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Aviation History
2004
2004-09 - 1972.PDF
HEADLINES AIR TRANSPORT BRENDAN SOBIE / YOKOHAMA Japanese 7E7 deal hits supplier snag Discomfort surfaces over second-tier selection 'pressure' Selection of potential Asian sec ond-tier suppliers for the Boeing 7E7 is holding back the completion of a contract between Boeing and the three Japanese "heavies". Fuji, Kawasaki and Mitsubishi - selected last year to build 35% of the 7E7's airframe - are considering outsourcing a significant portion of their work to companies in China, South Korea, Malaysia, Taiwan and Vietnam, say industry sources. Selection of companies in these countries could help cement orders for 7E7s from their flag carriers. While Boeing says selection of second-tier suppliers is up to the first-tier suppliers, the US manufac turer is believed to be pressing Japanese companies to outsource work to these countries. The compa nies, however, are not comfortable with the capabilities of all the com panies seeking sub-supplier roles. The Japanese heavies have vis ited several of the possible Asian sub-suppliers to evaluate their facil ities. Sources say the Japanese com panies seem to be willing to out source work to Chinese factories because they have become more efficient in recent years, but are more reluctant to use factories in South Korea, Taiwan and in partic ular Vietnam. They say the Japanese government is also ques tioning the fairness of the pro posed sub-supplier agreements, given that its decision to help the Japanese suppliers cover their 7E7 development costs was based on the 35% workshare allocation. The government has refrained from setting a subsidy or loan scheme until a master programme contract is completed with Boeing. The Japan Aircraft Development Corporation, representing the three Japanese first-tier suppliers, had planned to complete the master programme contract with Boeing by mid-year. The delay has forced the companies to cover initial costs without government loans. "There are some aspects of the contract that Japan is not comfort able with and some aspects that Boeing is not comfortable with," says a Japanese industry source. But Boeing denies the selection of second-tier suppliers is an issue of contention. "The qualification, selection and management of sub- tier suppliers is the responsibility of the tier-one supplier," says Boeing. Work in China is believed to be required as part of an anticipated government order for over 50 7E7s. Supplier deals are also expected to influence campaigns at China Air lines, Korean Air and Malaysia Airlines, while sources say a con tract Boeing is negotiating with Vietnam for four 7E7s may also include a local supplier deal. SEE SHOW REPORT P18 BUSINESS Subsidy issue set to escalate Industry on both sides of the Atlantic is working to achieve a settlement to the dispute over aerospace subsidies, rather than risk a protracted legal case to investigate aid to Airbus and Boeing. Both the European Union and the USA launched complaints against the other side within hours of each other last week to the World Trade Organisation against alleged breach of subsidy rules. The WTO says most complaints are settled during the 60-day bilateral consultation period, adding that the time pressure often concentrates minds in long- running grumbles. If there is no agreement by early December, a panel of experts will examine the complaints, in a multi-stage process that can take years to recommend remedies. Brazil and Canada have yet to implement retaliation measures from similar parallel aerospace subsidy dispute processes launched in 1996. Briefing X-Prize secured PRIVATE SPACEFLIGHT Burt Rutan's Scaled Composites won the $10 million Ansari X-Prize on 4 October with its SpaceShipOne rocketplane, funded to the tune of $20 million by Microsoft co-founder Paul Allen. Former US Navy pilot Brian Binnie completed the required second of two flights of SpaceShipOne to exceed 328,000ft (100,000m) altitude, with 180kg (400lb) of ballast and equipment representing the weight of two passengers. Within three years, SpaceShipOne could be carrying fare-paying passengers. The first commercial missions are likely to carry Rutan, Allen and Sir Richard Branson, whose new Virgin Galactic company will market the flights (Flight International, 5-11 October). Branson says his web site has been seen by 5 million visitors and over 5,000 people have said they are ready to pay. Eurocopter clinches US deal BORDER PATROL American Eurocopter and EADS North America have clinched a five-year contract, valued at up to $75 million, from the US Department of Homeland Security to supply over 55 single-engined EC120 helicopters to the US Customs and Border Protection Agency. The aircraft will replace the agency's fleet of "Vietnam-era" helicopters and will be produced at Eurocopter's new manufacturing plant in Columbus, Mississippi. The light- observation helicopter fleet will provide low-level surveillance and security patrol of US borders to detect, interdict and apprehend persons either trying to illegally enter the USA or conduct illegal activity, says American Eurocopter. Italy ready to support Alitalia INVESTMENT The Italian government is ready to contribute €750 million ($930 million) towards a planned €2 billion capital increase for troubled Alitalia next year, according to the 2005 financial planning bill. The government, Alitalia and employee unions have signed an agreement giving the green light to the business plan the company proposed in late September; clearing the way for it to receive a €400 million state-backed loan. The capital increase is expected to reduce the state's stake in Alitalia from 62.4% to less than 50%. Israel defends forced landing BOHB THREAT The Israeli ministry of transport is defending its decision to divert a Lufthansa flight bound for Tel Aviv after a bomb threat. The Boeing 747, with 331 passengers, had left Frankfurt on 5 October when an anonymous telephone call warning was received in Frankfurt. The German authorities made a fast check and instructed the captain to continue the flight to its original destination. But the chief security officer of the Israeli ministry of transport decided to forcibly divert the flight to Larnaca in Cyprus using two Israeli air force Boeing F-15s. After a search, the flight was allowed to continue to Tel Aviv. The German authorities claim the diversion was unnecessary New order for Iraq's air force SURVEILLANCE The inventory of the new Iraqi air force is to be significantly expanded through a $12 million US Army contract for 16 new surveillance aircraft. Jordan Aerospace Industries will deliver Sama CH2000 aircraft equipped with forward-looking infrared sensors and Harris secure communications equipment for surveillance duties. The deal also covers the provision of training for Iraqi air force pilots and maintainers, plus the long- term delivery of spare parts and logistics support. Druyun jailed over Boeing conduct TA N K E R S Former US Air Force acquisition chief Darleen Druyun has been given a nine-month prison sentence for conspiracy related to her improperly accepting a senior position at Boeing in 2003. The scandal has delayed the US Air Force's planned lease/purchase of 100 KC-767 tankers. In a surprise move, Druyun also confessed that she had acted improperly during the award of contracts to Boeing related to the USAF's C-130 avionics modernisation programme and NATO's E-3 airborne warning and control system upgrade. www.fliqhtinternational.com FLIGHT INTERNATIONAL 12-18 OCTOBER 2004 5
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