01.02.2009
FLUG REVUE

News in brief 2 February 2009News Update 2 February 2009 - News in Brief

Short stories from around the aerospace industry.

Kurzmeldungen
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Eurocopter UK is to build a major new helicopter service centre at Kirkhill Commercial Park in Dyce, Aberdeen. The centre will bring the most up to date helicopter support technology to one of the busiest off shore oil and gas helicopter maintenance hubs in the world. The facility, which will be designed and built for Eurocopter UK by Knight Property Group, will be ideally placed to offer state of the art logistical and technical support and flight simulator training for the UK's main heliport for the offshore oil industry. Home to major offshore helicopter operators Bristow Helicopters, Bond Offshore and CHC, Aberdeen is already a maintenance centre for 59 Super Puma/ EC255 family helicopters which fly an average o 85,000 hours per year in offshore missions, representing some of the most intensive helicopter traffic in the world. The Eurocopter centre will comprise a 10,000 sq ft logistics warehouse and 5,000 sq ft of offices as well as 5,360 sq ft of flight simulator accommodation, which will house Eurocopter's first UK-based EC225 Flight Training Simulator. Work at the site will begin with ground breaking in April, and it is expected that the facility will be completed by December 2009. The centre will occupy the 1.2 acre site four at Knight Property Group's Kirkhill Commercial Park
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The Bell Boeing Program Office has announced that it was awarded Phase I of a two-phase Joint Performance Based Logistics (PBL) contract from Naval Air Systems Command in support of the U.S. Marine Corps and the U.S. Air Force Special Operations Command to support the V-22 Osprey tiltrotor aircraft. The contract award was announced by the U.S. Department of Defense on Thursday, Jan. 22. Phase I of the contract, valued at $581 million, provides integrated logistics support for the V-22 over a five-year period.
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A new study from Forecast International on “The Market for Medium/Heavy Military Rotorcraft” projects that manufacturers will produce 3,924 rotorcraft in this market segment from 2009 through 2018. The value of this production is an estimated $88.1 billion in constant 2009 U.S. dollars. The study examines the various trends and factors that are driving the medium/heavy military rotorcraft market, including an influx of new models that are helping to buoy production rates in this lucrative market segment. Forecast International Senior Aerospace Analyst Raymond Jaworowski notes, “The medium/heavy military sector is the largest segment, as measured by dollar volume of production, of the overall rotorcraft market.” The new Forecast International study also highlights the fact that the medium/heavy military market has largely become a competition between all-new rotorcraft from non-U.S. manufacturers and improved derivative models, based on older designs, from U.S. firms. This situation came about primarily because of the U.S. military's preference, in years past, to procure improved versions of helicopters already in its fleet rather than pursue the development of new rotorcraft. Whatever the particular merits of this approach may be, the result was that U.S. manufacturers responded by generally focusing their energies on derivative products rather than clean-sheet designs. U.S. manufacturers thus increasingly find themselves at a competitive disadvantage on the world market, as new versions of older U.S. helicopters compete for sales against new designs from non-U.S. companies.
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Goodrich has been selected by Airbus to deliver broad maintenance, repair and overhaul (MRO) as well as asset management services as part of an Airbus Total Support Package (TSP) for Singapore Airlines' fleet of 19 leased Airbus A330 aircraft. The flight hour-based support agreement, which includes Goodrich evacuation, lighting, actuation, sensors, de-icing and power products, covers the aircraft for an initial period of five years. The maintenance work will be conducted at various Goodrich MRO facilities in Asia, Europe and North America.
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Lufthansa is adding another highlight to its range of services for premium customers with the opening of the Welcome Lounge at Frankfurt Airport – the first lounge of its kind in Lufthansa's worldwide network. The lounge concept is geared to the needs of passengers arriving on long-haul Lufthansa flights and can be used exclusively by First and Business Class passengers as well as by status customers. The lounge has a total floor area of 1,200 square metres on two levels providing all the amenities guests need in order to freshen up after an intercontinental flight and prepare for the day ahead. Located on the upper level is a spacious comfort area with lounging armchairs and a quiet zone for relaxing plus a bistro area where guests can fortify themselves with various snacks or help themselves to the breakfast buffet with hold and cold dishes. Wireless Internet access is available throughout the lounge, while in the dedicated work area workstations and free Internet terminals are provided. At reception there is a large cloakroom where guests can leave their baggage during their stay. During the planning phase, great emphasis was placed on the modern shower area on the lower level. It encompasses 28 high-end showers in an elegant design that invite guests to relax and refresh themselves after their flight. A concierge is on hand to allocate the shower facilities and also coordinate customer wishes such as the ironing service for HON Circle members, First Class guests and Senators.
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Lufthansa has selected International Aero Engines to power a new order for 20 firm Airbus A321's plus options with the V2500 SelectOne engine. The contract is valued at more than $283 million to Pratt & Whitney, if all options are exercised. Lufthansa has operated IAE engines for 15 years and currently operates 33 aircraft equipped with V2500 engines.
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Rolls-Royce announced that the company has been awarded an indefinite delivery, indefinite quantity (IDIQ), multi-year contract by the U.S. Air Force. The contract supports ongoing development activity with the U.S. Air Force Research Laboratory (AFRL) program, Versatile Affordable Advanced Turbine Engines (VAATE) Phase II/III. The contract provides a potential value of $185 million over its term, if exercised, and will be handled by Rolls-Royce North American Technologies, Inc. (LibertyWorks).
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Rolls-Royce has been awarded a £198 million contract by the UK Ministry of Defence (MOD) to support the Pegasus engines which provide the Harrier fleet with its unique Short Take Off and Vertical Landing (STOVL) capability. The 10-year contract provides a guaranteed level of availability of Pegasus engines to power the aircraft operating in the UK's Joint Force Harrier, which is operated by both the Royal Air Force and the Royal Navy. Under the terms of the contract, Rolls-Royce will undertake all aspects of engine support, including the provision of replacement engines to meet customer demands, and technical support both at operating locations and from the Rolls-Royce state-of-the art facilities in Bristol. The contract will be managed from the company's Bristol site, with some activities taking place at RAF Wittering and the main repair and overhaul work will be undertaken at the Rolls-Royce facility in Ansty.
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Patria Aviation Oy received an order from the Finnish Air Force for a cockpit upgrade of 11 BAE Hawk Mk 51 and Mk52 jet trainers on 30 December 2008. The total value of the order is over EUR 10 million. The upgraded trainers will be delivered during 2009 -2010. The Finnish Air Force and Patria agreed on the system modernisation of the Hawk jet trainers in December 2006 in order to further increase the quality of fighter training by creating mission planning, recording and debriefing capabilities. The first Hawk jet trainer modernised by Patria with the modern avionics and a glass cockpit successfully performed its first flight in Jamsa, Finland on 23 September 2008. The Finnish Air Force has announced to upgrade also the 18 BAES Hawk Mk66 jet trainers purchased from Switzerland in summer 2007, which accumulates the number of modernised aircraft up to 30.
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"Raytheon had a successful 2008 with strong bookings, a record backlog and solid growth in sales and operating income," said William H. Swanson, Raytheon Chairman and CEO. "Our advanced technologies, program performance and diverse portfolio of products and services are uniquely suited to meet customer requirements and position us well for the future. Full-year 2008 adjusted income from continuing operations was $1.7 billion or $4.06 per diluted share, compared to $1.5 billion or $3.31 per diluted share in 2007(2). Reported full-year 2008 income from continuing operations was $1.7 billion or $3.95 per diluted share compared to $1.7 billion or $3.80 per diluted share in 2007. Full-year 2008 income from continuing operations included the $45 million or $0.11 per diluted share unfavorable CAS Pension Adjustment. Full-year 2007 income from continuing operations included a $219 million or $0.49 per diluted share favorable adjustment due to tax-related benefits. 2008 net sales were $23.2 billion compared to $21.3 billion in 2007, an increase of 9 percent. All of Raytheon's businesses contributed to the Company's sales growth.
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The International Air Transport Association (IATA) released international scheduled traffic results for both December 2008 and the full-year. In the month of December global international cargo traffic plummeted by 22.6% compared to December 2007. The same comparison for international passenger traffic showed a 4.6% drop. The international load factor stood at 73.8%. For the full-year 2008, international cargo traffic was down 4.0%, passenger traffic showed a modest increase of 1.6%, and the international load factor stood at 75.9%. “The 22.6% free fall in global cargo is unprecedented and shocking. There is no clearer description of the slowdown in world trade. Even in September 2001, when much of the global fleet was grounded, the decline was only 13.9%,” said Giovanni Bisignani, IATA's Director General and CEO.”  Air cargo carries 35% of the value of goods traded internationally. Bolstered by year-end advance-booked leisure travel, the 4.6% decline in December passenger demand was less dramatic than the fall in cargo. A 1.5% cutback in supply could not keep pace with falling demand, resulting in a 2.4% decline in the December load factor to 73.8%. “Airlines are struggling to match capacity with fast-falling demand. Until this comes into balance, even the sharp fall in fuel prices cannot save the industry from drowning in red ink,” said Bisignani.
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The Tupolev TU 204-120 CE model received its Type Certificate from the European Aviation Safety Agency (EASA). The approval was handed over by Patrick Goudou, EASA Executive Director, and Dr. Norbert Lohl, EASA Certification Director, at a ceremony in Moscow, Russia. Patrick Goudou praised the good collaboration between the two certification authorities, the Aviation Register of the Interstate Aviation Committee (IAC AR) and EASA. “This is the first EASA approval for a transport aircraft designed by an organisation from the Commonwealth of Independent States”, said Mr. Goudou. “I am confident it will serve as a model for future projects”. The TU 204-120CE is the cargo version of the TU 204. The fly-by-wire aircraft is powered by two Rolls-Royce RB211-535E4 turbofan engines and offers an “English-language cockpit”, with operations documentation in English. Its maximum take-off weight is 103 000 kg, with a maximum payload of 27 000 kg. The certification process for the TU 204-120CE began within the Joint Aviation Authorities (JAA) and was taken over by EASA when the Agency was set up in 2003. A team of 20 certification specialists scrutinised the aircraft's design to ensure that it complies with the Agency's stringent safety and environmental standards, including over 100 technical meetings and several test flights by the Agency's flight test team.
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Continental Airlines reported a 2008 net loss of $585 million ($5.54 diluted loss per share). Excluding $234 million of previously announced special items, Continental recorded a net loss of $351 million ($3.32 diluted loss per share) for the year. Weakening economic conditions and highly volatile fuel prices presented financial challenges for the airline in the fourth quarter 2008. Continental recorded a fourth quarter net loss of $266 million ($2.33 diluted loss per share). Excluding $170 million of previously announced special items, Continental recorded a fourth quarter net loss of $96 million ($0.84 diluted loss per share). For the full year 2008, jet fuel prices exhibited significant volatility, reaching record high levels and dramatically increasing costs over 2007. Consolidated fuel cost totaled $5.9 billion in 2008, a $1.9 billion increase over 2007, with mainline fuel cost totaling $4.9 billion, a $1.6 billion increase over 2007. During the year, the price of a barrel of crude oil peaked at $147.27 on July 11, then fell to a low of $32.40 on December 19, the first time in almost five years that the price fell below $35.00. For 2008, mainline fuel cost was $3.27 per gallon, including a $0.10 per gallon net cost of effective fuel hedges. "I want to thank my co-workers for working together to meet tough operational and financial challenges during the year," said Larry Kellner, Continental's chairman and chief executive officer. "While there are continuing hard times ahead, thanks to our team, we are well-positioned to maintain our place as an industry leader."
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In 2008, the total number of flights in Europe was 10 million – an increase of only 0.1% compared to 2007. This is the first time in 5 years that the increase in the number of flights has been so low. Average daily traffic in Europe in 2008 was up on average by just 200 flights a day – from 27,470 in 2007 to 27,676 in 2008. Major European markets, in particular Italy, the UK and Spain saw significant declines in traffic (respectively -2.7, -1.7% and -2.1%). Eastern Europe, particularly Turkey and Poland continued to see overall growth in traffic (Turkey: 8.3% and Poland: 9.8%). These annual figures mask a strong downturn in the last two months of the year. In December, traffic overall fell by 7% and three-quarters of States saw declines. Low-cost traffic saw its first drop in 15 years, with 4,600 flights a day in November 2008 compared to 4,900 in November 2007. After 3 years of strong growth, business aviation traffic has gradually fallen since July. In December 2008 there were 1,450 business flights a day, compared to 1,730 in December 2007 – a 16% fall. In 2008, air traffic flow management delays which are caused by air traffic control capacity, staffing, weather and aerodrome capacity increased by 10%, to 2.3 minutes in 2008 compared to 2.1 in 2007. 53% of all delays were attributed to airlines, with 17% coming from airports, 13% from en-route and 10% from weather.
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Elbit Systems announced, further to its announcement dated December 16, 2008, that it was awarded an approximately $40 million contract by the Israeli Ministry of Defense to supply the Skylark I LE mini-UAVs for all Israel Defense Forces (IDF) Ground Forces battalions, including training and logistics support. The project is to be delivered over the next few years, subject to the IDF's requirements and procurement process. Elbit Systems' Skylark I LE was selected by the IDF following an extensive evaluation process, including operational ability to comply with the demanding requirements of the IDF, based on its extensive operational experience.
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HITCO Carbon Composites, Inc., Gardena, California, U.S.A., a subsidiary of SGL Group - The Carbon Company - announced today it has entered into a long-term strategic agreement with Denel Saab Aerostructures Ltd., a subsidiary of South African and Swedish aerospace manufacturers to collaborate in composite components manufacturing for the Embraer C-390 Military Transport Aircraft. Denel Saab and HITCO intend to produce composite components, such as the Aft Fuselage, ensuring that the aircraft meets established performance goals within aircraft weight targets. Enhanced, automated manufacturing solutions will be offered by these two companies to maximize customer value and affordability. In announcing this agreement, Peter Hoffman, President of HITCO Carbon Composites said: "HITCO took delivery of its Viper 6000 Automated Fiber Placement (AFP) machine in October 2008 from Cincinnati MAG. This AFP equipment complements our existing Automated Tape Laying (ATL) capacity that will provide commercial and military customers automated solutions to their growing composite needs for major aerostructure components. We will utilize our AFP equipment for fabricating the complex composite Aft Fuselage II work package."
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A US Navy plan to evaluate defense industry development options for a Next Generation Jammer was approved Dec. 5 by John J. Young Jr., Under Secretary of Defense for Acquisition, Technology and Logistics. The NGJ Analysis of Alternatives is part of the Navy's effort to improve its airborne electronic warfare by evaluating options to replace the current AN/ALQ-99 Tactical Jamming System, currently installed on the EA-6B Prowler and EA-18G Growler aircraft. The NGJ AoA is the next step the Department of Defense is taking to meet the requirements outlined in the Joint Chief of Staff's Initial Capabilities Document (ICD) for Airborne Electronic Attack (AEA). “Objective AEA capabilities will ensure electromagnetic spectrum dominance over a range of conflicts – including low intensity, hybrid and irregular warfare,” said Ray Coutley, AoA government team lead for NGJ. “The AoA will develop and analyze a wide range of potential acquisition programs that, if pursued, would lead to the development of a system to replace the Navy's AN/ALQ-99 TJS.” The AoA will be conducted by a government and industry team that will report to an Executive Steering Committee, co-chaired by Rear Adm. Joseph Aucoin, the chief of Naval Operations Deputy Director for Air Warfare, and Thomas Laux, deputy Assistant Secretary of the Navy for Air Warfare.
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The LONGBOW Limited Liability Company, a joint venture of Lockheed Martin and Northrop Grumman recently marked the successful first powered flight of the LONGBOW Unmanned Aerial Systems Tactical Common Data Link Assembly (UTA) aboard the AH-64D Apache Block III attack helicopter. The LONGBOW UTA is a two-way, high-bandwidth data link for Apache aircrews that allows sensor and flight path control of unmanned aerial systems (UAS). UTA-equipped Apaches enable aircrews to exercise control of UAS at long ranges and receive real-time, high-definition streaming video on their multi-function displays. The UTA is fully integrated with the Apache Arrowhead Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor system to provide the highest quality day or night imagery to other air and ground platforms. During testing, the LONGBOW UTA successfully acquired and tracked an Unmanned Little Bird aircraft in flight. The system allowed aircrews to receive and display video transmitted from the UAS. The LONGBOW UTA builds on the proven Apache Video from UAS for Interoperability Teaming – Level 2 (VUIT-2) technology. Apache VUIT-2, developed by Lockheed Martin, is a federated system that offers passive viewing of UAS video. VUIT-2 is currently deployed with U.S. forces in theater.
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After a thorough review of project requirements and information submitted by a team of functional experts, Air Force officials have determined proposals received for a coal-to-liquid synthetic fuel plant on Malmstrom Air Force Base, Mont., are not viable and will no longer pursue possible development of a plant at the installation. As the source-selection authority, Kathleen Ferguson, the deputy assistant secretary of the Air Force for installations, made the decision after reviewing information provided by officials at the Air Force Real Property Agency, Air Force Space Command and the 341st Missile Wing at Malmstrom AFB. AFRPA officials released a Request for Qualifications for the project in February, 2008.
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Production of Boeing 787 Dreamliners resumed with the join of the fifth airplane designated for flight test. This airplane, designated ZA005, is the first to be powered with General Electric GEnx engines. The major assemblies were loaded in final body join over the past several days. The fuselage and wing joins occur simultaneously. "This airplane signifies our return to a steady production rhythm," said Jack Jones, vice president of 787 Final Assembly and Change Incorporation. "Sections are arriving in Everett at the completion levels committed by our partners and close to what is expected for mature production," Jones said. "The substantial progress made by our partners streamlines the assembly process, which is essential as we ramp up production." Five of the six airplanes designated for flight test are now in varying stages of production. Power was restored earlier this week to the first flight-test airplane, ZA001, and production testing has resumed as the airplane prepares for first flight in the second quarter. Rolls-Royce engines are hung on ZA002, in the fourth and final production position in the factory. The third and fourth flight-test airplanes, ZA003 and ZA004, are in the third and second production positions, respectively.
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Air Canada announced that it has concluded a secured financing transaction valued at US$37 million (approximately C$46 million) with Norddeutsche Landesbank Girozentrale. This transaction increases a previously announced facility for US$78 million with Calyon New York Branch and Norddeutsche Landesbank Girozentrale announced December 22, 2008, providing for a five-year loan that matures in December 2013. In addition, Air Canada announced that it has concluded a secured financing transaction valued at US$75 million (C$92 million) that completes the second tranche of a series of agreements for secured financings with General Electric Capital Corporation (GECC) and its affiliates announced December 23, 2008.
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The development of NASA's next-generation crew launch vehicle, the Ares I rocket, took another step forward Thursday as Alliant Techsystems, or ATK, successfully tested a critical piece. ATK conducted a full-scale separation test of the forward skirt extension for the Ares I-X flight test at its facility in Promontory, Utah. The Ares I-X test launch is scheduled to lift off from NASA's Kennedy Space Center in Florida during 2009. The rocket will climb about 25 miles in altitude during a two-minute powered flight. The launch will culminate with a test of the separation of the first stage from the rocket and deployment of the accompanying parachute system that will return the first stage to Earth for data and hardware recovery.
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The SAS Group ("SAS") has reached a definitive agreement with a group of investors from Catalonia, led by the Consorci de Turisme de Barcelona (the "Consorci") and Catalana d'Inciatives ("Inciatives"), whereby the group of investors will acquire a majority stake in SAS' subsidiary Spanair S.A. ("Spanair") for a cash consideration of EUR 1.  Following the transaction, SAS will remain as a 19.9% minority shareholder in Spanair, and act as its industrial partner to assist in the implementation of a strategic plan, which aims at further strengthening Spanair's position in Spain and as the leading carrier in the Barcelona region. The effect on SAS is a capital loss of MSEK -712 as a result of the divestment, which will be booked in the 4th quarter of 2008.  Mats Jansson comments:  "We are confident that we have now secured a platform for Spanair as a Spanish based company with Spanish majority owners. Due to unprecedented market conditions, the transaction will have a significant negative impact on the Q4 earnings of the SAS Group, but we believe that the new owners will secure the future of Spanair and develop the company to the benefit of Barcelona and the Barcelona region. We will retain an interest in Spanair as a minority shareholder to support its strategic plan". Following the transaction, MEUR 99 of existing interest bearing indebtedness to SAS will remain outstanding and be amortized in line with Spanair's future cash flow generation. In addition SAS will convert MEUR 20 of existing loans to Spanair into equity in Spanair, and repay Spanair's external loans of MEUR 18.  SAS will also continue to lease in total 18 aircraft to Spanair on market terms and remain as guarantor of MEUR 36 for certain operational undertakings of Spanair for a limited period. In summary, the financial effects from Spanair's 2008 result and this transaction on the SAS Group in 2008 will be a negative effect of MSEK -4 895 reported as discontinued operations in the 2008 financial statements. This loss consists of:
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Raytheon achieved another industry first from NATO for the U.S. Navy Tactical Control System. The so-called STANAG (Standardization Agreement) 4586 certification confirms that the TCS is the only unmanned ground control system conforming to the NATO standard. "This is a great accomplishment for the Navy, Raytheon and the TCS program," said Capt. Tim Dunigan, U.S. Navy. "Having the NATO STANAG 4586 stamp of approval provides the United States and the Navy the first open architecture unmanned aircraft conforming ground system." The Tactical Control System gives the Navy an advanced ground system that provides an open user interface enabling unmanned aircraft system operators to train on one system and control multiple unmanned aircraft system payloads with minimal training.
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Alfred Ötsch, 55, Chief Executive Officer of Austrian Airlines AG since 1 May 2006, has resigned his mandate as of 31 January 2009. Subject to the consent of the Supervisory Board, his duties on the Board of Management will be taken over by the COO Dr. Peter Malanik and CCO Dr. Andreas Bierwirth. The termination is mutually agreed and in accordance with his contract of employment. CEO Ötsch made the following statement regarding his decision: “After three intensive years with Austrian Airlines, this step is designed to enable a new beginning at the company, including at the level of management. Having cooperated closely with my colleagues on the Board of Management and the Supervisory Board while introducing the necessary change of course towards partnership, I am glad that the privatisation has now moved into its final stages with Lufthansa, the best possible partner for the Austrian Airlines Group.”
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In order to secure liquidity in the current crisis and compensate for the anticipated collapse in revenue, a range of time-limited, effective measures are to be introduced by Austrian Airlines. The total package will be worth approximately EUR 225 million. Another cut in production of 5% will be made on top of the previous reduction, meaning that capacity is to be reduced by 10% in total in 2009 compared to the previous year. This relates to route cancellations such as Mumbai (from 1 February), Burgas (from end-March) and Baia Mare (from 16 February). Contrary to original plans, moreover, Aleppo will not be incorporated into the flight schedule this year. There will also be targeted reductions in frequency during seasonally weak periods and on individual flight days on a wide range of different routes. These capacity reductions are designed to produce an aliquot reduction in variable costs worth approximately EUR 115 million. Other measures will affect staffing-related issues, currently being negotiated with staff representatives. These include flexibilisation of working time, reductions in holiday and leave time, a temporary salary waiver and time-limited suspension of pension fund contributions. Negotiations over cost reductions are also to be held with external suppliers. Strict investment management and optimisations in other areas should produce additional effects. In total, it should be possible to achieve an effect on the result worth around EUR 110 million. CCO and Board Member Dr. Andreas Bierwirth said the following about the midterm measures improving the result: “In the medium term, we must take our profitability and cost structure to a robustly competitive level after the crisis. This corresponds to a necessary improvement in our result of approximately EUR 200 million, to be achieved in stages by 2012. Only then would we have an EBIT margin of appr. 6-7%, the level usual amongst European carriers and a solid foundation for future growth in the Group. We will, and should, design our integration into the Lufthansa Group after closing on our own initiative and in such a way that we can benefit from the skills and know-how of the Lufthansa Group when required. As the Austrian Airlines Group, with our Austrian hospitality, top product and dedicated employees, we continue to stand for an exceptional and unique customer experience, and remain a premium brand.”
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The 35,000th plane that has been registered by the LBA (German Federal Aviation Office) is an aircraft belonging to Air Berlin.The brand-new Boeing 737-700 with the code D-ABLD has already been entered in the official German aviation register. Air Berlin has taken delivery of several new aircraft to replace older models, thereby further modernising its fleet in recent months. This means that the average age of Air Berlin's aircraft has now been lowered from 5.2 to 4.6 years. As a result the second largest German airline now has one of the newest internationally operating fleets in Europe. The modern Air Berlin jets offer passengers not only onboard comfort, they also ensure further and lasting reductions in aviation emissions on account of their low fuel consumption.
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