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Linda de France ([email protected])
Sen. Bob Smith (R-N.H.) challenged the U.S. Air Force's commitment to programs that create space power, and said he is prepared to call for an entirely separate service that will achieve space dominance if the Air Force doesn't become an air and space force. Smith chastened the Air Force and Defense Dept., saying their primary focus in space has been the transmittal of information. The Air Force space budget is almost entirely dedicated to improving information systems to increase effectiveness of existing forces, he said.

Staff
Aerospace/Defense Stock Box As of closing May 12, 2000 United States Closing Change Dow Jones 10609.37 63.40 NASDAQ 3529.07 29.49 S&P500 1420.96 13.15 AARCorp 14.63 -0.25 Aersonic 9.88 0.13 AllTech 67.00 -0.38

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Cosmonauts Sergei Zalyotin and Alexander Kaleri tested an open-space hull-patching procedure and inspected some wiring apparently blackened by a short circuit in an almost-five-hour spacewalk outside the Mir space station Friday. The extra-vehicular activity (EVA) was the first ever financed by a private company. MirCorp, a joint venture between Western investors and Russia's RSC Energia, is paying for the two cosmonauts to spend at least 45 days aboard reactivating the station and evaluating its suitability for future commercial missions.

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Vance Coffman, chairman and CEO of Lockheed Martin Corp., said government and industry need to establish a framework for transatlantic cooperation to confront the reality challenging all NATO partners -- shrinking defense budgets that may compromise the vitality of the defense industrial base and limit military capabilities in the coming decade.

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The fiscal year 2001 intelligence authorization legislation recommends a number of classified funding changes to support modernization of National Imagery and Mapping Agency (NIMA) activities, according to documents filed with the bill.

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Rep. Jerry Lewis (R-Calif.), chairman of the House defense appropriations subcommittee, says the panel added $150 million to the fiscal 2001 defense appropriations bill to identify and evaluate the potential problem of cyber-war. "The big money will come when we start implementing" recommendations for dealing with the problem, he adds.

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BOMBARDIER AEROSPACE'S newest customer in Europe, Italian regional airline Air Dolomiti, ordered three CRJ200 Series LR (Long-Range) regional jets for about $72.5 million. Air Dolomiti, slated to take delivery of the jets from late 2000 through early next year, is Bombardier's 12th European airline customer and will be the first Italian carrier to operate the CRJ. Also included in the deal are options for three more CRJs, either the 50-seat CRJ200 or the 70-seat CRJ700 Series aircraft.

Staff
KEEPING THE SECRETS: As the Federation of American Scientists releases satellite photos purporting to show that Chinese airpower wouldn't be sufficient to knock out Taiwan, speakers at an AIAA conference ask whether the U.S. government needs to put its foot down on distribution over the Internet of commercial imagery, particularly value-added services. John Copple, chairman and CEO of Space Imaging USA, says the U.S. gained information superiority based on the freedom of information and can capitalize on open source data better than any other nation.

Staff
Jet fuel spot prices in New York ended last week at $0.72 per gallon, down 5.3% from the beginning of the week and up 65.7% from a year ago, according to Deutsche Banc Alex. Brown. Crude oil futures for June crept up last week, trading at roughly $29.50 per barrel, the highest price in two months, but still down 16% from a nine-year high of $34.13 on March 7.

Staff
Airsys-ATM, a joint venture between Thomson-CSF and Siemens, has been awarded a contract for the production of Category 1 instrument landing systems for the FAA. FAA can order up to 105 units of the Mark 20 systems over three years. The Mark 20A is the only commercial ILS approved by the FAA for Cat 1, 2 and 3 operations, the company said. They are compatible with Wilcox-developed systems purchased by FAA.

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Boeing named Sue Grimm general manager of the Boeing-Spokane facility.

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Latvia-based Air Baltic faces a major challenge among Eastern European regionals -- a small market. The airline took in 22.7 million lats (about US$14 million last year) and lost 5 million lats (US$3 million). "The average income is rather low, so the market share [of people who can afford] to fly is limited," Air Baltic spokeswoman Vija Dzerve told The DAILY recently. Air Baltic, a joint venture of the Latvian government and SAS, is one of the more successful Eastern European regionals despite its financial losses, according to industry analysts.

Staff
Airline pilot hirings continue at record levels, according to Atlanta-based AIR, Inc. In April 1,564 pilots found jobs, and so far this year hirings have reached 6,349. Ninety-four percent of airlines hired pilots in April. National carriers added 505 pilots, with 30 of the 33 companies hiring in April. If the current hiring rate continues, AIR Inc. predicts 19,000 pilot jobs this year, compared with 15,747 for 1999.

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Cargo's next big innovation could be alliances among smaller carriers, said Dick Haberle, CEO of Miami-based Florida West Airlines. "If the smaller carriers don't combine their resources...we're always going to be the low-yield" segment," he said last week in Orlando. The industry may need someone from the outside "with dot com money and a new idea."

Staff
Correction: John Thornton, director-Free Flight Phase 2, will report to Charles Keegan, not succeed him as program director (DAILY, May 12).

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House Appropriations Committee is scheduled to mark up the fiscal 2001 transportation appropriations bill tomorrow, which includes $12 billion for FAA. Senate Appropriations has not settled on a date for either subcommittee or full committee markup.

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Continental Express and its flight attendants, represented by the Machinists union, have reached a tentative contract agreement. The 54-month deal contains improvements in pay, holiday pay, profit sharing and 401K accounts, reserve scheduling and domestic partner benefits.

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Atlantic Coast Airlines named Bill Lange senior VP-maintenance and operations and promoted Bill Poniatowski to senior director-maintenance.

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Continental Express Friday opened a $25 million training center that will be used by its flight operations, inflight and airport services training departments. The facility houses a new full-motion flight simulator and a non-motion Level 6 training device for the Embraer regional jet.

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HTNB named Mark Piltingsrud VP for its aviation architecture program.

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A Boeing Delta 11 rocket successfully replaced one of the first Air Force GPS satellites launched aboard another Delta rocket 11 years ago.

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Ryanair is one of the few European carriers expected to make a profit and show year-over-year growth in the March quarter, according to Schroder Salomon Smith Barney. The company expects Ryanair to increase earnings by 20%.

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St. George, Utah-based SkyWest Airlines takes possession this month of the first of its extensive order for Canadair Regional Jets. The aircraft are targeted mainly for Delta and United Express, provided United reaches a deal with its pilots on contract scope provisions that will allow the airline to expand United Express service at Denver. SkyWest President and Chief Executive Jerry Atkin told The DAILY he remains hopeful United and its pilots will work out a deal. United and its pilots union are in federally mediated contract talks.

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Unions in the U.S. and Europe have concerns that could derail multinational efforts to achieve a U.S.-European Union transatlantic common aviation area (TCAA), union leaders said last week in Phoenix. Such an initiative should "not be left to entirely to market forces," Giancarlo Crivellaro, general secretary of the European Cockpit Association, said, but should "include a managing economic framework."

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The Antonov An-140 regional twin-turboprop has received a type certificate, issued by Interstate Aviation Committee of the CIS. Simultaneously, two more type certificates were issued -- for the TV3-117VMA-SBM-1 turboprop engine, designed by Progress design bureau, Ukraine, and planned to be produced in cooperation with the Ukrainian Motor-Sich engine plant, Russian Ufa-based UFMPO and Moscow-based Salut. The AV-140 six-bladed propeller, produced by Aerosila company, Stupino, Russia also was certified.