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UPDATE 
Week ending December 2, 2001
+++ BAE Systems closes RJX programme +++ Crossair aircraft crashes near Zurich +++ Eurocontrol charges to help airlines +++ Hellas tested for use on US helicopters +++ Alenia Spazio to build GOCE +++ CAE visuals for Eurofighter ASTA +++ News in brief +++

BAE Systems closes RJX programme
RJX-Regionaljet eingestellt

Following the events of September 11, 2001 in the United States, BAE Systems has completed a review of the trading outlook reflecting recent changes in the commercial aerospace market and the impact on its commercial businesses. The result was: We will close the RJX programme; we will finish the four RJ aircraft currently in build for sale, and build no more; we will continue to support in service Avro RJ and out-of-production regional aircraft; we will review consolidating Aircraft Services Group's (ASG) In Service Support and In Service Engineering; Aircraft Services Group operations in Toulouse, Sydney, and Washington will be reviewed; we will take an exceptional charge of Pounds250m in 2001. Cash costs of this are 210m Pounds, 145m Pounds after tax
John Weston, Chief Executive, BAE Systems, said: "We have now completed a detailed assessment of the probable impact on our business of the recent severe downturn in the commercial aerospace market. Since September, the trading outlook in these markets has changed substantially. In particular, operating profit expectations for Airbus next year have been reduced significantly and the outlook for regional aircraft has deteriorated sharply. Regrettably it has been concluded that our regional jet business is no longer viable in this environment. The company has a number of smaller commercial aerospace activities in aerostructures, avionics and equipments and in aircraft maintenance and conversion. The outlook for these other activities has also reduced. Today's announcement draws a line under the company's exposure to regional aircraft manufacturing and secures the company's financial exposure in this market. While the impact of the changes in trading expectations for Airbus will postpone the company's return to growth, the core defence businesses are progressing well."

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Crossair aircraft crashes near Zurich
Absturz einer Crossair Avro RJ100

A Crossair Avro RJ100 Jumbolino crashed on approach to Zurich Airport Saturday, November 24, shortly after 22:00 local time (21:00 UTC). The aircraft was operating flight LX 3597, which had taken off from Berlin (Tegel) at 21:01 local time, and had been due to land in Zurich at 22:15 local time. The aircraft crashed in a wooded area near Nürensdorf/Birchwil, near the town of Bassersdorf. There were 33 persons on board, 28 passengers and five crew. The crew were all Swiss nationals, and the captain had many years of experience as a Crossair pilot. The crew had only worked a single rotation on the day, from Zurich to Berlin and back. According to information from the Zurich Cantonal Police, ten of the occupants died in the crash and a further nine were injured. The fate of the remaining 14 occupants remains unclear. The Cantonal Police have completed their search-and-rescue operation, and the site is now being examined by the investigating authorities. The passengers on board were from Israel, Canada, the Netherlands, Austria, Germany and Switzerland. The Avro RJ100 Jumbolino involved was owned by Crossair and had accumulated 13 193 flight hours by November 24. It was manufactured in 1996, and had had its latest technical inspection on November 16, 2001. "We are shocked and deeply saddened to suffer another accident," said André Dosé, CEO of Crossair. The company extends its deepest condolences to the families of those involved. This is the second accident the company has suffered in its 25-year history.

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Eurocontrol charges to help airlines
Flugsicherungsgebühren eingefroren

On 28 November, Eurocontrol's 30 Member States decided on the air navigation route charges unit rates applicable for the year 2002. The States recognised the difficulties currently affecting the aviation industry as a whole, as well as the liquidity problems being experienced by airspace users following the 11 September tragedy in the United States. The 30 Member States unanimously agreed to keep the 2002 unit rates at their 2001 level for the first quarter of 2002. The resulting loss of revenues will be recovered from airspace users during the remaining nine months in 2002, together with the air navigation costs relevant to this period. The States also agreed to reconvene next Spring to verify whether the traffic evolution, the cost reduction implemented and the situation of the industry justify further actions. The Eurocontrol Agency believes that the adoption of these measures will benefit significantly airspace users. Eurocontrol has as its primary objective the creation of a uniform air traffic management system for airspace users in order to achieve the safe, orderly, expeditious and economic flow of traffic throughout Europe.

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Hellas tested for use on US helicopters
EADS: Hinderniswarnsystem wird in USA getestet

Dornier GmbH, an affiliate of EADS, announced that the helicopter obstacle warning system "Hellas" (Helicopter Laser Radar) has been included in an extensive test programme by the US Department of Defence. This programme is to investigate the possible use of Hellas on US Armed Forces helicopters over the next two years. Tests are planned on Apache, Black Hawk and Chinook helicopters amongst others. Through testing this high-performance product, the aim is to significantly increase the safety of the helicopters and their crews and to extend operational capability as part of the modernisation programmes which are planned for 2004 onwards.
Dr. Stefan Zoller, Chairman of the Dornier Executive Board and Head of the EADS Systems & Defence Electronics Business Unit, stated: "Inclusion in the US Armed Forces Foreign Comparative Testing Program confirms the high technological standard of our systems and offers us the possibility to further strengthen our good transatlantic relations." Since 1980, the Foreign Comparative Testing Program provides the U.S. armed forces an opportunity to test products developed in allied nations when similar U.S. products are not available. Johann Heitzmann, Head of Airborne Systems at EADS, said: "Thanks to our extensive experience with radar and avionics systems, we have developed a globally unique product - Hellas - which opens up good opportunities in both the military and civil markets."
The Hellas warning system has been successfully tested on various models of helicopter (CH53, UH1D, BK 117, EC 135, EC 145). The helicopters of Germany's Federal Border Guard will be equipped with this system by Spring 2002. A laser radar which is harmless to the human eye locates obstacles in the flight path with high precision - such as high-voltage power lines -and warns the pilot via optical and acoustic signals.

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Alenia Spazio to Build GOCE
Satellitenauftrag für Alenia

On November 23, Alenia Spazio and the European Space Agency (ESA) signed the contract for the construction of the GOCE satellite. The contract is worth some 280 billion lire (147 million Euro) and Alenia Spazio will head a large European industrial consortium with responsibility for the design, development, integration and testing of the satellite. GOCE (Gravity field and steady-state Ocean Circulation Explorer) will be the first mission in ESA's "Earth Explorer" program. The satellite is scheduled to be launched in 2006 and the mission will last 30 months. The mission is intended to provide the first global high-resolution map of the Earth's gravitational field. The accuracy and thoroughness of the data provided by GOCE will permit a considerable advance in our understanding of the structure and dynamics of planet Earth and large-scale ocean circulation and its influence on climate. The industrial consortium (made up of major European companies such as Astrium, Alcatel Space and ONERA) includes LABEN, responsible for the construction of the on-board computer, which is also competing for the realization of the multi-channel GPS reception system.

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CAE visuals for Eurofighter ASTA
Eurofighter-Simulation: CAE liefert Sichtsysteme

CAE announced it has signed a contract with Eurofighter Simulation Systems GmbH (ESS) to supply visual systems for the Eurofighter EF2000 Typhoon combat aircraft Aircrew Synthetic Training Aids (ASTA) program. CAE will provide more than C$170 million in visual simulation equipment and services to ESS over the next seven years. CAE announced on June 7, 2001, its selection as the preferred supplier of visual systems for the Eurofighter combat aircraft training program. This contract forms part of CAE's current backlog of C$2.7 billion. "Today's signing marks the successful conclusion of negotiations for the largest visual system contract ever awarded to CAE," said Martin Gagné, Vice- President of Visual Systems, CAE. "This strategic milestone helps solidify our position as the leading provider of complete visual systems solutions. Our state-of-the art CAE Medallion image generator, developed in collaboration with Sogitec Industries, is the clear choice for high performance fast jet training."

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NEWS IN BRIEF / KURZMELDUNGEN

As reported at the Kamov firm`s press service, the announcement of the results of the tender by South Korea for obtaining 30 - 40 combat helicopters has been set back from the end of this year to the first quarter of 2002. They noted at the press service that carrying over to a later period of the adoption of decisions regarding similar tenders is a rather widespread step in worldwide practice. At the same time at the press service they emphasized that this prolonging of the period of the tender in South Korea was adopted without an indication of a solid month for announcing the results.
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An increased capability (ICAP) III EA-6B Prowler arrived at Naval Air Station Patuxent River Nov. 21 for ground and flight testing headed by the Naval Air Systems Command EA-6B Program Office (PMA-234). The aircraft is one of two prototypes being modified by Northrop Grumman for the Navy's ICAP III evaluation. The first ICAP III Prowler logged a successful first flight Nov. 16 from the contractor's facility in St. Augustine, Fla. The second test aircraft is expected to fly early next year.
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The MTU Maintenance Zhuhai Co., Ltd., a joint venture of China Southern Airlines, the largest airline in The People's Republic of China and MTU München is pleased to announce that it has awarded Pratt & Whitney Cenco, Inc., a new contract by to design and build a jet engine test cell. The contract is valued at more than 107 Million RMB ($13 M US). "The test cell will be the heart of our overhaul shop for the next fifteen to twenty years," said Walter Strakosch, President and CEO of MTU Maintenance Zhuhai Co., Ltd. "We will start with V2500 and CFM56 engines but we are sure this test cell will see big engines by the end of the decade." Initially the test cell - used to ensure that jet engines are running properly after being repaired - will accommodate engines that power the Airbus A320 and Boeing 737.
+++
DIRECTV-4S, a high-power satellite built by Boeing Satellite Systems, was successfully launched November 26 aboard an Ariane 44LP rocket from the Guiana Space Center on the northeastern coast of South America. The Boeing 601HP satellite was provided to DIRECTV, Inc., by Boeing Space and Communications, a business of The Boeing Company. Liftoff occurred at 9:35 p.m. at the launch site (4:35 p.m. PST; 12:35 a.m. Nov. 27 GMT). DIRECTV-4S' first signals were received approximately four hours later at the Hartebeesthoek tracking station in South Africa, confirming that systems are operating normally. After orbit-raising and testing are completed, DIRECTV-4S will be stationed at 101 degrees West longitude with other DIRECTV satellites that deliver the company's nationwide digital satellite television service. DIRECTV-4S will provide DIRECTV with significant capacity to deliver additional local channels in major U.S. television markets, and it will also strengthen the redundancy of its in-orbit fleet.
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The Sikorsky Aircraft MH-60S helicopter has entered the Operational Test and Evaluation (OPEVAL) phase at the Naval Air Warfare Center. OPEVAL is the final phase in development of the MH-60S before the start of full rate production. Sikorsky Aircraft Corporation is a unit of United Technologies Corp. Three MH-60S helicopters will take part in field test operations through January and the results will then be presented to the U.S. Navy leadership. Successful completion of OPEVAL is expected to lead to the Navy's recommendation to the Department of Defense for full rate production. The Navy's Helicopter Master Plan calls for the purchase of up to 237 MH-60S aircraft to replace the CH-46D. The Navy awarded the first MH-60S contract to Sikorsky in 1997. Sikorsky has delivered 19 MH-60S aircraft to date and the first aircraft are scheduled to join the Navy fleet in 2002.
+++
AGUSTA, responsible for the naval version of the NH90 helicopter within the NHI consortium, has awarded a contract to Thomson Marconi Sonar (TMS) for the design, development, supply and integration of 14 FLASH-based Sonics Systems for the French Navy's future fleet of NFH90 helicopters. The first production NFH90 helicopter equipped with the FLASH Sonics System will be delivered to the French Navy in 2005. The lightweight Sonics System features a Common Acoustic Processor which will simultaneously process sonobuoy data and the data received from the TMS FLASH Active Dipping Sonar. The FLASH Dipping Sonar has already proved itself in service with the UK Royal Navy's EH101 MERLIN helicopters, and is selected by the US Navy for the SH60R ASW helicopter. FLASH has also been supplied to the UAE Naval Force (Naval Cougar Helicopters), and is the system of choice for the KAMAN SH2-G.
+++
SGI announced that Thales Training & Simulation (TT&S) has selected the SGI Onyx 3000 series of high-performance graphics systems to serve as the image generator for the Franco-German Tiger helicopter training program. The initial delivery includes an SGI Onyx 3000 series visualization system that will drive a state-of-the-art Tiger helicopter full-mission simulator to provide the French and German armies with the ability to train Tiger aircrews for a wide variety of helicopter configurations and operational missions. The reconfigurable full-mission simulator, with a dual dome and motion system for individual and crew training of pilots and gunners, will be delivered in April 2004. InfiniteReality3 is the latest version of the world-leading SGI InfiniteReality graphics subsystem and is the high-performance graphics pipeline for the SGI Onyx 3000 series. Given the early 2004 delivery date for the Tiger full-mission simulator, SGI will supply a next-generation version of its InfiniteReality3 graphics subsystem that will offer increased pixel performance, price/performance and texture memory, significantly enhancing the ability for TT&S to provide high-resolution, geospecific images in support of the demanding environment of all-weather attack helicopter training.
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At a summit meeting held in Montreal, 26 November, senior representatives from across the spectrum of travel business formed the Travel Partnership to take the ".travel" internet Top Level Domain (TLD) initiative forward. Last year IATA applied to ICANN to create the ".travel" TLD, to help improve the standards and security of internet trading and to provide other important benefits for the global travel industry and its customers around the world. IATA is pleased to see the Travel Partnership now becoming the driving force behind ".travel". IATA Director General and CEO Pierre J. Jeanniot welcomes this strong spirit of industry co-operation. " From the largest airlines and travel agency groups to the smallest hotel, the travel industry is united in trying to introduce a new initiative that will help it rebound from the unprecedented crisis following the terrorist attack of 11 September."
+++
Bombardier Aerospace has received Reduced Vertical Separation Minima (RVSM) group approval from the U.S. Federal Aviation Administration for the operation of the Bombardier Learjet® 35/36 series aircraft. This follows RVSM certification of the super-light Bombardier Learjet 31A in May 2001. The approval, through a Supplemental Type Certificate (STC), is applicable to all aircraft certified under the STC which are configured with the Century III Softflite wing configuration, provided they are equipped with the applicable equipment contained in the STC including the IS&S Altimeter/ADC system and the Rosemount Pitot/static probes.
+++
Boeing Commercial Airplanes will develop and test an electrically powered demonstrator airplane as part of a study to evaluate environmentally friendly fuel cell technology for future Boeing products. The airplane manufacturer is working with Boeing's new Research and Technology Center in Madrid, Spain, to modify a small, single-engine airplane by replacing its engine with fuel cells and an electric motor that will turn a conventional propeller."This is the first of many advanced technology projects focusing on the protection of the environment to be developed in Madrid," said Miguel Hernan, the Center's director. Fuel cells and electric motors will not replace jet engines on commercial transports, but they could one day replace gas turbine auxiliary power units. Auxiliary power units, which typically are located in the rear fuselage with exhaust ports through the tail, are coupled to generators and compressors to produce electricity and air for airplane systems while on the ground and for backup use in flight.
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Astronomers using NASA's Hubble Space Telescope have made the first direct detection and chemical analysis of the atmosphere of a planet outside our solar system. Their unique observations demonstrate it is possible with Hubble and other telescopes to measure the chemical makeup of extrasolar planets' atmospheres and potentially to search for chemical markers of life beyond Earth.The planet orbits a yellow, Sun-like star called HD 209458, a seventh-magnitude star (visible in an amateur telescope) that lies 150 light-years away in the autumn constellation Pegasus. Its atmospheric composition was probed when the planet passed in front of its parent star, allowing astronomers for the first time ever to see light from the star filtered through the planet's atmosphere.
+++
Contrary to a report published in "Handelsblatt", Fraport AG continues to participate as planned in the construction of the new International Passenger Terminal 3 (ITP3) at Ninoy Aquino International Airport in Manila, the capital of the Philippines. Fraport AG Frankfurt Airport Services Worldwide holds a direct 30-percent share in PIATCO, the ITP3 project company. In addition, Fraport holds a 40-percent share in PTI, the future terminal operating company. Under Philippine law foreign investors are not allowed to hold larger shares in any single company. PIATCO has a concession for constructing and operating the new terminal for a period 25 years. However, it does not have the concession for operating duty-free shops. Fraport AG's key role is to transfer its expertise and know-how to this project to ensure the new terminal will meet international standards. A team of 20 Fraport AG specialists are on site in Manila for that purpose. The main contractor for the construction project is the Japanese Takenaka Corporation. Construction progresses on schedule.
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With the successful completion of the preliminary design review (PDR) for the mission computing subsystem hardware, The Boeing Company has achieved another design milestone for the 737 airborne early warning and control (AEW&C) system and Australia's Project Wedgetail. Earlier this year, Boeing also successfully completed its first major design milestone with the radar and identification friend-or-foe PDR. The mission computing hardware PDR included a review of the hardware elements of the mission computing subsystem against the requirements assigned to that hardware. The hardware includes the mission computers, the mission system operator consoles and a tactical display in the cockpit. The mission computing subsystem processes and integrates basic data provided by various mission system sensors; analyzes and presents it to the operators as an integrated situation display of the battlespace environment; and provides them with controls of the sensors and communications suite. BAE Systems, New York is the Boeing subcontractor providing the mission computing hardware for the 737 AEW&C system.
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Ryanair, Europe's largest low fares airline today criticised the German high fares carrier Lufthansa for running to the German Courts yesterday - without any notification to Ryanair - to get an injunction to prevent Ryanair advertising the enormous savings which German consumers can now make when flying with Ryanair instead of Lufthansa from Frankfurt. Ryanair also criticised the Press Department of the Cologne Court for giving an injunction to Lufthansa without even notifying Ryanair of the case or allowing Ryanair the opportunity to defend itself. The Chief Executive of Ryanair, Michael O'Leary said: "This Court action by Lufthansa yesterday is typical of the dirty tricks employed by Lufthansa to prevent competition for air travel in Germany. Lufthansa can't match Ryanair's fares, so they creep into German courts late at night without telling anybody and get injunctions which are designed to prevent German consumers being made aware of the arrival of competition in air travel to/from Germany.
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Russian flight controllers are performing a structural analysis following the docking of the Progress 6 cargo ship with the International Space Station. The analysis indicates that a piece of debris in the docking interface is keeping latches from fully retracting. The Progress arrived at the station at 1:43 p.m. CST (1943 GMT) Wednesday and remains in a soft-dock configuration. It contains supplies for Expedition Three's replacements, Expedition Four. In order to give controllers time to complete the analysis, managers have decided to postpone the launch of STS-108. Space Shuttle Endeavour is now slated to launch at 6:18 p.m. CST Friday (0018 Saturday). STS-108 will deliver the Expedition Four crew and the Raffaello Multi-Purpose Logistics Module to the station and return the Expedition Three crew to Earth.
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The German Air Traffic Control (DFS) has announced to increase its charges as of January 2002. An increase of 15.4 % for enroute charges and 8.5 % for departure and landing has been proposed. DFS explains the reason for this increase: declining air traffic results in lower revenues, but the costs remain unchanged. A compensation through a financial reserve of the DFS is not possible. The German Government is the 100 % share holder of the Air Traffic Control and works on the principle of full cost coverage, which does not allow to set up reserves. The Airlines really understand the position of the DFS. However, the decision to increase charges should not be made at present or should even better to be avoided at all. For the airlines and the business location Germany this would be an additional burden. "Lots of airlines are fighting with cash-flow-problems, expected revenues are missing." The decline within the aviation industry will overcome in a foreseeable time, " so Martin Gaebges, Secretary General of Board of Airline Representatives in Germany (BARIG), which represents 106 airlines doing business in Germany. On 16 November 2001 a first discussion with BARIG Secretary General and other representatives from airlines and associations, representatives of the Ministry of Transport, Building and Housing (BMVBW) and DFS was held with the goal to examine all possibilities to cut down costs and in this way to be able to avoid a severe cost increase. The result was encouraging from the BARIG sight of view. Until the end of this year small working groups should examine the possibilities of lowering costs at DFS. BARIG considers especially the lowering of costs for Eurocontrol as an important cost saver, however, this can only be realized on a long-term basis. All potential cost lowering measures will be examined by DFS. Negotiations with trade unions will take place. Under no circumstances savings should be done regarding training of air traffic controllers. The recruitment and training of air traffic controllers - at the time there is a lack of approx. 200 in Germany - should continue in any case. However, in medium term the DFS should be operated like other private enterprises. This would result in setting up reserves, which would give more flexibility in financing the air traffic control in times of shaky business volume.
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Eurocypria Airlines, based in Larnaca, Cyprus, last week signed a contract with International Lease Finance Corporation (ILFC) to lease four Boeing 737-800s. This is the first time Eurocypria has acquired Boeing airplanes. The 737s are scheduled for delivery in February, March and April of 2003, and April of 2004. Eurocypria maintains an option to take all deliveries in 2003. The 737s are airplanes that ILFC had previously ordered from Boeing. "The new 737-800 is the most suitable aircraft for the European charter carriers," said George Souroullas, general manager of Eurocypria Airlines.
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The Boeing-U.S. Air Force C-17 Globemaster III set 13 world records during flight testing at Edwards Air Force Base Tuesday, including resetting two of the 22 world records that it claimed during initial flight testing in 1992-994. The records set Tuesday will be forwarded to the National Aeronautic Association for certification. When the newest records are confirmed, the C-17 will have set 33 world records in various categories.The C-17 used for the record flight, P-71, was the first C-17 with the extended range fuel containment system. Eleven of the records were for maximum altitude with various payloads as the C-17 carried payloads up to 40,000 kg (88,200 pounds) to an altitude in excess of 43,800 feet. The other records were for maximum altitude in horizontal flight without a payload, and greatest payload to a height of 2,000 meters.
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The National Transportation Safety Board (NTSB) has asked NASA's Langley Research Center in Hampton, Va., to assist in the ongoing investigation into the Nov. 12 crash of American Airlines Flight 587 in Belle Harbor, N.Y.Components from the tail section of the Airbus A300 will be shipped to Langley for extensive evaluation. The parts are due to arrive on Monday, Dec. 3.The vertical stabilizer and rudder parts are made of a carbon-fiber reinforced epoxy, a composite material. The Safety Board is attempting to determine why these components separated in flight.Langley was chosen by the NTSB because of its recognized expertise and extensive experience with composite materials and structures for civilian and military aircraft and spacecraft applications.
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Pierre Beaudoin, president and chief operating officer, Bombardier Aerospace, today announced that Peter Edwards has been named president, Bombardier Aerospace, Business Aircraft, effective immediately. Mr. Edwards succeeds Mr. Beaudoin, who was appointed to his current position in October.
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It's looking good for Farnborough International 2002 (FI2002) as the show is set to be bigger and better than in previous years. Indications are that companies will take more space than they have previously occupied with bookings up on those received at this stage for FI2000. Only a limited amount of exhibition space still remains. If this trend continues 2002 will see the biggest Farnborough International ever. This high demand for indoor, outdoor and chalet space confirms Farnborough International's position as one of the leading airshows in the world. The high calibre of exhibitors and visitors that this biennial event attracts, and the large amount of sales and contracts announced ($52 billion at FI2000), confirm Farnborough International as the world's premier aerospace business event.
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NASA has selected a proposal to proceed with Phase B (preliminary design studies) for a Pluto-Kuiper Belt (PKB) mission, intended to explore the most distant planet in the solar system. The mission will also explore the Kuiper Belt beyond Pluto, a source of comets and believed to be the source of much of Earth's water and the simple chemical precursors of life. The scientific value of this mission is highly dependent on a 2006 launch that achieves a flyby of Pluto well before 2020. In order to ensure this launch date, NASA has established two conditions that must be successfully met at the conclusion of Phase B.
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Considerable economic benefits should be generated by Galileo, the European satellite radionavigation programme, concludes an independent study tasked with the development of a business plan for the project. The results of this study come a few weeks ahead of the meeting of the Council of Ministers expected to decide on the organisational structure for the project and the release of the remaining funds for the development phase. It comes only days after the Council of the European Space Agency (ESA) released its part of the funding for Galileo. The study concludes that the initial public funding required to launch Galileo will lead to a sound business case. "This is very good news for Galileo" said Loyola de Palacio, Vice-President of the European Commission in charge of Transport and Energy. "The results of this study back Europe's intention to become a major player in the strategically important area of navigation and positioning by satellite." A private consortium, appointed by the Commission and led by PricewaterhouseCoopers, carried out an independent study on the economic perspectives offered by Galileo. It confirms previous estimations on the costs of Galileo : Euro 3.6 billion to complete the infrastructure of the system, on the assumption of a "worst case scenario" that includes significant contingencies and spare satellites.
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The Portuguese government has decided to buy 12 rescue helicopters from the British-Italian consortium Westland-Agusta for 300 million euros (267 million dollars), Defense Minister Rui Pena announced here Friday. The government chose the Westland-Agusta EH-101 over the S-92 manufactured by Sikorsky of the United States. The Portuguese cabinet said that while the price of the EH101 was 20,000 euros higher than that of the S-92, the former was considered technically and operationally superior. Two of the helicopters to be acquired will be used to monitor fishing operations and could benefit from European Union funds.
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McDonnell Douglas Corp., a wholly-owned subsidiary of the Boeing Co., Long Beach, Calif., is being awarded a $4,500,000,000 indefinite-delivery/indefinite-quantity contract to provide for the B-One Next Enhancement contract. This action will provide continuing support necessary to fulfill the mission and operations and ensure the combat capabilities of the B-1 aircraft. The contract may include tasks for enhancement and sustainment activities to support sustaining engineering, software support, technical data, diminishing manufacturing sources support, initial spares and support equipment as well as enhancements or improvement efforts for upgrades to the weapon system. At this time, $6,410,000 of the funds has been obligated.
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CargoLifter AG is continuing its constructive dialogue with industry and logistics partners: On November 20, the "Lighter-than-Air" logistics company signed a sales agreement with NYK (Nippon Yusen Kaisha), Japan's largest shipping company with total annual sales of about 19 billion marks and one of Asia's leading logistics firms. Under the agreement, NYK will immediately begin to exclusively market the CL 75 AC transportation balloon in Japan and support market development in other Asian countries such as Malaysia, the Philippines, Singapore and Thailand. NYK has been a CargoLifter AG shareholder since May 2000. "With the signing of this contract, we have taken a decisive step in opening up the Asian market," explains Dirk Steffes, managing director of CargoLifter Network GmbH, responsible for establishing future customer relationships. "With a strong partner such as NYK at our side, we're convinced that there's great market potential for the CL 75 AC also in Asia." Currently, the CL 75 AC transportation balloon is going through deployment and load tests at the CargoLifter dock complex in Briesen-Brand and is expected to start generating income for the company through commercial deployment starting in the 2002/2003 financial year.
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A further seven point fall - to less than 63 percent - in the passenger load factor took place in October on the international scheduled services of IATA airlines. This reflected an intensified decline in traffic, as well the effect of an average 9 percent cut in capacity. The year-on -year fall of 23 percent in October passenger traffic worldwide made the cumulative change for the first 10 months of 2001 negative. If projected to end-year this will result in a fall in passenger traffic of 5 percent in 2001. During those first ten months, total traffic (passengers plus freight) fell by more than 4 percent, against a total capacity increase of 1 percent (these figures do not appear on the summary table, below). Projected to end-year total capacity may decline by 1-2 percent, and overall traffic by 6-7 percent. North American IATA carriers on average had a 33 percent fall in passenger traffic in October; for European, Far Eastern and Central & South American carriers on average the falls ranged from 20 to 25 percent.
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