Aviation Week & Space Technology

Edited by Frances Fiorino
Malaysia Airlines posted a loss of RM63.4 million (US$16.6 million) for the second half of the year ended Sept. 30 despite a profit of RM101.1 million in the second quarter. Revenue fell 17.2% to RM3.85 billion while the number of passengers carried dropped 13.5%. While optimistic of the outlook for the second half, MAS managing director Md Nor Yusof cautioned that with improving economic conditions, there will be more intense competitive pressure

Staff
6 Correspondence 14 Who's Where 16-17 Market Focus 19 Industry Outlook 21 Airline Outlook 22-23 World News Roundup 25 In Orbit 27 Washington Outlook 70 Inside Business Aviation 84 Classified 87 Contact Us 88 Aerospace Calendar

Pierre Sparaco (Roissy and Cannes, France)
Air France and Delta Air Lines joined forces well after Star Alliance and Oneworld were formed. Today, however, SkyTeam, making up for lost time, could become a nine-member group and the second-biggest airline alliance in the world.

Frances Fiorino (Washington)
Two years after the Nov. 12, 2001, crash of American Airlines Flight 587, the National Transportation Safety Board continues its painstaking probe into what caused the A300-600R's vertical stabilizer to separate from the fuselage soon after departure from New York John F. Kennedy International Airport. It is believed that loads on the tail caused the separation that resulted in the aircraft's plunge into the residential community of Belle Harbor, N.Y., killing 260 on board and five on the ground.

Staff
Two Worldwide Cargo Services employees were arrested last week and charged with the theft of a $1.5-million painting from a cargo area at New York JFK International Airport. A day after a United Airlines employee reported the painting missing, it was recovered, and the two suspects were apprehended and charged with grand larceny in the first degree and possession of stolen property. Port Authority of New York and New Jersey police said the cargo crimes would be aggressively prosecuted

Edited by James R. Asker
Look at the fine print when Boeing unveils the findings of an ethics investigation headed by former Sen. Warren B. Rudman (R-N.H.). Boeing asked Rudman to conduct the review after the company was found to have obtained proprietary Lockheed Martin information in the Evolved Expendable Launch Vehicle (EELV) project. The development caused the Pentagon in July to suspend Boeing's space business from military work until the company demonstrates it has addressed its ethics problems. The suspension remains even beyond the period government officials first projected.

Rich Strong (Dayton, Ohio)
In reply to Ian Andrew's letter "Where Have Dreamers Gone?" I have worked on hundreds of U.S. Air Force projects for about 35 years and enjoyed helping the numerous "hot teams" with advice on system safety engineering (AW&ST Nov. 3, p. 6).

Edited by Frank Morring Jr.
Three new astronauts have been added to the crew of the Atlantis STS-114 mission that will lead the shuttle program's return to flight as early as next September. Andy Thomas, who has flown on three shuttle missions and spent a long-duration stint on Mir, will be joined by three-flight veteran Wendy Lawrence and rookie Charles Camarda, a specialist in thermal protection system technology. They will join the previously planned STS-114 crew commanded by Eileen Collins, with pilot Jim Kelly and mission specialists Steve Robinson and Japanese astronaut Soichi Noguchi.

Edited by James R. Asker
Air cargo pilots move one step closer to getting the nod to carry firearms with last week's Senate passage of a bill sponsored by Sens. Jim Bunning (R-Ky.) and Barbara Boxer (D-Calif.). The unopposed action came on the heels of an alert issued by the Homeland Security Dept. and FBI warning that terrorists may target air cargo operations. The government cautioned federal, state and local officials and the private sector to be on the lookout for terrorists who might hijack cargo planes in Mexico or the Caribbean for attacks on nuclear power plants, bridges and tunnels.

Staff
Indian Foreign Secretary Kanwal Sibal says satellite navigation and New Delhi's planned unmanned Moon mission in 2008 have emerged as major areas of possible cooperation, following a state visit to Moscow by Indian Prime Minister Atal Bihari Vajpayee last week. Other areas where the two nations might work together are Earth observation, hypersonic propulsion and unmanned aerial vehicles.

Michael A. Dornheim (Los Angeles )
Scaled Composites has added a large strake and a tail fence in the first steps to fix a pitch hangup on its SpaceShipOne rocket plane, and will fly further changes in upcoming flight tests. The gliding spacecraft was designed primarily with computational fluid dynamics (CFD), but following the pitchup incident on Sept. 23 the company converted a Ford F-250 pickup truck into an outdoor free-jet wind tunnel. It pushes a full-scale empennage and tail boom connected to a wing tip to determine the cause of the pitchup and develop fixes.

James Ott (Cincinnati)
A move to oust the leadership of the Comair pilots' union failed last week after two lively sessions explored an allegation that the officers had not communicated important information to members related to a management proposal to reopen the labor contract.

Staff
Bruce Byron has been appointed director of aviation safety/CEO of the Civil Aviation Safety Authority of Australia, effective Dec. 1. He has been chairman of the Aviation Safety Forum and was commander of the Royal Australian Air Force Central Flying School. Byron succeeds Bruce Gemmell.

Staff
General Electric has begun flight tests of its 18,500-lb.-thrust CF34-10 powerplant. The engine made its first flight on Nov. 11, completing a 5-hr. 27-min. evaluation that focused on aeromechanical performance. The flight was conducted with the engine installed on the left wing, inboard position, on GE's Boeing 747 flying testbed. The "E" version of the engine will power Embraer 190 and 195 transports, while the "A" version will be used on China's ARJ21 regional jet.

Douglas Barrie (London)
An audacious attempt by EADS to restructure the Eurofighter Typhoon along the lines of Airbus appears to have been roundly rejected by its partners on the four-nation program. In the wake of a letter from senior EADS management to the German ministry of defense discussing possible options for streamlining the Typhoon program, the issue was again raised at a top-level meeting during the first week in November.

Staff
Spain is unhappy with the industrial return from its share in EADS, in which government-holding company Sepi has a 5.6% stake, according to Spanish press reports. Madrid is particularly angry that prime contract responsibility for the U.K.'s FSTA tanker would go to Airbus' civil operations in Toulouse, France, and not to its military headquarters in Spain, which has responsibility for the new A400M military airlifter.

Tom Captain, Tina Radabaugh
Continued saber rattling on both sides of the Atlantic is worrisome and could be an ominous sign of trouble ahead. Recently, the defense leaders of France, Germany and the U.K. met at the European Union intergovernmental conference to contemplate creating a stronger and more independent defense structure--possibly separate from NATO--for defense execution and procurement. The procurement part is not new, but the intensity of the rhetoric is rising.

John Dill (Westlake, Ohio)
There are three causes of runway incursions: *Wrong instructions from ATC. *Misunderstood instructions from ATC. *Getting lost (confused) on the airport surface.

Edited by Frances Fiorino
Delta Air Lines has introduced beefed-up one-class service in roomier Boeing 737-800 aircraft designed for the East Coast shuttle to a total of 28 daily flights between Atlanta-Houston Hobby and Atlanta-Kansas City. The improved service, a response to surveys on the business flier routes, will be in place until Jan. 31. After compiling data, Delta will decide whether to continue and expand the program or cancel it. At boarding gates in Houston and Kansas City, passengers on morning flights receive complimentary coffee and newspapers.

Staff
You can now register ONLINE for Aviation Week Events. Go to www.AviationNow.com/conferences or call Ryan Leeds at +1 (212) 904-3892/+1 (800) 240-7645 (U.S. and Canada Only) Mar. 8-9--European Transport Leaders Conference. Merrill Lynch Headquarters, London. Mar. 10-14--Toulouse Symposium. Toulouse (France) Congress Center. Mar. 25-26--Defense Budget Conference. Hyatt Regency Crystal City Hotel, Arlington, Va. Apr. 20-22--MRO USA/MRO Latin America/MRO Military. Cobb Galleria Centre, Atlanta.

By Jens Flottau
Lufthansa German Airlines' top executives are scrutinizing mounting financial losses at tourism affiliate Thomas Cook in preparation for a recovery plan they anticipate implementing soon. It could involve an all-new strategy to meet demands of an evolving market. Retail giant KarstadtQuelle and Lufthansa each own 50% of Thomas Cook.

Jim Oppermann (Columbus, Ohio)
I would like to add to Leon Kaufman's letter "Airport Announcement Overkill" (AW&ST Oct. 13, p. 6) and include the airline industry as an equal contributor to information soaking.

Edited by Frank Morring Jr.
The French and Russian governments have signed an intergovernmental agreement that would allow a Soyuz launch pad to be installed at the European spaceport in Kourou, French Guiana, in return for Russian cooperation on future launcher technologies. Final go-ahead will await the signing of corresponding interagency and industry agreements, and approval of financing for the 314-million-euro ($361-million) European Space Agency project. France has already agreed to provide half the funding, with a decision on the remainder expected in December.

Edited by Patricia J. Parmalee
A survey from Computer Sciences Corp. (CSC) and Supply Chain Management Review indicates most companies are struggling to implement a comprehensive supply chain management program. On a scale of 1 to 5, with 5 signifying a fully evolved supply chain that employs web-based tools and involves key external parties, nearly 90% of the 142 respondents fell between Levels 1 and 3. The majority are at Levels 1 and 2, where supply chain initiatives are limited to internal activities.

Edited by Edward H. Phillips
SAFIRE AIRCRAFT PRESIDENT AND CEO CAMILIO SALOMON said the company is on schedule for first flight of the Safire lightweight business jet in the summer of 2004. Tentative plans call for FAA certification and initial deliveries of the twin-engine airplane in 2006. Salomon said the key to the program's success is its "low-risk approach" aimed at delivering the jet to market at a price under $1.4 million. The Opa-Locka, Fla.-based company intends to build two airplanes for the certification program and two airframes for static and fatigue testing.