"We're already in discussions with a number of these airlines," he said.

- by Rebecca Rayko

SALE, Monarch, America West Add A320 Family Jets

More orders poured in for the Airbus single-aisle family later in the day. Asian lessor Singapore Aircraft Leasing Enterprise (SALE) purchased 11 more A320 family jets, including its first order for the A319.

The firm order includes eight A320s and three A319s for delivery from the end of 2002. The deal is valued at $500 million.

The latest contract makes SALE the largest Airbus single-aisle customer from Asia.

A SALE lessee, America West Airlines, also placed an A320 family order today. America West placed a firm order for an additional four A319s, which will begin delivery in 2001. The airline selected the IAE V2500 to power the aircraft.

America West has one of the largest Airbus fleets in the US, with a total of 62 Airbus jets now on order, in addition to a fleet of leased A320 family jets.

Finally, Monarch Airlines, a UK charter company, said it will exercise options for five A321s. An MOU was signed today at the Airbus chalet.

The new A321s are scheduled to deliver from 2002.

- by Rebecca Rayko

SIA Will Take 3 More 777s

Boeing today confirmed Singapore Airlines' intent to exercise options for two 777-200ERs (Extended Range) and one 777-200.

The deal is valued at $470 million at list prices.

This intent to order will not be included in the Boeing published cumulative order total until the definitive agreement is signed.

Boeing Bullish About New Programs

After two days of multi-billion dollar announcements, Boeing chairman and CEO Phil Condit and the heads of the company's business units happily waved the Boeing standard in front of assembled journalists at FI2000 today.

Condit and his assembled unit leaders then recited a litany of positive accomplishments over the past year.

"The Boeing Company has three goals: One, run a healthy core business, two leverage our core strengths into new products and services, and three, open new frontiers," stated Condit.

Appearing with Condit were Mike Sears, CFO; Alan Mulally, President of Commercial Airplanes, Jerry Daniels, President of Military Aircraft and Missile Systems, Jim Albaugh, President of Space and Communications and George Muellner, Manager of Boeing's Phantom Works.

Sears detailed a number of financial accomplishments, many of which occurred on the watch of his predecessor, Deborah Hopkins, however, who departed the company earlier this year. The net was simply that revenues were up and costs were down, perhaps best underscored by Boeing's current stock price, also up considerably over its low point of March.

Alan Mulally added several points from the Commercial Airplanes perspective, beginning with the 737-900 which rolled out just last Sunday and including the 767-400ER and future 747X stretch program. As an almost side note, Mulally mentioned that the growth of the Internet provides interesting opportunities for conversion of passenger aircraft into freighters, due to the increase in shipping. Mulally said that's a business the company does not intend to miss out on.

Boeing's theme of affordability was reinforced by Jerry Daniels, as he pointed to tighter and tighter budgets in military programs. "We're now providing more and more for less and less," he said, pointing to the JSF program as an example of the company's thrust for affordability. One highlight point is in support areas, which he believes could triple in revenues in the next ten years, providing one of the strongest growth areas for the company.

Jim Albaugh described a successful year for Space and Communications. Admitting that the Delta 3 program endured failures over the year, Albaugh was quick to point out that the launch system will return to service in August. The company is also looking to the Delta 4 program to add significantly to revenues, thanks to the reduction it represents in launch costs from $11,000 to $12,000 per pound down to just $6,000 per pound. Boeing's record in large scale systems integration was highlighted by such programs as the company's Sea Launch efforts, a joint venture with several international partners, as well as Boeing's work as lead system integrator of the National Missile Defense System. Describing a new thrust for the group, Albaugh said the firm would use its expertise to concentrate on creating "Systems of Systems." Boeing is currently working with the US government on helping to tie together numerous "stovepipe" systems into one global information grid. One more note of excitement is Boeing's pending acquisition of Hughes Space and Communications.

On the new frontiers horizon Condit described the company's two great assets: a global brand and strong intellectual capital, embodied in the firm's 185,000 employees. Connexion by Boeing, the company's aircraft broadband connectivity solution, will allow passengers just 17 months' from now to work on their e-mail and be online while flying. The system will "turn an airplane into a virtual business center and a virtual entertainment center." Boeing has a fully operating demonstration of the new technology at their stand in the exhibit halls.

The 747X, Boeing's answer to the Airbus A3XX, is "6-9 months away from a potential launch," although any such announcement will "ultimately be determined by the market." While not specifying an exact development budget, because the company does not discuss non-recurring expenses, Alan Mulally acknowledged that a 747X development program would come in under the budgets initially estimated for the ill-fated 747-500X and -600X. Those programs were suggested as having a $5 billion price tag, while Airbus estimates development of a completely new aircraft at around $10 billion. The 747X is also derivative-based, but it does not require an all-new wing. Mulally suggested that airline operators should be quite pleased with the 747X in comparison to the A3XX because they already operated lots of 747s. The familiarity they have with the aircraft, proven reliability, plus commonality with other 747s as well as the 777 should sway airlines, he added.

In the regional market, Boeing continues to see fragmentation, which could allow for more models of the 717. While the aircraft has not enjoyed sales success to date, both Mulally and Condit continue to remain bullish on the former McDonnell Douglas model, with Mulally mentioning that new airplane programs are generally slow to take hold. In fact, he said, Boeing almost stopped the 737 program three times. One benefit of the plane is the fact that it is 8,000 to 19,000 pounds lighter than the 737 or the Airbus A318, according to Mulally. While not admitting to an active development program, Mulally also pointed to the potential for an 80 to 85-seat version that could have a 2-3 year head start in that segment of the market.

- by Ron Wilbur

ILFC Engine Order Worth $800 Million to GE

ILFC's order announced earlier at FI2000 for 12 GE90-powered Boeing 777-200ERs, eight GE90-115B-powered Boeing 777-300 longer range derivatives, and three CF6-80E1-powered Airbus A330-200s is worth more than $800 million to the engine maker.

This order is ILFC's first for the 777-300 longer range derivatives.

Said Steven Hazy, president and CEO of ILFC, "We had previously ordered GE-powered 777s and A330s, and have been impressed with GE's continued investment in these products as demonstrated by the growth commitment made to the GE90 and the CF6 engine families. We have confidence in GE's ability to deliver these growth derivatives."

In addition, ILFC ordered seven 737-700/800 aircraft, powered by CFM56-7 engines, valued at an additional $30 million. CFM International is a 50/50 joint company of Snecma Moteurs of France and GE.

- by Rebecca Rayko

CFM Books $1.5 Billion in New Orders

CFM International recorded $1.5 billion in new orders for 232 engines so far at FI2000. These orders bring the company's total to 732 engines for the year, which represents nearly 60% of the market for 100+ passenger aircraft.

Following is a recap of the orders announced:

• Finnair signed an agreement today with CFM to exercise options for CFM56-5B engines to power six Airbus A319/A320/A321 aircraft scheduled for delivery in 2002/2003. This engine order is valued at $60 million.
• GECAS placed a $650 million order for CFM56-7 engines to power 65 Boeing Next-Generation 737s, including engines for 45 new firm aircraft, six previously announced aircraft (announced as unidentified customer), and 14 options exercised.
• GECAS also places a $450 million order for CFM56-5B engines to power 30 firm A318 and 12 A319/A320/A321 aircraft.
• GATX/Flightlease has ordered CFM56-5B engines to power 14 firm, 10 option Airbus Industrie A320 family aircraft. The firm engine order is valued at $140 million.
• ILFC placed a $60 million order for CFM56-7 engines to power seven firm Boeing Next-Generation 737 aircraft.
• Kuwait Finance House has announced it will purchase four Airbus A320 aircraft with CFM56-5B engines in an engine order valued at approximately $40 million. The company has appointed its leasing subsidiary, Aviation Leasing & Finance Company (ALAFCO), to manage its fleet and transactions.
• debis AirFinance confirmed the purchase of CFM56-5B engines to power 10 A320 family.
• The US Air Force (USAF) has released funding to purchase 36 additional CFM56-2 engines to re-engine four KC-135 tanker and five RC-135 recognizance aircraft for delivery in the 2001/2002 time frame.

Russians at Farnborough International 2000

The presence of CIS aerospace companies at the world's major air shows is getting down to the size it really occupies in the world's industry. Previous Farnborough shows enjoyed a somewhat oversized CIS presence, which could be explained by the early enthusiasm of governments of the ex-Soviet republics - now turned independent states - and that of the CIS manufacturers in their search for foreign investments.

By now a pragmatic approach to business has replaced the enthusiasm. This is partly due to the replacement of old-style - and old - top managers with the new generation represented by people like Mikhail Pogosyan of Sukhoi and Nikolai Nikitin of MiG.

About a dozen CIS companies came to this year's Farnborough, including AVPK Sukhoi, RSK MiG, Lyulka-Saturn, MMPP Salyut, Kazan Helicopters, Mil, Yakovlev, Beriev (represented by Beta Air), Vympel, Molnia, Ilyushin, Rostvertol, Motorostroitel, UMPO, Aviaexport, AVISMA, VSMPO, Yakovlev and AviaBaltika. Most of them confined their presence to relatively small stands. The largest presence is that of Sukhoi which has a stand in Hall 3, two airplanes doing daily demo flights - the Su-32 and Su-29 - and a chalet L3.

- by Vovick Karnozov

Sukhoi Claims Foreign Projects are on Track

The major export programs are well on track, according to AVPK Sukhoi general director Mikhail Pogosyan.

The progress with shaping and testing the Su-30MKI fighter for the Indian Air Force (IndAF) "has been fitting into the timeframe agreed by the customer and the manufacturer," he said at today's press briefing.

The Indian defense minister Fernandes, accompanied by an IndAF deputy commander, expressed their complete satisfaction with the progress of the Su-30MKI program during their visit to the Sukhoi flight test base in Zhukovsky earlier this month, according to Pogosyan. It was admitted, however, that the original schedule of the contract has been revised because the customer spent more time than earlier envisioned on choosing avionics items for its airplane.

Further delays to the original schedule were caused by difficulties with integrating French, Indian, Russian and Israeli equipment items into one package. The Sukhoi boss downplayed the recent media reports about IndAF dissatisfaction with operational performance of 18 Su-30K twin seat interceptors delivered to India in 1998 and 1999.

"These stories in the press are a product of dirty competition," he said. However, some problems with IndAF Su-30s have been acknowledged, including cases of AL-31F engine malfunctions. Pogosyan said some of these were caused by clogged fuel lines due to Indian fuels differing from Russian aviation kerosene.

"These are normal kind of operational problems any air force encounters when getting used to a new fighter type," he claimed. These problems are being solved, for which India and Russia established joint working teams.

To improve customer support, the Sukhoi design bureau, IAPO production factory of Irkutsk and Russian Armament arms-trading agency are establishing an aircraft maintenance center in India to support Su-30 fighters in service. Touching on the progress with flight test programs on new Sukhoi designs, Pogosyan said that that in first five months of 2000 Sukhoi test pilots flew 20% more flights than in the whole of 1999. In the tests are various modifications of the Su-27, Su-30, Su-32, Su-34 and S-37 fighters. Sukhoi is going to show the thrust-vectoring Su-30MKI in full grace at next year's air shows in Paris and Zhukovsky, along with the S-37 Berkut fifth-generation fighter technology demonstrator.

Speaking about the choice of the Su-32 for display at FI2000, Pogosyan said that the idea was to demonstrate that Russian manufacturers are not only good at superagility, but also at avionics and weapons systems. The Su-32, which has just passed the first stage of its flight test program, features a modern and sophisticated on-board and weapons systems. In 2002, AVPK Sukhoi's NAPO plant in Novosibirsk will be ready to start deliveries of the Su-32 to customers that are yet to be found, although Sukhoi claims a high interest to the plane from countries with sea borders needing protection.

The airplane flying daily at Farnborough represents an initial production version able to pin-point strikes on the ground and sea-going targets at a large distance from an air base. This version is cleared for export "as is." At customer request, a more capable version, the Su-32FN, can be created, with the capability to act against submarines.

- by Vovick Karnozov

Agusta and Bell Make Debut, Aim for Military Market

The Bell/Agusta Aerospace company initiated a campaign aimed at the military and law enforcement markets with the BA 609 tiltrotor and the AB 139 multirole medium twin engine helicopter. Both partners are optimistic about the products and hope for a quick and warm response from the market.

The 609 is being exhibited in US Coast Guard livery. The aircraft is dedicated for search and rescue operations. Bell has already collected over 60 orders from worldwide customers and has decided to expand aimed markets. The very first prototype of the 609 is only a year from its maiden flight, and the production of the prototypes is well advanced.

Still a significant problem remains in the future certification of the 609, as the aircraft does not fit to any existing airworthiness regulations.

Constant data exchange is carried on with the FAA and soon the agency will be allowed tests on the V-22. The European JAA is to brief on the project before entering the certification process shortly.

Agusta says the civilian AB-139 will be available in VFR configuration for $6.5 million, but the company did not want to comment on estimated prices for the military version, saying this would depend on configuration. However a third customer for the AB-139 was announced, Elilario, Gemina Group, which agreed to be announced after Bristor and Helitech, which were known some time ago. Other customers that have purchased aircraft remain undisclosed.

Agusta has the first prototype almost ready to enter tests, while the second one is undergoing advanced assembly. The third structure is scheduled for delivery from PZL Swidnik of Poland in early August. The maiden flight is planned for later this year and first deliveries are to take place in 2002.

- by Ryszard Jaxa-Malachowski

Northrop Grumman, EADS to Join on Long-Endurance UAV

Northrop Grumman Corporation and the European Aeronautic Defense and Space Company (EADS) announced today the signing of a Memorandum of Understanding (MOU) to cooperate on a high-altitude, long-endurance unmanned aerial vehicle (HALE UAV) system.

This latest agreement is a further expansion of potential business alliances outlined in an MOU signed in April 2000, and expanded in June 2000. Under a separate MOU, signed on June 19, 2000, the two companies announced their intention to collaborate on the AN/APN-241 weather and navigation radar for the European A400M military transport aircraft.

Under today's agreement, Northrop Grumman's Integrated Systems Sector (ISS) will work with EADS on a joint project team to evaluate a common unmanned system approach to meeting urgent European NATO countries' airborne standoff intelligence, surveillance and reconnaissance (ISR) requirements. The team will also address the issues of UAV operations in controlled airspace, system reliability and interoperability with NATO forces.

A key element of the ISS focus will be its work on the Global Hawk UAV system. The company hopes to leverage that technology in response to NATO customer requirements.

"This is another important building block for the EADS/Northrop Grumman relationship and it is good for our defense business," said Tom Enders, head of the EADS Defense and Civil Systems Division. "Surveillance and reconnaissance on unmanned platforms is becoming a key requirement in many NATO countries' armed force postures and both companies have impressive skills in this field. We will jointly target synergies in development, procurement and logistics. This approach will benefit the European customer and it also demonstrates new trans-Atlantic cooperation can be mutually beneficial."

Avanti Back on the Market

Re-started in November 1998 as Piaggio Aero Industries, the manufacturer of the futuristic-looking P180 Avanti high-speed turboprop business plane (able to cruise at Mach 0.7) claims the first full successful year. The company's chairman J. Di Mase was able to claim a relatively large backlog of orders, currently at $220 million.

"The P180 is the flag of the company," Di Mase said, but the product range also includes manufacturing parts for Rolls-Royce/Turbomeca RTM322 engines in use on the NH90 helicopters.

The Avanti seemed dead three years ago - its production terminated in 1994 - but like the Phoenix the gorgeously looking Italian plane is back in the competition. Piaggio has to-date delivered four airplanes after production was restarted. By the year-end eight airframes are to be delivered out of the current backlog of 14. The last delivery took place in July: the plane - one of the two ordered - went into service with the Greek Health Ministry in the role of medical ambulance aircraft. The current production rate of one unit per month is to double.

In 2001 Piaggio is going to assemble 22 airframes and in 2002, 26 aircraft. One of four P180 already assembled was sold to Piaro Ferrari, who is on the Piaggio control board and who is one of the company's major shareholders.

"Mr. Ferrari chose the Avante for its performance, and not because he is involved in the business. And there was no a discount for him when he bought the plane," Di Mase said. Basically, the newly built P180s does not much differ from the original - it has Collins avionics and 850-hp PWC PT6A66 engines driving pushing propellers. A feasibility study is being undertaken on a turbofan version of the plane.

- by Vovick Karnozov "

Embraer Wins $250 Million in New Orders

Embraer today announced new orders from the Caribbean, China, Sweden and Austria for its ERJ-135, ERJ-145 and ERJ-170 jets amounting to $250 million, bringing the cumulative total orders this week during FI2000 to $4.25 billion.

Air Caraibes, a new airline bringing together four operators from the Caribbean, signed a commercial proposal for the acquisition of two firm orders of the ERJ-145 for delivery in December 2000; two firm orders for the ERJ-170 with delivery in September 2003 with two further options.

China's Sichuan Airlines confirmed the letter of intent signed in the beginning of this year for five ERJ-145s, with first delivery scheduled for October 2000.

Sweden's City Airlines AB and Austria's Rheintalflug exercised an existing option on the ERJ-135 and ERJ-145, respectively.

Orders during FI2000 now amount to approximately $4.25 billion, including the $1 billion contract announced with Swift Aviation for the new business jet Legacy and the deal with Continental Express, that signed a purchase contract for 75 units of the new ERJ-145XR and 100 additional options for any version of the ERJ-135 or ERJ-145.

With these new contracts Embraer now logs a total of 1,464 orders and options for its regional jets. Current backlog now stands at $23.6 billion, of which $10.2 billion are firm orders and $13.4 billion are options, including regional, business and defense markets.