_Aerospace Daily

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FAA plans to award four to six contracts worth about $160 million for the avionics to equip some 2,000 aircraft in the Flight 2000 demonstration planned for Hawaii and Alaska, according to the agency's project director. David B. Tuttle said at a conference here that FAA will also be seeking a systems integrator to oversee such facets of the effort as testing, work agreements with operators, coordination with avionics installation shops, and collection and analysis of data.

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U.S. and foreign aviation groups outlined a cooperative 2 1/2-year fuel system inspection program Wednesday involving 2,000 jetliners flown by 68 airlines in an attempt to eliminate disasters like the TWA 800 crash.

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The final version of the fiscal 1998 Dept. of Transportation funding bill provides $152.83 million for the FAA to continue development of the Wide Area Augmentation System (WAAS), but the appropriations committees are directing FAA and DOT to withhold some of the spending until they submit reports on the program to Congress. The House recommended $114 million for the program. The bill also includes language prohibiting implementation of the Flight 2000 demonstration program during fiscal 1998.

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U.S. AIR FORCE is opening the precision targeting pod competition for Air National Guard and Air Force Reserve F-16s to foreign competition, it said in an Oct. 8 Commerce Business Daily notice. The USAF had previously limited foreign-owned businesses at the prime contractor level, but that has now been waived. The AF didn't say why it made the change. The AF is looking to buy a total of 264 pods that would reach initial operational capability in March 1999. Contract award is slated for next September.

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GENERAL ATOMICS is slated to receive a contract to upgrade the U.S. Air Force's Predator unmanned aerial vehicles. The upgrade will include synthetic aperture radar, the Common Automatic Recovery System, and theater deployable and secure voice communications. Also part of the package are Air Force Mission Support System (AFMSS) and Data Exploitation Management Planning Center (DEMPC) integration, relief on station, Ku-band tuning, reliability and maintainability improvements study, system accuracy, and nuclear biological/ chemical analysis, according to an Oct.

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Suspect semiconductors produced by a California company whose managers have been indicted on federal fraud charges were either removed from NASA's Cassini Saturn probe or recertified, a spokesperson for the Jet Propulsion Laboratory said yesterday.

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Airbus Industrie has confirmed delivery to US Airways of 10 aircraft between November 1998 and March 1999, according to the carrier's Air Line Pilots Association unit. The airline declined to discuss "specific plans until the [pilots contract] ratification process is complete."

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Signature Flight Support, Dallas Airmotive and International Turbine Services, Inc. have been combined to form the Aviation Services Group of BBA Group. Signature President Richard Dodson will head the new unit.

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The Pentagon must terminate aircraft programs to bring realism to its investment plans, the GAO said in a new report. The report said the Pentagon plans to spend $334.8 billion on 8,499 aircraft of 17 different types in the outyears - but it doubted whether the amount was accurate.

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Pratt&Whitney, Xian Aero-Engine and Israel's Blades Technology International launched a three-nation joint venture based in Xian, China, to make compressor airfoils and precision components for aircraft engines - including those which may power the new 100-passenger commercial jet being developed in China.

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FINNAIR ordered five A319s, three A320s and four A321s from Airbus Industrie to replace its fleet of DC-9s. The 12 aircraft are slated too be delivered beginning in the first quarter of 1999. The carrier also placed options on 12 more aircraft. It selected CMF56-5 engines. Airbus said Finnair is the first to choose all three of its single-aisle aircraft in one order.

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GE Aircraft Engines' new -9C3 version of the venerable CT7 tuboshaft has completed all testing required for U.S. certification, which is planned for the first quarter of 1998, GE reports. First applications are the CN- 235-300 transport built by Spain's CASA and the IPTN CN-235-330 to be built in Indonesia. The engine also will power the 40-passenger Let L-610G regional airliner.

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Xian Aero-Engine, Pratt&Whitney and Blades Technology International yesterday announced launch of a joint venture in Xian, China, to manufacture compressor airfoils and precision components for commercial aircraft engines and industrial gas turbines. The new venture, Xian Airfoil Technology Co., will have investment of about $30 million. It will supply precision-forged airfoils for P&W engines and other engines and aviation products, including the new 100-passenger commercial jet being developed in China.

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Only two weeks after public squabbling between European Commission officials over the wisdom of aerospace industry consolidation, one of the squabblers - Competition Commissioner Karel Van Miert - is taking aim at aircraft engine companies, warning them against extending existing ties among them.

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Taiwan has commissioned its first squadron of U.S.-built F-16 fighters. The 18 F-16A/Bs, the first of 150 purchased in 1992 to arrive in Taiwan, will be stationed at an air force base near Chiayi in southern Taiwan. An air force spokesman said that the jets will serve as Taiwan's primary medium-to-high altitude fighters until well into the next century.

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Russia is testing new ICBMs and providing China with sophisticated weapons technology, Director of Central Intelligence George Tenet has told the House and Senate intelligence and defense committees. The intelligence community continues to monitor Russia's modernization of strategic forces, "including testing of new land-mobile and sea-launched intercontinental ballistic missiles," according a 1997 Report on Intelligence Activities, sent to Congress by Tenet.

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Rolls-Royce PLC named James Guyette president and chief executive officer of Rolls-Royce North America, Inc., effective last week. Guyette will join the board on Jan. 1 following the retirement of John Sandford, and also will become a member of Allison Engine Company's board. Guyette recently was executive VP, marketing and planning, for United Airlines.

Staff
The U.S. Air Force is developing and may demonstrate in a couple of years a tungsten warhead designed to double the penetration capability of existing 1,000 pound munitions. The Dense Metal Case Penetrating Weapon advanced technology demonstration is being conducted with an eye toward weapons such as the Joint Direct Attack Munition, Joint Standoff Weapon, and Joint Air-to- Surface Standoff Missile, Maj. Ken Echternacht, the program manager said in a telephone interview. The warhead is expected to be operational in the early 2000 period.

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Transportes Aereos Meridionais (TAM) has ordered 10 A330-200 aircraft including five options, becoming the first A330 customer in Latin America, Airbus Industrie said. TAM ordered Pratt&Whitney engines for the aircraft, and deliveries are to start in the last quarter of 1998. Airbus also reported that Air China has taken delivery of its first Airbus aircraft, an A340-300. Air China has three A340s on firm order, and the remaining two are scheduled for delivery by yearend.

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TURKEY AND GREECE have requested information on the procurement of AIM-120 Advanced Medium-Range Air-to-Air Missiles, the Pentagon said yesterday. Turkey has expressed an interest in 138 AMRAAMs with support at a cost of about $62 million. Greece has asked for 90 AMRAAMs and support, costing $42 million. Both countries have bought AMRAAMs previously. Additionally, the Pentagon announced Greece is interested in buying 20 Harpoon missiles for about $35 million.

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Aerospace/Defense Stock Box As of closing October 9, 1997 Closing Change UNITED STATES DowJones 8061.42 - 33.64 NASDAQ 1745.85 + 4.08 S&P500 970.62 - 3.22 AARCorp 34.625 0 AlldSig 41.75 - .125

Staff
"Senior officials" in the Defense Dept. have advised the White House Office of Management and Budget against recommending to President Clinton any line item vetoes of the $247.7 billion defense appropriations act, House Appropriations national security subcommittee chairman C.W. (Bill) Young (R-Fla.) said yesterday.

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GE Aircraft Engines' first CF34-8C core and full-scale engines are on track to complete assembly in December, paving the way for engine tests to start next year. Fifteen full engines will be tested, and more than 4,200 hours of core and full engine tests are planned aimed at certification in 1999's fourth quarter. The -8C will power Bombardier's new 70-passenger Canadair RJ Series 700.

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The National Defense Panel will avoid making weapons trade-off recommendations when it presents its report to the Pentagon and Congress late this year, and instead will lay out a strategy to more quickly buy and test small numbers of new items to allow development of doctrine and tactics for future warfare, the panel's chairman said yesterday.

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Yugoslav flag carrier JAT won't decide on its fleet replacement order until early next year, but International Aero Engines may already have a leg up if Airbus winds up winning the nod. Local aerospace companies last week signed a memorandum of understanding with V2500 engine-maker IAE, covering their involvement in the event that JAT - which stands for Jugoslovenski Aerotransport - buys 16 Airbus aircraft.