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Week ending January 17, 1999
+++ A multiple record year for Airbus Industrie +++ All-round merger talks continue in Europe +++ 700 million Euros for European aeronautics +++ KC-135 crash at Geilenkirchen kills four +++ Air traffic growth falters in 1998 +++ Motorola Signs Iridium launch on ROCKOT +++ RTM322 for NH90 surpasses power rating +++ Singapore Airlines to stop Berlin operation +++ News in brief +++
A multiple record year for Airbus Industrie
Airbus meldet Rekordjahr
In 1998, Airbus Industrie achieved several major commercial records in terms of firm order intake, deliveries and backlog, the company has reported. With 556 firm orders worth $39.0 billion, Airbus Industrie surpassed last year's record by some 30 percent in terms of sales value and almost 20 percent in aircraft units. In 1997, Airbus Industrie obtained 460 orders, with $29.6 billion. In addition to these 556 orders for which firm and enforceable contracts have been signed, Airbus received an additional 174 announced commitments in 1998, raising the total to 730. In 1998, sales were secured from 36 customers, including 14 that had not previously directly purchased Airbus Industrie aircraft. The sales cover the entire product line, with 437 going to the single-aisle A319/A320/A321 Family -- which remains the fastest selling airliner family ever; 87 for the A330/A340 widebody aircraft; and 32 aircraft from the A300/A310 family. A total of 229 aircraft coming from the production lines in both Toulouse and Hamburg -- a 26 percent increase over 1997 -- were delivered on schedule and to specification in 1998. This represents a turnover for the year of $13.3 billion, compared to $11.6 billion the previous year. This includes 168 single-aisle aircraft (compared to 127 in 1997) and 61 widebodies (55 in 1997). Numerous operators also added second-hand Airbus Industrie aircraft to their fleets last year, demonstrating the strong residual value and operating economics of the airframes. By the end of 1998, the total number of Airbus Industrie operators had risen 10 percent to 160.
Airbus Industrie's order book now totals 3,203 firm orders valued at some $196.8 billion, while total deliveries stand at 1,894 aircraft. The manufacturer's year-end backlog of 1,309 aircraft - worth some $92.7 billion -- has doubled in three years, both in terms of numbers and value, and is the highest ever achieved by the consortium in its 30 years of existence. This represents over four years of production at its partners' and subcontractors' facilities, where some 140,000 people are directly involved in Airbus Industrie aircraft programs.
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All-round merger talks continue in Europe
Fusionsgespräche in Europa dauern an
According to various sources, intensive talks on finding European merger solutions continued throughout the last week. Statements, leaks and speculations concentrated on a possible BAe/GEC deal and renewed talks by Dasa to bring the Fench into the fold:- In the UK it was said that General Electric Co Plc and British Aerospace are close to agreeing BAe's takeover of GEC's Marconi defence arm. "We know that they have entered a critical phase between the end of this week and next," said an industry source familiar with the talks. "It is very close...At one time it was going to be (done) this week," said another. A report in the Financial Times newspaper on Thursday said GEC had given BAe an ultimatum to come up with acceptable terms on the purchase of Marconi by the end of the week.
- Meanwhile, Dasa apparently has reopened contacts with French partners on possible cooperation in addition to merger talks it has held with British Aerospac. "It is quite conceivable that the French could be involved from the beginning," German newspaper Handelsblatt quoted Roland Klein, spokesman for Dasa's parent, carmaker DaimlerChrysler AG, as saying. Handelsblatt said the German side had welcomed news that a merger between Aerospatiale and Lagardere's Matra High Technology unit and partial float of the new company would go through in the first half of 1999.
700 million Euros for European aeronautics
Mehr Geld für Europäische Luftfahrtforschung
According to AECMA (European Association of Aerospace Industries), the successful dialog between the European institutions and the European aeronautics industry has resulted in a large increase of support for aeronautics research and technology in Europe. In the Fifth Framework Programme of the European Commission (EC) the financial support for the aeronautics Key Action is set to Euro 700 million. This amount for the 1999-2002 period has been increased to considerable more than twice the Euro 240 million provided for specific aeronautics research in the previous programme.For the first time, aeronautics appears as a separate Key Action within a Framework Programme, under the name New Perspectives for Aeronautics. It is a milestone on the path of a growing recognition that aerospace has both political and economic dimensions. Developing the most advanced and innovative technologies within the aeronautics Key Action, as well as in other areas in the Framework Programme, will help the industry to consolidate its position in global markets and to stand up to the severe and unrelenting international competition. Furthermore the aeronautics Key Action will help to accelerate industry restructuring within Europe.
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KC-135 crash at Geilenkirchen kills four
Absturz einer KC-135 bei Geilenkirchen
On the evening of January 14, a Boeing KC-135 tanker of the American Air National Guard (tail number 91452) crashed on landing at the NATO air base Geilenkirchen near Aachen in Germany. All four crew members were killed in the ensuing blaze. According to military officials, the KC-135 was returning from a routine training mission over the North Sea when the pilot apparently faced problems and radioed that he will go around. It then presumably banked to the right and stalled into a wooded area about three kilometres northwest of the Geilenkirchen base, near the Dutch border. It took more than 100 Dutch and German firefighters about three hours to extinguish the burning plane. The KC-135 was attached to the Washington Air National Guard 141st Air Refueling Wing, based at Fairchild. It was one of two planes and three crews sent to Geilenkirchen on January 3 to support refueling missions of NATO AWACS aircraft. The crew, consisting of two pilots, a navigator and a refueler, was to return to Fairchild on Friday following its two-week deployment. Finding a cause for the crash will be difficult as the KC-135 does not have flight data or voice recorders.
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Air traffic growth falters in 1998
Nur geringe Wachstumsraten im Luftverkehr
Preliminary traffic figures for 1998, released by the International Civil Aviation Organization (ICAO), point to a 1 per cent increase over 1997 both for total and for international scheduled traffic of the world's airlines, as measured in tonne-kilometres performed. This substantial slowdown from an average increase of 7 per cent in the previous five years and 8 per cent in 1997 reflects, in particular, a small decline in traffic of the airlines of the Asia/Pacific region which contribute more than a third to world traffic and until recently achieved high rates of growth. With the exception of airlines of the Middle East and Africa, which showed little change in traffic, airlines of other regions continued to achieve traffic growth, but at levels below recent annual trends. Statistics supplied by ICAO's 185 Member States indicate that world passenger traffic in terms of passenger-kilometres performed rose by 2 per cent in total and by 3 per cent on international services. The overall passenger load factor remained at the level of 69 per cent achieved in the previous year, reflecting a small increase domestically - capacity increases for international passenger services exceeded traffic growth for the first time since 1993, leading the international passenger load factor to fall from 70 per cent in 1997 to 69 per cent in 1998.
Freight traffic showed a more significant downturn than passenger traffic. In terms of tonne-kilometres, freight traffic actually fell in 1998, by 1 per cent both in total and internationally. The number of passengers carried worldwide on scheduled services remained just short of one and a half billion, with the number of freight tonnes carried just over 25 million.
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Motorola Signs Iridium launch on ROCKOT
Eurockot Starvertrag mit Motorola
On 11 January 1999, Motorola Satellite Communications Group and Eurockot Launch Services GmbH of Bremen, Germany announced the signing of a Launch Services Agreement in support of the Operations and Maintenance (O&M) phase of the Iridiumâ System. This agreement covers one dual Iridium satellite launch in December 1999 plus an option of up to 12 additional launches to be exercised at Motorola`s discretion. Eurockot will conduct launches from Plesetsk Cosmodrome in northern Russia as well as from Baykonour Cosmodrome. The launch Motorola has contracted for December 1999 will be the second launch of Rockot in that year and will be carried out from Plesetsk. Eurockot particularly addresses the LEO satellite communication as well as the scientific satellite markets and is currently planning between six and ten launches per year from early 2000.Back to the top of the page / Zurück zum Anfang der Seite
RTM322 for NH90 surpasses power rating
Tests des RTM322 für den NH90
The Rolls-Royce Turbomeca RTM322 version for the NH Industries NH90 helicopter has surpassed its maximum operational power rating by more than ten per cent during flight clearance testing at Turbomeca's facility in Bordes, France. This milestone follows the first flight of the production standard engine for NH90 last November. The 01/9 variant of the latest-generation turboshaft - which has been developed by the Anglo-French joint venture and includes BMW Rolls-Royce as an industrial partner -recorded 2331kW (3125 shaft horsepower) while conducting its 30-second OEI (one engine inoperative) test. In operational service, the NH-90 performance requirement calls for an OEI rating of 2106kW (2825shp). The successful completion of this test now permits the assessment of the aircraft's OEI performance by NH Industries, throughout its flight envelope, during the continuing flight test programme of the 'PT3' development aircraft. The RTM322, already in service with the Royal Navy, has been selected by all three of the UK's armed services for their most advanced helicopters. The RTM322 01/8 variant, with a take-off rating of 1,568kw (2,100shp), entered service last month when the first Merlin HM Mk1 helicopters began operating with the newly-inaugurated 700M Squadron, based at Royal Naval Air Station Culdrose in Cornwall.
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Singapore Airlines to stop Berlin operation
SIA fliegt nicht mehr nach Berlin
Singapore Airlines (SIA) announced that it would cease operations to Berlin at the end of March 1999. The decision stemmed from a worldwide review of SIA's route network, conducted in light of the economic crisis in East Asia. Berlin becomes the third destination on SIA's route network to be withdrawn since the start of the economic crisis in mid-1997. SIA recently announced the termination of services to Sendai, Japan (in September 1998) and Hangzhou, China (in November 1998). SIA commenced twice weekly flights to Berlin- Schonefeld via Zurich in September 1990. Although loads at Berlin increased steadily over the years, the service has not operated up to expectations, and the frequency on the route has not increased beyond two a week. Since the SIA-Lufthansa alliance was launched in July 1998, SIA's capacity on the Frankfurt route has increased by 40 per cent. SIA, together with Lufthansa, operates 25 flights a week, including 5 weekly freighter services, between Singapore and Frankfurt. In addition, the codeshare arrangement between the two airlines provides for a more comprehensive network of services for travellers and cargo shippers between Singapore and Germany as well as to onward destinations. SIA's last service to Berlin will depart from Singapore on 24 March 1999. Back to the top of the page / Zurück zum Anfang der Seite
NEWS IN BRIEF / KURZMELDUNGEN
The new German government wants to slash its contribution to aerospace research projects from 50 per cent to 20 per cent. Industry and Research Minister Werner Müller has urged industry to take a 60 per cent stake and also wants local governments to put in 20 per cent. This strict demands could lead to a drastic reduction of activities. Under the old government, 750 million DM over five years were earmarked for aerospace research.+++
Work on the first sub-assemblies for the first series production Eurofighter aircraft has commenced. At Samlesbury in the UK, Briitish Aerospace has started assembly of the front fuselage cockpit half sections, whilst at Bremen in Germany Dasa has started assembly of the centre fuselage rear section. Alenia at Turin in Italy iw working on the first longeron brackets. The first components produced by British Aerospace were the carbon fibre composite cockpit sills. The first foreplane spigot-frame for the front fuselage and the wing attachment frames for the centre fuselage have also been completed. At CASA in Getafe, the building for production of the right wing and the hangar for final assembly are both under construction. High-speed milling machines are being installed at the Tablada facilities in Seville.
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Lenkflugkörpersysteme GmbH has reported that first captivy carry trials of the Taurus MAW stand-off missile have begun last December at Manching. The standard dual configuration was flown on a Tornado of military test unit WTD 61. In the meantime, negotiations on Swedish and Italian participation in Taurus have been concluded. Signature of the MoU awaits political approval.
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DHL has choosen Leipzig/Halle as a new destination in its European express cargo network. A daily connection is now offered to the Brussels hub, improving lead times.
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Coalition aircraft have once more attacked an Iraqi missile site after being targeted by the country's radar. The latest incident occurred at about 2:45 a.m. EST Jan. 11 as coalition aircraft conducted routine enforcement of the northern no-fly zone. The aircrews acted in self-defense when they were "illuminated" by an Iraqi surface-to-air missile defense system. A European Command statement said aircrews struck the ground-based missile launch site because it posed a threat to coalition forces. A flight of two U.S. F-15E's dropped two precision-guided bombs and an Air Force F-16C fired a high-speed anti-radiation missile at the launch site. The incidents occurred near Mosul.
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In what has become an almost daily occurrence, a coalition aircraft has launched a missile against an Iraqi missile site. At about 11 a.m. Iraqi time Jan. 12, an Air Force F-16C fighter conducting routine enforcement of the northern no-fly zone fired a high-speed anti-radiation missile at an Iraqi early warning radar site near the city of Mosul. A U.S. European Command statement said, "The radar posed a threat to coalition forces in the area."
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Coalition aircraft responded with air-to-ground missiles Jan. 13 after Iraqi missile batteries "illuminated," or targeted, the airplanes on radar and possibly launched a surface-to-air missile. The aircraft were conducting routine enforcement of the northern no-fly zone when they were illuminated by several Iraqi surface-to-air missile systems. A U.S. European Command statement said, "There are indications that coalition aircraft were fired upon by at least one Iraqi surface-to-air missile." Acting in self-defense, coalition aircrews fired precision guided missiles and high-speed anti-radiation missiles. The incidents occurred near the town of Mosul. There was no damage to coalition aircraft. Initial indications are that two precision guided missiles were direct hits on Iraqi SAM sites.
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An F-16C conducting routine enforcement of the northern no-fly zone Jan. 14 fired a high-speed anti-radiation missile at an Iraqi surface-to-air missile and anti-aircraft artillery system that posed a threat to coalition forces in the area. In a separate incident, an F-15E launched an AGM-130 precision-guided missile at a SAM system that threatened coalition forces. The AGM-130A is a powered air-to-surface missile designed for high- and low-altitude strikes at standoff ranges against a variety of targets. There was no damage to coalition aircraft.
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Boeing and Space Systems/Loral finalized agreements to launch 28 Globalstar satellites on a total of seven Delta II rockets, six in 1999 and one in 2000. The seven upcoming launches will use two versions of the Delta II and be launched from Cape Canaveral Air Station, Fla., and Vandenberg Air Force Base, Calif. The Cape launches scheduled for the second quarter 1999 through first quarter 2000, will use Delta models with four solid rocket motors. Boeing plans to use a Delta model featuring nine solid rocket motors for two 1999 fourth quarter flights from Vandenberg.
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The second Tier III Minus DarkStar high-altitude unmanned aerial vehicle (UAV) has completed its first high-altitude flight reaching an altitude of 25,000 feet. Previous flight objectives were accomplished at an altitude of 5,000 feet. The vehicle took off from the U.S. Air Force Flight Test Center at Edwards Air Force Base, Calif., at 8:46 a.m. (PST) Saturday. During the 2-hour, 37-minute flight, DarkStar achieved its planned altitude and completed all preplanned basic flight maneuvers. The system successfully executed a fully automated flight from takeoff to landing using differential Global Positioning System (GPS) satellite data.
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British Airways and Japan Airlines have finalised their bilateral tie-up agreement with the arrangement expected to reduce costs and lower fares. It is predicted that JAL will soon join BA's British Airway's One World Alliance along with American Airlines and Cathay Pacific, however there has been no formal statement. This initial agreement will see the two airlines combine booking codes on JAL's daily service between London Heathrow and Osaka Kansai from late summer 1999 and also see them combining frequent flyer programs. The alliance comes as airlines are finding it increasingly difficult to grab a piece of a very competitive market. The alliance is focussed to win more premium business and first-class traffic for both airlines.
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The Canadian experts investigating the crash of Swissair Flight 111 have reportedly found heat-damaged wiring on the ill fated MD-11 involved and have subsequently found similarly chafed, cracked and broken wires around the cockpits of more than a dozen in-service MD-11s. The finding has prompted the Federal Aviation Administration to advise all airlines to immediately inspect MD-11 jetliners for electrical wiring problems and on December 9, 1998 the FAA issued an Airworthiness Directive (AD) ordering inspection and possible replacement of electrical wiring above the forward passenger doors of MD-11s. As part of the inquiry into the Swissair 111 crash, the FAA learned that damaged electrical wires were found near the forward passenger doors of an MD-11 during regularly scheduled heavy maintenance.
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On January 14, Raytheon has received a $134 million contract from the U.S. Naval Air Systems Command, Patuxent River, Md., for full rate production of the Joint Standoff Weapon (JSOW) AGM-154A and low rate initial production (LRIP) for the AGM-154B. In addition to this production order, the contract includes provisions for more than $600 million of follow-on production options over the next three years. JSOW is an unpowered glide weapon designed to provide tactical strike aircraft and bombers with the ability to attack hostile targets from safe standoff distances, which provides for much improved aircraft survivability. JSOW is a joint U.S. Navy and Air Force program with the Navy acting as the lead service.
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On January 14, HEICO Corporation announced that the Lufthansa Technik AG has invested an additional $3 million in the Company's Flight Support Group, HEICO Aerospace Holdings Corp. The added $3 million will bring Lufthansa's total cash commitment to HEICO's Flight Support Group to $38 million. In October 1997, HEICO announced that Lufthansa had agreed to invest approximately $26 million in the Flight Support Group over a three year period in exchange for a 20% ownership interest in the Flight Support Group. In September 1998, Lufthansa invested an additional $9 million in the Flight Support Group to fund its share of the purchase price of McClain International. Lufthansa's ownership interest in the Flight Support Group will remain at 20% following the added $3 million investment to fund its share of the purchase price of Rogers-Dierks, Inc.
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French defence minister Alain Richard has announced that an interministerial decision has been taken by the French government to buy 48 Rafales. The deal will consists of a contract for 28 firm orders and 20 options worth 16-17 billion francs, ministry officials said. Companies working on the Rafale will be formally notified of the long-awaited order in two months when contracts will have been drawn up. The multi-year purchase follows an initial batch of 13 Rafale jets ordered by the former government in May 1997. A parliamentary report puts the total cost of the Rafale programme at 202.3 billion French francs ($35.98 billion) for 294 aircraft.
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Northrop Grumman has delivered the first of 20 upgraded EA-6B Prowler electronic warfare aircraft to the U.S. Navy. The aircraft was flown by a Navy crew from Northrop Grumman's manufacturing facility in Florida to Whidbey Island Naval Air Station, Wash., home of the Prowler fleet. The upgraded Prowlers, which are receiving a new wing center-section and standard depot-level maintenance under the Block 89 configuration, are expected to bring the Navy's EA-6B fleet to its mandated strength by mid-2000.
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Worldwide defense and aerospace companies announced or completed merger and acquisition deals worth more than $38 billion in 1998, and the quickening pace of activity could allow 1999 to approach the $49 billion high-water mark set in 1997, reports Defense Mergers & Acquisitions in its just-published year-end review. "Despite some well-publicized setbacks, conditions for merger and acquisition activity in the U.S. defense and aerospace industries continue to be quite favorable," said Stuart McCutchan, editor of the online industry newsletter and database service. "The Northrop Grumman episode marked an end to a remarkable period of mega-mergers for the industry," remarked McCutchan. "Lockheed Martin was unsuccessful in this particular instance but remember, Lockheed Martin is a company created from what once were 18 separate companies just a decade ago. The consolidation of those companies provided a rich and ongoing dividend to shareholders throughout a period of declining spending by the companies' largest customer, the Pentagon." But regulators have stressed that they still encourage deals which create efficiencies, so long as they also preserve competition. This has sparked a barrage of deals among smaller and mid-sized companies. The number of defense/aerospace-related deals in 1998 totaled 573 more than double levels seen in any of the previous five years.
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On January 13, Aerospatiale reported outstanding results for 1998, booking orders worth 86.8 billion francs ($15.8 billion), the highest total ever, and surpassing original forecasts by 42%. In 1997, Aerospatiale had already enjoyed an excellent year, with orders worth 74.7 billion francs. For the year, all group businesses generated orders exceeding annual sales. Aerospatiale's order book now stands at a record level of 180 billion francs ($33 billion), equivalent to a workload of three years for the group's entities, and ensuring a solid outlook for the near future. ATR delivered 35 aircraft, compared with 37 in 1997, and logged 21 orders, versus 53 in 1997, reflecting the general slowdown of turboprop aircraft sales. Various initiatives are being examined to reenergize this business. Aerospatiale's other business lines also showed good results. Business at Sogerma and Socata held steady within highly competitive markets. Eurocopter booked orders worth 11.8 billion francs in 1998, compared with 13.9 billion francs in 1997, confirming the recovery in the helicopter market.
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British Aerospace Regional Aircraft has delivered to Crossair their 14th Avro RJ100 "Jumbolino" regional jet, carrying the new EuroCross livery on one side of the fuselage. This latest Avro RJ100 has been put into immediate service on Crossair's extensive European network. It will initially operate on the new Basel - Stockholm Arlanda route and on Basel - Bilbao where it will replace a Saab 2000 turboprop, allowing the operation to upgrade to a jet service. The unique livery of this RJ100 features a blue and red ball incorporating the European Union insignia. The EuroCross branding emphasises the system of efficient connections created by Crossair at the EuroAirport of Basel-Mulhouse-Freiburg. This airport offers fast regional transit throughout Europe. The bouncing ball symbolises the ease with which the Crossair passenger travels to the smaller regional centres and cities.
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