March 10, 1997

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HEADLINE NEWS

McPeak, Hecker Head ‘Space-Plane’ Project

DENER The appointment of a former U.S. Air Force chief of staff as board chairman of Pioneer RocketPlane Corp. is expected to accelerate financing and elevate the credibility of the start-up company’s air-refuelable space launch vehicle program.

By WILLIAM B. SCOTT

HEADLINE NEWS

Small-Supplier Issues Move to Center Stage

NEW YORK Lower-tier U.S. aerospace suppliers— frequently at the mercy of large customers’ dictates—finally may have an effective vehicle for resolving operating problems that threaten their survival. Washington-based Aerospace Industries Assn, has formed a Supplier Management Council to provide a forum for vendors and prime manufacturers to address these problems, which at times have strained customer-supplier relationships.

By ANTHONY L. VELOCCI

HEADLINE NEWS

ESA Sets Revamped Industrial Policy

PARIS In an effort to boost efficiency in a tight budget environment, the European Space Agency is scheduled to implement more flexible contract rules. In addition, a revised strategic plan will be completed during the second quarter of 1998.

By PIERRE SPARACO

HEADLINE NEWS

Atlas Poised to Launch Powerful Tempo Satellite

CAPE CANAERAL The first Space Systems/Loral Tempo direct broadcast satellite—the most powerful commercial communications spacecraft ever built—was being readied for launch here on an Atlas 2A booster late last week after two countdowns were canceled because of a problem with the booster and a groundbased telemetry system for the satellite.

By CRAIG COVAULT

HEADLINE NEWS

Greater Airline, Military Sales Boost Rolls’ Revenues 24%

LONDON Aerospace sales at Rolls-Royce rose by 569 million pounds ($921.8 million) in 1996, a 24% increase over the previous year, reflecting the turnaround in the civil aviation market and more stability in the military sector. But charges of 263 million pounds ($426 million) related to the company’s steam power generation businesses, which are up for sale, undercut pretax profits of 235 million pounds ($380.7 million) to create a 28-million-pound ($45.4-million) loss for the year.

By JOHN D. MOROCCO

HEADLINE NEWS

U.S. Panel Warns Against Defense Cuts

LONDON A Parliamenttary committee has warned against further cuts in U.S. military spending, noting the defense budget is already stretched thin and funding peaks for several major new equipment programs will converge soon after the turn of the century.

By JOHN D. MOROCCO

HEADLINE NEWS

United Settles With Unions

Cincinnati United Airlines settled last week with union leadership of its pilots and mechanics groups, offering generous mid-term contract improvements. The carrier still faces its warring flight attendants’ union. The pending contracts set out two wage increases of 5% each, effective this July and in July, 1998.

March 31997

March 171997

March 10, 1997

March 10, 1997

United Pay Hike Sets Tone For Upcoming Contracts

By JAMES OTT