_Aerospace Daily

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U.S. Major Carriers Atlantic Share of Service Third Quarter 1997 Total Revenue Departures American 5,899 Continental 2,826 Delta 7,369 Northwest 2,036 TWA 2,232 United 4,652 US Airways 1,473 Total 26,487 Average Number of

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NORTHROP GRUMMAN has a $145 million contract from Kistler Aerospace Corp. to design, develop and manufacture structures for the K-1 reusable launch vehicle, a two-stage-to-orbit rocket with an intended service life of about 100 flights. Northrop Grumman's Military Aircraft Systems Div. in El Segundo, Calif., has about 400 workers employed on the K-1 project, which started in January 1997 with a preliminary development contract. Kistler Aerospace is a privately funded company with offices in Kirkland, Wash., and Los Angeles.

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General Dynamics Corp. completed its acquisition of Ceridian's Computing Devices International unit for $600 million on Dec. 31, 1997. Computing Devices, a defense electronics and systems integration business with estimated 1997 sales of $600 million, is headquartered in Minneapolis. It has facilities in Minnesota; Calgary, Alberta, and Ottawa, Ontario, Canada; Hastings, U.K., and Washington, D.C.

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When Congress returns on Jan. 26, less than 11 weeks after it adjourned on Nov. 13, the House and Senate will face basically the same major U.S. defense issues - but the emphasis on several of them will have shifted. For instance:

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America West, answering a late-filed commentary by United on America West slot exemptions at Chicago O'Hare, suggested that DOT issue an order barring further such pleadings. Carriers routinely file comments with the department that are unauthorized, usually because they have missed a deadline or because the filing may not bear directly on the issue being examined. DOT usually accepts such filings, but America West suggested United was abusing the process this time.

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US Airways recorded a 4.5% drop in December traffic on 5.2% less capacity, pushing up the load factor 0.5 percentage points to 68.7%. Despite the lower December, traffic for 1997 set a record at 41.6 billion revenue passenger miles. Full-year traffic was up 6.8% on 2.5% more capacity, which raised the load factor 2.8 points to 71.3%. In December, as with 1997 results, the airline added international capacity instead of domestic. International traffic jumped 15.2% in December and 35.3% for the year on 30.1% more annual international capacity.

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Pratt&Whitney said yesterday that it won orders totaling more than $490 million from International Lease Finance Co., including $365 million for PW4000 engines to power seven A330s, three 777s and four 767s, and $125 million for PW2000 engines to power six 757s. General Electric Aircraft Engines and CFM International said yesterday they had received engine orders valued at $700 million from ILFC. The leasing company placed a $500 million order for CFM56 engines to power 10 A319/A320/A321s and 32 next- generation 737s.

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TWO U.S. AIR FORCE F-16s collided in flight yesterday afternoon at the Utah Test and Training Range, about 105 miles west of Hill AFB, Utah. Both pilots ejected safely. The planes, assigned to the 388th Fighter Wing, were conducting training intercepts when the collision occurred.

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Canada's decision this week to buy EH101 helicopters brings sales to 97, according to a spokesman for GKN Westland.

DOT

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DOT renewed for one year an exemption for Air-India to conduct scheduled foreign combination service between Delhi and Washington Dulles, via London Heathrow, under a code-share arrangement with United. United received a one-year authority renewal to display Air-India's designator code on certain New York/Newark-London Heathrow-Delhi and Washington Dulles- Heathrow-Delhi flights. DOT dismissed United's request to renew similar rights for Los Angeles-Hong Kong-Delhi service. Air-India did not apply for renewal of that now-expired exemption. (Docket OST-96-1007)

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ORBITAL SCIENCES CORP. has completed the merger of its Magellan subsidiary with Ashtech, Inc., receiving all necessary regulatory clearances and the approval of Ashtech's stockholders. By merging with the Sunnyvale, Calif.- based manufacturer of satellite-based positioning equipment, Magellan has raised its profile in the Global Positioning System marketplace (DAILY, Dec. 3). The new company - owned 66% by Orbital and 34% by Ashtech stockholders - will do business as Magellan Corp. after the $25 million cash transaction, which closed Dec. 31.

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The AFL-CIO will file a friend-of-the-court brief on behalf of the Air Line Pilots Association against 150 non-union Delta pilots in a case before the U.S. Supreme Court this spring. The case revolves around fees non-union employees must pay to unions, questioning whether such employees can take grievances about the way the fees are spent directly to court, or whether they must go through a union-mandated arbitration process first.

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SPACEHAB INC. has won a $42.8 million NASA contract to support three Space Shuttle missions with its pressurized middeck augmentation modules in a deal that includes another $19 million in business from NASA's International Space Station partners. Additionally, the company stands to gain another $22 million in commercial revenue on the three flights, and has an option for a fourth mission worth a minimum of $15.8 million from NASA.

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OLYMPIC AIRWAYS has ordered eight Boeing 737-800 airliners valued at $408 million. Deliveries are slated to begin in early 2000. The new jets will replace earlier 737 and 727 aircraft.

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ARIANESPACE will launch three Intelsat IX satellites on Ariane 5 rockets under a deal announced Dec. 23. Another of the Space Systems/Loral-built spacecraft will be launched on a Russian Proton M vehicle under a deal with Lockheed-Khrunichev-Energia International. With Intelsat's recent decision to buy two more Intelsat IX platforms, the satellite-services consortium's total investment in the high-capacity satellites will reach about $1 billion. Two of the new satellites will be deployed over the Indian Ocean, and two over the Atlantic.

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The U.S. Army's Space and Missile Defense Command plans to select a new contractor for the Advanced Interceptor Technology (AIT) program, which develops technologies that could be used by systems like the Theater High Altitude Area Defense (THAAD) system.

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Air Liberte and American jointly answered objections to their proposed code share, emphasizing its limited nature in comparison to third-country code shares that opposing U.S. carriers complain of being denied.

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National Transportation Safety Board said it will convene a public hearing March 24-26 in Honolulu as part of its investigation into the crash of a Korean Airlines 747-300. The aircraft crashed last Aug. 6 while attempting to land at Won Pat International Airport at Agana, Guam, killing 228 of the 254 aboard. NTSB Vice Chairman Robert Francis, who will preside, said the hearing is "important because many of the issues uncovered in the KAL investigation have serious implications for the safety of air travel throughout the United States and worldwide."

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RUSSIA'S SPACE INDUSTRY contracted with foreign partners for $470 million worth of goods and services in 1997, and hopes to break $1 billion in 2000, the Interfax new agency reported Jan. 3. Government sources told Interfax they expect about $640 million in space exports this year.

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New Aircraft Orders and Options September 1997 Last 12 Months Firm Orders Options Orders Options Carrier # Type # Type Engines Del Dates # Type # Type Air Macau* 1 A320-300 - V2500 Apr 98 - - America West 20 A319 - TBA 98-00 - - America West - - 40 A319/320 TBA - - - /321

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HONEYWELL SPACE SYSTEMS has shipped all but two of the 51 multiplexer/demultiplexer (MDM) units it is building for the International Space Station under a $240 million development subcontract with Station prime contractor Boeing. The final two units will be shipped early this year, the company said. In addition to the 51 flight MDMs, Honeywell is supplying 74 ground MDMs; 66 MDM Application Test Environment (MATE) units, and miscellaneous test units and spares.

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FedEx will increase rates by an average of 3% to 4% Feb. 15 within the U.S. International rates will not be changed. On Feb. 2, FedEx will introduce International Economy Freight service with a five-business-day commitment to key markets in Europe, Asia and Latin America.

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U.S. Major Carriers Pacific Share of Service Third Quarter 1997 Total Revenue Departures American 522 Delta 702 Northwest 6,545 United 6,243 Total 14,012 Average Number of Seats Per Departure American 233 Delta 250

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Pan Am and International Lease Finance Corp. yesterday announced extension of a lease agreement on two of the carrier's seven 737-400s. Term of the new leases is five years. Pan Am also said it has reached a deal with ING Lease B.V. for early return of seven Airbus A300s that it has removed or will remove from service by April 30.

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Two changes are being made to the Textron Lycoming engine powering the U.S. Air Force Slingsby T-3A trainer that will eliminate differences between the variant flown by the AF and other users, even though the uncommanded engine stoppages that prompted the AF to ground the trainer are caused primarily by the fuel control system.