_Aerospace Daily

Staff
Sen. Jon Kyl (R-Ariz.) said yesterday that he would oppose the START II treaty as amended by the Russians when the Clinton Administration submits it to the Senate. The amended treaty is expected to be approved by the Russian Duma today. Industry sources said the treaty would preclude the U.S. from using the modified 747 aircraft known as the Airborne Laser.

Staff
Aerospace/Defense Stock Box As of closing April 13, 2000 UNITED STATES Closing Change Dow Jones 10923.55 -201.58 NASDAQ 3676.78 -92.85 S&P500 1440.51 -26.66 AARCorp 16.44 -0.19 Aersonic 10.00 0.00 AllTech 60.50 -0.25

Staff
Kaman Aerospace, reported $95.6 million in sales, up 4% year-over-year for the first quarter of 2000, and $10.8 million in operating income, an increase of 3.8%.

Staff
Selection of a new beyond visual range air-to-air missile for the Royal Air Force is lagging in part because it "is probably the most difficult political procurement decision Britain has had to make for the last 10-15 years," according to an official of one of the two competing teams. Andrew Head, director of marketing and defense for U.K. Raytheon Ltd., said that "Apart from the technology aspects, the risk element in development is regarded as one of the most important factors in this program."

Staff
Pacific Aerospace&Electronics, Wenatchee, Wash., reported a drop in third quarter financial results but projected that investors will see better performance in the fourth quarter, and break-even results by the first quarter of 2001. "I believe the outlook for the company is positive, and we are now positioned for consistent top- and bottom-line growth," said Don Wright, president and CEO. "We will continue to work at achieving greater operating efficiencies and managing costs to achieve positive and growing free cash flow."

Staff
Boeing President and Chief Operating Officer Harry Stonecipher, said transatlantic mergers are "going to happen when it makes business sense." Responding to reports of a coming deal between Boeing and BAE Systems, Stonecipher told reporters here that this would be one of several options. He said he is convinced that BAE Systems "will be a player in transatlantic mergers," and that Boeing plans to become more global.

Staff
GENERAL DYNAMICS said it plans to buy a Spanish maker of combat vehicles and munitions, and that the transaction could close within a year. GD will make capital investments of about $60 million over the next five years in Empressa Nacional Santa Barbara de Industrias Militares S.A., of Madrid, as well as Santa Barbara Blindados S.A. of Seville. Owned by Sociedad Estatal de Participaciunes Industriales (SEPI), the company is known collectively as ENSB. It had 1999 sales of about $95 million.

Staff
Total costs of the Pentagon's major systems acquisitions programs are up $21.7 billion, or 3%, through the end of December - the most recent figures available - mostly due to higher program estimates, along with engineering changes, stretched-out procurement schedules and simply buying higher quantities.

Staff
RAYTHEON CO. will provide Multi-Band Multi-Mission Radio (MBMMR) systems to the U.S. Special Operations Command under a four-year contract with an initial value of $5.75 million. If all options are exercised, the company said yesterday, the contract would be worth $179 million. Program design, engineering and management will be carried out at the Raytheon Tactical Systems operation in Fort Wayne, Ind.

Staff
Airbus leaders will decide in May whether to offer the A3XX super-jumbo for sale, and Senior VP Commercial John Leahy is confident that several airlines are willing buy it once Airbus makes its final determination. "We're not going to launch the A3XX on speculation," he told Aviation Week Group editors in Washington yesterday. For the first time, Airbus is talking publicly about airline customers who are lining up to buy the A3XX, which Airbus touts as costing 16% less to operate than a Boeing 747-400.

Staff
A Marine Corps colonel has been sent to Arizona to head the investigation of the fatal April 8 crash there of an MV-22 Osprey. Col. Dennis Bartels, a CH-46 pilot, has investigated several aviation accidents in the past. "I don't think that we could find anybody more experienced to head up the investigation," Marine Lt. Gen. Fred McCorkle, deputy chief of staff for Marine Corps Aviation, told reporters April 11 at the Pentagon.

Frank Morring Jr. ([email protected])
NASA's plans to reevaluate its Earth sciences program before requesting funds for more spacecraft and other programs drew fire yesterday from Sen. Barbara Mikulski (D-Md.), a key member of the Senate Appropriations Committee, who worried that the program managed at Goddard Space Flight Center in her state might get lost in the shuffle between Administrations if the space agency doesn't keep its out-year budget targets for the program up to par.

Staff
Russian President Vladimir Putin appeared to give priority Wednesday to keeping the 14-year-old Mir orbital station in operation, even as he pledged Russia will meet its commitments to the International Space Station project, according to reports from Moscow. In remarks during a Cosmonauts Day ceremony in Moscow Putin said the Russian Security Council will soon discuss funding for the space program, which the newly elected successor to President Boris Yelstin said was important for Russia's prestige, economy and scientific development.

Staff
An industry team led by Boeing Co. has begun fabrication of the turret assembly for the U.S. Air Force's Airborne Laser (ABL) high-energy laser weapon system at the Lockheed Martin Space System facility in Sunnyvale, Calif. The team includes the Air Force, Boeing, Lockheed Martin and TRW. A rotating 1.5-meter telescope, designed to locate hostile missiles in their boost stage, is housed in the turret assembly on the nose of the modified 747-400F aircraft.

Staff
SAS, following an earlier announcement, signed a contract to buy six A330-300s, four A340-300s and 12 A321 aircraft, Airbus Industrie said. With introduction of the A330/A340, SAS will increase the number of seats available on intercontinental flights by up to 50% and cargo capacity by 40%, Airbus said. The 12 A321s will come with a flexible cabin configuration to accommodate between 148 and 210 passengers. The A340s will have 275 seats, including 56 in business. The A330s will have 278 seats, also with 56 in business.

Staff
Starsem, the European-Russian consortium, and SkyBridge LP have inked an agreement for Starsem to become an equity partner in the SkyBridge satellite constellation.

Linda de France ([email protected])
An official of the National Imagery and Mapping Agency said major improvements in overhead imagery collection are coming, but he stressed the importance of upgrading ground stations to process the imagery. "We are going to be looking at vast improvements in the next few years of overhead capabilities," said Robert Zitz, director of NIMA's Initiatives Group, which is responsible for the integration of agency activities and high impact initiatives.

Staff
Aerospace/Defense Stock Box As of closing April 12, 2000 Dow Jones 11125.13 -161.95 NASDAQ 3769.48 -286.42 S&P500 1467.17 -33.42 AARCorp 16.63 -0.06 Aersonic 10.00 0.00 AllTech 60.75 -0.13

Staff
The U.S. Air Force announced plans to reopen the 6,000-foot runway at Arnold AFB, Tenn., which closed in 1995. The Arnold Engineering Development Center, part of the Air Force Material Command's Test and Evaluation Business Area, houses more than $5 billion in test and evaluation facilities and assets and employs 12,000 people. The runway reopening is primarily a result of the requirement of some AEDC customers to fly hardware directly to the facility, the AF said.

Staff
An Airbus Industrie spokesman said a Boeing claim that its new long-range 777 series has a 16% to 20% fuel burn advantage over the A340-500/600 is "very creative but completely untrue." A Boeing spokesman, however, said "we stand behind the figures" in Aviation Daily articles of March 1 and April 3. "The only way that Airbus can say its fuel burn per seat is anywhere near the 777 is to use an inflated or unrealistic seat count. No one can argue that a twin [engine aircraft] burns less fuel than a four-engine aircraft."

Staff
CLAYTON, DUBILIER&RICE has finalized a deal in which it takes over more than 90% of Fairchild Aerospace. The move was announced in December, but negotiations continued until Tuesday night. CD&R and Allianz Capital Partners will jointly invest $400 million, and Fairchild has secured bank loans for $740 million. Fairchild needs the money to develop the 728JET-family.

Staff
PARIS BOURSE has approved the substitution of the European Aeronautic Defense and Space Company (EADS) for Aerospatiale Matra in the CAC40 Index, subject to regulatory approval of the creation of EADS. The decision was made April 7.

Staff
Boeing Co. said it has installed the engine in its X-32A Joint Strike Fighter concept demonstrator. The Pratt&Whitney engine, designated YF004, will power the aircraft through flight testing. The powerplant has completed 45 hours of acceptance testing at P&W's facility in West Palm Beach, Fla. The X-32A will demonstrate conventional takeoff and landing qualities for the U.S. Air Force variant of the JSF, and low-speed carrier approach for the U.S. Navy variant.

Staff
The flight data recorder of the Marine Corps MV-22 aircraft that crashed Saturday in Arizona killing all 19 aboard has been recovered, the service said yesterday. The device will be taken to its manufacturer, Smiths Industries of Grand Rapids, Mich., where it will be analyzed at the company's lab by investigators of the Naval Safety Center.

Staff
Lockheed Martin Naval Electronics&Surveillance Systems (NE&SS), Moorestown, N.J., has won a $55.4 million option to an existing U.S. Navy contract for the installation, integration and test of four Aegis weapons systems in support of the service's Aegis program. The award, which brings the total contract value to $96.7 million, covers ships DDG 85 to DDG 88.