_Aerospace Daily

Staff
Airbus Industrie's latest Global Market Forecast predicts a demand for more than 16,700 jetliners of more than 70 seats each between now and 2017 to satisfy an average traffic growth of 5% per year and to replace about 8,500 aging aircraft. Airbus said yesterday that the need will be filled primarily by about 13,600 new aircraft valued at $1.2 trillion, representing an average yearly business of $60 billion. The remaining 3,100 aircraft would be either secondhand or come from operating leases.

Staff
Lockheed Martin began testing the flight control software for its X-35 Joint Strike Fighter (JSF) concept demonstrator aircraft in flights with the Variable Stability In-Flight Simulator Test Aircraft (NF-16D) or VISTA/F-16. The crew completed all planned test points in the first flight, including commands in pitch, roll and yaw, at Buffalo, N.Y., on March 29, Lockheed Martin said.

Staff
Aerospace/Defense Stock Box As of closing April 23, 1998 Closing Change UNITED STATES DowJones 9143.33 -33.39 NASDAQ 1881.39 -36.22 S&P500 1119.58 -10.42 AARCorp 27.312 -.312 AlldSig 45.438 -.562 AllTech 59.938 -.062

Staff
The CFE738 business jet engine, built by the CFE Co. joint venture of GE Aircraft Engines and AlliedSignal Engines, notched 100,000 hours of operation, the venture says. More than 100 CFE738s, producing more than 5,940 lbst. each, are in service on delivered Dassault Falcon 2000 bizjets worldwide, and the fleet is racking up hours at the rate of about 4,000 per month.

Staff
Hong Kong's Cathay Pacific this week put the first Trent 700-based version of Rolls-Royce RB211-524 turbofan into service, Rolls reports, on a revenue flight of a Boeing 747-400 from Hong Kong to Bangkok on April 20. "During the first flight our cockpit readings indicated that it was delivering a large improvement in fuel flow and was running much cooler than the standard engine," says Cathay's Derek Cridland, the airline's engineering director.

Staff
Engineers, managers and mechanics at the huge C- 17 manufacturing plant here are struggling to wring every penny of cost they can out of the Globemaster III, driven by the belief that unless the cost comes down the plane has no long-term market beyond the 120 the U.S. Air Force is committed to buy.

Staff
FedEx switched from GE Aircraft Engines to Pratt&Whitney to power three new Boeing/Douglas MD-11 trijet freighters the package carrier will acquire in the first quarter of next year. It's only an 11-engine swing for P&W, but a significant move nonetheless for FedEx, which flies a fleet of some 17 GE-powered MD-11s. P&W will deliver nine installed 62,000-lbst. PW4462 turbofans on the aircraft, plus two spare engines. FedEx plans to take the three aircraft in March and June 1999.

Staff
An Environmental Assessment of Boeing's Sea Launch project found that it would have no significant short - term or long - term effects on the environment or surrounding populations, the Federal Aviation Administration said. After studying several different factors, the U.S. agency said no Environmental Impact Statement would be required.

Staff
NORTHROP GRUMMAN said its Directed Infrared Countermeasures (DIRCM) system has successfully completed its first airborne test for the U.K. Ministry of Defense. The March 20 test, aboard a helicopter at a test range in England, evaluated the system's basic functionality in typical helicopter flight scenarios, the company said, adding that all planned data runs were accomplished. The flight, the first of several planned flights, followed a series of contractor tests at Westland Helicopters in Yeovil, U.K.

Staff
GE Engine Services-Dallas, Inc., won a multimillion-dollar, long-term contract to maintain America West's CFM International CFM56-3, International Aero Engines V2500A1 and Pratt&Whitney JT8D-15 aircraft engines, the carrier says.

Staff
Sen. Dan Coats (R-Ind.) said that despite changes in the U.S. Air Force's F-22 fighter program, the decision of his Senate Armed Services airland subcommittee on whether to require additional development testing before production is "still an open question." The subcommittee will make the first SASC decision on the F-22 program in marking up its portion of the fiscal 1999 defense authorization early next month.

Staff
House and Senate leaders and their Appropriations Committee chairmen agreed yesterday to split the Administration's fiscal 1998 supplemental request into two bills, but not to require offsets for the defense portion of the supplement, House and Senate sources said. The agreement clears the way for the House-Senate conference on reconciling the different versions to start Tuesday.

Staff
United is buying 23 new widebodies from Boeing as part of a plan to grow the fleet by 68 aircraft, from 571 at yearend 1997 to 639 at yearend 2001. The Boeing order comprises one 747-400, 16 777-200s and six 767-300s, to be delivered between 1999 and 2002, powered by $550 million worth of Pratt&Whitney PW4000 series turbofans. The expansion adds up to capacity growth of about 3% a year, says Chairman Gerald Greenwald.

Staff
Ministers of five European countries involved in the restructuring of the continent's aerospace and defense industry invited the Swedish government to take part in the process, the U.K. Dept. of Trade and Industry said yesterday. At a meeting in London Wednesday, ministers of France, Germany, Italy, Spain and the U.K. said the restructuring should continue along the lines of the Airbus plan to become a Single Corporate Entity, and that the new Airbus should be fully in place on Jan. 1, 1999.

Staff
British Airways is retiring all eight of its DC-10s next year, replacing them on Gatwick long-haul routes with two new GE Aircraft Engines GE90-powered Boeing 777s that it ordered last week and six 767s already in service or on order. The 767s were intended originally to operate from Heathrow. BA also unveiled orders for six 757s that will replace the six 767s at Heathrow. Orders for four 747-400s will be replaced with three more 777s. All newly ordered aircraft will be delivered next year. The 767s and 757s will be powered by Rolls-Royce engines.

Staff
The value of UAL Services contracts under long-term program agreements soared from $5 million to almost $500 million during 1997, with engine maintenance agreements taking much of the credit, the United Airlines maintenance unit reports.

TWA

Staff
TWA is buying new Pratt&Whitney JT8D-219 series turbofans to power 24 Boeing/Douglas MD-83 narrowbody twins, along with six JT8D spares and one spare each of the PW2000 and PW4000 engine series, in a deal worth $211 million. Engine deliveries will run from this year through 1999.

Staff
CFM International will distribute CFM56-7 medium turbofan maintenance documents through Boeing's On-Line Data, or BOLD, system under a new agreement, CFM reports. Digitized versions of the engine manual, illustrated parts catalog and service bulletins for the CFM56-7 - which powers next-generation Boeing 737 series aircraft - will be available later this year. Forty customers have ordered 866 737NGs.

Staff
Electronic commerce is the cornerstone of bringing U.S. Dept. of Defense business practices into the modern age, Deputy Secretary of Defense John Hamre said yesterday. "We're choking on paper," Hamre said in a speech, noting that last year, DOD moved 300 million sheets of paper associated with business practices.

Staff
House National Security Committee Chairman Rep. Floyd Spence (R-S.C.), ranking Democrat Rep. Ike Skelton (Mo.), and all but one of the chairmen and ranking members of HNSC subcommittees, sent letters to President Clinton and the congressional leadership urging that the Balanced Budget Act of 1997 be renegotiated to provide increased defense spending to address the military services' growing shortfalls. The letters were sent Wednesday and released yesterday.

Staff
LOCKHEED MARTIN elected CEO Vance Coffman as chairman of the board, effective immediately, the company said yesterday. Coffman became CEO and vice chairman on Aug. 1, 1997, after serving as president and COO. He joined Lockheed Corp. in 1967. Norman Augustine will step down as chairman but remain on the board.

Staff
Spain's Iberia Airlines handed CFM International a nearly $1 billion boost yesterday with an order to power 50 firm and 26 option Airbus Industrie A320 narrowbody twins with CFM56-5B/P medium turbofans. International Aero Engines competes on the A320 with its V2500 medium turbofan, and the Iberia campaign was a contest to power the largest single A320 order by a European carrier so far.

Staff
U.S. Air Force Chief of Staff Gen. Michael Ryan said that the F-22 fighter program enjoys strong congressional support, and that anyone interested in finding money to pay for unfunded military operations should stay away from it. "Some are saying we are going to have a [funding] fight," Ryan told reporters in Washington on Tuesday. "But I have not gotten that from the leadership over in Congress. I get from the leadership in Congress that they are behind the F-22."

Staff
Aerospace/Defense Stock Box As of closing April 22, 1998 Closing Change UNITED STATES DowJones 9176.72 -8.22 NASDAQ 1917.61 +13.74 S&P500 1130.00 +3.66 AARCorp 27.625 -.062 AlldSig 46.000 -.938 AllTech 60.000 -.438

Staff
NASA's Space Shuttle Atlantis is undergoing a $70 million overhaul at Boeing's facility in the Air Force Plant 42 complex here that will equip it as a workhorse for assembling the International Space Station.