Aviation Week & Space Technology

By ROBERT WALL ( WASHINGTON)
Recent upgrades to the U-2 could be a boon to United Nations' weapons inspectors, who hope to gain access to different reconnaissance assets and to be given sensitive satellite intelligence as they try to ferret out Iraq's weapons of mass destruction program. For the anticipated reconnaissance activities, U.N. Monitoring, Verification and Inspection Commission (UNMOVIC) ``must have its own intelligence assets,'' said Jonathan B. Tucker, a biological weapons inspector for the former inspection regime, the U.N. Special Commission (UNSCOM).

EDITED BY FRANCES FIORINO
The Russian Ministry of Transport, in an effort to improve air safety, has banned Ilyushin Il-18 turboprop transport aircraft and Mil Mi-6 helicopter operations. According to aviation authorities, the move comes as a result of industry failure to correct technical malfunctions that investigators say caused two recent accidents. In November 2001, an IRS Aero Airline Il-18 crashed, killing 27 passengers and crew near Zakharyino, Russia, and in July, a Norilsk Airlines Mi-6 helicopter crashed on the Taymyr Peninsula, killing 21 people.

Staff
The Pentagon intercepted its target in the latest ground-based midcourse missile defense test. The target was launched from Vandenberg AFB, Calif., at 10 p.m. EDT on Oct. 14, followed by launch of the interceptor 22 min. later from a range in the Kwajalein Atoll. The exoatmospheric kill vehicle intercepted the mock warhead 6 min. later. This was the fifth intercept in seven attempts. The test for the first time involved an Aegis destroyer tracking the engagement with its powerful SPY-1 radar. The Pentagon plans another trial in 2-3 months.

Staff
William Overholt has been appointed to the Asia policy research chair at the Center for Asia-Pacific Policy of Rand, Santa Monica, Calif. He was a joint senior fellow at the Center for Business and Government and Asia Center at Harvard University.

By ANTHONY L. VELOCCI, JR. (NEW YORK)
Given the feeble condition of the U.S. airline industry--the sector is in the grip of a full-blown financial crisis that's without precedent--it may seem as though the prospect for recovery is remote. Rationally, however, that is not the case. The industry will recover, although it may look and operate very differently than now. Until then, investors who have a ravenous appetite for risk--large network carrier stocks are down by about 80% since the beginning of the year--have a decision to make.

By STANLEY W. KANDEBO ( EVENDALE, OHIO)
General Electric is pursuing an initiative that, when ready for implementation early next year, should allow the company to cut its current 24-month schedule for launching, testing and certifying commercial powerplants to 18 months. GE says the drive to reduce cycle time by 25% will allow it to do more, with fewer resources, in shorter amounts of time. And, if properly executed, the plan should also increase product quality.

EDITED BY FRANCES FIORINO
Federal Express plans to build a $300-million mid-Atlantic air cargo package sorting hub at Greensboro, N.C.-based Piedmont Triad International Airport, under terms of a 25-year lease signed last week. According to FedEx, the FAA estimates the hub will have a $7.5-billion economic impact on the region over a 16-year period. The hub is expected to create about 20,000 new jobs in the area and be operational sometime after 2006.

By ANTHONY L. VELOCCI, JR. ( NEW YORK)
Military contractors, buoyed by rising defense spending, generally are meeting or exceeding Wall Street's third-quarter earnings expectations. Commercial aerospace suppliers, on the other hand, are reporting weak results that reflect depressed airline industry conditions. On the defense side of the business, the performance posted last week by L-3 Communications Corp. is likely to be one of the strongest year-over-year of any of the mid-size companies.

By NEELAM MATHEWS ( SYDNEY)
With an eye on bargain-seeking Asian tourists, Australian Airlines, Down Under's newest carrier, is set to begin operations Oct. 27 from Cairns, a Queensland jumping-off point for the recreational splendors of the Great Barrier Reef and a city that had been forsaken by the airline industry's establishment. ``Australian is a full-service international leisure airline, and Cairns is very much a leisure destination,'' CEO Denis Adams said.

EDITED BY FRANCES FIORINO
One of the first signs of the US Airways/United Airlines' bonding surfaced last week with the carriers' introduction of interline e-ticketing. The arrangement allows passengers to use one e-ticket when an itinerary includes flights on both carriers. Rebooking flights on either carrier is now possible without first securing a paper ticket, as was previously required.

By FRANK MORRING, JR. ( HOUSTON)
Canada is contemplating a significant role in international Mars exploration now that its robotic contributions to the International Space Station are nearing completion. France, meanwhile, is trimming its Martian ambitions as too expensive, and NASA is taking another look at Mars sample return architectures in an attempt to cut the total cost of the unscheduled mission to about $1 billion.

By CRAIG COVAULT ( HOUSTON)
Technology transfer concerns and State Dept. bureaucratic snafus prevented about 50% of nearly 100 Chinese space managers and engineers from entering the U.S. to attend the World Space Congress (WSC). Those who were granted visas had their WSC display materials closely examined by FBI agents. About a dozen FBI agents were assigned to monitor overall international participants at the WSC, officials said. The leader of China's delegation, Luan Enjie, director of the China National Space Administration (CNSA), was left stranded in Canada by the U.S.

EDITED BY EDWARD H. PHILLIPS
ROCKWELL COLLINS AND BOMBARDIER AEROSPACE are jointly developing an integrated cabin electronics package for the new Global 5000 business jet. Based on Rockwell Collins' Airshow 21 system, the installation uses an Ethernet-based local area network to provide multiple passengers with data connectivity, access to printers, fax machines and shared files. The system also integrates with Collins' satellite communications and high-speed data transceivers for secure voice, data and e-mail service worldwide.

By MICHAEL MECHAM ( SAN FRANCISCO)
Boeing preached the value of product diversity last week as it reported third-quarter net earnings of $375 million on revenues of $12.7 billion a day after it lost the year's biggest order to rival Airbus. Chairman and CEO Philip M. Condit said a 14% increase in revenues from Boeing's Military Aircraft and Missile Systems division helped the company overcome the severe downturn in commercial aircraft, a flat commercial space market and losses in the company's aircraft lending unit, Boeing Capital Corp.

By ALEXEY KOMAROV ( MOSCOW)
Russian plans to develop an all-new regional twinjet with Western partners could be facilitated by a government decision to contribute to program funding, but there's still doubt about the eventual extent of that commitment. The initiative is a key part of a revised federal program to support new civil aircraft development.

EDITED BY EDWARD H. PHILLIPS
HONEYWELL PLANS TO INTERFACE THE IRIDIUM SATELLITE network with their Airsat satellite communications system. The design would feature an AIU-100 Aircraft Integration Unit to convert Iridium's digital voice signal into a standard analog audio signal, thereby allowing installation of multiple handsets or headsets (including hands-free wireless equipment).

Staff
Yves Melisse has been named director of European and U.S. sales for Air France Industries. He was general sales manager for Europe. Jean-Pierre Boutin has been promoted to marketing and key account sales manager from head of business development.

Staff
The U.S./Russian Atlantis shuttle crew completed its assembly mission to the International Space Station late last week, undocking Oct. 16 after eight days at the outpost to install the 14.5-ton S1 truss integrated with major new station-cooling capability. During the flight, the station Expedition 5 crew radioed a report directly to the World Space Congress meeting in Houston near the Johnson Space Center. Atlantis mission commander Navy Capt. Jeff Ashby and copilot USAF Col. Pam Melroy were to land the orbiter at the Kennedy Space Center about noon Oct.

EDITED BY FRANCES FIORINO
The proactive use of aviation safety information among airlines operating in the Asia-Pacific Region will be the chief focus of the first Global Aviation Information Network Regional Conference scheduled for Nov. 14-15 in Tokyo. Conference topics include reducing impediments to the collection and sharing of information, operator safety practices, development and use of analytical methods and tools, as well as sharing safety data in flight and air traffic operations, according to Christopher A. Hart, FAA assistant administrator for system safety.

Staff
Northwest Airlines found a couple of silver linings in its third-quarter dark cloud. It lost $46 million net, but it did better than the year-earlier quarter after subtracting out last year's federal grant, and it turned in its first quarterly operating profit in two years. Like its network-airline competitors, Northwest is working to cut costs as its traffic and yields continue to lag.

Staff
America West Airlines' $42.2-million, third-quarter operating loss reflects the impact of the weak yield environment on a growing operation. The loss for the Phoenix-based major airline came in spite of a 6.5% increase in revenues to $510 million and a 4.7% decline in expenses, compared with the third quarter a year ago. Traffic increased 8% on a 6.8% increase of capacity, but the passenger yield slid 2.4%.

By PIERRE SPARACO ( PARIS)
EasyJet's decision to acquire 120 Airbus A319 twinjets and option an additional 120 aircraft is a major milestone for the European manufacturer. In a depressed aviation market, exacerbated by last week's terrorist attack in Indonesia, the British low-cost carrier's commitment could be the last big deal of its kind for the next several years. Moreover, it propels Airbus into the European low-cost carriers' market, previously Boeing's near-monopoly territory. Fast-growing EasyJet currently operates an all-737 fleet, but was impressed by the healthy trajectory of U.S.

By JAMES OTT ( CLEVELAND)
The morning rush at Cleveland Hopkins International Airport had just ended for Continental Airlines. Most of the airplanes in the rush were either parked at gates or heading there. Only Continental Flight 3670 from Syracuse, N.Y., was behind schedule, about 40 min. As the only late arrival among dozens of flights, it had the full attention of a handful of coordinators at the airline's operations center in a windowed tower atop Concourse C. The coordinators had followed the flight en route to Cleveland on the FAA's Aircraft Situation Display.

EDITED BY FRANCES FIORINO
Taiwan's China Airlines says it will buy four 747-400 passenger aircraft and four -400 freighters, two fewer than talked about a few weeks ago when accusations of U.S. meddling arose (AW&ST Oct. 7, p. 25). The order will be worth about $1.6 billion and placed late this year. The deal includes a conversion of six options into firm orders. The new aircraft will replace two 747-200 freighters now mothballed and two leased -400 freighters, which will be returned to the lessor. Another order for four -400Fs placed two years ago remains in effect.

Staff
Jacques Girard has been appointed to the advisory board of Montreal-based Aerospace North America. He is president/CEO of Montreal International.