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UPDATE
Week ending 6 June 2004
+++ Ryanair profits slide +++ A Swarm of satellites for a unique look inside the Earth +++ SWISS elects not to join oneworld +++ Snecma launches IPO +++ Cessna Citation Sovereign certified +++ News in brief +++
Ryanair profits slide
Geringerer Gewinn für Ryanair
Ryanair, Europe's No.1 low fares airline on 1 June announced better than forecast financial results for the full year ended 31 March 2004. Annual passenger traffic grew by a record 47% to over 23m. This growth was driven by significantly lower fares. Yields declined by 14% during the full year and consequently total revenues rose by 28% to over EUR1 billion for the first time. Unit costs during the year were reduced by 6% with the result that total operating costs rose by 39%, significantly less than the rate of traffic growth. Ryanair's adjusted after tax profit margin fell from an exceptional 28% last year to an industry leading 21%, and adjusted profits for the year have fallen by 5% to EUR226.6m. Contrary to our earlier fears, our adjusted profit in the final quarter marks our 28th consecutive profitable quarter since Ryanair first floated in May 1997.
Announcing these results, Ryanair's Chief Executive, Michael O'Leary said: "These results demonstrate yet again what a superb job the 2,300 people of Ryanair do in both good times and bad. This year was characterised by adverse market conditions including Sterling weakness, the war in Iraq, the threat of terrorist attacks, significantly higher oil prices, and intense price competition all over Europe from chronically loss making flag and new entrant carriers, most of whom are losing money on an enormous scale. Despite these challenges Ryanair has significantly lowered fares for our customers, carried over 23 million passengers, still maintained a world leading after tax profit margin of over 20% and ended the year with over EUR1.2 billion in cash.
"It remains our medium term view that (similar to Southwest in the U.S.) there will only be one or possibly two large low fares airlines in Europe and we are determined that the biggest and lowest cost of these carriers will be Ryanair. Others who have higher cost or higher fare models will have to endure losses or switch capacity away from head to head competition with Ryanair (such as Aer Lingus on many Ireland-UK Provincial routes and more recently BmiBaby and EasytJet on the East Midlands-Barcelona route), because their higher cost base makes them unable to compete with Ryanair's low fares.
"A lot of hysteria has been generated in recent weeks about higher oil prices. We believe the growth of low fare air travel will not be damaged or slowed by higher oil prices, which will only hasten the demise of some of the current wave of loss making start-ups and high fare flag carriers. The recent decision by British Airways, Air France and KLM, among others to impose fuel surcharges is typical of the anti-consumer mindset of high fares airlines. Whilst we are almost fully hedged till the end of Q.2, we are largely unhedged thereafter, as it would be unwise to lock in at the current high forward rates. Our view is that prices will fall this Winter, or next year and only then will we hedge, in order to benefit from such reductions. Unlike some high fare carriers Ryanair by contrast will absorb higher oil prices by making cost savings in other areas. We will not impose fuel surcharges on our customers, and have little doubt that our traffic will continue to thrive as a result of higher price differentials between Ryanair low fares and those of our surcharging competitors.
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A Swarm of satellites for a unique look inside the Earth
ESA Earth Observation Programme decided
ESA's Earth Observation Programme Board has just decided which of the six Earth Explorer candidate missions, presented earlier in April at the User Consultation Meeting, will be developed and launched. Swarm, an Earth Explorer Opportunity Mission, is a constellation of satellites which will study the Earth's magnetic field. A further selection between the Earth Explorer Core Missions EarthCARE (Earth Clouds Aerosols and Radiation Explorer) and SPECTRA (Surface Processes and Ecosystem Changes Through Response Analysis) has been deferred to November 2004 allowing clarifications to be made for both missions. It was recommended that the EGPM (European contribution to Global Precipitation Measurement) mission should be furthered within the ESA Earth Watch framework.
Based upon the recommendations made by the Earth Science Advisory Committee and the ESA Director of Earth Observation, the choice of Swarm for full implementation was unanimously agreed upon as a result of its scientific excellence. ESA has successfully moved to the next round of missions that explore our environment and the Earth as a system. Together with the decision expected in November for an additional Core Explorer, ESA is at a point where the next generation of scientific missions can be initiated. In this context the Agency is planning a Call for Mission Proposals in September 2004. The objective of the Swarm mission is to provide the best ever survey of the geomagnetic field and its temporal evolution, in order to gain new insights into the Earth system by improving our understanding of the Earth's interior and climate. The mission is scheduled for launch in 2009. After release from a single launcher, a side-by-side flying lower pair of satellites at an initial altitude of 450 km and a single higher satellite at 530 km will form the Swarm constellation. High-precision and high-resolution measurements of the strength, direction and variation of the magnetic field, complemented by precise navigation, accelerometer and electric field measurements, will provide the necessary observations that are required to separate and model various sources of the geomagnetic field. This results in a unique view inside the Earth from space to study the composition and processes in the interior. It also allows the analysis of the Sun's influence within the Earth system. In addition, practical applications in many different areas, such as space weather, radiation hazards, navigation and resource exploration, benefit from the Swarm concept.
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SWISS elects not to join oneworld
Rückzieher von SWISS
SWISS has decided not to proceed with the envisaged integration of its Swiss TravelClub frequent flyer programme into the Executive Club, its counterpart at British Airways, under the present conditions. The sizeable costs of such an integration and the drawbacks it would bring currently outweigh its projected mid- to long-term benefits. As the abandonment of the proposed integration also means that the bilateral agreement between SWISS and British Airways cannot be put into practice, SWISS is unable to join the oneworld alliance at the present time. SWISS and British Airways have reached an amicable agreement on how they now intend to proceed. SWISS's bilateral commercial agreements with other oneworld members remain unaffected by these developments.
SWISS wishes to continue to offer its best customers an exclusive and attractive quality frequent flyer programme. Having carefully analysed all the circumstances and projected consequences, SWISS has concluded that the expected costs and drawbacks of integrating its frequent flyer programme into the British Airways Executive Club outweigh the potential mid- to long-term benefits offered by such an amalgamation.
SWISS and British Airways have come to an amicable agreement on how they will now proceed. The decision does not affect Swiss's exchange of slots with British Airways. Five of these slots also serve as collateral by British Airways on the CHF 50 million credit facility of which SWISS made use in February 2004. The remaining aspects of SWISS's collaboration with British Airways will be terminated at the end of the 2004 summer schedules, with the exception of the codeshare arrangement on British Airways-operated services between Geneva and London (Heathrow), which will remain in force for a further three years. SWISS remains committed to the effective implementation of the turnaround plan.
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Snecma launches IPO
Teilprivatisierung von Snecma
On 4 June the French engine manufacturer Snecma launched its long awaited IPO, shrugging off market scepticism. The price tag of up to 1.62 billion Euros (1.98 billion dollars) for around 35 percent of Snecma's shares could scare off institutional investors however. The government nonetheless said it planned to sell equity in the Societe Nationale d'Etude et de Construction de Moteurs d'Aviation, in an IPO that would run until June 16. The French state currently owns 97.2 percent of the group, which produces aerospace motors and equipment, but appeared to have accepted a slightly lower launch price to ensure a successful placement of its shares.
"By opening the capital of Snecma, the government is giving the company new margins for manoeuvre that it will use to reinforce its leading market positions," the finance ministry said in a statement. Snecma chief executive Jean-Paul Bechat said that trading in the shares would begin on the Paris stock market at noon on June 18, with the final price of the share offering set for June 17. Speaking at a press conference, Bechat called the planned IPO price of between 15.45 and 17.20 euros per share "very attractive." It would earn less for the state however than had been hoped for by Finance Minister Nicolas Sarkozy, who said on May 4 he was looking at a global figure of between 1.6 and 2.0 billion euros. The government is not selling shares to General Electric as part of the IPO, but Bechat said the finance ministry is willing to sell a minority stake to the US group later on. Concerning Fiat Avio, which Snecma tried to buy last year, Bechat said a merger is still possible, but he ruled out any interest in a tie-up with the German group
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Cessna Citation Sovereign certified
Zulassung für neuen Geschäftsreisejet
On June 2, the Federal Aviation Administration granted type certification to Cessna's model 680 Citation Sovereign. This is a great day for Cessna, said Jack J. Pelton, Cessna's President and CEO. We have been working with the FAA on the Sovereign's certification for the past few months. As with any brand new airplane with state-of-the-art features, there were a few technical challenges along the way. In the Cessna tradition, the Sovereign exceeds the performance numbers we originally announced. The Sovereign is the most innovative, best performing midsize business jet on the market. It has been designed to have unparalleled reliability and superb ease of maintenance. Everyone at Cessna who helped make this new airplane a reality should be extremely proud.
The Citation Sovereign's integrated design team developed many new engineering and manufacturing efficiencies that will be used on future aircraft programs. David Brant, Cessna's Senior Vice President of Engineering, stated, The Citation Sovereign incorporates many new technological advancements. The fully integrated Primus Epic avionics, new efficient wing design, and new production line tooling are just a few advancements that we've achieved by adapting and improving existing technology. These designs have been rigorously tested through the flight test program, which has surpassed 3,000 hours. Cessna has received over 100 firm Sovereign orders in backlog, worth $1.5 billion. The first Citation Sovereign delivery is expected in the second half of 2004.
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NEWS IN BRIEF / KURZMELDUNGEN
Sikorsky established another rotorcraft industry first by standardizing its new S-76 and S-92 helicopter safety baseline to include Enhanced Ground Proximity Warning Systems (EGPWS) in all civil aircraft configurations. The EGPWS helps pilots avoid controlled flight into terrain (CFIT). A Sikorsky and Honeywell team developed EGPWS for helicopter applications using the S-76. The system became an option aboard S-76 helicopters after FAA approval in 2001, a first in the rotorcraft industry. Sikorsky's authorized factory training representative, FlightSafety International, will include specialized training in EGPWS as part of its training syllabus to ensure the full value of this safety feature is realized. Standard configuration S-76 and S-92 helicopters also include a cockpit voice recorder (CVR). The CVR system allows the simultaneous recording of up to four channels of audio and retains the most recent 60 minutes of all recorded audio, digital and timing data.
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At the third Annual General Meeting (AGM) of the Fraport AG Frankfurt Airport Services Worldwide, held at the Jahrhunderthalle in Frankfurt-Hoechst, Germany, the company's executive board chairman Dr. Wilhelm Bender outlined the Group's positive business performance in 2003. Together with this presentation of results, Bender gave an optimistic outlook on the airport company's performance in the current business year. Dr. Bender told shareholders 2003 was a good business year for Fraport AG, despite the extremely difficult market environment. Not only did we reach our ambitious financial goals, some results even exceeded expectations. Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to Euro 503.4 million last year. Sales of the Fraport Group rose by 1.7 percent to Euro1.83 billion. Consolidated net income increased by about 8 percent to Euro115.2 million. Therefore, both the executive board and supervisory board of Fraport recommended at the AGM to raise dividends per share from Euro0.40 to Euro 0.44. With pride, Dr. Bender told shareholders that even in a difficult year for international aviation like 2003, the company's Frankfurt (FRA) base did not falter as a job engine. The Group employed an average of 15,330 people in Frankfurt in 2003, representing an absolute increase of 600 employees over 2002. Global air traffic is at the onset of a new phase of strong growth, stressed Bender. Regarding FRA's expansion planning, the chairman said that the new maintenance facility for the Airbus A380 will be available on time when Lufthansa inaugurates superjumbo service in 2007. The separate zoning procedure for the new A380 maintenance facility is expected to be completed in the second half of 2004. Referring to the construction of an additional landing runway to the northwest of the airport to achieve the required expansion in airport capacity, Bender emphasized that the currently realistic timeframe for expansion (resulting from the postponement of the respective zoning decision until 2007) would still be sufficient for securing FRA's competitive position.
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A year after the devastating impact of SARS and the War in Iraq, industry efforts to rebuild passenger confidence see traffic largely recovered. The problem is now on the cost side, said Giovanni Bisignani, Director General and CEO of the International Air Transport Association. "On average, fuel accounts for 16% of airline operating costs. Fuel prices are 55% higher than one year ago. This could add between US$8 and US$12 billion to our annual fuel bill and threatens to strangle our modest projected return to profitability. Instead of flying high, we could be left swimming in red ink," said Bisignani. IATA announced that passenger traffic for the first four months of 2004 was up 15.4% over 2003 while freight traffic improved by 11.3% for the same period. More meaningfully, when compared to 2000 traffic levels for the same period, global passenger and cargo growth are 8.5% and 17.0% respectively. "The current crisis resulting from sky high fuel prices once again highlights the industry's vulnerability to external shocks," said Bisignani. This will be front and centre when airlines meet at IATA's Annual General Meeting and World Air Transport Summit in Singapore, June 6-8. "We need to build a new industry structure capable of withstanding external shocks and delivering sustained profitability. Airline cost-cutting, restructuring, and re-engineering are not enoughwe need to change the industry's structure," said Bisignani.
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The first prototype of Saras, India's home-grown civilian aircraft, made its maiden flight successfully for 20 minutes at the HAL airport. Flanked by two Kiran trainer aircraft of the Indian Air Force, Saras, designed and developed by National Aerospace Laboratories took off at 8.20 am and flew for about 35 kms over Bangalore before making a perfect landing at 8.40 am, to the jubilation of NAL scientists and employees. It was a good flight, NAL Director B R Pai told PTI soon after the 20 minute test sortie piloted by Sq Ldr K K Venugopal and Wg Commander Makhan of the IAF's Aircraft and Systems Testing Establishment (ASTE). It went off very well, said Pai, but declined to elaborate further. The prototype, powered by two Canadian Pratt and Whitney engines weighs 5,118 kgs, about 900 kgs heavier than its desired empty weight of 4,125 kgs and was equipped with five seats. It reached a speed of 150 nautical miles and flew at an altitude of about 8,000 feet. The landing was good and the aircraft was handling beautifully, an ASTE official said.
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NASA Administrator Sean O'Keefe announced the agency's decision to pursue the feasibility of a robotic servicing mission to the Hubble Space Telescope (HST). NASA initiated the first step toward enabling such a mission with the release of a Request for Proposals today. The due date for proposal submissions is July 16, 2004. "This is the first step in a long process of developing the best options to save Hubble," Administrator O'Keefe said. "We are on a tight schedule to assure a Hubble servicing mission toward the end of calendar year 2007. But we must act promptly to fully explore this approach." Although the primary goal of a robotic mission is to install a deorbit module on the HST, NASA is studying the feasibility of performing other tasks. The tasks could include installing new batteries, gyros and possibly science instruments that would enhance the observatory's ability to peer even more deeply into the universe. The final decision about specific robotic tasks will be made after all proposals have been thoroughly reviewed.
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Schweizer Aircraft Corp. is pleased to announce the signing of a contract with Helicopter Adventures Inc. (HAI) for the largest single fleet order of 300CBi helicopters to date. Helicopter Adventures is the largest commercial helicopter flight training school in the world. The order is for twenty-three (23) 300CBi helicopters with options for up to ten additional units. Helicopter Adventures was the lead customer for the 300CB in 1995. Separate from the current contract, HAI has purchased 50 Schweizer helicopters over the past nine years. Helicopter Adventures is also a Schweizer Sales and Service Center with flight training operations in both Titusville, Florida and Concord, California.
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In the wake of fourth generation fighter aircraft, comes a need for re-evaluation of the military pilot training market. In market research, due to be published this month, Frost & Sullivan examines emerging training trends, strategies and needs. Frost & Sullivan also discusses the market's drivers, restraints and challenges while assessing them as business opportunities. Finally, the market research includes a 20-year revenue forecast for phase II to phase IV trainer aircraft (basic fighter lead-in) as well as a ten-year forecast for aviation training and simulation (T&S). There are a number of contiguous factors affecting the growth of the military pilot training market. Overall, the market is in a phase of great change. The emergence of fourth and fifth generation fighter aircraft is placing importance on the need for fundamental changes. These will include changes of syllabi, platforms, training aids, and business modes. With training solutions becoming more expensive on the one hand, and ever-shrinking defence budgets on the other, air forces find themselves increasingly dependent on efficient collaboration with industry. The global market for basic and advanced/ fighter lead-in trainer aircraft is going to total 3,550 units, worth approximately $42 billion (USD), during the 2004 2025 timeframe. For the same timeframe, the global market for basic and advanced/ fighter lead-in trainer aircraft upgrades is going to total 3,307 units, worth approximately $8 billion (USD).
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On 1 June, the GALILEO Joint Undertaking launched the second call for proposals for research activities dedicated to GALILEO, with an overall budget of 67 million euros. The aim is to support the development of applications and user receivers to exploit the European satellite radio-navigation programme. The first call for proposals for GALILEO under the 6th Research Framework Programme was a success with eight large research activities beginning in 2003 and totalling 19 million euros. This second call for proposals covers applications in traditional fields such as location based services, road transport, maritime transport and aviation and rail applications. It also caters for niche markets such as in multi-modal transport, emergency management and law enforcement, energy, scientific research, agriculture, land survey and civil engineering, etc. Particular attention will be paid to the involvement of small and medium size enterprises. Welcoming the launch, Loyola de Palacio, Vice-President of the European Commission, said: This call for proposals responds to the huge interest shown by European industry in satellite radio-navigation applications and provides further evidence of the very promising prospects for GALILEO.
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EADS celebrated the opening of its new office in London and unveiled its Technology Masters programme for British engineering students. On this occasion, the EADS CEO's, Philippe Camus and Rainer Hertrich, the Executive Vice President of EADS International, Jean-Paul Gut, and UK Country President, Sir Jeremy Blackham, were hosting a reception where the UK Secretary of State for Defence, Geoff Hoon, was the guest speaker. Commenting on the growth of EADS' presence in the UK in recent years, the EADS CEOs described the commitment of EADS to the UK and said: It means a great deal to us to succeed in what is said to be one of the toughest defence markets in the world. We are very happy that during some of the recent major defence programme competitions, such as for the Skynet 5 secure satellite communication system and of course the FSTA programme, we have been able to raise our visibility in the UK defence market, Camus and Hertrich said. We are sure to accomplish much for the United Kingdom and for EADS contributing to one of the most dynamic and innovative economies in the world through investment, employment and training and we look forward to sharing in the success we are confident will come for both the UK and for EADS.
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Northrop Grumman has been competitively selected to provide the integrated tactical cockpit for the U.S. Navy's E-2 Advanced Hawkeye aircraft. Northrop Grumman's Integrated Systems sector produces the Advanced Hawkeye, and awarded the tactical cockpit contract to the company's Navigation Systems Division. The new cockpit goes beyond allowing the pilot to fly the aircraft. The mission computer and software of this integrated system has been designed to allow either the pilot or the co-pilot to participate as a fourth mission-system operator. In addition, the cockpit will integrate aircraft navigation, control and display functions to provide enhanced situational awareness for the pilot. The system will be integrated and tested at Northrop Grumman's integration laboratory facilities in Woodland Hills prior to aircraft installation in St. Augustine, Fla.
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BAE Systems has been selected by the Turkish Ministry of National Defense, Undersecretariat for Defense Industries and the Turkish Air Force as the key subcontractor for an integrated electronic self-protection system to be installed on that nation's F-16 fighters. BAE Systems will be a subcontractor to MiKES, Inc., who in turn is a subcontractor to the prime contractor ASELSAN, Inc. Both ASELSAN and MiKES are Turkish Defense Industry Enterprises located in Ankara, Turkey. Under the contract, which is valued at $100 million, development and delivery of hardware and related software for the AN/ALQ-178(V)5+ Electronic Warfare systems will be provided for Turkey's "Block 50" version of its F-16 Fighting Falcon aircraft. Design and development will take place primarily at BAE Systems Information & Electronic Warfare Systems (IEWS) in Nashua, New Hampshire, over the next four years. An integrated product team that includes both MiKES and IEWS' design experts will develop the highly sophisticated system, which will be able to counter advanced threats. Following the development phase, MiKES will be responsible for the production of 60 systems in Turkey.
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Boeing recently started the final assembly of the first F-15K Strike Eagle fighter aircraft for the Republic of Korea Air Force (ROKAF). During final assembly in St. Louis, the F-15K forward, center, and aft fuselage assemblies are joined, followed by the wing assemblies. Once the structural splice is completed, mechanical and electrical subsystems will be installed and checked out. Assembly will be completed in October and the aircraft will begin ramp operations. The first F-15K flight will take place in March 2005 and the first two aircraft will be delivered in October 2005.
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Looking back at the success story of the Austrian Airlines Group in Eastern Europe at an international press conference held in Moscow, Chief Commercial Officer Dr. Josef E. Burger briefly described the history of the service: 45 years ago, on 5 June 1959, Austrian Airlines became one of the first West European airlines to open up a scheduled service to Moscow. By doing so, we laid the foundations of a route network stretching far into Central and Eastern Europe, a market we continue to dominate today, with our 38 destinations in the region. Our once-weekly service via Warsaw grew to become twice-daily nonstop connections, Vienna-Moscow-Vienna. The route to Moscow/Sheremetjevo is now one of our flagship services, and the Austrian Airlines Group also offers scheduled flights to a range of other cities in Russia, including St. Petersburg, Rostov on the Don and Krasnodar in the south of the country. We haven't merely developed the routes between Austria and Russia, however; in over four decades of service and taking inflation into account, we've also significantly reduced fares for our customers across Eastern Europe. In 1959, the Vienna-Moscow-Vienna service cost ATS 5,575.00, a figure which would be around EUR 405.15 today. Currently, however, our lowest redticket offer on this route costs just EUR 349.00!
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Astronaut Candidate Joseph Acaba never thought he would have the opportunity to join the NASA astronaut corps. Then one day he read the announcement for the NASA Educator Astronaut program. The Educator Astronaut program was developed by NASA to recruit teachers with specific experience and expertise in grades K-12. Educator Astronauts help lead the agency in development of new ways to connect space exploration with the classroom and to inspire the next generation of explorers. "When I saw the announcement, I felt that everything I had done to this point was in preparation for this job," Acaba said.
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The Boeing Standoff Land Attack Missile Expanded Response (SLAM-ER) team successfully demonstrated its new retargeting capability recently at Point Mugu, Calif. Operating from the deck of the aircraft carrier USS John C. Stennis located in the Naval Air Weapons Station Sea Test Range, an F/A-18C Hornet, assigned to Strike Fighter Squadron 25 (VFA-25), launched a SLAM-ER to destroy a simulated radar site on San Nicolas island, in the Pacific Ocean, used by the U.S. Navy for test and training missions. The SLAM-ER changed direction when the Hornet pilot identified a new target on the island and sent a land midcourse update. Within several miles of the simulated surface-to-air missile site, the SLAM-ER began to transmit real-time video to an S-3B Viking aircrew assigned to Sea Control Squadron 35 (VS-35). The crew utilized the data to pinpoint the new target and destroy it.
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On June 1, Kaman Aerospace announced that San Joaquin Helicopters, of Delano, California, has taken delivery of a K-MAX helicopter. San Joaquin Helicopters is very pleased and excited to add the K-MAX to our existing fleet of 14 light and medium helicopters. The heavy lift K-MAX, with its proven track record and superior performance, will greatly enhance our capabilities in helicopter fire fighting and construction lift, said Jim Josephson, President, San Joaquin Helicopters. We became sold on the K-MAX as we saw it operate alongside our medium aircraft on fire fighting contracts; it always was the aircraft most in demand due to its lift capability at high altitudes and its ability to fly extended hours each day with low maintenance down time. With the K-MAX, we now can offer a full range of fire fighting and lift options to our customers, said Josephson.
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Lockheed Martin has won the competition to produce the U.S. Army's Compact Kinetic Energy Missile (CKEM) program. CKEM is the next generation hypervelocity anti-tank weapon to support the service's Future Force. Lockheed Martin is currently working under a $21.3 million, 36-month Advanced Technology Demonstration (ATD) program on CKEM, which was awarded in October 2003 by the U.S. Army Aviation Missile Research Development and Engineering Center in Huntsville, AL. The company will now proceed as the sole contractor on the ATD, with the remainder of the contract valued at $60 million. Work on the ATD is being performed at the company's facilities in Dallas, TX, and Camden, AR. Once the ATD program is completed in 2006, the CKEM plan calls for a two-year System Design and Development (SDD) phase.
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Boeing has selected Kaiser Electroprecision, a Rockwell Collins company located in Irvine, Calif., to provide the pilot controls for the new super-efficient 7E7 Dreamliner airplane. The pilot control system includes the wheel, column and rudder pedals located in the flight deck and the associated mechanisms. Pilots use these to control the aircraft in flight and on the ground. Also included is the control stand with the engine thrust controls.
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Saab company Celsius Metech is now changing name to Saab Metech. The change applies to all Metech companies in Sweden, Denmark, Finland and Germany. Saab Metech is one of Europe's leading independent suppliers in testing technology and measurement service solutions for industry, the defence market and metrological instrument suppliers. The company provides complete, cost-effective solutions, which enable customers to reduce their testing and measurement costs.
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During the night of June 1 to June 2, 2004, the French defence procurement agency (DGA) and the French navy carried out a flight test of an M45 submarine-launched ballistic training missile. The missile was launched from a point south of Brittany, in the North Atlantic, and hit its target off French Guyana. This firing is part of the test campaign n preparation for the commissioning of the Le Vigilant nuclear-powered ballistic missile submarine.
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Bell Helicopter's recently formed XworX organization is engaged in a new design and modification effort that will make the US Marine Corps' fleet of H-1 aircraft (AH-1Z and UH-1Y) the most combat survivable helicopters in the world. By turning the exhaust system on the H-1's twin GE T-700 engines Bell XworX skilled team-members will substantially reduce the infrared heat signature on the aircraft, a feature that will greatly increase survivability according to lessons learned in Operation Iraqi Freedom.
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From 2 June 2004 onwards, the Austrian Airlines Group will incorporate the south-east Asian financial and economic centre of Singapore into its long-haul route network. The Boeing B 777, with its 344 seats (42 Business Class and 302 Economy Class), will take off from Vienna for Singapore three times a week. The service will also fly on from Singapore to Melbourne in Australia three times a week. This new connection means the Austrian Airlines Group will provide a total of 36 weekly flights in both directions between Vienna and Australia, passing through Singapore and Kuala Lumpur en route. Chief Executive Officer Vagn Soerensen made the following statement on the expansion of the company's long-haul programme: In addition to the traditional connection from Vienna to Sydney via Kuala Lumpur, we have now incorporated Singapore into our programme of services linking continental Europe and Australia. We are the only airline from continental Europe flying to Australia, and together with our Star Alliance partners Singapore Airlines and Air New Zealand, we offer a dense network of services between Europe, South-East Asia, Australia and taking our code share connections into account to New Zealand. Singapore is not only an excellent hub but also a very interesting target destination for both businesspeople and tourists. I'm extremely happy that our partnership with Singapore Airlines within the Star Alliance is now developing into this concrete code share relationship.
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On 3 June, the UK NATS was forced to apologise unreservedly to air travellers whose journeys have been delayed this morning following testing of the Flight Data Processing System (FDP), based at West Drayton. We would like to reassure air travellers that the safety of flights was not in any way compromised. The FDP was being tested overnight for a future upgrade. The system was successfully returned to service but at 06.03 errors were detected in the distribution of flight data between Centres. As a precaution, we decided to restart the FDP (known as a cold restart) causing an interruption to full service. The data processing system was restored at 06.42 and declared fully operational at 07.03. Flight capacity restrictions were lifted at 08.05. The system is now fully operational and we are confident that it is stable. Through the response team at West Drayton, we have been working with airports and airlines to clear the delayed departures, and expect the backlog to be cleared quickly. Our investigation into the cause of the problem is continuing. This is the first NATS service interruption for two years and, while departures were restricted at a number of UK airports, during the interruption, all flights inbound to the UK, and those within UK airspace, were handled safely and effectively.
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