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UPDATE 
Week ending October 31, 1999
+++ Rolls-Royce takes BMW R-R from BMW +++ French aerospace buys stake in Embraer +++ BAe urges A400M order by UK +++ El Al chooses 777s and A330 +++ News in brief +++

Rolls-Royce takes BMW R-R from BMW
BMW verkauft Anteile an BMW Roll-Royce

On October 25, Rolls-Royce and BMW announced that they have reached agreement on a repositioning of their strategic relationship. Rolls-Royce will take full control of BMW Rolls-Royce GmbH and BMW intends toincrease its equity investment, through further market purchases, in Rolls-Royce to just over 10 per cent. The two companies also intend to co-operate in areas such as research and technology, purchasing and logistics.
BMW Rolls-Royce, formed in 1990 as a joint venture to develop the BR700 series of engines for the corporate and regional airline sector, has been notably successful. Four aircraft applications, all sole-source, have been secured and the company has won orders worth more than DM4bn. Its engines power both of the world's new long-range executive jets (the Gulfstream V and the Bombardier Global Express) and have recently entered service on the Boeing 717, the first new generation 100-seat regional aircraft. Nimrod 2000, the Royal Air Force's new maritime reconnaissance aircraft will be powered by BR710 engines. BMW Rolls-Royce delivered about 100 engines last year and this is expected to increase to more than 210 in 2000.
Including the transactions announced today, Rolls-Royce will have made a net investment of approximately #500m over the past decade in BMW Rolls- Royce, of which approximately #210m has been expensed over the same period. The impact of today's announcement will be earnings neutral for Rolls-Royce after the amortisation of goodwill, in the first year. BMW Rolls-Royce will be run as a German subsidiary of Rolls-Royce, with its headquarters and operations in Dahlewitz near Berlin and also its operations in Oberursel near Frankfurt. The company will be renamed Rolls-Royce GmbH. The BMW Rolls-Royce accounts for the year ended 31 December 1998 showed sales of DM791m, a loss before tax of DM460m and net assets of DM260m. During 1998 BMW Rolls-Royce delivered 97 engines. In 1999 the company is expected to deliver around 170 engines and in the year 2000, approximately 210.

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French aerospace buys stake in Embraer
Embraer-Anteile gehen and französische Firmen

On October 25, Aerospatiale Matra, Dassault Aviation, Snecma and Thomson-CSF have announced a strategic alliance with Embraer. By this agreement, the four French companies will acquire 48,508,890 common shares of Embraer, the Brazilian aircraft manufacturer. The shares are not tied to the control of Embraer, and therefore are free to be disposed of by their holders. The shares represent 20% of all the outstanding common stock of Embraer. The price is put at around 200 million US-Dollars.
The decision of the four French companies to invest in Embraer was based on the confidence of its growing role in the aerospace markets world-wide and is not tied to the execution by Embraer of any specific programme or project, it was stated officially. But everyone is clear that the deal will markedly boost the chances of Dassault to sell its Rafale fighter to Brazil in the coming years. Around five billion US-Dollars are said to be at stake here. "We will now talk with our partners on how we can develop our defence-related activities in Brazil and Latin America," Embraer President Carlos Leoni Sigueira told reporters in Paris. "We needed partners in order to accelerate this process."
On the Aerospatiale Matra side, aircraft sector manager Jean-Francois Bigay said the deal could lead to a regional plane joint venture with ATR, the small turbo-prop planemaker owned by Aerospatiale and Italy's Alenia. "Boosting our presence in the regional jet market was an important theme in our talks with Embraer," Bigay said. "Our line of products is completely complementary."

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BAe urges A400M order by UK
Airbus intensiviert A400M-Überzeugungsarbeit

Airbus has intesified lobbying efforts for its A400M military airlifter in the run up to possible decisions by the seven interested nations around the turn of the year. In Toulose, the Airbus Military Company was showing off progress in pre-design work to journalists. The technical definition is progressing, with CAD/CAM data available to "fly-through" details of the aircraft, showing parts like aluminium ribs, carbonfibre wing skins or placement of air conditioning and APU systems. Also, much effort is invested in cockpit definition, with symbology being defined and first approximations of fly-by-wire software running on a flight simulator.
Meanwhile, BAe executive director Mike Turner has urged the UK Government to commit to the A400M "France is there; so is Spain, Italy and Turkey," he said. The crucial decision in London is expected to be made on December 6 by a Defence Ministry committee, which will make a recommendation to the government. The government is seen announcing its final choice early next year. The UK is one of the largest possible customers and widely expected to hold the key on the programme, togethter with Germany which is still studying the An-7X. Turner said the $80 million price that Airbus had quoted would be valid for an order of fewer than 288 aircraft officially listed as the requirement. Airbus has estimated an export market for 60 to 80 aircraft, but Turner said that was conservative.

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El Al chooses 777s and A330
Boeing 777 und A330 für ElAl

After a bitter contest, El Al Israel Airlines announced on October 27 that it has choosen Boeing 777 jetliners. It intends to purchase three aircraft valued at approximately $400 million, for its long-haul needs. These airplanes are designated to replace the company's Boeing 747-200 airplanes from 2001. "We are extremely pleased that El Al has made a decision in favor of the Boeing 777," said Alan Mulally, president of Boeing Commercial Airplanes Group.
But Boeings victory was in no way total. Indeed ElAl stated that, pending board approval, it would also order three or four Airbus A330-200s for delivery from 2003. This split order, which is much larger as at first anticipated, is aimed to please everybody after a bitter competition. Airbus had lured Israel with offers to participate in its A3XX mega-airliner.

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NEWS IN BRIEF / KURZMELDUNGEN

The Association of European Airlines (AEA) has expressed its support for Eurocontrols latest strategy initiative, known as ATM 2000+. Nevertheless, it expressed concern that ECAC Transport Ministers, to whom it will be submitted in January, could be given the impression that it represented the solution to the grave delay problems. Said AEA Secretary General Karl-Heinz Neumeister: "ATM 2000+ is a framework document, it is not a decision paper. It is not binding. We invest our hope in the Transport council of the EU, which is undoubtedly a body which can take binding decisions".
+++
During the visit of Chinese President Jiang Zemin in France, French President Jacques Chirac has claimed that China will order 28 aercraft from Airbus Industrie in a deal worth just under 15 billion francs ($2.45 billion). Chirac said the order consisted of eight of Airbus's largest airliners, the A340, and 10 each of the smaller A318s and A319s. "This is good for Europe, good for France and good for employment," Chirac said. The A340 deal was worth a little over nine billion francs, while the A318 and A319 order was worth more than six billion francs, one presidential official said.
+++
On 27 October, a Russian Proton launcher crashed near the Kazakh town of Atasu. First reports indicate that 220 seconds after launch, the ground control lost contact with the rocket and that probably the engines of the second stage failed to ignite properly. This is the second time this year that the Proton has fallen on Kazhakstan territory, and the country has again instituted a launch ban. Baikonur is in Kazhakstan but leased by Russia. The latest failure threatens to put the ISS into further disarray, as a Proton was supposed to launch the next module of the Space Station in November.
+++
Leipzig/Halle airport will get a top-modern railway station by 2001, but ICE high-speed trains will not stop there, it has emerged. This will put a damper on the airports plan to position itself as an alternate to a big Berlin airport, which in any case will not be ready until 2007 at the earliest.
+++
A Blue Angels F-18D jet crashed near Valdosta, Georgia, on October 28, killing both occupants. The aircraft was returning from a practice for an air show at nearby Moody Air Force Base. Navy officials said that Ltd. Cmdr. Kieron O'Connor was piloting the plane which was not flying in tight formatiion or executing any of the squadons ultra-sophisticated maneuvres at the time.
+++
According to a standard Pentagon notification issued on Octoer 28, the German Government has requested a possible purchase of support for the Luftwaffe Tornado operations at Holloman Air Force Base, New Mexico. Services provided will be for training, fuel, munitions, base operating support, and other related operational and logistics requirements. The estimated cost is 138 million US-Dollars.
+++
Boeing has delivered an updated F-22 avionics software package to its 757 Flying Test Bed ahead of schedule. The update includes the F-22 Raptor's final two integrated avionics sensors -- electronic warfare and communication, navigation and identification. The delivery completes the Defense Acquisition Board's 1999 requirements for the program - milestones that had to be met before the Pentagon will consider putting the F-22 into low-rate production. In conjunction with the delivery, Boeing completed a number of modifications to the Flying Test Bed. CNI and EW systems, including missile-launch detectors, were installed in the aircraft's cabin, on its "sensor wing" and on a special pod attached to the underside of the fuselage.The modifications, together with the updated Block 2 software, will provide the F-22 team its first opportunity to accomplish multiple sensor fusion in an airborne environment.
+++
Data released by the SBAC shows that the position of the UK Aerospace Industry as a dominant force in the world aerospace market was strengthened in 1998. The figures released not only show the UK Aerospace Industry as being world-class, but that it is also the largest aerospace industry in Europe. UK aerospace continues to make a substantial contribution to wealth creation with a total turnover of 17.3 billion Pounds (an increase of 2.24 billion Pounds on 1997) and a positivetrade balance of 2.6 billion Pounds. New orders for the year reached #21 billion. Overseas markets continued to be of great importance in 1998 with over 67% of the UK aerospace turnover exported and UK-owned companies based overseas generating 3.1 billion Pounds in turnover and employing 34,000 people. Aerospace is widely spread across the UK with major clusters of aerospace companies found in the majority of UK regions. UK aerospace continues to be a source of highly skilled employment and employs 155,000 people directly (121,000 in 1997) and over 350,000 when indirect employment is included. Theseemployment figures mean that UK aerospace employees make up a third of the European total in UK aerospace continues to make a substantial contribution to wealth creation with a total turnover of 17.3 billion Pounds (an increase of 2.24 billion Pounds on 1997) and a positive trade balance of 2.6 billion Pounds. New orders for the year reached 21 billion Pounds.
+++
On October 28, the Pentagon has announced that the Government of Norway has requested a possible purchase of 30 F-16 Block 60 or F-16 Block 50+ aircraft. All aircraft will be configured with either the F100-PW-229A or F110-GE-129 EFE engine; the APG-68 (V)XN, APG-68(V)XM; or Agile Beam Radar with Electronically scanned antenna; three F100-PW-229A or F110-GE-129 EFE spare engines, and the Joint Helmet Mounted Cueing System. Associated support equipment, software development/integration, spare and repair parts, flight test instrumentation, publications and technical documentation, personnel training and training equipment, U.S. Government and contractor technical and logistics personnel services, and other related requirements to ensure full program supportability will also be provided. The estimated cost is $2.6 billion.
+++
Two CT7-8 turboshaft engines performed flawlessly during their recent 1.4-hour maiden flight, powering the Sikorsky S-92 helicopter. The flight, which included sideward flight of 35 knots and forward flight of 120 knots, marked the beginning of a flight test program focused on FAA certification of the CT7-8-powered S-92 in early 2002. Developed jointly by GE and FiatAvio of Italy, the CT7-8 is currently undergoing engine certification testing and has already successfully completed small and medium bird ingestion, ice and hail ingestion, altitude, environmental, and overspeed tests. Engine certification by the U.S. Federal Aviation Administration (FAA) and the European Joint Aviation Authorities (JAA) is targeted for completion before the end of 2000.
+++
NTT DoCoMo selected a Lockheed Martin-led team to negotiate for a geosynchronous satellite to serve the mobile communications market in Japan. The team is comprised of Lockheed Martin Commercial Space Systems based in Sunnyvale, CA, and Orbital Sciences Corporation, Dulles, VA. Lockheed Martin will serve as the prime contractor. In addition to the satellite, the team will provide a ground system and launch vehicle. NTT Mobile Communications Network, Inc., called NTT DoCoMo, is one of Japan's leading wireless telecommunications service providers, with more than 25 million subscribers. The company operates a digital cellular communications network covering nearly all of the populated areas of Japan. The vision of NTT DoCoMo is that every communications device that is portable should be wireless, and the company is focused on making that a reality.
+++
On October 20, Aero Vodochody Chief Pilot Miroslav Schutzner took the first L 159 produced by Aero Vodochody for the Czech Army on its debut test flight. The test flight lasted one hour during which an elevation of 13,000 meters (42,000 feet) was attained. All systems were checked during the flight and all flight objectives were accomplished. By the end of this year, Aero Vodochody shall deliver the first five L 159 aircraft of a total supply of 72 advanced light attack aircraft to be delivered by 2002 to the Air Force of the Czech Armed Forces.
+++
Philippe Berterottière, 42, has been named Vice President, Sales, Marketing and Programs for Arianespace. A graduate of the HEC business school and the Institut d'Etudes Politiques (IEP) in Paris, Philippe Berterottière joined Arianespace in 1992 after holding various sales and marketing positions with Airbus Industrie and Matra Défense. He was head of Arianespace's business development for Southeast Asia and the Middle East until his appointment as Director of Sales in November 1998.
+++
Australia's Optus C1 multi-purpose telecommunications satellite will be launched by an Ariane 5 or Ariane 4 in late 2000 or early 2002 under terms of a contract announced today with Cable & Wireless Optus Ltd. The mission will be performed by Arianespace from Europe's Spaceport in Kourou, French Guiana. "We are extremely pleased that the leading Australian operator has chosen to renew its confidence in us," said Arianespace Chairman and CEO Jean-Marie Luton. "This contract confirms our predominant position in the Asia-Pacific zone, and signals a market recovery in this region."
+++
Reflectone, a British Aerospace company, has announced that the United States Navy has awarded the company a contract to build an E-2C Hawkeye Operational Flight Trainer (OFT) for the French Navy. The E-2C Hawkeye is a carrier-based airborne early warning and control aircraft designed to provide early warning and command and control support to the battle group. The U.S. Navy will procure the full fidelity simulator for the French Navy under a foreign military sale (FMS) contract. The E-2C OFT to be built by Reflectone will simulate the operational and performance characteristics of the aircraft, including aircraft carrier takeoffs and landings. The E-2C OFT will feature a wide field-of-view visual system incorporating a high fidelity French/European visual database.
+++
The US Air Force's European recruiting efforts in fiscal 1999 show the largest increase of new enlistees in almost a decade, despite an overall drop in the service's enlisted recruiting goal for the first time since 1979. The Air Force recruiting program fell 1,700 people short of its goal, according to preliminary Department of Defense figures released earlier this month for the fiscal year that ended Sept. 30. But the 314th Recruiting Squadron's European flight here achieved 128 percent of its recruiting goal -- ranking it fifth out of 174 recruiting flights. The flight's 165 new recruits during the previous 12 months places it first in the 360th Recruiting Group. The 360th RG also encompasses recruiting units on the entire East Coast of the United States. "It's the best we've done in the last eight or nine years," said Master Sgt. Marty Culleton, chief of European recruiting at Rhein-Main Air Base, Germany.
+++
In a picture-perfect touchdown, the Global Hawk unmanned aerial vehicle landed at Edwards Air Force Base, Calif., Oct. 20 after completing a 24.8-hour mission that included several firsts. Those firsts were: first mission over water; first flight beyond the continental United States, to Alaska; and the first of several extended-range sorties commissioned by U.S. Joint Forces Command in a continuing military utility assessment. The mission demonstrated Global Hawk's ability to linger long over water when supporting multiple theaters of operation, said Lt. Col. John Wellman, chief, Joint Reconnaissance Operations, U.S. Joint Forces Command. The 33rd overall flight for the Global Hawk flight test program, this latest mission was the 22nd sortie for Air Vehicle No. 1. Following takeoff at 12:07 p.m. Oct. 19, Global Hawk reached 66,000 feet, collecting 193 imagery scenes, including 169 synthetic aperture radar spot images and 24 synthetic aperture radar wide-area search images. "While in Alaskan airspace, Global Hawk disseminated 148 SAR spot and 12 SAR WAS imagery scenes," noted Maj. Victor Martinez, Global Hawk System Test and Demo Team lead. "As it flew over NAS Fallon, it disseminated 96 SAR spot and 3 SAR WAS imagery scenes.
+++
From 25 to 29 October, a specially adapted Airbus A300 was used from Bordeaux-Mérignac airport in France on a week-long campaign of parabolic flights designed to carry out experiments in weightlessness and to test instruments and equipment before they embark on a real spaceflight. These campaigns observe how technical systems and biological, chemical and physical processes function in the absence of gravity and this one, the 27th organised by the European Space Agency (ESA), will focus mainly on how the human respiratory system works and how new materials can be produced. During the weigthlessness periods, the 28 scientists on this flight - from research institutes in six European countries and the US - will carry out their work : measuring blood pressure under various conditions, monitoring a newly developed instrument or heating metals in a purpose-built furnace, in order to confirm a hypothesis, test instruments or replicate results obtained during an earlier spaceflight. The 26 previous campaigns that ESA has conducted since 1984 have produced a total of 2650 parabolas and almost 15 hours of weightlessness, the equivalent of flying around the Earth (in low Earth orbit) nearly 10 times. A total of 360 experiments have been carried out.
+++

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

*October 24, 1999 *October 17, 1999 *October 10, 1999 *October 3, 1999

*September 26, 1999 *September 12, 1999 *September 5, 1999

*August 29, 1999 *August 15, 1999 *August 8, 1999 *August 1, 1999

*July 18, 1999 *July 11, 1999 *July 4, 1999

*January to June 1999 *January to December 1998 *January to December 1997 *September to December 1996

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Last updated October 29, 1999
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