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UPDATE 
Week ending September 23, 2001
+++Boeing slashes jobs +++ EADS positive despite uncertainty +++ Lufthansa revises its profit forecast +++ Sweden takes NH90 as well +++ US airlines slash jobs, want help +++ Fairchild Dornier begins integration activities for first 728JET +++ ISS gets new docking compartment +++ News in brief +++

Boeing slashes jobs
Radikaler Stellenabbau bei Boeing

Boeing is taking a series of actions to address the changed business environment in light of last week's terrorist attacks against the United States. Given the impacts of the horrific attacks of September 11, and the resulting capacity reductions now anticipated by its airline customers, Boeing's Commercial Airplanes unit is setting in place plans to reduce its employment by approximately 20,000 to 30,000 people by the end of 2002. This includes a reduction in related support personnel at Boeing's Shared Services Group. Revised delivery projections for Boeing Commercial Airplanes, which are assessments based on an uncertain future and depend upon customer business decisions, are as follows: Deliveries for 2001, which had been expected to be 538 aircraft, could be as low as 500 depending on customer ability to take delivery in the near term. For 2002, deliveries are estimated to be in the low 400s, compared to the 510 to 520 previously forecast. Current estimates for 2003 indicate a downward delivery trend will continue. Boeing will add further clarity about 2003 as it gains insight into the market's direction. These estimates are in line with the initial 20 percent capacity reduction projections provided by U.S. carriers and its assessment of world airline traffic trends.

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EADS positive despite uncertainty
Zuversicht bei EADS

The EADS-CEOs, Philippe Camus and Rainer Hertrich said, "The aerospace market is entering a new and challenging environment. However, we believe that our strong business fundamentals and an array of new products and services both on civil and defence markets, as well as initiatives and actions we have already started allows us to maintain our 2004 operating margin target of 10% despite a highly uncertain market." Camus and Hertrich emphasised that the company is actively adapting to the tense international environment. "We are well aware of the risks on international business caused by the recent and contemptible acts of terrorism in the United States," the CEOs stated at the half-year results press conference. "However, although it is too early to know all the future implications we might face, the management is actively taking steps to maintain utmost flexibility and ensure healthy margins, including tight control of our costs. We are taking all appropriate measures to stay on track, including freezing certain investment and capacity extension," the CEOs added. "We are mobilising company wide technological research to respond to the security challenge." The EADS-CEOs also noted that "We can rely on our strong orderbook, and our increasingly strong defence business. EADS has the right technologies and products to meet growing defence needs, not only in aircraft and missiles, but also in the fields of surveillance, reconnaissance, telecommunications, and defence electronics."
The new situation created by the September 11th terrorist attacks in the US makes it difficult to formulate immediately a precise delivery forecast for 2002 and beyond. To accommodate its large backlog and increasing workshare, Airbus had been planning to increase production progressively over the next two years. However, taking into account the slowdown of the business, Airbus had already decided in the summer to adjust for a lower growth of the production. In view of the current events, complementary measures have been taken. Airbus has decided to freeze the ramp up of production at the present level (mid 300's in aircraft numbers). Additional investments or hirings are put on hold. The A380 development will continue exactly as planned.

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Lufthansa revises its profit forecast
Gewinnerwartungen sinken

The consequences of the terrorist attacks in the United States will have a major impact throughout the aviation sector and thus also on Lufthansa. The losses incurred due to the closure of US and Canadian airspace, flight diversions, cancellations and drop in demand have made it necessary for the company to revise its profit forecast. Lufthansa can now no longer achieve its projected operating result of 700-750 million euros for 2001. This forecast was dependent on an economic upswing in the last quarter of the year, which is no longer anticipated in the wake of last week's events. Given the ongoing uncertainty about political developments, it is not possible at present to make a reliable profit forecast. "The aviation industry has been hit badly by the consequences of the terrorist attacks. It will require immense efforts on the part of all Lufthansa staff if we are to avoid an operating loss this year," Lufthansa CEO and chairman Jürgen Weber said. The Supervisory Board was informed of the current situation at its regular meeting today.
In order to gear the company to the new conditions facing the aviation sector, Lufthansa immediately approved a comprehensive package of drastic measures. The Executive Board and the Supervisory Board agreed at their meeting today to shelve plans to order up to 15 Airbus A380s and four Boeing 747-400 wide-body jets. "Investment planning on this scale needs a sound basis," Weber said. In the course of the freeze on investments, all planned capital investments and current projects will undergo close scrutiny and, if necessary, be axed. There will also be further spending restrictions. In principle, Lufthansa will not recruit any new staff Group-wide. In the medium term, human resources planning will be geared to the Group's financial development.
Urgent adjustments will also have to be made to our route network. These include discontinuing the Berlin-Washington service and cancelling one flight pair each on the Frankfurt-New York and Frankfurt-Washington routes, as has already been announced. These measures will remain in place until the end of the winter schedule in March 2002. In addition to the reduction in capacity approved in August, this will mean decommissioning four long-range aircraft. In view of spiralling costs caused, among other things, by tighter security requirements and procedures as well as the drastic rise in insurance premiums which has already been announced, a significant increase in ticket prices and cargo rates now seems inevitable.

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Sweden takes NH90 as well
NH90 auch für Schweden

The Swedish Government has given the go-ahead for the Swedish Armed Forces to purchase 18 medium-weight helicopters of NH 90 type from the European consortium, NH Industries. "Sweden's defence will be getting a helicopter that contributes to the development of the Armed Forces helicopter formation in a versatile manner," the Minister for Defence, Mr Björn von Sydow, says. "It is also an important step for Nordic defence cooperation. It will create the preconditions for developing Nordic action in international peace support efforts, and in connection with various types of emergency operations." Last Thursday, Norway and Finland took decisions to purchase helicopters of the NH90 model. Denmark selected a different helicopter model. The total cost for Sweden will be about SEK 6 billion. Deliveries will begin in 2005. Special equipment, documentation, staff training and training material are also included in the deal. In Sweden, thirteen helicopters will be used for ground operations and five for naval operations. The purchase also includes an offset package which as far as Sweden is concerned will mean that Swedish industry takes part in the equipping of the helicopters.
The choice of the NH90 helicopter entails direct involvement by Saab worth in the region of 2 billion SEK. The work entails both development and production for Saab in collaboration with NHIndustries/Eurocopter. Saab will also produce 200 forebodies for the NH90. This is equivalent to around two-thirds of the total number of helicopters ordered to date for Germany, France, Italy, the Netherlands, Portugal, and now also for Sweden, Norway and Finland. The deal creates the right conditions for Saab to expand its cooperation with major defense players such as EADS, Eurocopter and Agusta. Developing and supplying the tactical system will also enable Saab to actively cultivate the export market in a new product area for the company. Several countries are planning helicopter procurements with the accompanying tactical systems.

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US airlines slash jobs, want help
Krise bei den US-Fluglinien

Without immediate and significant U.S. government financial support, most of the airlines that make up the nation's commercial air transportation system will go bankrupt, Delta Air Lines Chairman and CEO Leo F. Mullin told members of Congress. "We face an enormous problem with potentially devastating repercussions for our nation's full recovery," said Mullin, testifying on behalf of the Air Transport Association and its member airlines before the House Transportation and Infrastructure Committee. "Under current circumstances and without immediate financial support from the government, a number of carriers could be driven to bankruptcy within 60 days and the future of aviation could be severely threatened." Mullin asked Congress to help in the development and approval of a package of transition aid so that, as Transportation Secretary Norman Mineta said recently, "We do not allow the enemy to win this war by restricting our freedom of mobility." Passenger demand and associated revenue, Mullin said, is not expected to return to previously anticipated levels before the third quarter of 2002. The proposed government support package is valued at $17.5 billion, based on anticipated revenue declines and cost increases associated directly with the impact on the U.S. airline industry from the September 11th attack. Although a handful of air carriers may be able to survive without government support, the vast majority of U.S. carriers have no means of obtaining the necessary cash to support continued operations, noted Mullin, even within the bounds of a Chapter 11 bankruptcy proceeding. Already, U.S. air carriers have taken steps to shrink in size and are expected to announce the layoff of more than 100,000 employees.
American Airlines notified employees that it is forced to reduce jobs by at least 20,000. The employment losses result from the airline's 20 percent schedule reduction, the complexity of new security procedures, and a sharp reduction in passenger traffic - all creating a state of emergency at American and across the entire airline industry. American said employees would learn the specific status of their jobs in the next few days. American Chairman and Chief Executive Officer Don Carty said the day could only be described as 'heartbreaking'. "This is, without a doubt, the most difficult thing I have had to do in my two decades at American," said Carty in a letter to employees. "I have declared a state of emergency at American Airlines. This declaration is an official recognition that--hard as it may be to accept--our company's very survival depends on dramatic change to our operations, our schedule, and worst of all our staffing levels."
In response to reduced flight schedules in the wake of the September 11 terrorist attacks, United Airlines, a unit of UAL Corporation announced that it will furlough approximately 20,000 employees. The furloughs will affect all work groups of the company and will begin as soon as practicable. As previously announced, United's flight schedule has been reduced by 20 percent to approximately 1,900 daily flights.
Meanwhile, IATA welcomed the steps being taken by the U.S. and Australian Governments to support their airlines following the tragic events that took place last week. The measures proposed are both timely and appropriate, and should contribute to helping the airlines concerned to refocus their energies on the recovery process and restoring public confidence in our industry. However, commercial aviation is a worldwide system and these airlines are not the only ones affected by this unprecedented crisis. It is essential that all governments also put in place whatever financial measures may be necessary in their own countries to quickly enable the airlines and the global air transport industry to recover from this tragedy Speaking from his office in Geneva, Pierre J. Jeanniot, Director General of IATA, stressed, "It is essential to world stability that this industry is provided with the elements it urgently needs to resume its crucial role as a major contributor and driver of the world economy without further delay".

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Fairchild Dornier begins integration activities for first 728JET
728JET: Arbeiten kommen voran

Fairchild Dornier has begun component integration of the first 728JET following delivery of the center fuselage/wing box section from EADS-CASA in Spain and the first cockpit and rear fuselage sections from SABCA in Belgium. Electrical systems, hydraulic and flight control systems, fuel lines, and other parts required for aircraft operation will be installed in the sections while the upper fuselage, manufactured here by Fairchild Dornier, is being mated to the center fuselage section. Following installation, integration and final assembly, the first 728JET is scheduled for "power on" tests in early December. First flight is on schedule for early spring. Once assembly of the structure is finished, the complete system will be tested and additional components installed, such as the environmental control system. Also, the external flight control structures such as vertical and horizontal stabilizers, rudder, and elevators are fitted to the airframe. Windows, doors and landing gear are among the last external structural components to be assembled prior to power testing. The GE CF-34 engines will be fitted to the 728JET in December. EADS-CASA in Madrid has overall responsibility for the wing/wing box assembly and empennage, including control surfaces and engine pylons. SABCA, based in Brussels, manages production of the cockpit and rear fuselage sections for the 728JET.

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ISS gets new docking compartment
Neues russisches Modul für die Raumstation

The International Space Station gained another entryway on September 16 when Pirs, the new Russian docking compartment, docked automatically to a port on the Zvezda service module at 8:05 p.m. CDT as the station orbited 250 miles above Mongolia. As Pirs linked up to the Zvezda module, Expedition Three Commander Frank Culbertson said, "We really felt that", describing the new component settling into its new home. The docking went according to plan, with the automated docking system controlling a Progress-style instrumentation and propulsion system attached to the rear of the Pirs compartment itself. The 16-foot-long, 8,000-pound module approached the station from below and behind, beginning its automated docking sequence shortly after 5:30 p.m. About 20 minutes later, the station's thrusters moved it to the proper orientation for docking. The station's large solar array wings were positioned to eliminate contamination from the jets on Pirs as it made it final approach. After the probe-and-drogue docking system completed capture of the incoming module and pulled the two spacecraft together, 12 active latching hooks were driven to their closed position, locking the module securely in place.
After docking, the Expedition Three crew checked to make sure there was a good seal between the station and its new module, then began to equalize pressure between the two craft prior to the first opening of the hatch to Pirs, which was scheduled later this evening. The aft instrumentation and propulsion system locked onto the docking compartment itself will be jettisoned next month to set the stage for spacewalks by the crew to install and activate key systems for the compartment's future operation. Pirs, which is the Russian word for pier, was launched on a Soyuz rocket at 6:35 p.m. CDT Friday. The new Russian component is an additional docking port for future Russian vehicles arriving at the station, an added stowage area and an airlock for the Russian segment. Three space walks are to be conducted in October and November from Pirs by the Expedition Three crew - two by Pilot Vladimir Dezhurov and Flight Engineer Mikhail Tyurin and one by Culbertson and Dezhurov - to electrically mate the Docking Compartment to Zvezda and install more equipment on the outside of the module.

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NEWS IN BRIEF / KURZMELDUNGEN

Fairchild Dornier announced at the Aviation Expo 2001 it has signed an agreement with Harbin Aircraft Industrial Group to produce 328JET components. Harbin Aircraft, in Harbin, China, will produce wing fairings for the 328JET assembled in Oberpfaffenhofen, Germany, near Munich. The wing fairing is an aerodynamic structure between the wing and the fuselage of the aircraft. Harbin is part of the AVIC II industrial group in China. No other details of the agreement were released. "This agreement is a first step in increased industrial cooperation between Fairchild Dornier and Chinese industry on a variety of projects," said Barry Eccleston, executive vice president, Business Development for Fairchild Dornier. "We are extremely pleased to have Harbin Aircraft as a part of the 328JET team."
+++
Boeing and the U.S. Air Force signed documents to formally convert the current C-17 multi-year contract to a Firm Fixed Price (FFP) contract and implement a best-acquisition-practices approach to production of the 35 C-17 aircraft yet to be delivered under the multi-year contract. The three remaining production lots will now be executed as FFP versus the previous Fixed Price Incentive type contract. This change enables the team to save costs by reducing paperwork, and it aligns the current contract with the Boeing proposal for a potential follow-on C-17 contract. "Acquisition reform has at its core doing smart things to meet our operational requirements better, cheaper and faster," said Darleen Druyun, principal deputy assistant secretary of the Air Force for Acquisition and Management. "And that is what we are doing today - obtaining the same aircraft, saving money, partnering more closely with Boeing and limiting the government's risk."
+++
Bombardier Aerospace announced the availability of interior modifications for operators of Bombardier Learjet 35 and 55 business jet aircraft. The company made the decision to proceed after successfully installing a Bombardier Learjet 31A interior into a Learjet 35 and the Learjet 60 interior into a Learjet 55. Both pioneering retrofitting projects were developed at the request of long-time Learjet customers. Customers of the Bombardier Learjet "60 in 55" modifications will benefit from a full aft lavatory that is belted and certified for take-off and landing. In addition, the renovation created the largest internal baggage compartment of any Bombardier Learjet aircraft. Other benefits of the "60 in 55" include a new cabin entertainment amplification system, larger and stronger worktables, and maintenance friendly, pleated window shades.
+++
Boeing has successfully completed the preliminary design review (PDR) of the radar and identification friend or foe (IFF) systems for Australia's Project Wedgetail - the first major design milestone in the development of this state-of-the-art 737 airborne early warning & control system. Work on the PDR was finished on schedule and within budget. The PDR includes a general review of the radar/IFF design against the Wedgetail radar subsystem requirements established by the Commonwealth of Australia. John Sandvig, Boeing Wedgetail program manager, said, "During the PDR, Boeing, and our teammate Northrop Grumman, evaluated the suitability of the design to the comprehensive set of radar subsystem requirements specified in our contract with the Commonwealth of Australia. Air Vice Marshall Norm Gray, head of the airborne early warning program for the Royal Australian Air Force, said, "This PDR milestone is significant in the design maturity of the Wedgetail AEW&C radar system. We are very pleased with both Boeing and Northrop Grumman's progress in this area. It bodes well for the rest of the program."
+++
On Sept. 20, Sikorsky Aircraft Corp. announced it would seek to form a new joint venture to produce light civil helicopters for the Chinese market. If successful, the venture would be Sikorsky's first equity partnership in the People's Republic of China. Sikorsky Aircraft is a subsidiary of United Technologies Corp. Under terms of a Memorandum of Understanding signed today, Sikorsky will enter into negotiations with Shanghai Little Eagle Science & Technology Co. (SLEC) to establish a new enterprise. The new company would be called Shanghai Sikorsky Helicopter Co. and it would work to develop a light civil helicopter for the domestic Chinese market based on technology to be determined as part of the forthcoming discussions.
+++
Hotelplan and the Swissair Group have agreed to act as partners in the continuation of business operations by Balair, the Swissair Group's charter airline subsidiary. Hotelplan will remain Balair's contractual partner under the new accord, which enters into effect on May 1,2002. Under the new agreement, Hotelplan will be responsible for commercial activities (the planning and marketing of aircraft capacity) while Balair is responsible for flight operations. This means that the commercial risk and all flight planning activities will now be assumed by the Hotelplan group. The flights will be performed by two Boeing 757s and one Boeing 767 - the same aircraft fleet which Balair was operating at the start of the 2001/2 winter schedules. A new chief executive is to be appointed and tasked to realign Balair's cost structures to current market conditions. This will also involve negotiating new contracts of employment with the Balair pilot corps. Balair will continue to guarantee the high standards of operational performance for which it is already well known. "We are convinced that this solution will give us a sound foundation for our future collaboration," says Beat Schär, CEO of Swissair and currently also of Balair. "And Balair's customers can continue to count on an air transport product of acknowledged high quality."
+++
Lockheed Martin Corp., Marietta, Ga., is being awarded an $818,371,400 firm-fixed-price contract modification which defines advance procurement and provides for acquisition of 10 low rate initial production (Lot 1) F-22 aircraft and associated equipment. At this time, the total amount of funds has been obligated. This work is to be completed November 2003. United Technologies Corp., East Hartford, Conn., is being awarded a $222,176,688 firm-fixed-price and cost-plus-award-fee contract modification to provide for 20 low rate initial production (Lot 1) F119-PW-100 engines applicable to the F-22 aircraft and associated field support.
+++
EADS European Aeronautic Defence and Space Company will play a leading role in equipping the Eurofighter combat aircraft with a sophisticated data transmission system. As the company announced, the contract, worth over 31 million euros, for the delivery of key components for a first batch of the MIDS (Multifunctional Information Distribution System) communications system has been received by the EADS Systems and Defence Electronics Business Unit. The contract for the overall MIDS system - in which France, Spain and Italy are also involved - will be handled within the framework of the international consortium EuroMIDS. "MIDS enables the jamming-resistant transmission of large quantities of data in almost real time and, through this, the preparation of an exact situation picture. In this way, we decisively improve interoperability within NATO and also increase the security of our own forces during military missions," Johann Heitzmann, Head of the EADS Airborne Systems Unit, underlines.
+++
The PARS 3 (TRIGAT) long range antitank guided missile system, the future main armament of the Tiger support helicopter, successfully concluded its warhead qualification tests at the Schrobenhausen firing range, under supervision of the responsible local quality inspection agency. This was announced by EADS/LFK Lenkflugkoerpersysteme, a subsidiary of EADS European Aeronautic Defence and space company. Between at the end of July and late August a total of 14 firings were conducted to test warheads in the original configuration, with pre- and main hollow charge, proximity fuses and the safety devices. The firings were carried out from a sled, accelerated at the missile's specified rate, against contractually determined targets. The targets simulated the most modern armor protection of third-generation main battle tanks, and therefore represented a realistic challenge:
+++
Northrop Grumman Corporation has been selected to demonstrate the next phase of the Defense Advanced Research Projects Agency's (DARPA) Affordable Moving Surface Target Engagement (AMSTE) program. The project is funded by DARPA's Special Projects Office in conjunction with the U.S. Air Force Research Laboratory in Rome, N.Y. Northrop Grumman's Integrated Systems sector is conducting the project through its Airborne Ground Surveillance and Battle Management (AGS&BM) Systems business area here. The purpose of the AMSTE program is to develop a system that locates and tracks a ground target moving at up to 50 m.p.h. and destroy it with an affordable precision weapon. This technology makes it possible for commanders to conduct multiple, near simultaneous, stand-off precision engagements of even the most mobile targets in all weather.
+++
BAE Systems announced that the Bahrain Defence Force has ordered an Avro RJ85 aircraft in a deal worth $25 million including support. The Avro RJ85 has been selected for its outstanding airfield performance and operational flexibility. It will be utilised for multiple roles including various transport tasks. When it is delivered in November 2001, the Avro RJ85 will be the first civil fixed wing aircraft to be deployed in the Bahrain Defence Force operation. With the confirmation of this deal, previously announced as being for an undisclosed customer, total orders for the Avro RJ stand at 166 aircraft. Sales for the BAe 146/ Avro RJ/ Avro RJX family now total 399 firm orders plus 14 options.
+++
The first phase of low- and high-speed wind tunnel testing on the Boeing Sonic Cruiser has been completed, marking an important milestone toward providing additional information on the aerodynamic characteristics of the revolutionary new airplane's design . The Sonic Cruiser's new airplane concept is intended to change the way people fly, enabling passengers to travel non-stop directly to their desired destinations in less time. Likewise, it will allow airlines to maximize the economic performance of their airplanes. Environmental performance is an important factor in the design of the Sonic Cruiser; it will be quieter and cleaner than all anticipated regulations and provide excellent fuel efficiency. The recent Sonic Cruiser wind tunnel tests provided valuable information that will be used in evaluating the general design concepts for the airplane. The specific size, range, capacity and performance attributes of the airplane will be developed and tested as needed. Boeing continues to work together with customers around the world as it evaluates this airplane concept and continues to gather input on airline needs and direction for future travel.
+++
The European Space Agency launches a new initiative designed to help small companies enter the field of satellite communication by providing early-stage investment and support. The new scheme, which is run by ESA's Telecommunications Department, is aimed at SMEs (small and medium-sized enterprises) and start-ups in the Information Technology (IT) or telecommunications field with promising new satcom business concepts. This might involve the creative use of existing satellite technologies to provide new services for the Internet, multimedia, navigation or mobile applications, for example; or new systems and technologies with the potential to facilitate or improve existing services. Companies selected for the scheme will be offered a support framework in which to develop and refine their new concepts to a sufficient level of technical and commercial viability so for commercial funding to be sought. A typical package may include: Financial support of up to 300 000 Euro, access to ESA's experience and expertise in satellite communications, and an opportunity to forge links with the industry.
+++
Northrop Grumman Corporation has named Ronald D. Sugar, 53, president and chief operating officer, it was announced today by Kent Kresa, chairman and chief executive officer. Dr. Sugar was elected to Northrop Grumman's board of directors last April. Mr. Kresa stated, "With our recent acquisition of Litton Industries, Northrop Grumman is now a $15 billion top-tier global enterprise with 80,000 employees. Ron's appointment provides our company with additional management depth, experience and expertise at an important time in our company's history. This strengthened corporate management structure will support and complement the outstanding leadership we have in place at our five sectors."
+++

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

*September 16, 2001 *September 2, 2001

*August 26, 2001 *August 19, 2001 *August 12, 2001 *August 5, 2001

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

*June 24, 2001 *June 17, 2001 *June 10, 2001 *June 3, 2001

*January - May 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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