FLUG REVUE update: Week ending March 23, 2003

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UPDATE
Week ending March 23, 2003

+++ easyJet terminates Deutsche BA option +++ Ryanair relaunches Buzz +++ Large order for C-130J +++ Outlook for the year unclear for Lufthansa +++ Sukhoi to build Regional Jet +++ News in brief +++

easyJet terminates Deutsche BA option
Billigflieger nicht mehr an dba interessiert

easyJet has announced that it has terminated its option to acquire Deutsche BA ('dba') from British Airways. Ray Webster, easyJet Chief Executive, said: "When we acquired the option last year, we believed that it represented the most attractive way of securing a substantial presence in the German market. In early December 2002 we said that, although the option to acquire dba runs until early August, we intended to make the decision by the end of March in order to reduce the uncertainty that surrounds this decision. "Despite months of exceptionally hard work by staff at dba, British Airways and easyJet, there have been two insurmountable hurdles: "Firstly, the rigidity of German labour laws has made it impossible to get acceptance of easyJet conditions of employment from key staff groups, despite numerous attempts and different approaches. "Secondly, since we negotiated the option there has been a substantial deterioration in the financial performance of all airlines in the German market including dba. This is in large part due to the specific characteristics of the German market and in particular the highly aggressive pricing policies of Lufthansa.
"It is disappointing that we have had to make this decision. However, we always made it clear that we would not compromise the easyJet business model. "We reaffirm that the order for 120 Airbus A319 aircraft has always excluded any aircraft needed in relation to the dba option and we remain committed to organic growth of 25 percent per annum. Germany remains the largest economy in the European Union and we are currently examining the best way to develop our German operation and the numerous other growth opportunities across Europe."

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Ryanair relaunches Buzz
Buzz nun unter neuer Regie

On 17 March, Ryanair announced that it had received acceptances from over 90% of the Buzz pilots who were offered employment contracts with increased remuneration in the new Ryanair/Buzz operation from 1 April next. The balance is largely due to people who have yet to return from leave, in order to accept the offers. Ryanair confirmed that with these acceptances, it now has sufficient personnel to relaunch 13 of Buzz's 24 routes, with increased frequencies (over those previously offered by Buzz) and at fares that start at half the price previously quoted by Buzz from 1 May onwards. Passengers travelling on these routes over the next 12 months will save over Euro 80m over the fares which were previously charged by Buzz.
In addition Ryanair confirmed that it had made a special email offer to all former Buzz passengers (whose fares were fully refunded as a result of the cancellation of Buzz's flights). They can avail of a special offer to travel on these 13 routes during the month of May at half the price of the new Ryanair published low fares. In effect these people have already received a full refund of their Buzz fares and will now be able to book seats for flights during May at one quarter of the fares previously quoted by Buzz.
Ryanair expects that the rescued Buzz operation will over the first 12 months operate 8 aircraft, with a total of over 170 people, and will carry almost 3 million passengers at an average fare of just Euro 43. This will be at half the average fare charged by Buzz last year, when with 10 aircraft and 610 employees, it carried less than 2 million passengers, at an average fare of over Euro 80.

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Large order for C-130J
Großauftrag für neue Hercules

Lockheed Martin received a contract, ultimately valued at $4B, for the multiyear acquisition of 60 C130J aircraft for the U.S. Air Force and Marine Corps. The value covers a six year program and is for the acquisition years 2003 through 2008. "This resounding endorsement of the C-130J program by the U.S. Air Force and Marine Corps is enormously gratifying," said Dain Hancock, president of Lockheed Martin Aeronautics Company. “Lockheed Martin, in conjunction with its suppliers, has invested heavily in the future of tactical airlift. This contract is wonderful news to the thousands of employees who made the C-130J Super Hercules a reality, and to the men and women of the armed services who will benefit from the improved performance and operational benefits of the C-130J.”
The multiyear procurement program will result in cost savings of more than $500 million. In addition, acquiring aircraft in larger long-term quantities allows the Air Force to better plan the placement of those aircraft in airlift wings around the country. The Air Force will receive 40 CC-130Js, the stretched fuselage version of the aircraft, and the Marines will receive 20 KC-130J tankers. Customers around the world, including this latest contract, have now ordered 178 C130Js. Ninety-four have been delivered to date with 32 going to the U.S. Air Force, nine to the U.S. Marine Corps, 25 to the Royal Air Force, 15 (of 22 ordered) to the Italian Air Force, 12 to the Royal Australian Air Force and one (of six ordered) to the U.S. Coast Guard. Deliveries to the Royal Danish Air Force, which has three CC130Js on order, with an option for a fourth, will begin in 2004.

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Outlook for the year unclear for Lufthansa
Lufthansa erwartet geringeren Gewinn

At the last annual press conference before his retirement, Lufthansa's Chairman and CEO Jürgen Weber was able to present an outstanding result for 2002 that outshines the efforts of other airlines and a robust company that is prepared for the challenges of the 21st century. "When Wolfgang Mayrhuber takes over Lufthansa's helm after the Annual General Meeting in June, he will captain a well-run ship. We are fit for the 21st century, we are in a leading position in our industry and we shall continue to work hard to maintain and extend this position. The Lufthansa Group has proved that it can withstand crises, respond rapidly and act flexibly," said Jürgen Weber when presenting the Company's annual financial statements in Munich. The Group's successful capacity and cost management strategy is reflected in the result for the 2002 financial year. "Counter to the general trend in the airline industry and the prevailing overall economic situation, Deutsche Lufthansa has pulled ahead of its competitors and posted an operating profit of EUR 718 million", said Jürgen Weber. This surpasses the operating result in 2001 by EUR 690 million. "Our employees can be proud of such a feat. This result is the sum of many individual achievements and an expression of our customers' loyalty towards Lufthansa," the company's Chairman added. Along with the operating profit, the net profit for 2002 likewise improved markedly to EUR 717 million. The Lufthansa Group managed to simultaneously cut its indebtedness from EUR 3.8 billion to EUR 1.1 billion. "This means we have kept our promise to cut debt and boost liquidity."
Jürgen Weber reminded his audience that 2002 had been marked by geopolitical uncertainties, a persistent cyclical slowdown, insolvencies and new lows on the stock markets. He said that the danger of further terrorist attacks and the threat of war, which has been in the air for months, have made both markets and consumers extremely nervous. But precisely in this turbulent phase Lufthansa had managed to buck the sector-wide trend. The shareholders, too, will profit from the company's fine performance in 2002. "The Executive Board and the Supervisory Board will propose the payment of a dividend of 60 cents per share to the Annual General Meeting," Jürgen Weber announced.
Even though the Group has performed better than other airlines, it needs to remain on its guard. Irrespective of developments in Iraq, the crisis has intensified. "An end is not yet in sight and it will be prolonged as a result of the Iraq conflict", according to Jürgen Weber. In view of the uncertain geopolitical situation, the threat of terrorism and the economic situation, it is currently impossible to make a reliable forecast of Lufthansa's likely result for the current financial year. From today's point of view, however, Lufthansa will be unable this year to match its 2002 result. In order to bolster its profitability, the company has already initiated far-reaching measures. These include capacity reductions in German and European traffic, investment curbs, a Group-wide recruitment freeze and a supplementary D-Check initiative "Cash 100".
In times of crisis it is important to keep looking ahead. "There are sure to be better times ahead, and it is imperative to be well prepared for them," Jürgen Weber pointed out. "Lufthansa has an excellent track record since its privatisation and restructuring. What made this possible was that the team constantly had one aim in mind: Lufthansa's success." Jürgen Weber said that his successor Wolfgang Mayrhuber had played a key part in this. "When he takes over the controls this summer, Lufthansa will have a captain who knows the company like the back of his hand, who enjoys the trust of the workforce and who has demonstrated his capability at the head of Lufthansa Technik and Lufthansa German Airlines. His dynamism, his high standards in terms of both product and quality and his innovative force come at the right time," commented Jürgen Weber.
In 2002 the Lufthansa Group generated total revenue of EUR 17.0 billion, which was 1.7 percent more than in 2001. The Group's airlines earned traffic revenue amounting to EUR 12.0 billion, a decrease of 1.8 percent on the previous year. Thanks to a farsighted capacity and pricing policy, however, Lufthansa was able to increase its utilization of capacity and to keep average yields steady. Other operating revenue rose by 11.3 percent to EUR 4.9 billion owing to an enlargement of the consolidated Group. Other operating income climbed by 42.7 percent to EUR 2.1 billion. It contains book profits of EUR 414 million from the sale of the DHL shareholding and another EUR 74 million from the disposal of the remaining equity stake in GlobeGround.

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Sukhoi to build Regional Jet
Russischer Regionaljet von Suchoi

Rosaviakosmos announced on 12 March that aircraft manufacturer Sukhoi, famed for its fighter jets, will lead a consortium to produce Russia's new regional airliner. Together with U.S.-based Boeing and Russian design offices Ilyushin and Yakovlev, Sukhoi will offset the $600 million cost of designing, producing, and testing the Russian Regional Jet (RRJ) with $120 million from the Russian budget. The Sukhoi-led consortium beat out competitors Tupolev and Myasishchev for the honor of replacing the venerable TU-134 on domestic routes. Slated for production by 2007, Sukhoi hopes to sell hundreds of the new jets at a price between $10 million and $20 million, "The Moscow Times" reported on 13 March, noting that Air France has also expressed an interest in the jets. Sukhoi plans to offer 60-, 75-, and 95-seat models of the plane.

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NEWS IN BRIEF / KURZMELDUNGEN

European Research Commissioner Philippe Busquin met Mr Yuri Koptev, Director-General of Rosaviakosmos, the Russian Space Agency. They discussed current and future progress in Euro-Russian co-operation in space, within the "Space Partnership". They addressed the need for common research on the satellite positioning systems GALILEO and GLONASS, on the EU Global Monitoring for the Environment and Security (GMES) satellite programme, and on launchers. The Commission's Green Paper on European Space Policy was also on the agenda. Moreover, Russia can now participate in EU-funded projects as a full and equal partner under the EU 6th Research Framework Programme (FP6 2003-2006): Commissioner Busquin and Mr Koptev laid the ground for joint research projects in the space field, to be launched shortly. They could address long-term issues such as the joint exploration of the solar system and new spaceship engines. "Co-operation with Russia is a mutually beneficial exercise, and a strategic choice for the competitiveness of European space industry", said European Research Commissioner Philippe Busquin. "The European Union aims to achieve autonomy in the area of space. Russians remain unsurpassed in this field and their experience can be invaluable to us. At the same time, Europe has extensive know-how in technology transfer, turning technologies developed for space and into non-space-based industrial and commercial applications. I look forward to stepping up our joint efforts within the EU-Russia Space Partnership, a long-term technological and industrial engagement – and a shared dream to reach for the stars together, an inspiring example for our youngest generation."
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The Upper Chamber of the Swiss Parliament has rejected the bilateral State Treaty with Germany concerning routes to Zurich airport. Following the failure to accept the treaty in its current form, it remains to be seen what steps will be undertaken by the German side. Only then will it be possible to make a statement. SWISS hopes that, by starting again at zero at the political level, it will be possible to find a compromise solution. This becomes more desirable because, since the time of the original Treaty negotiations, the circumstances in European and Swiss air transportation have fundamentally changed. Furthermore, more precise findings are now available as regards the negative effects of the Treaty restrictions on the operation of Zurich Airport. Whether SWISS will mount a legal challenge to eventual unilateral measures by Germany will be decided if such measures are announced. As regards the existing decree, which has been applied since October 27, 2002 and which lays down the regulations concerning weekend and holiday period flights, SWISS will submit as a precautionary measure, a petition calling for a declaration of non-admissibility. In this, a demand will be made that the decision of the Baden-Wurtemburg Supreme Administrative Court, announced on January 24 this year should be reviewed by the Federal German Administrative Court.
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Airbus has introduced the A319 Long Range, a new version of its best-selling single-aisle family aircraft. With an extended range and an all-business class lay-out, this new alternative to traditional business class will allow profitable airline services on intercontinental routes, such as from Europe to North America, or from Japan to Eastern Europe and to Australia. The new version of the 124-seat A319 features an all-business class layout with 48 seats and a fuel capacity of up to 35,400 litres/9,350 US gallons, allowing it to fly up to 4,500 nm/8,250 km in this configuration. As a member of the best-selling Airbus single-aisle family, the A319 Long Range offers the full range of state-of-the-art airliner qualities and equipment, such as CATIIIB autoland capabilities, ETOPS certification, EGPWS, FANS provisions and TCAS II installation, making it the most capable aircraft and superior choice in this market segment. The A319 Long Range was launched with Qatar Airways and made its public debut at the Aircraft Interiors Expo (AIE) in Hamburg, Germany, in February 2003. This new A319 version further expands the range of the A320 Family, which comprises the A318, currently completing its certification campaign, and the already in-service A319, A320 and A321. Operated by some 200 airlines worldwide, the A320 Family offers ranges of up to 3,700 nm/6,800 km and the Airbus Corporate Jetliner (ACJ), another derivative of the A319, can fly as far as 6,000 nm/11,100 km with 12 passengers on board.
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The first satellite-relayed images from Envisat have been received, via the Artemis data-relay spacecraft in geostationary orbit, at ESA's data processing centre at ESRIN, near Rome. The images represent twin triumphs for the European Space Agency. "For the Envisat Earth observation mission, bringing Artemis online to relay Earth imagery and scientific measurements means that more data can be acquired and downloaded and the process of delivering Earth observation data to and users will be much faster. This is very good news" said José Achache, Director of Earth Observation. For Artemis, the Advanced Relay Technology Mission, the image transmission caps a historic, 18-month recovery operation that brought the spacecraft to its assigned geostationary orbit after a July 2001 launch that left Artemis stranded in an orbit far lower than intended. Despite the lack of sufficient conventional propellant to raise the spacecraft's orbit, ESA engineers used Artemis' groundbreaking ion propulsion system, combined with innovative operations of its chemical thrusters, and succeeded in raising the satellite to its nominal geostationary position at 21.5 degrees East.
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Eurofighter GmbH announced the delivery of the first major components of the single seat version Eurofighter Typhoon (designated PS001) to the Final Assembly line at EADS-CASA in Getafe, Spain. PS001 will make its first flight later this year. This delivery marks a further milestone in the ramp up of production aircraft in the Eurofighter Typhoon program. The Eurofighter Typhoon design is optimized for single seat operational roles. Cockpit layout and pilot workload issues have been addressed to allow maximum swing/multi-role flexibility and situational awareness based on the single-seat concept. Single Seat Eurofighter Typhoon aircraft will form the backbone of the 620 aircraft deliveries to the Air Forces in Germany, Italy, Spain and the United Kingdom. Deliveries of 520 single seat aircraft will commence in 2004. The first Single Seat Centre Fuselage PS001 was delivered on 15th February 2002, following construction and assembly at EADS-Deutschland facilities in Augsburg and Manching, Germany. The Centre Fuselage is fully equipped with Series Equipment and Flight Test Instrumentation (FTI) that will be used to verify the Single Seat aircraft performance.
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Saab Training Systems, Huskvarna, Sweden has been awarded two contracts by Westland Helicopters Limited. The contracts will deliver a new laser for the Apache and a Target Weapons Effects System (TAGWES) for the Lynx AH Mk 7 helicopters. Deliveries will be performed during 2004. These contract awards show Saab Training Systems' capabilities to integrate simulation systems on different platforms and with other training environments, says Johan Ohlson, President, Saab Training Systems.
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With armed conflict over Iraq, all parties involved in air transport have now put into place planned additional safety and security procedures to keep our passengers flying safely, with as little inconvenience as possible. "Aircraft are being re-routed around the conflict zone in accordance with air route contingency plans that were developed and agreed by IATA, ICAO (International Civil Aviation Organisation) and national governments in advance. These plans have been coordinated with the national authorities concerned. For flights to and from Persian Gulf destinations, pre-determined temporary routes will divert flights well away from any military activity," said IATA Director General and CEO, Giovanni Bisignani. The approximately 150 flights between Europe and Southeast Asia will most likely not experience any noticeable change as they are normally routed well north of the conflict zone. Travellers in the Persian Gulf area, however, could experience up to one hour or more added flight time when re-routed. Air transport is well prepared as an industry to cope with this type of situation as was witnessed, for example, during the military events in Bosnia, Kosovo and last year in Afghanistan. Bisignani added: "IATA is cooperating with governments, to put into place any additional operational measures that could be needed." An IATA Task Force is in place and active 24 hours a day in updating contingency plans. Its activities are fully coordinated with ICAO and the different national governments involved.
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The US Defense Department unveiled a billion dollar roadmap for unmanned aerial vehicles during the next 25 years. Plans call for developing joint interoperable UAVs that are capable of everything from surveillance to air strike. "The roadmap provides those high priority investments necessary to move UAV capability to the mainstream," said Dyke Weatherington, deputy of the UAV Planning Task Force in the Office of the Secretary of Defense, at a DoD press briefing today. "The potential value UAVs offer range across virtually every mission area and capability of interest to DoD. The roadmap identifies those key technology areas that we think are right for investment." The Pentagon has made UAV weapon systems a priority. Defense Secretary Donald Rumsfeld, who strongly supports the UAV program, has pushed UAVs as one way to transform the military. Today, about 90 UAVs support military operations around the world, and the department has them standing by for potential use over Iraq.
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CAE has signed an agreement with Airbus for the purchase of 20 CAE Simfinity M/FTDs (Maintenance/Flight Training Devices) to be integrated into the Airbus aviation training program. Airbus will also procure annual update services from CAE, ensuring consistency with aircraft evolution and changes to training requirements. The total value of the devices is nearly C$30 million at list prices. “CAE Simfinity M/FTD enables Airbus to underline its market leadership in training and will introduce greater portability, flexibility and fidelity, into the Airbus aviation training program,” said Jean-Michel Roy, Vice President Training and Flight Operations, Airbus. “CAE's latest technology ensures unprecedented accessibility to the new Airbus training footprint for thousands of Airbus pilots and maintenance personnel worldwide, while reducing training costs through the use of more efficient and higher quality tools.” CAE and Airbus are jointly developing M/FTD lesson plans and training scenarios for both pilot and maintenance training. The M/FTD also includes access to Airbus CBT (Computer-based Training). The M/FTD is available for the Airbus A320, A330 and A340 families of aircraft. The 3D-device includes a graphically displayed virtual cockpit, aircraft system schematics and provides free-play and guided practice to learn procedures, cockpit scanning flows, and crew interactions.
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Mars Express, the first European spacecraft to visit the planet Mars, has completed its tests at Toulouse, France. After six months extensive thermal environmental, mechanical and electric tests, the spacecraft with the Beagle 2 lander has left for Baïkonur, Kazakhstan on 19 March 2003 onboard an Antonov 124 aircraft. It will be launched early June 2003 onboard a Russian Soyuz-Fregat rocket. Mars Express, Europe's first mission to a planet, was built by Astrium , the prime contractor, with the involvement of more than twenty European companies. Building Mars Express presented a double challenge : designing a highly complex system within tight deadlines (to meet a fixed launch date) as well as being as economical as possible. Mars Express has been built for half the costs of similar, previous missions.
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Gulfstream Aerospace, a wholly owned subsidiary of General Dynamics, announced that it is reviewing its workforce levels across the company. Reductions could total as many as 1,000 employees plus independent contractors during the next 12 months. Business aircraft market conditions and product demand will determine the extent and timing. This review comes as the company adjusts production rates to the market decline resulting from the continuing downturn in the worldwide economy. Possible military action in the Middle East and unrest in the Asia Pacific area have exacerbated this downturn.
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BAE Systems announces 1005 job losses in its aircraft-related businesses as a result of the re-structuring of the Nimrod programme, a reduction in the future Operations and Engineering workload for Regional Aircraft at Woodford, and a reduced level of civil aircraft work in its Aerostructures business at Prestwick. On 19 February 2003, BAE Systems announced that an agreement had been concluded between MoD and BAE Systems on the way ahead for the Nimrod MRA4 programme. That agreement will re-structure the programme in order to remove the excessive risk that had resulted from the increasing overlap between development and production in the programme.
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Current global tensions and threats to security reinforce the need for genuine political commitment to a European space program, capable of safeguarding European interests and bringing extra security to European citizens, said European Research Commissioner Philippe Busquin today at a conference on "European Security and Space". He stressed the importance of including a security component in any future European space policy. On 21 January the Commission adopted the Green Paper on Space, calling for a global EU space policy also to be included in the forthcoming EU Treaty. Data released this week shows that uncoordinated and scattered research and development efforts hamper EU research efficiency in the defense sector. Following the Communication on a European defense equipment policy presented on 11 March 2003, the Commission will invite Member States, industry and the scientific community to help identify common needs in the area of research linked to global security. It will also undertake initiatives to co-ordinate such research at the EU level, focusing on a limited number of key technologies possibly including space applications.
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Raytheon Airline Aviation Services has delivered a pre-owned 1900D airliner to Helijet International of Vancouver, British Columbia, Canada. The aircraft, Serial UE-156, will be based at the company's home airport in Vancouver and will enter scheduled service as part of the company's expanding route structure. The 1900D is Helijet's first fixed wing aircraft, and will be an integral part of the company's strategy of developing service to outlying areas around British Columbia in Canada and the Pacific Northwest in the United States. The company also provides a variety of rotary-wing services including scheduled and charter, heliport management, traffic watch and general consulting services.
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The EU Commission adopted a proposal aimed at integrating the EGNOS program into the GALILEO program. As stressed by Loyola de Palacio, Commission Vice-President, "the EGNOS system demonstrates Europe's capability as regards offering a satellite radionavigation system. This system, which will improve the service offered by the GPS satellites, will facilitate market penetration by Galileo thanks to the rapid development of a large number of satellite navigation applications, in particular in transport, agriculture, fisheries and telecommunications." Apart from the technical coming-together of these two programs, the Commission is proposing to place the EGNOS program under the supervision of the Galileo Joint Undertaking as of now. The EGNOS program: The development of the EGNOS program was decided upon by the Council in 1994. It is based on a tripartite agreement between the European Community, represented by the European Commission (EC), the European Space Agency and Eurocontrol.
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A combination of poor conditions in the global economy and the beginnings of an “Iraq effect” impacted strongly upon passenger volume on scheduled services of Austrian Airlines during the reporting month of February 2003. The number of passengers carried on scheduled services of the Austrian Airlines Group fell by 2.4 % against the comparable month the previous year. When charter traffic is taken into account, passenger figures compared to February 2002 show a slight rise of 1.3 %. Due to targeted capacity management, the overall load factor fell by just 0.7 percentage points to 67.8 %.
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Lufthansa Technik AG and the component-division of SAS (Scandinavian Airline Systems) have signed a contract for the servicing of Airframe Related Components. During the contract's 15-year term, Lufthansa Technik will be overhauling the thrust reversers and cowlings of the V2500-A5 and CFM56-5C engines powering the carrier's A321-200 and A340-300 jetliners. The parties also agreed upon an option for servicing the thrust reversers and cowlings of the Trent 700 engines powering the Airbus A330 liners also flown by SAS. Scandinavian Airlines is increasing its A321 and A340 fleet to a total of 19 aircraft.
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International Launch Services (ILS) finalized a contract with Telesat this week to launch the Anik F1R satellite on a Russian Proton rocket in 2005. The deal includes an option for launching an additional satellite. Financial terms were not disclosed. The contract follows by less than three months the launch of Telesat's Nimiq 2 satellite in the first commercial flight of the Proton M/Breeze M configuration of the vehicle. The rocket lifted off Dec. 30 from the Baikonur Cosmodrome in Kazakhstan, in ILS' 10th and final mission of 2002. The Anik F1R launch will also use a Proton/Breeze M vehicle.
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The V-22 Integrated Test Team (ITT) resumed flight testing March 17 following a 10-day stoppage enacted so that potentially faulty hydraulic tubes in the engine nacelles could be replaced. Osprey No. 21 launched with test pilots Bill Leonard and U.S. Marine Maj. Shawn Healy at the controls. During the 20-minute flight the ITT tested the JASS 2.6.1.1-version mission software. The rest of the test force will take to the skies in the coming days once precautionary maintenance is complete on each aircraft.
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Loyola de Palacio, EU Commissioner for Energy and Transport, has said that discussions between the EU and United States on the interoperability of the Galileo and GPS satellite navigation systems are at an advanced stage, and that an agreement is very close. The Commissioner also warned Member States that if they could not settle their differences over the financing of the project, they would jeopardise the planned operational launch date of 2008. 'The ongoing difficulties that exist within the European Space Agency [ESA] between certain Member States do not give a good impression of the progress of the [Galileo] programme,' she said. Ms de Palacio expressed her frustration at the negative attitude of EU countries when it came to finding solutions to their differences, especially when all were agreed on the importance of the Galileo programme and the need to proceed quickly with it.
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BAE Systems Controls and joint-venture partner Hispano-Suiza will develop the full-authority digital engine control (FADEC) for the Engine Alliance GP7200, the engine that will power the Airbus A380 family of superjumbo jets. The contract from the Engine Alliance, a joint venture between GE Aircraft Engines and Pratt & Whitney, calls for development of the world's most sophisticated commercial FADEC. Delivery of the first development unit is scheduled for August 2003. Production orders of some 600 FADECs are anticipated to support engine deliveries beginning in 2006.
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The Citation CJ3's first engine run and taxi was successfully completed at Cessna Field located in east Wichita. The CJ3 uses the new Williams International FJ44-3A engines. With 2,780 pounds of thrust, the CJ3 has 14% more takeoff thrust and 12% more cruise thrust than the FJ44-2C, the engine used on the CJ2.
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Textron Inc. confirmed that it will be revising its 2003 outlook for business jet deliveries at its Cessna Aircraft business unit. As a result, the company will be reducing its 2003 earnings guidance. "The current economic and geopolitical situation has worsened and is affecting business jet demand much more severely than expected," said Textron Chairman, President and CEO Lewis B. Campbell. Most significantly, one of Cessna's largest customers recently informed the company of a significant reduction in the number of jets that it plans to purchase in 2003. The company is currently in negotiations with the customer to determine the specific changes. Previously, Textron planned to deliver about 220 jets this year. Depending upon the outcome of the negotiations and other jet sales through the year, the company now expects to ship between 180-195 jets in 2003.
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EADS EFW (Elbe Flugzeugwerke GmbH) redelivered the first of two Airbus A310-300 (MSN 445) in freighter configuration back to Royal Jordanian. EFW, headquartered in Dresden, Germany, is the core facility for Airbus freighter conversion within EADS European Aeronautic Defence and Space Company NV. The redelivery of the converted Airbus freighter aircraft took place two weeks ahead of schedule from Dresden airport. The freighter took off with commercial freight on board. As of today, EADS has delivered 97 converted aircraft to 18 customers worldwide, with a total of more than 115 conversions under contract.
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