Edward H. Phillips (Aviation Week & Space Technology)
Fleet expansion and rising demand for air travel will fuel growth of the global maintenance, repair and overhaul business to as much as $55 billion by 2015. As airlines seek to widen the gap between revenue and cost per available seat mile, the MRO industry can play a strategic role by providing more value and higher quality work at lower cost. Important emerging trends include more increased globalization of MRO work, more supplier-owned inventory, bundled asset management programs and the expanding role of third-party logistics suppliers.
MARKET FOCUS Unlike U.S. issues, European A&D stocks underperformed market in '06 402 NEWS BREAKS ATA: U.S. airlines will achieve net profit of $4 billion this year 406 F-35A test team continues to expand the jet's performance envelope 407 United gets tentative OK to launch daily Washington-Beijing nonstops 408 Delta creditors face new decision with new US Airways takeover bid 409 WORLD NEWS & ANALYSIS
Interest in freighter aircraft remains at an all-time high, and the fleet is being expanded to meet increasing demand as older freighters are being replaced by newer, more capable models. The global jet freighter fleet is approaching 1,800 units, and is forecast to double in size over the next 20 years.
Because of the strong bond between the expendable launch vehicle and satellite industries, neither can flourish without the other, and each must analyze the other's overall business health. The launch vehicle industry requires a steady stream of payloads, and both satellite manufacturers and operators require consistent access to these vehicles.
Cape Canaveral's launch rate for unmanned space missions in 2007 will more than double the 2006 rate as major new science and advanced operational and military space technology flights are carried out. Overall, the combined rates at the Cape and Kennedy Space Center will increase 70%, involving hardware worth tens of billions of dollars. Four shuttle missions are planned from KSC, including launch of Europe's Columbus laboratory in November or December. Cape Canaveral AFS will see 13 unmanned missions, compared with six in 2006.
US Airways has provoked a showdown in its takeover attempt of Delta Air Lines, raising the stakes for the bankrupt carrier's creditors by $1 billion in cash and increasing their equity share of the proposed new Delta to 49%.
Despite a decision from the U.S. Army to shelve its Class II and III unmanned aerial system (UAS) programs, Aurora Flight Sciences, one of the affected contractors from the Class II program, is already eyeing another customer. The Navy and Marine Corps are considering a small, tactical UAS for reconnaissance, and Aurora has been one of the contractors responding to inquiries on such a requirement.
1200 E. Algonquin Road Elk Grove Township, IL 60007, USA Code: UA Employees: 56,861 www.united.com Tel. (847) 700-4000 Fax (847) 700-4081 Ownership: 100% publicly traded Executive Management Chairman, President & CEO Glenn F. Tilton Executive VP & CFO Frederic F. Brace Executive VP & COO Peter D. McDonald Executive VP Marketing, Sales & Revenue John P. Tague
The USAF will conduct a Technology Readiness Review on Jan. 24 of Boeing's sole-source work on the Focused Lethality Munition, which combines the bomb casing of its 250-lb. Small-Diameter Bomb with a new explosive fill designed to contain damage in a small radius. A U.S. Centcom-sponsored Joint Concept Technology Demonstration, with first flight test this summer, and purchase of 50 weapons, is planned thereafter (see p. 412). The first units are slated for delivery in April 2008.
The evolving strategic environment places a premium on operations with allies and partners. With networking, we can form a "global security enterprise." Interconnected operations among our partners in Afghanistan and Iraq provide an early illustration. Another is the concept of a networked, multi-partner 1,000-ship navy, advanced by the U.S. chief of naval operations.
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