Focusing, energizing and strengthening a business of any size is no easy job under the best of conditions, but it was especially difficult for airlines and aerospace/defense contractors in 2001. Both groups of companies were forced to cope with the double whammy of an economic slowdown exacerbated to the nth degree by a punishing financial blow stemming from the terrorist attacks of Sept. 11. For many organizations, especially U.S. airlines and small contractors heavily dependent on civil aviation markets, it was the worst of times.
Things are back to normal at Singapore Airlines, the highest-ranked large airline in AW&ST's Index of Competitiveness for 2001. The carrier is readying a new children's menu, having conducted taste tests among ``Singapore-based young [age 3-12] frequent fliers.'' It has begun flying the SpaceBed, a lie-flat business-class seat to be installed in the coming year on 45 747s and 777s, for use on its longest routes. This month, passengers will be able to use in-seat equipment to send text messages to e-mail addresses or mobile phones.
The FAA, as part of an ongoing effort to improve the nation's air traffic control system, plans over the next year to upgrade the Tower Data Link Services system now in use at 58 high-density airport towers in the U.S. Improvements will be made on system hardware, software and supporting technical documentation.
NASA Ames Research Laboratory is developing a large electronic display system that will let engineers and scientists on the 2003 Mars Exploration Rovers (MER) mission share and annotate rover data. The device is called MERBoard, and derives from IBM's BlueBoard interactive display system that uses a 50-in. touch-sensitive plasma screen, and also runs on regular PCs.
Messier-Dowty unveiled its new landing gear test center in the U.K. The 3,000-sq.-meter (32,280-sq.-ft.) facility, 60% bigger than its predecessor, is the latest in a series of investments to the Gloucester site by the Snecma Group. The largest test rig weighs about 250 metric tons, is 10 meters (33 ft.) high and has a 30-sq.-meter template with a loading capacity of 1,000 metric tons of force. Forces equivalent to a fully loaded Airbus A340 can be applied in sequences to simulate extended periods of operational use, according to the company.
Representatives of the Boeing Co. and the International Assn. of Machinists and Aerospace Workers (IAM) are negotiating to replace a contract for 26,100 commercial airplane workers in three states, set to expire at 12:01 a.m. on Sept. 2. The formal negotiations were kicked off cordially last week in Wichita, Kan., with pledges by both sides to do everything possible to avoid a strike.
When it comes to managing a portfolio of disparate businesses, General Dynamics Corp. might well set the standard for other large aerospace/defense companies to emulate. That's not to say it's perfect. Productivity and margins in GD's shipbuilding operations are lagging. The division is shifting to a higher proportion of new programs from mature ones that typically generate healthier profits.
United Airlines and US Airways, whose attempt to merge was shot down last summer by federal antitrust authorities, are back in the shooting gallery with the two biggest applications under the federal airline loan guarantee program. Both carriers face serious hurdles, including elements of their recovery plans that they haven't lined up yet, uncertainty about how their proposals will be evaluated, and the disappearance of the political consensus that created the loan guarantee program in the first place.
Northrop Grumman's Global Hawk fleet has accumulated 1,000 hr. of combat flight time in support of operations in Afghanistan. The RQ-4A aircraft has been flying from an undisclosed base in the United Arab Emirates for most of the conflict. As a hedge against increasingly sophisticated air defenses for sale in the world marketplace, an ``industry day'' is set for November to reevaluate the high-altitude, unmanned reconnaissance aircraft's self-defense capability. There is at least one clue about what the Air Force is looking for.
Fairchild Dornier's fate will be decided in the next 2-3 weeks when Finmeccanica/Alenia Aeronautica, Swiss investors and U.S.-based Dimeling, Schreiber & Park complete their evaluation of the bankrupt company's business units. A team of 15 Alenia executives last week arrived at Fairchild Dornier's corporate headquarters located at Oberpfaffenhofen, Germany, near Munich, to examine the merits of several company divisions, a revival of earlier discussions covering envisioned business links.
Robert Wernersbach and Thomas Ransom have become Eastern U.S. and Western U.S. regional directors, respectively, for Atlanta-based Mercury Air Centers Inc. Wernersbach was regional director of operations for ACE Parking Management, while Ransom was vice president/general manager for U.S. Technical Inc.
American Trans Air's standing as the top-performing medium-sized airline in 2001 tells you a lot about commercial aviation in the year's eight-plus months of economic downturn and three-plus months of tumult. ATA lost money in 2001 but, unlike most U.S. competitors, operated profitably until the fourth quarter. It was in the black for the first quarter of 2002 but expects operating losses in the second quarter and for the full year. It had nearly $138 million in cash on Mar. 31 but applied in June for a federal loan guarantee.
The Italian air force has begun returning its AMX fighter bomber fleet to full flying status after a military prosecutor agreed to lift a sequester order affecting 25 aircraft belonging to the 51st air wing in Istrana. The order had been issued on Apr. 16 after an AMX belonging to the 132nd squadron of the 51st wing crashed while returning from a standard training sortie. The military prosecutor in neighboring Padua unexpectedly ordered the sequester, not only of the wreckage but also of all the aircraft in the 51st wing.
Arthur T. Murphy has become head of the Microwave Technology Advisory Board of Herley Industries Inc., Lancaster, Pa. He is a DuPont fellow emeritus of E.I. DuPont de Nemours and Co.
The Pentagon has confirmed its intent to merge Strategic and Space commands into a single entity headquartered at Offutt AFB, Neb. The two unified commands now control the nation's nuclear forces, military space operations, computer network operations and strategic warning. Their merger was anticipated as a measure to eliminate command redundancies and facilitate decision-making (AW&ST June 17, p. 34). Although Defense Secretary Donald H. Rumsfeld provided few details about the merger, insiders believe plans now call for almost all of U.S.
Australia has decided to join the F-35 Joint Strike Fighter development program and cut short its Air6000 project to evaluate candidates to replace the F/A-18 and F-111. Defense Minister Robert Hill said the country will spend $150 million to become a ``Level 3'' participant in the 10-year JSF system development and demonstration phase. ``We don't believe there's any other alternative that would meet our capability requirements within the costings that we put into the White Paper'' drafted last year, Hill said.
Airbus has added three Japanese companies--Mitsubishi Heavy Industries (MHI), Fuji Heavy Industries (FHI) and Japan Aircraft Manufacturing--to the supplier base of its 555-seat A380, which is due to enter service in 2006. The agreements to supply components constitute a major step for Airbus, which has been trying to broaden its supplier base in Japan for years. The contracts are valued at $850 million for the life of the program.
American Airlines pilots picketed five major U.S. airports last week, calling for federal mediation in labor contract talks that began last July. Members from the Allied Pilots Assn., which represents the carrier's 13,500 pilots, said talks were proceeding too slowly. American's parent company, AMR Corp., said it would also welcome the National Mediation Board's intervention in the negotiations.
U.S. Army special ops forces have asked Sikorsky to investigate engine options for the MH-60K Black Hawks after finding during operations in Afghanistan that the helicopter could use a boost--particularly for high-altitude ops. Sikorsky is evaluating candidates. Rolls-Royce is pitching the RTM322 which would make the helicopter more survivable because it would lower its infrared signature, says Stuart Mullan, president of the company's helicopter operations. The engine also is being considered for use on EH101s sold to U.S. government customers.
The emergence of the Transportation Security Administration has prompted some shifting in regulatory designations from the FAA to the TSA. Operators of general aviation, rotary and business aircraft won't find aviation security measures contained under Title 14 of the FARs anymore. Instead, they are included under Title 49 of the Code of Federal Regulations as TSA regulations. As can be imagined, the switch can cause some head scratching for operators needing to check the regulations.
U.S. major airlines' yields continued their slow recovery in May. As compiled by the Air Transport Assn., the average domestic fare (excluding Southwest's) was 9.5% less than the average for May 2001, the first time since July 2001 the year-over-year percentage decrease was less than double digits. Coach fares continue to come back faster than first and business class--they were down 9.6% and 10.2%, respectively. All three averages were down slightly from April 2002.
Bell Helicopters' selection of Thales to provide helmet-mounted displays for 280 U.S. Marine Corps helicopters could be a lucrative breakthrough into the American military market for the European avionics company. Thales will supply its TopOwl sight/display systems, which offer binocular 40-deg. visor projection along with Flir, symbology and night-vision-goggle capability, for 180 Cobra AH-1Z and 100 Huey UH-1Y aircraft to be upgraded by Bell. TopOwl weighs only 4.85 lb.
