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Aviation History
2003
2003 - 1046.PDF
HEADLINES DEFENCE PAUL LEWIS / WASHINGTON DC Bell set to complete US101 team line-up Trio will offer helicopter for president's transport AgustaWestland and Lockheed Martin this week are expected to announce a tie-up with Bell as the US manufacturing partner for the US101, which will compete with the Sikorsky VH-92 for the US Marine Corps' VXX requirement for a WIP US presidential transport helicopter. Adding Bell will complete the US101 team line-up, which will be led locally by systems integrator and prime contractor Lockheed Martin. A US manufacturer will help AgustaWestland increase local con tent from 30% for the EH101 to 65% for an initial Block One US101 offering, with the eventual goal of reaching 75%, sources say. AgustaWestland and Lockheed Martin have been seeking a manu facturing partner for more than a year, during which they also held discussions with Boeing and Kaman Aerospace. Reaching a deal has been made more urgent by the US government wanting to accelerate replacement of the Sikorsky VH-3D from 2014 to 2007. To meet this new schedule a type needs to be selected and a contract awarded by early next year, say industry officials. Initial VXX fund ing has been made available in the fiscal year 2004 defence budget beginning in October. The require ment is for 11 helicopters, but the political endorsement of being the next presidential transport and a larger US Air Force requirement for a similar size combat search-and- rescue helicopter is making for an intense competition. An operational requirements doc ument is expected to be released next month, along with completion of an analysis of alternatives, which is expected to lead to the release of a request for proposals to a limited number of prequalified bidders. AgustaWestland and Lockheed Martin plan to demonstrate a UK Royal Air Force Merlin HC3 in the Washington DC area this week, at the same time that Sikorsky is show ing its S-92 civil version. AIR TRANSPORT Netherlands ATC calls for better control over user charges Responding to International Air Transport Association (IATA) calls for airports and air traffic service (ATS) providers to trim their charges at a time of unprece dented losses for the airlines, Netherlands air traffic services (LVNL) has asked the Dutch government to research a new method of financing ATS provi sion in Europe. At present, because the organisations have a largely fixed cost base, they have to increase their charges when there is a traffic drop or they will end up in deficit. In 2002 the LVNL made a loss of €18.6 million ($20.9 million), and the Netherlands transport ministry is to advance the ATS provider €13.9 million as compensation on the understanding that this is a one-off payment. Meanwhile, the sort of system that the LVNL says it envisages is having permission to establish reserves in high traffic years to offset losses in lean years without hav ing to raise user charges just when airlines can least afford it. This is lATA's argument. It has been calling for natural monopolies like ATS providers and airports to play their part in keeping the system viable. For example, at present LVNL traffic is 4.9% down compared with 2001, and for 2003 its charges, according to internationally accepted formulae, are expected to rise by 11.1%. Forecasts for traffic this year remain negative, says the LVNL, adding that although it is cutting costs as much as it can, it has "limited room for manoeu vre" in view of the nature of its business. Briefing Varig/TAM merger overcomes first hurdle RATIONALISATION The merger between Brazilian flag carrier Varig and the country's largest private carrier TAM has been approved by Varig majority shareholder Fundacao Rubem Berta (FRB) and is awaiting regulatory clearance. Shareholders have published a plan under which the new airline would retain the Varig brand, merging the fleets and pilot pool from both airlines and associated regional affiliates. FRB will retain a 5% share holding in the new airline and TAM will hold a 35% stake. Brazilian develop ment bank BNDES, representing domestic creditors, is likely to refinance the airline in the short term with an injection of about R$1.8 billion ($600 million) and will become the airline's largest shareholder with a 40% stake. Foreign creditors such as GE Capital Aviation Services and Boeing will receive the remaining 20% of the new airline's stock, and Varig's $1.2 billion debt will be re-negotiated by BNDES. Prometheus nuclear initiative powers on SPACE POWER NASA has awarded the first contracts for its Project Prometheus nuclear-powered spacecraft initiative. Eleven teams studying radioisotope-based power-conversion technology have been granted contracts worth $43 million. They cover thermoelectrics, thermophotovoltaics and Stirling- and Brayton-cycle engines. Study contracts worth $150 million for the related nuclear-powered Jupiter Icy Moons Orbiter are also imminent and the US space agency has requested $3 billion for the first five years of Project Prometheus, but says it could cost $9 billion by 2012. EU sets sanctions deadline TRADE RESTRICTIONS The World Trade Organisation's (WTO) dispute settlement panel last week approved $4 billion worth of European Union sanctions against the USA over a 30-year loophole permitting tax-free foreign trade operations by US companies. The EU says it will refrain from imposing the sanctions until the end of this year to give the US government a final chance to change its tax laws. A WTO arbitration panel last year estimated that US companies had saved $4 billion by not paying taxes on overseas earnings, and last week's announcement authorises the EU to raise tariffs on US imports to compensate. Aerospace products are thought to have been excluded from the sanctions under a "gentlemen's agreement', but aviation companies, chiefly Boeing, are among the main beneficiaries of the tax loophole and stand to lose hundreds of millions of dollars if it is closed. KLM job cuts on horizon after $150m loss RESULTS KLM has been unable to control its costs as planned, posting full-year losses of €133 million ($150 million) from €6.5 billion sales. The Dutch national carrier, like many other airlines, has suffered from falling traffic and lower yields in the past 12 months, and says it will have to cut more staff. The first half of the year to 30 September 2002, was relatively good, with the airline recording an €86 million profit, but the SARS outbreak and the Iraq war helped push traffic and revenue down in the second half. With unit costs unchanged over the year, KLM is set to cut "several thousand" jobs over the next two years as part of an effort to reduce operating costs by 10%. Air Algerie publishes fleet upgrade need FLEET RENEWAL Five manufacturers are to bid for Algerian flag carrier Air Algerie's fleet upgrade project. The airline says it will purchase about 17 aircraft, with a requirement for five widebodies and three 130- seater jets being contested between Airbus and Boeing. The carrier is also in discussions with ATR, Bombardier and Embraer for nine 50- to 70- seat regional aircraft. The carrier is keen to conclude the deals by the end of the month as it has seen an increase in demand after the collapse of its only local competitor, Khalifa Airways, earlier this year. The North African airline says it hopes to take delivery of at least 10 aircraft this year, including two narrowbodies and two widebodies. www.flightinternational.com FLIGHT INTERNATIONAL 13-19 MAY 2003 5
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