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UPDATE
Week ending November 22, 1998

+++ Industry delivers report on European consolidation +++ First International Space Station element launched +++ South Africa announces weapons choices +++ ILFC chooses A318 for 100-seat aircraft +++ Dassault Mirage 2000-9 deal with UAE signed +++ New coordinator for the German aerospace industry +++ Gulfstream orders another 200 engines from BMW Rolls-Royce +++ News in brief +++


Industry delivers report on European consolidation
Bericht zur Europäischen Restrukturierung vorgelegt

On November 16, Aerospatiale, British Aerospace, CASA, Daimler Benz Aerospace, Finmeccanica-Alenia and Saab have remitted their overdue joint confidential report on their views on European restructuring to the six governments concerned. The companies have reached a wide measure of agreement on the issues discussed, they claim. They all have confirmed that a unified, integrated European Aerospace and Defence Company (EADC) is the right target structure, as already proposed by the Airbus Partners in their March report. In particular, the consensus on the target perimeter and objectives established in March has been endorsed in most essential respects by Finmeccanica-Alenia and Saab. The companies will therefore continue to pursue their discussions.
As regards governmental questions, a number of issues need to be taken forward. The Partners welcome the progress made between the six Defence Ministers on the matters covered in the Letter of Intent of 6 July 1998. Today's report addresses the other matters raised by the Industry Ministers on 9 July 1998, including the question of governments rights and safeguards in EADC. The Partners hope that their report will contribute to the inter-governmental process and are ready to enter into dialogue on the issues raised in the report as and when appropriate, the statement was saying.

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First International Space Station element launched
Erstes Modul der Internationalen Raumstation gestartet

Zarya, the first element of the International Space Station, was successfully lifted into orbit this morning atop a Russian Proton rocket. Proton took off from the Baikonur Cosmodrome in Kazakhstan at 7:40 hours Central European time. Nine minutes and 49 seconds later, Zarya was released from the Proton's third stage. Within ten minutes after separation from Proton, Zarya's communications antennas and solar arrays were deployed and all major system were successfully put into operation. The next International Space Station element launch is scheduled for 3 December, at 9:59 hours Central European time, when the US Space Shuttle Endeavour will lift off as mission STS-88, carrying the Unity connecting node that will be coupled with Zarya. "Today's launch marked the laying of the foundation stone for mankind's first international off-shore platform above the Earth's atmosphere," said Jörg Feustel-Büechl, ESA's Director of Manned Spaceflight and Microgravity after the end of ESA's live TV transmission of the Zarya launch, produced from ESA's future International Space Station User Information Centre at ESTEC in Noordwijk (Netherlands). "Over the next five years, the International Space Station will now be assembled in space element by element and already in about one year from now, while the construction work still continues, the first permanent crew will arrive on the station and start working. European Scientists and engineers are now called to submit their proposals to ESA for the use of the station for scientific and technological experiments." In its Announcement of Opportunity for the utilisation of the International Space Station, issued at the occasion of the launch of Zarya, ESA is soliciting microgravity research proposals dealing with physical sciences and biotechnology and making use of the International Space Station as well as other carriers. Besides investigating fundamental research, scientists are also encouraged to consider projects that have industrial applications perspectives.

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South Africa announces weapons choices
Neue Rüstungsprogramme für Südafrika

On November 18, South Africa has named the winners for its arms procurement programme. "Cabinet authorised...the Minister of Finance to enter into further negotiations with the preferred suppliers to achieve an affordable final package," the government said in a statement. Total value of the forthcoming deals is expected to be 30 billion rand (5,3 billion US-Dollars), with triple that in industrial offsets and benefits for the South African economy. Companies choosen include:
  • British Aerospace and Saab for the delivery of 28 JAS 39 Gripen advanced jet fighters, in a deal worth 10.9 billion rand. It is hoped to create benefits in South Africa of 48 billion rand and 23,000 jobs. South Africa has said that delivery will probably begin in 2002.
  • Italy's Agusta was favoured to supply 40 A 109 light utility helicopters worth 2.2 billion rand, generating benefits to South Africa of 4.7 billion rand and creating 4,500 local jobs.
  • Westland Ltd, part of engineering group GKN Plc, is the candidate to supply four Lynx navy helicopters worth 787 million rand, generating benefits in South Africa of 2.7 billion rand and 2,500 jobs.
  • British Aerospace's Hawk 100 was selected as the preferred choice a delivery of 24 jet trainers, which will cost the country 4.7 billion rand but lead to 8.6 billion rand in investments and create 7,500 jobs.
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ILFC chooses A318 for 100-seat aircraft
Airbus gewinnt ILFC für A318

International Lease Finance Corporation (ILFC) has made a corporate decision to select the Airbus Industrie A318 as the 100-120 seat aircraft it will offer for lease to airlines around the world. ILFC's execution of a Memorandum of Understanding for up to 30 A318s follows detailed evaluation of the A318 and competing aircraft types in the 100-120 seat segment, primarily the 717, a derivative of the traditional Douglas DC9 and McDonnell Douglas MD80 series aircraft. "The choice made by the world's largest new aircraft leasing company reflects the market's preference for efficient, new technology aircraft that are members of an integrated family of common products, giving airlines lower operation costs as well as fleet planning and scheduling flexibility," said Steven F. Udvar-Hazy, ILFC's President and CEO. The ILFC commitment for the A318, equipped with new Pratt & Whitney 6000 series engines, remains subject to the industrial launch of the aircraft by Airbus Industrie, a move expected in early 1999. Deliveries for the new A318s are planned to begin in late 2002.

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Dassault Mirage 2000-9 deal with UAE signed
Vereinigte Arabische Emirate ordern Mirage 2000-9

The United Arab Emirates has finally signed a $3.2 billion order for 30 Mirage 2000-9s from Dassault which also includes the upgrade of 33 Mirage 2000s, which Abu Dhabi bought from Dassault almost 20 years ago. This official contract comes nearly a year after the agreement in principle lat in 1997 between the UAE and France. In May Abu Dhabi announced its intention to buy 80 Lockheed-Martin F-16 warplanes worth some $6.8 billion although final contract negotiations have run into difficulties. The differences, mainly over control codes for the new aircraft, have apparently pushed the UAE to reopen talks with European arms makers to re-assess available alternatives. European companies have told the UAE they would meet all its requirements, defence officials said.

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New coordinator for the German aerospace industry
Mosdorf zum Koordinator für die Deutsche Luft- und Raumfahrt ernannt

On November 17, the German cabinet has appointed Siegmar Mosdorf to the post of coordinator for aerospace activities. Mosdorf is a state secretary in the economics ministry. In a statement on the appointment, the government has reiterated its aim to actively support the consolidation of the European aerospace industry, which it deems necessary in view of the globalisation trends. Mosdorf will direct its efforts to ensure proper conditions for the expected pan-european mergers, it is said.

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Gulfstream orders another 200 engines from BMW Rolls-Royce
BMW Rolls-Royce erhält neuen Auftrag

Gulfstream Aerospace Corporation of Savannah, Georgia, has ordered an additional 200 BR710 engines for its Gulfstream V ultra long-range business jet. Total order volume exceeds 500 Mio. USD. Delivery of these engines is scheduled to begin in early 2000 and continue through 2002. The purchase raises the number of BR700 engines on BMW Rolls-Royce's order books to more than 650. Gulfstream was the launch customer for the new generation of aero engines developed by BMW Rolls-Royce. The first order, also for 200 engines, was placed in September 1992.

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NEWS IN BRIEF / KURZMELDUNGEN

Lufhansa continues to report excellent results, with profits in the first nine months of the year already nearly equalling the 1,65 billion figure for the whole of 1997. From January to September, turnover was 16,4 billion DM, an increase of 4,9 per cent.
+++
The Deutsche BA has agreed a code-share deal with TAP Air Portugal. Cooperation will begin on the TAP-routes from Lissabon to Munich, with Deutsche BA onward connections to Berlin, Hanburg, Dusseldorf and Cologne.
+++
The major scheduled carriers whichmake up the Association of European Airlines suffered one of the most unpunctual summers on record in 1998. In the period July-September, 25,9 per cent of intra-European departures wer delayed by more than 15 minutes - the worst-ever quarterly figure, narrowly beating the second quarter of 1998. Seventy per cent of the delays wer attributed to airport/ATC reasons.
+++
MTU has delivered the 500th digital engine control system for RB199 engines which power Panavia Tornados of Germany's Luftwaffe and Marnie. A total of 587 DECUs are needed, plus an additional 132 for Italy. The digital system improves regulation of the engine, leading to longer lifetimes and better flexibility in improving software codes.
+++
St. Louis, Missouri-based regional carrier Trans States Airlnes has exercised the first set of six options of the 50-seat regional jet ERJ-145. The original contract of 9 firm orders and 18 options was signed in February 1998, and now stands at 15 firm and 12 options. Trans States has taken delivery of four ERJ-145 and has initiated its regional jet program by flying for United Airlines as United Express in Chicago and Delta Connection at New York's JFK Airport. Currently, sales order book of the ERJ-145 stands at 215 firm orders and 212 options. A total of 80 aircraft have been delivered to nine of the 14 customers that have selected the ERJ-145.
+++
On November 10, Aerospatiale and Lagardère have announced the agreement between the French government, Aerospatiale and Dassault Industries concerning the transfer of the state's 46% stake in Dassault Aviation to Aerospatiale. This agreement follows two French government decisions, the first in May 1998 concerning the transfer of its stake in Dassault, and the second on July 23, 1998 concerning the merger of Aerospatiale and Matra Haute Technologies. These operations mark a major milestone in the French government and industry restructuring process, carried out within the scope of the consolidation of the European aerospace and defense industries.
+++
On November 15, Rolls-Royce plc, the aerospace, defence and energy group, announced at the Zhuhai Air Show that it is placing $50 million more manufacturing work in China over the next six years, and has entered into a new materials research programme in China. Three Aviation Industries of China (AVIC) factories will work on a range of components, including small and major structural fabrications, turbine rings, compressor seals and combustor cooling rings for the full range of Rolls-Royce civil aerospace products, from the Tay, Trent and V2500. The factories are Xian Aero Engine Corporation (XAE), Chengdu Engine (Group) Co. Ltd and Beijing Chang Kong Machinery Corporation.
+++
The Saab Gripen multi-role combat aircraft has conducted its first air-to-air refueling flight trials in early November. Five flights have been carried out from British Aerospace's Warton site in the UK, which is close to the designated Irish Sea Air-to-Air Refueling Area. Managed by a joint team of Saab and British Aerospace engineers, the sorties were flown by British Aerospace Chief Test Pilot Paul Hopkins and Saab Test Pilots Ola Rignell and Magnus Ljungdahl. The Gripen test aircraft linked with an RAF VC1O tanker with a crew from DERA (the UK''s Defence Evaluation and Research Agency). A key element for Gripen on the export market is the introduction of an air-to-air refueling capability, developed jointly by Saab, British Aerospace and Flight Refueling Ltd. The first stage in providing this capability was the design, manufacture and clearance for flight testing of a mock-up probe to establish the viability of the design.
+++
The AeroVironment Centurion unmanned air vehicle is beginning a short series of initial developmental flights this month at NASA Dryden. The unique craft, which has a wingspan of 206 feet, flew a highly successful first low-altitude check flight under battery power Nov. 10. Three more flights are planned in the initial series. The Centurion will then be modified with the addition of solar arrays across its entire span that will power the craft during follow-on high-altitude development flights in coming years. The Centurion is designed to reach and sustain level flight at altitudes of 90,000 to 100,000 feet.
+++
Air New Zealand and Avions de Transport Regional (ATR) have entered into an agreement to acquire seven new-generation, 66-seat ATR 72-500 aircraft. The seven ATR 72-500 aircraft ordered will be acquired by Air New Zealand for its fully-owned domestic operator, Mount Cook Airline. They will replace as from the end of 1999 the seven ATR 72-210 aircraft, which were introduced on this network in 1995. The new-generation ATR 72-500, which Air New Zealand selected after a thorough evaluation process, will offer significant comfort improvement over the existing aircraft. The deliveries of the new ATR 72-500s ordered by Air New Zealand will take place from October 1999 through February 2000. The sale to Air New Zealand brings ATR's firm sales to 576, of which 547 have been delivered to date.
+++
On November 19, Air Aruba and Aserca Airlines of Venezuela each took delivery of a Boeing MD-90, representing the latest of many deliveries of Boeing jetliners this year to carriers in Latin America. On lease from Hwa-Hsia Leasing Ltd. of Taiwan, the delivery to Aserca also marks the introduction of the MD-90 in Latin America and the first new aircraft delivery to a Venezuelan airline in more than a decade. Hwa-Hsia has purchased a total of three MD-90s with its third airplane scheduled for a later delivery to Air Aruba.
+++
On November 16, Boeing announced that Deborah C. Hopkins has been named chief financial officer, reporting to the Office of the Chairman. Hopkins joins Boeing after serving as vice president of finance and chief financial officer for General Motors Europe, a $26 billion operating unit of GM with headquarters in Switzerland. Hopkins, 44, will begin her new duties at Boeing on Dec. 14. Since the Sept. 1 retirement of former Boeing Chief Financial Officer Boyd Givan, Boeing President and Chief Operating Officer Harry Stonecipher has served as acting CFO.
+++
An Airbus A340-300 carrying 370 passengers touched down on November 20 at Lhasa's Gongkar Airport, which is located at one of the highest elevations in the world. The airport sits at an elevation of 3,700 meters above the sea level on the Tibet Plateau. The A340 aircraft will be the largest airliner making regularly scheduled flights to Lhasa, capital of the Tibet Autonomous Region. China Southwest Airlines, headquartered in Chengdu, capital of Sichuan Province, introduced the Chengdu-Lhasa air route. The company plans to add a third Airbus aircraft to its fleet in March 1999. The new route is expected to promote further opening and economic development of Tibet. The airport also serviced Il-18 and Boeing 707 and 757 aircraft.
+++
Eighteen people are dead and four others are missing after two helicopters belonging to a Mexican oil company collided and crashed in the Gulf of Mexico on November 18. The accident occurred at around 7:20 a.m. local time. Petroleros Mexicanos (PEMEX) said the helicopters collided after taking off from offshore oil platforms near the state of Campeche. There were 13 people in one helicopter and nine in the other. Authorities have so far recovered 18 bodies and are still searching for the rest.
+++
Lockheed Martin Skunk Works has announced that an Air Force U-2S reconnaissance aircraft and its NASA ER-2 variant set three new world records on the 18th and 19th of November. The first two world records, flown from Air Force Plant 42 in Palmdale, California, involved flying a record payload weight of 3,300 pounds to an altitude of 15,000 meters (49, 000 feet.). Air Force officials stated the record setting U-2 aircraft was configured with a normal mission payload and was not specially configured for this record event. The previous 15,000 meter record, was held by a Russian MiG 29 fighter and was set in 1995. The new records were for a medium weight class of 26,455 to 35,274 pounds (at take off weight) and for the "unlimited" weight class (no aircraft of any weight has ever claimed this amount of a payload to 49,000 feet). The third record, set by the NASA ER-2, flown from NASA's Dryden Flight Research Center located at Edwards Air Force Base, CA, broke an absolute altitude record for it's weight class. The new NASA record of 68,700 feet surpassed the current record of 62,500 feet, which was flown by a Canadian P-42 aircraft in 1988.
+++
The stay of Russia's orbiting space station Mir in orbit will most likely be extended until 2001, said Yuru Semyonov, president of the space rocket corporation Energiya, the owner of Mir. He said in an interview with Itar-Tass that "the search for money is being conducted for this now, and not only from the state's but from other sources". Russian Space Agency director general Yury Koptev confirmed that funds are being searched for keeping Mir in orbit.
+++
Ukraine has begun scrapping the first out of its 44 heavy strategic bombers under the Strategic Arms Reduction Treaty (START-1). The first cut was made on the aircraft at the air force base in Priluki, Chernigov region, in the presence of a group of U.S. senators.The United States will provide over eight million U.S. dollars to finance the destruction of strategic bombers in Ukraine. After the disintegration of the Soviet Union, Ukraine inherited 19 TU-160 strategic bombers and 25 TU-95 aircraft of the same class. All of these aircraft and 1.068 cruise missiles are expected to be destroyed by July 30, 2001.
+++
The United States Federal Aviation Administration (FAA) awarded type approval on Friday, November 13, for the ultra long-range Bombardier Global Express business jet. The announcement comes just one week after Transport Canada issued the first Certificate of Airworthiness for a Global Express aircraft. The twin developments clear the way for Bombardier, the world's third largest civil aircraft manufacturer, to begin customer deliveries of the jet. Interior completion of the first Global Express for customer delivery is well advanced and the aircraft is on schedule to enter corporate service in early 1999. At that time, another group of Global Express aircraft will begin completions work at Bombardier's new state-of-the-art completions center in Montreal - the most sophisticated and best equipped facility of its kind in the world.
+++
Canadian Bombardier Aerospace has signed letters of intent for the sale of over 50 new Bombardier Continental Jets. The company in October introduced the Bombardier Continental Jet which will be able to carry eight passengers and enter corporate service with customers in 2002.
+++
A Norwegian Liaison Officer is now based at the NATO Eurofighter and Tornado Management Agency (NETMA) at Unterhaching near Munich. Baard Vidvei, will monitor the Eurofighter programme during the evaluation process until Norway's authorities have finalised their procurement decision, which pits the EF2000 against the Lockheed Martin F-16. Norway could be given full access to the programmes technologies and would share in the management programme with the other four Eurofighter nations if it decides on the EF2000. They would alse be abel to participate in the development of future upgrades and growth initiatives for the weapon system and to share in a joint approach to logistic support.
+++
Bombardier Aerospace has announced that the Ministry of Interior of Croatia signed a contract for the purchase of one Canadair 415 amphibious aircraft with an option for one more. The aircraft will be delivered in the summer of 1999. This order brings the Croatian fleet to four waterbombers, two CL-215 and two Canadair 415 aircraft. This order increases the Canadair 415 order book to 41 aircraft, 37 of which have been delivered to firefighting agencies in Italy, France, Quebec, Ontario and Croatia.
+++
With eight months of collective training under their belts, and a unique perspective on how to fight on the digital battlefield of the future, members of the first U.S. Army AH-64D Apache Longbow combat battalion have been certified as combat ready. Members of the 1st Battalion, 227th Aviation Regiment, now will await their first field assignment with their Apache Longbows, the world's only fourth-generation combat helicopter. The certification for the 1-227th follows individual pilot and maintenance training at The Boeing Company in Mesa, Ariz., over the past 15 months, and eight months of intensive company-level and battalion-level training and evaluation that ended this month at Fort Hood, Texas. The 1-227th belongs to the 1st Cavalry Division, which is based at Fort Hood, Texas.
+++
MTU Ludwigsfelde has assembled its 100th low-pressure compressor module for the Pratt & Whitney PW2000 turbofan. The factory is responsible for the task since July 1997, when the work was moved over from MTUs main facility at Munich. MTU has a 21,2 per cent stake in the PW2000.
+++
More than 150 children from the Everett and Issaquah School Districts and the Seattle Japanese Language School led The Boeing Company's delivery celebration of Japan Airline's (JAL) 100th 747. The celebration commemorates the 30-year partnership between Japan Airlines and Boeing - a relationship that has led JAL to becoming the world's largest operator of 747s. JAL's 100th 747 is a long-range 747-400 configured to carry 348 passengers -12 in first-class, 99 in business, and the remainder in the economy section. The carrier plans to use the airplane on international routes. Throughout the time of its service, the JAL 747 fleet has operated close to 1.2 million flights, traveling over 2.3 billion miles and spending 5.09 million hours in the air.
+++

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

*November 15, 1998 *November 8, 1998 *November 1, 1998

*October 25, 1998 *October 18, 1998

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


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