rolls-Royce already have many years of partnership experience in current engine programs such as the Tay and the BR715. The contract signed today will, however, involve the largest cooperation between the two companies to date. The Trent 500, which will operate at 53,000-56,000 lb. thrust, has been designed specifically to meet the requirements of the new four-engine Airbus A340-500 and -600 and is also the sole engine for this aircraft, which will enter into service during 2002.
+++
One year after becoming the first company to sign a Memorandum of Understanding (MoU) on offset delivery with the Czech Government, SAAB-BAE Systems Gripen, manufacturer of the Gripen new-generation supersonic, multi-role fighter, has already registered a total of 14 offset projects. In addition, the Gripen team is in the process of launching further projects, in both the defense and commercial business sectors. These initiatives are specifically targeted to benefit business sector and regional priorities in line with Czech Government economic strategy, as outlined in Request for Proposals (RfP) for new fighter aircraft, issued in January this year. Projects include working in partnership with US companies GATAX and Fedex in their effort to save Let Kunovice, the Moravian aircraft manufacturer, cooperation with Czech flight simulator company VRM and project in the engineering, steel, aviation and infrastructure sectors.
+++
The Swissair Group and the International Olympic Committee (IOC) are entering a comprehensive partnership. The agreement calls for the Swissair Group to provide services and support to the IOC and to assist in broad-based promotional measures as part of the IOC's world-wide campaign. Effective immediately, Swissair is also the official airline of the IOC and will serve as the IOC's preferred airline for passenger and cargo transportation. The cooperation also includes Swissair Group companies Crossair, The Nuance Group and Swisscargo. The cooperation takes effect today and runs through 2004. The agreement also has a renewal option that may extend the cooperation through 2008. Swissair receives the right to call itself the 'Official Airline of the International Olympic Committee,' to use the five-ring Olympic logo and to distribute corresponding promotional material on board its aircraft. Swissair and Swisscargo will be the preferred means of passenger and cargo transport for the IOC. The Nuance Group will serve as a strategic partner for the further development of the Olympic store concept, which was launched very successfully at the Sydney 2000 Olympic Games and will also be prominent at the 2004 Games in Athens. Corresponding cooperation models are also being prepared for others business sectors such as Gate Gourmet.
+++
The pilots strike at Lufthansa continued on May 17. The Lufthansa Group (Lufthansa passenger airline, Condor, Condor Berlin, Lufthansa Cargo), Lufthansa went ahead with about 210 flights up to 16 hours. More than 20,000 passengers have already been flown to their destinations. Up to now, 660 of the 1,100 Lufthansa flights originally scheduled during the 24-hour strike period have been cancelled. Lufthansa is today serving about 85 per cent of its long-haul destinations. Lufthansa is expecting to carry out about 300 flights during the present stoppage in comparison with the 200 during the last 24-hour strike. Lufthansa Cargo operated all its scheduled long-haul freighter flights today. Condor has also flown most of its passengers to their holiday destinations. Additionally, Lufthansa CityLine, Team Lufthansa Partners, Eurowings, the Star Alliance and other cooperation partners have operated all their flights. Even the sixth round of pay talks with the Vereinigung Cockpit (VC) pilots union for cockpit crews at the Lufthansa passenger airline, Condor, Condor Berlin and Lufthansa Cargo has failed to produce agreement. The negotiations have been broken off incon-clusively. At the negotiations, Lufthansa further improved the exploratory offer which it put forward on May 8. In addition to the average rise of 10.6 per cent in basic pay scales it proposed last time, it is now offering a further structural improvement of 3 per cent dur-ing the four-year agreement. Instead of the previous pay increases tied to the inflation rate, Lufthansa is also proposing that basic remuneration be increased in line with the average pay rises agreed nationwide in Germany. This would avert any decoupling from collective wage bargaining in the rest of the country.
+++
The Austrian Airlines Group has received notification from the EU Competition Commission concerning its co-operation agreement, which has been in existence since 1999. Under EU Competition Law, this notification is a procedural measure which is mandatory to prescribe. Using the notification, the Commission has now substantiated its objections to the co-operation agreement in more detail. The concerns of the Commission are based upon the fact that, until now, no other airlines than Austrian Airlines and Lufthansa have been prepared to fly the routes from Vienna to Frankfurt, Munich and Düsseldorf in particular. The concerns of the Commission are not directed towards the entry of the Austrian Airlines Group into the Star Alliance, nor did the Commission object to the pricing structure on flights between Austria and Germany. The liberalisation of air traffic within the European Community will make it possible for every airline in the EU to provide its services as a competitor on the routes between Austria and Germany. The Austrian Airlines Group is prepared to face this competition. The Austrian Airlines Group is also ready to accept reasonable conditions from the Commission for the approval of the co-operation agreement with Lufthansa. Austrian Airlines will continue its previous talks with the EU Commission to this end.
+++
ESA and Arianespace have agreed on an early summer launch date for Artemis, the agency's new advanced telecommunications satellite. The multi-purpose satellite - the precursor to new and advanced satellite communication services - will be launched by Arianespace on an Ariane 5 from Europe's spaceport in Kourou, French Guiana, on 12 July 2001 sharing its trip with the Japanese BSAT-2b direct broadcasting satellite. Artemis is the most advanced telecommunication satellite developed by ESA and will demonstrate new technologies and play a significant part in developing Europe's new worldwide satellite navigation system, new mobile communication services and inter-satellite data relay. Since its shipment to Kourou in March, extensive tests have been carried out to ensure the satellite is in prime condition and on-going checks between the Fucino-based control centre in Italy and the ground network of operational world wide stations are underway.
+++
Germay's high court has rejected appeals against the expansion of the EADS Airbus facilty at Hamburg to prepare for A380 outfiting work. The decision means that the Mühlenberger Loch nature protection area can now be filled in.
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The German and Netherlands defence ministers have signed an agreement concerning the close co-opeation in military transport operations. For 45,37 million Euros, the Netherlands will gain use of German transport assets, like A310 and Transall. The Bundeswehr urgently needs money and it is said the infusion will be used to push ahead with a tank project in co-opeation with the Netherlands.
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Previous updates are still available:
Die News der letzten Wochen sind weiter abrufbar:

*May 13, 2001 *May 6, 2001

*April 29, 2001 *April 22, 2001 *April 15, 2001 *April 8, 2001 *April 1, 2001

*January - March 2001

*January to December 2000 *January to December 1999 *January to December 1998 *January to December 1997 *September to December 1996

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