U.S. airline shares could be the strongest group of stocks on Wall Street. So said Michael Derchin, senior research analyst for transportation at FTN Equity Capital Markets Corp., during a debate on the future of the airline industry at the Wings Club in New York last week. However, Derchin’s point was countered by the latest International Air Transport Assn. forecast, which says the industry will lose $4.7 billion worldwide this year (see p. 41).
Since Captain Sullenberger and crew did an absolutely magnificent job on Jan. 15 landing in the Hudson River following an engine-out, there have been numerous letters dealing with bird control near airports. I was a US Airways pilot that departed Philadelphia International Airport on Runway 27R a few years ago. We ingested two Canada geese in the left engine of our Airbus A320. We shut it down and made an uneventful landing back at PHL. But location could spell trouble.
A slowdown in air transport is expected to cause MTU Aero Engines to suffer a drop in net income and earnings margins this year, although the company still hopes to deliver roughly the same level of revenue as in 2008. The German engine maker’s 2008 financial performance surpassed expectations, with revenue reaching €2.7 billion ($3.6 billion), which topped an upward-revised forecast of €2.65 billion, and an earnings market of 12.1%. Net income for the year was €179.7 million. For this year, however, net income is expected to come in at €140 million.
The government is telling Vietnam Airlines not to cut services, despite the recession, as the carrier sets out to become the second largest in Southeast Asia. Prime Minister Nguyen Tan Dung says the airline should maintain flights and not reduce staffing—even though it expects a decline in revenue this year.
Northrop Grumman has exceeded 100 kw. in laboratory tests of an electric laser, completing the final milestone in the U.S. Army-led Joint High-Power Solid State Laser (JHPSSL) technology demonstration program. The output from seven slab-laser amplifier chains was combined to produce a single beam of 105.5 kw. The laser demonstrator reached full power in less than 0.6 sec. and ran for more than 5 min. with an electrical-to-optical efficiency of 19.3% and a beam quality of 3.0. Competing JHPSSL contractor Textron Systems has yet to reach the 100-kw. target.
The world accident rate significantly declined in 1990-2008—to four accidents per 10 million departures in 2008 from 19 in 1990, according to the International Civil Aviation Organization’s (ICAO) preliminary 2008 safety statistics. The number of fatal accidents in the period also decreased to 11 in 2008 from 29 in 1990. ICAO statistics are based on airlines of its 190 member states, and involve scheduled service with aircraft having a maximum takeoff weight of more than 2,250 kg. and carrying seven or more passengers.
Japan is looking for a midsize airliner to supplement its pair of government 747-400s, the Daily Yomiuri reports. Because the 747s are so big, the government finds that it must sometimes send groups of bureaucrats on commercial airline services, or charter aircraft small enough to fly into short airfields. Options include the Boeing 787 and Mitsubishi Aircraft MRJ regional jet.
Erickson Air-Crane will move its headquarters this week as part of expansion plans that include development studies of a next-generation version of the Sikorsky-designed S-64 Skycrane heavy-lift helicopter.
Boeing hopes to extend the life of its F-15 production line with the unveiling of a new variant to incorporate stealthy coatings and structures. Company officials say the new F-15SE “Silent Eagle”—designed under a secret project called “Monty”—could garner up to 190 sales abroad, especially to nations already operating F-15s. The target market is South Korea, Singapore, Japan, Israel and Saudi Arabia.
Britain’s Competition Commission found competitive problems at each of BAA’s seven U.K. airports and ruled last week that BAA owner Ferrovial must divest itself of Gatwick, Stansted and either Edinburgh or Glasgow within two years. Sale of the three airports should provide BAA with a greater incentive to “be more responsive to their customers,” Inquiry Chairman Christopher Clarke stated in the commission’s final report. Gatwick’s sale is pending.
Under the stewardship of Eric Beranger, Astrium Services has grown tenfold, landing major milsatcom awards in the U.K., Germany and the United Arab Emirates and becoming one of the few companies able to offer a full gamut of services in remote sensing and navigation as well as telecommunications. Beranger recently met with AW&ST European Editor Michael A. Taverna to talk about the company’s strategy and future prospects.
Mary Pat Hartnett has been promoted to director of electronic warfare programs from EW business area manager/senior program manager for SRCTec , Syracuse, N.Y.
Sensis Corp. and Nav Canada have been selected to provide a new automation and surveillance system that will be used in the upgrading of Australia’s air-traffic control towers. The combined system is called the Integrated Tower Automation Suite (Intas), and will be initially deployed at three Australian airport towers—Melbourne, Adelaide and Rockhampton—as they are rebuilt. Melbourne, the first site, should be completed by the end of next year. Airservices plans to rebuild another four towers soon, as part of a nationwide upgrade program.
Not all the outrage on Capitol Hill these days is directed at the financial industry. Three senators have written President Barack Obama, asking for the removal of NASA Inspector General (IG) Robert Cobb “following years of complaints and investigations into Cobb’s work as the government’s watchdog at NASA.” Sens. Claire McCaskill (D-Mo.), Jay Rockefeller (D-W.Va.) and Chuck Grassley (R-Iowa) asked Obama “to put an end to conflict of interest and cronyism in the IG process by replacing Mr.
The U.S. State Dept. has approved the direct sale of eight Boeing P-8I maritime patrol aircraft to India for $2.13 billion, setting up a formal approval vote by Congress. First delivery is set for 2013, with all aircraft to arrive by 2015. The U.S. Defense Security Cooperation Agency has notified Congress of India’s request for an initial 20 Boeing AGM-84L Harpoon Block II anti-submarine missiles, four ATM-84L Harpoon II exercise missiles, torpedoes, containers, training devices and spare parts.
Stephen L. Johnson has been named executive vice president-corporate and general counsel of US Airways . He has been a partner in aerospace industry investment firm Indigo Partners. Derek J. Kerr has been promoted to executive vice president/chief financial officer from senior vice president/CEO. Brad Jensen has become senior vice president/chief information officer. He was senior vice president-air services for the Sabre Holdings Corp., Southlake, Tex.
While most sectors of the aviation and aerospace industry anticipate a sharp fall in business related to the global economic crisis, commercial satellite operators expect continued growth, albeit at a slower pace.
Leo F. Murphy (see photo), director of the Okaloosa County (Fla.) School District’s “Community High: Okaloosa Institutes for Career Education” aviation and aerospace education programs, has received the 2008 National Aerospace Teacher of the Year Award at the Air Force Assn. ’s Air & Space Conference in Washington. Murphy is a retired U.S. Navy officer who was director of its aviation training school at NAS Pensacola, Fla., and is an associate professor at Embry-Riddle Aeronautical University.
Rob Nash has become business development manager for FlightVu Video Systems for Europe, the Middle East and Africa for AD Aerospace , Warrington, England.
Alexey Komarov (Moscow), Michael A. Taverna (Paris)
Defense spending reductions being considered under a revised federal budget plan threaten key Russian launcher and satellite navigation projects, even though space budgets are not expected to be directly affected by the new plan. Most big Russian space programs are considered strategic and are therefore jointly funded through budget lines for the defense ministry as well as the national space agency, Roscosmos.
Space Systems/Loral continues to dominate the commercial telecom satellite market, but European companies are maintaining their inroads and new market entrants are increasingly making their mark. As in 2007 and 2006, Space Systems/Loral led all geostationary satcom builders with eight orders, accounting for 29% of the open market. SS/L’s continuing domination of the market suggests that changes made after its Chapter 11 reorganization are bearing fruit.
Douglas Barrie (London), Michael A. Taverna (Paris)
Deep in key contract negotiations in one of its core domestic markets, European missile manufacturer MBDA is also rekindling ambitions to crack the U.S. arena. The initial funding period for the six projects at the heart of the U.K.’s Team Complex Weapons program is about to conclude. MBDA, the industry lead for Team CW, is in talks with the U.K. Defense Ministry to attempt to secure funding for at least the next 12, if not 24, months of the proposed three-year assessment phase.
Lufthansa, which carried 10.5% fewer passengers in February compared with January, says it is considering reduced work-time rules for ground staff to compensate for declining demand. The move would affect about 1,000 workers in the airline’s passenger business segment, mainly those in support functions at non-hub airports in Germany. Employees involved will be guaranteed at least 90% of their net pay, according to Lufthansa, which plans to work out the final details in coming weeks.
Pratt & Whitney will attempt to break the fan drive mechanism at the heart of its PW1000G geared turbofan (GTF) as part of key tests aimed at proving the engine’s durability.
