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Aviation History
2004
2004-04 - 0007.PDF
HEADLINES DEFENCE STEPHEN TRIMBLE / WASHINGTON DC US DoD set to raise spending in 2005 Budget plan gets overhaul with creation of two-year cycle The US Department of Defense (DoD) is proposing to raise total spending by 7% next year to $402 billion and is forecasting a 21% growth in defence spending by fis cal year 2009, approaching the half-trillion dollar mark. The FY2005 budget was written under unusual circumstances. In shaping spending priorities, budget planners faced the task of balanc ing the rush of lessons flowing back from the war in Iraq and its after math against the Pentagon's trans formation roadmap. The DoD also reworked its bud get planning process, creating a two-year budgeting cycle that estab lishes even years as "baselines" and is intended to limit major funding shifts during the odd years. Although details of the Bush administration's FY2005 request, which boosts total military spend ing by $26.4 billion, were not dis closed at press time, a number of changes have surfaced as the pro posal was pieced together. For fighters, the next budget must anticipate a successful full-rate pro duction decision for the Lockheed Martin/Boeing F/A-22 Raptor in FY2005. At the same time, the Lockheed Martin F-35 Joint Strike Fighter's development costs are expected to rise by $5 billion over the life of an extended system devel opment and demonstration phase. The Missile Defense Agency (MDA) is expected to request funds for 10 ground-based interceptors, up to 20 sea-based interceptors, warn ing sensors and command and con trol upgrades. The MDA is due to field a limited ballistic missile shield capability against North Korean and Middle East threats by 1 October, or the first dayofFY2005. The air force's $17 billion plan to lease 20 and buy 80 Boeing 767 tankers is absent from the FY2005 budget request. The Pentagon con siders setting aside funds to be a moot point until an inspector gen eral investigation into the affair is completed. The Pentagon has delayed signing a development contract for the Northrop Grumman E-10A Multi-sensor Command and Con trol Aircraft by a year to June 2005. The FY2005 budget allows the air force to fully withdraw from the Raytheon Joint Stand-off Weapon programme, leaving the US Navy to continue buying the Raytheon AGM-154A cluster munition and AGM-154C unitary variants alone. The air force is shifting focus to the Lockheed Martin CBU-105 Wind Corrected Munitions Dispenser. BUSINESS VICTORIA MOORES / LONDON Air Littoral takeover stalls again Air Littoral was last week left facing fresh uncertainty after a commercial court once again delayed the selection of a winning bidder to take over the struggling French carrier, which has been in administration since 21 August 2003. Takeover rights for Air Littoral and its subsidiaries were originally granted to investment company 7 Group under a 15 November ruling. But when 7 Group failed to produce the required €11 million ($14 million) to finalise the deal, a second period of bidding was opened. Following numerous extensions, the most recent bid deadline for the carrier and its maintenance subsidiary Air Littoral Industrie was 23 January. But after reviewing the bids, the court opted to allow more time - until 2 February - for the bids to be finalised. Two bidders for the group remain in the running: Italian investment group Enricco Marraci and the Giaccomo Torrente Group. Offers for the airline alone have come from Alain Dumenil Group and Regional Partners Airlines. Meanwhile, Air Littoral Industrie is being courted by three contenders: SLM3D, Dart Aviation and TAT Industry. Briefing India set to sign for three Phalcons PROCUREMENT The Indian ministry of defence and Israel Aircraft Industries (IAI) have finalised the commercial agreement for the sale of three Phalcon-type airborne early warning systems to the Indian air force. A contract signature for the deal - which will lead to the modification of three llyushin II-76 transports - is scheduled during February or March. Ilyushin will deliver the first 11-76 to lAI's factory at Ben Gurion international airport in mid-year. Aeroflot seeks clearance to join Sky Team ALLIANCE Aeroflot has asked its shareholders, including the Russian government, to approve its decision to join the SkyTeam alliance, which already includes Air France, Delta Air Lines and Korean Air. During their quarterly meeting on 29 January the SkyTeam steering committee welcomed Aeroflot's bid for membership, but said its entry into the alliance is contingent on the "fulfilment of quality standards" required for all members. Serbian military destroys warheads SECURITY The Serbian and Montenegrin armed forces completed the voluntary destruction of 1,200 warheads for the Strela-2M man-portable surface-to-air missile, to prevent the weapons falling into terrorist hands. The destruction of the warheads was funded by the US embassy in Belgrade, and carried out at Nikinci. Companies unite for space radar race PARTNERSHIP Northrop Grumman has joined Lockheed Martin as the primary subcontractor in its bid for the $4.4 billion Space Based Radar (SBR) contest. The venture calls for Northrop Grumman to define the payload design and provide communication links between the SBR satellites. The US Air Force plans to award two-year study contracts to two bidders in May. SBR is expected to provide a ground moving target indicator and synthetic aperture radar sensor. P&W signs $2bn management contract MAINTENANCE Pratt & Whitney has signed its largest aftermarket con tract, a 10-year fleet-management agreement valued at more than $2 billion covering maintenance of more than 300 V2500 engines powering United Airlines' Airbus A319s and A320s. Work will be performed at P&W's Columbus, Georgia engine centre, avoiding the need for United, now restruc turing under bankruptcy protection, to tool up to maintain the engine in-house. Exostar reports first operating profit R E S U LT S Aerospace and defence industry e-procurement exchange Exostar made an operating profit in the fourth quarter of last year, the first profitable quarter since its formation in March 2000. The company - owned by BAE Systems, Boeing, Lockheed Martin, Raytheon and Rolls-Royce - also realised positive net cashflow for the first time. Denmark receives first Challenger 604 DELIVERY Canada's Field Aviation has delivered the first of three modified Bombardier Challenger 604 multi-mission aircraft to the Danish air force. The aircraft, equipped with search radar and retractable electro- optical turret, will be used for maritime surveillance, environmental protection, ice reconnaissance and search-and-rescue in Denmark and Greenland, as well as VIP transport and medevac. Astec to modify Super Pumas for Germany UPGRADES Astec Helicopter Services is to upgrade 10 Eurocopter AS322L Super Pumas for the German interior ministry. The Stavanger, Norway-based company, a division of CHC Helicopter, will modify five AS322LS acquired from CHC and an additional five helicopters from Eurocopter for maritime and police operations, in support of the German frontier guards. www.flightinternational.com FLIGHT INTERNATIONAL 3-9 FEBRUARY 2004 S
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