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Page 1 Daily News
by Gail Helmer
Friday, March 9, 2001
Jane's Defence Weekly
Bush asks for $310.5 billion defence funding
President George Bush last week asked the US Congress to provide the Department of Defense with $310.5 billion in funding for Fiscal Year 2002
South Africa boosts spending on defence
The South African government has increased the defence budget for Fiscal Year 2001-02 by 14.5%, an increase on last year's adjusted appropriation of R13.9 billion ($1.8 billion) to R15.8 billion.
An EU rapid reaction force 'would be geared towards peacekeeping'
Swedish Defence Minister Bjorn von Sydow has said the EU's proposed rapid deployment force would be geared to undertake UN peacekeeping missions.
India increases spending to replace old weapons
India has increased its defence spending by about 13% to Rs620 billion ($13.3 billion) for Fiscal Year 2001-02 to enable it to replace obsolete weapon systems and build a credible nuclear deterrent based on a triad of aircraft, mobile-based missiles and sea-based assets.
Iraq repairs WMD production sites
Iraq has reconstructed a significant number of production sites for its weapons of mass destruction in recent months and made considerable progress in those programmes, the German Federal Intelligence Agency reported late last month.
USA seeks to soothe allies' fears
At his first NATO foreign ministers' meeting on 27 February, US Secretary of State Colin Powell sought to reassure the allies that the Bush administration would seek consultation and possible co-operation on a missile shield, and would not weaken its commitment to NATO.
Slovak air force to go subsonic
The Slovak government intends to convert its air force to subsonic aircraft in an effort to cut costs and maintain pilot proficiency following recommendations made in a report submitted in January by Cubic Applications Incorporated
Strix PGM is aimed at a wider market
Production of the Bofors Defence/Saab Bofors Dynamics Strix 120mm precision-guided munition has recently been completed for the Swedish Army, which was the first customer, and Switzerland, which is the only export customer to date. Further developments of the weapon are now under way.
Royal Saudi, Pakistan navies conclude Seaspark 2001
The Royal Saudi and Pakistan navies concluded a series of joint manoeuvres, dubbed Seaspark 2001, early last month. The two-week exercises, which began in the Arabian Sea on 23 January, included three separate phases - harbour defence, tactical manoeuvres and an analytical phase.
US DoD considers testing non-lethal energy weapon
The US Department of Defense is considering whether to begin field testing a millimetre-wave electromagnetic energy weapon designed to help US soldiers protect themselves and drive away adversaries when using lethal force is inappropriate
Jane's Defence Upgrades
U-2 RAMP flies ahead of schedule.
It has just been revealed that the first installation of the Reconnaissance Avionics Maintainability Program for the US Air Force fleet of the U-2S/ST 'Dragonlady' high-altitude reconnaissance aircraft - a cockpit modernisation - made its first flight on 5 December 2000, two months ahead of schedule.
Four models of RIM-162 ESSM under development
The US Navy's Evolved SeaSparrow Missile Program Office has confirmed to JDU that four different models of the RIM-162 ESSM are being developed by a 21 company consortium led by the Raytheon Missile Systems.
British Army UAV to be re-engined?
A new engine has been flight tested on a British Army Phoenix unmanned aerial vehicle. If a retrofit option is selected, this powerplant could be key to ensuring Phoenix's useful life is extended up to at least 2008.
Expanded A-10 upgrade begins
The US Air Force has initiated the largest single upgrade effort ever undertaken for the Fairchild A/OA -10 Thunderbolt II close air support aircraft. The A-10 Program Office has issued a contract modification for the work to Lockheed Martin Systems Integration - Owego (formerly LM Federal Systems) to perform a variety of subsystem upgrades.
SHOW REPORT: Aero India 2001
The upgrade highlights from the Aero India 2001 airshow, held in Bangalore, include reports on: the Indian Army order for 12 Lancer conversions of the Cheetah helicopter placed with Hindustan Aeronautic Ltd; a new upgrade for Russian Mil Mi-8/-17 'Hip' transport helicopter from Israel Aircraft Industries; and the proposed series of modifications from Antonov of the Ukraine to improve the capabilities and extend the service lives of India's An-32 'Cline' transport aircraft. Craig Hoyle reports.
UPGRADE OVERVIEW : ASW to Anti-Surface Warfare - the Orion AIP described.
One of the first US Navy units to be fully equipped with the AIP (Anti-surface warfare Improvement Program) version of the Lockheed Martin P-3C Update III Orion is Squadron VP-45. Based at the Sigonella naval air station in Sicily, VP-45 flies in support of the US Sixth Fleet . Georg Mader described the aircraft and its role.
Jane's Foreign Report
A big shake-up in the Pentagon
Bush, Rumsfeld and Cheney plan an agonising reappraisal.
WHEN George W Bush won America's presidential election, the generals rejoiced. After eight years of a Democratic administration which was seen to be concerned more with integrating gays into the armed forces than in looking after military capabilities, the return of the Republicans, with their strong commitment to increasing the defence budget and a pledge to launch a vast national missile defence programme, appeared like manna from heaven. But the generals were living in a fool's paradise. FOREIGN REPORT describes what is about to happen.
Is Arafat the target?
As the new Israeli government starts working this week, some generals will tell the cabinet, led by Ariel Sharon, that President Yasser Arafat of the Palestinian Authority is more of an obstacle to peace and security than an asset. The generals will leave the cabinet to draw its own conclusions.
Serbia and Montenegro for sale
"I'VE BEEN living here for four years now and have never seen things so busy," says Mark Harrison, a Belgrade-based British lawyer specialising in business and privatisation. "After the lost years, this place is moving forward." Harrison has reason to be happy: for the past two years, obliged to be where the business is, he has spent most of his time outside Serbia, shuttling to Montenegro where he says "almost everything is for sale": tobacco, telecoms, the breweries, reflecting Montenegro's desperate need for cash. Now as business class seats on British Airways, Alitalia and Lufthansa on flights to Belgrade start to fill up, he is hoping for boom times.
Venezuela's restive generals
HUGO CHAVEZ, Venezuela's charismatic and controversial president, has made two powerful enemies: the top brass of the armed forces and the American Central Intelligence Agency (CIA). Chavez still enjoys the support of the poor majority, although his popularity rating in opinion polls has fallen from 70% to about 50%. His links with Cuba and revolutionary movements in South America have earned him the distrust of his own army and the United States.
Russia's arms sales
LAST year, Russia exported arms worth $4 billion, according to Viktor Komardin, deputy director-general of Russia's state-owned arms-export company, Rosoboronexport, In 1999, Russia's arms sales totalled $3.4 billion and the increase in 2000 puts Russia among the world's half-dozen main arms exporters. However, exporters are unlikely to reach the government's ambitious target of $5 billion next year, although long-term prospects seem encouraging following a restructuring of arms trading organisations. Recently the Rosvooruzheniye and Promexport companies were merged to form Rosoboronexport. In addition, all military-technical co-operation is now supervised by the defence ministry.
Jane's Intelligence Review
Germany - Federal Intelligence Service [Bundesnachrichtendienst (BND)]
- The BND is predicting a new "very tough" conflict in Central Asia later in 2001, the Transcaspian Project website reported on 2 March, quoting the German newspaper Die Welt. The BND predicts that the expected intrusion of 2,000-3,000 Islamic militants into the territory of Uzbekistan, Kyrgyzstan and Tajikistan in the summer months could involve Russia in a regional war, which would entail "rather grave actions" because of the mountainous landscape and the "impossibility" of using heavy military equipment.
Tajikistan
- The Russian news service RIA reported on 5 March that the General Staff of the Russian armed forces plans to send 3,000 paratroopers to Tajikistan to repel possible large-scale "aggression" by Islamic militants against Central Asian CIS (Commonwealth of Independent States) countries. The Russian contingent will consist of several regiment task forces detached from various airborne troop units. Airborne Troops Commander Col. Gen. Gennadiy Shpak told RIA that paratroopers "were being trained for a long time" for a possible mission in Tajikistan to reinforce the 201st Motorised Division already there. According to operational data, the situation in the region may start to deteriorate end of April to early May when Islamic militants from Afghanistan might infiltrate Tajikistan and move toward Uzbekistan.
Liberia
- Rebels in the north of the country have captured Voinjama town, the capital of Lofa county, and government forces are fighting to retake it, BBC reported on 6 March. Defense Minister Daniel Chea accused Guinea of providing support and arms to the rebels, calling the capture of the town an "overt declaration of war." The government claims that every day pick-up trucks from Guinea are supplying the rebels with weapons. No casualty figures were immediately available, but as many as 30,000 civilians have fled the region because of the fighting.
Macedonia - Albanian Rebels
- Clashes between Kosovo-based militants and the Macedonian army left three soldiers dead, CNN reported on 5 March. The soldiers were killed in Tanusevci village, and fighting has already spread to the neighbouring village of Malina. As many as 200 insurgents are engaging Macedonian troops, a police official said on condition of anonymity. The rebels are yet to officially state any demands or the reason for starting the fighting, but ever since Macedonia became independent, members of the country's ethnic Albanian minority have been demanding greater rights.
Thailand
- Defence Minister Chavalit Yongchaiyudh said that "international terrorists" could have been behind the 3 March bomb blast that gutted a Thai Airways jet that Prime Minister Thaksin Shinawatra was about to board, BBC reported on 5 March. Investigators said the bomb contained a military grade plastic explosive. A Thai Airways steward was killed and seven other crew and ground staff were injured in the explosion. The Boeing 737 was due to fly with 149 passengers to the northern city of Chiang Mai, including the prime minister, his son and 20 government officials.
United States
- The US Supreme Court on 5 March turned aside a free-speech challenge to a ban on donation of money, weapons or other tangible support to foreign groups designated by the government as terrorist organisations, AP reported on 5 March. The court, without comment, rejected arguments that the law creates "guilt by association" and bans aid even for lawful activities by such organisations. The measure is part of the 1996 Antiterrorism and Effective Death Penalty Act and was designed to cut off support from within the US for foreign terrorism. The law was challenged by two US citizens and six domestic organisations, including the Humanitarian Law Project.
Jane's World Airlines
AMERICAN AIRLINES OFFERS US$500 MILLION TO PURCHASE SUBSTANTIALLY ALL
THE ASSETS OF TRANS WORLD AIRLINES
American Airlines has submitted a bid of US$500 million to the US Bankruptcy Court to purchase substantially all the assets of Trans World Airlines which includes the assumption of TWA's facility and aircraft leases. TWA has been operating under Chapter 11 of the Bankruptcy Code since 10 January, 2001 when American publicly announced its proposal. Included under the terms of the proposal, AA would assume most of TWA's aircraft leases or debt on approximately 175 aircraft, including MD-80s, Boeing 757s and 717s. It would also continue TWA's hub operations in St. Louis.
Two other bidders for TWA include Jet Acquisitions Group of Phoenix,
Arizona who bid US$889 million plus assumption of liability for substantially all of the assets and Galileo International, LLC with a bid for US$220 million for the Worldspan stake only.
ATLANTIC COAST AIRLINES HOLDINGS HAS ENTERED INTO AN AGREEMENT WITH
UAL CORPORATION
Atlantic Coast Airlines Holdings, Inc, the parent company of Atlantic Coast Airlines, Inc and Atlantic Coast Jet, Inc, has announced that it is to acquire, through subsidiaries, the three regional airlines that are currently wholly-owned by US Airways Group, Inc. The three carriers are Allegheny Airlines, based in Harrisburg, Pennsylvania, Piedmont Airlines, headquartered in Salisbury, Maryland and PSA Airlines located in Vandalia, Ohio, all in the USA. The acquisition is subject to regulatory approvals and termination rights by UAL. It would also be contingent upon, and occur at the same time, as closing of the proposed United/US Airways merger. During the period from closing until an agreement is reached on the ultimate purchase price, the three carriers would operate with their own management structures as separate subsidiaries of Atlantic Coast. The three carriers will execute United Express contract flying agreements with United at closing, in a form to be agreed. Certain services currently provided to the three carriers will continue.
CATHAY PACIFIC ADDS FURTHER AIRCRAFT
Cathay Pacific, based in Hong Kong has committed to lease three new Airbus A340-600 aircraft from International Lease Finance Corporation (ILFC). The aircraft, powered by Trent 556 engines, are scheduled to be delivered in 2002 and 2003. The airline previously took delivery of a new A340-300, in January 2001, and also two Boeing 747-400 aircraft. In addition to the new A340-600 orders, Cathay has added agreements to its existing orders for three A340-300s and one A330-300.
The fleet currently consists of Boeing 747-200F, B747-400 (including freighter versions), B777-200, B777-300, Airbus A330-300 and A340-300.
Cathay recently ordered a Learjet 45 business jet, with an option to purchase a second. The aircraft will be used for advance pilot training. During 2000, Cathay recruited over 200 pilots.
In 2000, the airline recorded total operating revenues of HK$34,523 million verses 1999 revenues of HK$28,702.
CONTINENTAL AIRLINES TO INAUGURATE DAILY FLIGHTS TO MONTEGO BAY AND
KINGSTON, JAMAICA
Continental Airlines has announced it will inaugurate a daily flight from New York to Montego Bay and Kingston, Jamaica, beginning 13 December 13, 2001, subject to government approval. These additions would bring the total of Latin American and Caribbean destinations to 49. The flights will be operated with Boeing 737-800 aircraft.
FINNAIR TO INAUGURATE NEW SERVICE TO HONG KONG
Finnair is to inaugurate a new flight between Helsinki and Hong Kong on 7 February 2002. Finnair, a member of the oneworld alliance, operates to Bangkok, Beijing, Singapore and Tokyo within its Asia network. The airline also operates domestic, European and US destinations.
For its financial year (April - December 2000), the airline recorded a total operating revenue of EURO 1,259.3 million, verses EURO 1,638 million for the period April 1999 - March 2000.
WESTJET ANNOUNCES ADDITION OF FIRST BOEING 737-700 AIRCRAFT
WestJet Airlines announced on 1 March 2001 its plans for the addition of its first two New Generation Boeing 737-700 aircraft to scheduled service. The first new aircraft will be added from 1 July 2001 and the second from 3 July 2001. WestJet has a fleet of 23 Boeing 737-200 aircraft and will take delivery of four new generation 737-700 aircraft during 2001.
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