Aviation Week & Space Technology

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Air Force Aero Vodochody L-39 (4) Mikoyan MiG-25 (1) Mil Mi-2 (9) Mil Mi-24K (2) Mil Mi-24P (8) Mil Mi-24R (2) Mil Mi-8 (11) Mil Mi-9 (2) Sukhoi Su-25 (5) Sukhoi Su-25K (9) Sukhoi Su-25UBK (1) Yakovlev Yak-52 (16)

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Air Force Beech E90 (1) Bell Helicopter Textron UH-1H (7) Boeing 707-321B (1) British Aerospace 125-400 (1) CASA C-212-200 (4) CASA C-212-400 (1) Cessna 185 (1) Cessna 210 (1) Cessna 402B (2) Cessna 402C (1) Cessna U206C (4) De Havilland Canada DHC-6-200 (1) Embraer EMB-312 (3) Embraer EMB-326GB (5) Enaer T-35 (5) Helicopteros do Brasil HB 35 (3) Neiva T-25 (6)

Michael A. Taverna (Paris)
With prices high, capacity tight and a new production/launch setup firmly in place, Arianespace is girding for faster growth, provided external factors do not conspire to perturb the market. The Paris-based launch service company landed contracts for 12 spacecraft in 2006, up from nine the year before. And with demand for communications satellites likely to remain healthy, Arianespace hopes to do as well again this year. Last week, the company announced the first order for 2007, from the U.S.-based broadcasting ProtoStar (see p. 422).

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DEPARTMENTS Letters 398-399 Who's Where 400-401 Industry Outlook 403 Airline Outlook 404 In Orbit 405 News Breaks 406-409 Washington Outlook 411 A European Perspective 430 Contrails 437 Classified 439-440 Contact Us 442 Aerospace Calendar 443 MARKET FOCUS Unlike U.S. issues, European A&D stocks underperformed market in '06 402 NEWS BREAKS

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Air Force Antonov An-26 (2) Antonov An-32 (2) Mikoyan MiG-21 (1) Mil Mi-24 (5) Mil Mi-8 (5) Mil Mi-8PS (1)

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Air Force Airbus ACJ (1) Alenia/Aermacchi/Embraer AMX A1A (42) Alenia/Aermacchi/Embraer AMX A1B (11) Beech 90 (1) Bell Helicopter Textron 206B (3) Bell Helicopter Textron UH-1H (44) Boeing 707-320C (3) Boeing 737-200 (2) British Aerospace HS 125-400 (13) Cessna 208A (8) Cessna 208B (10) De Havilland Canada DHC-5 (13) Embraer EMB-326 (24) Embraer EMB-110 (59) Embraer EMB-110B (5)

Larry Dickerson (Forecast International)
Anyone doubting the importance of the tactical missile market on corporate bottom lines need only look at Forecast International's latest estimate of the market's production value over the next five years: $30 billion. Dominating this arena will be American and European companies caught up in a tight race for market share. Indeed, over the next five years these companies will account for 54% of the worldwide market, or a total value of $16.2 billion. Russian missile production will add another $2.95 billion.

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Eaton Center, 1111 Superior Ave. Cleveland, OH 44114, USA Tel: (216) 523-5000; Fax: (216) 523-4787 www.eaton.com

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40 Westminster St. Providence, RI 02903, USA Tel: (401) 421-2800 Fax: (401) 421-2878 www.textron.com

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1190 W. Rawson Ave. Oak Creek, WI 53154, USA Tel: (414) 570-2300; Fax: (414) 570-1441 www.midwestexpress.com

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Air Force Antonov An-26 (1) Bell Helicopter Textron UH-1H Huey II (6) Mikoyan MiG-25 (16) Mikoyan MiG-29 (40) Mikoyan MiG-31 (40) Mil Mi-24 (20) Mil Mi-26 (12) Mil Mi-8 (22) Sukhoi Su-24 (25) Sukhoi Su-25 (14) Sukhoi Su-27 (25) Tupolev Tu-134A (3) Tupolev Tu-154 (2)

Michael A. Taverna (Paris)
Thales's homeland security activity stands to grow nearly 50% following the acquisition of critical information and transportation system business lines from Alcatel-Lucent. Thales shareholders approved the €1-billion ($1.3-billion) purchase, along with the issuance of €25 million in new shares to pay for it, on Jan. 5. The €40 per-share issue will more than double Alcatel-Lucent's holding in Thales, to 21%, while diminishing the French government's ownership four points, to 27.3%. The free float will also fall 6%.

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Rep. Thomas Petri (R-Wis.) has been selected as ranking Republican on the House Transportation and Infrastructure aviation subcommittee. Petri's district includes Oshkosh, home of the Experimental Aircraft Assn. Washington insiders expect he will be sympathetic to general aviation's needs.

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Compiled in cooperation with Forecast International Inc. For more information, contact Forecast International, 22 Commerce Road, Newtown, CT 06470 USA. www.forecastinternational.com; phone +1 (203) 426-0800; e-mail [email protected]

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Compiled in cooperation with Robert V. Dahl, Air Cargo Management Group/CARGO FACTS. For more information, the Air Cargo Management Group can be contacted at 520 Pike St., Suite 1010, Seattle, Wash. 98101. Phone: +1 (206) 587-6537, fax +1 (206) 587-6540. Website: www.cargofacts.com; e-mail: [email protected]

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Air Force Aermacchi AL-60 (6) Eurocopter AS350B (1)

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Air Force Eurocopter AS350B (1) LET L-410UVP (2) Police Cessna 402 (1) SIAI-Marchetti SF.260C (2) SIAI-Marchetti SF.260W (3)

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Air Force Bell Helicopter Textron 206B (5) Bell Helicopter Textron 212 (10) Bell Helicopter Textron 214ST (1) Eurocopter BO 105CB (6) IPTN CN-235 (1) Pilatus PC-7 (4) Sikorsky S-70A (4) Sikorsky S-70C (2)

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At least nine suitors are said to be lining up to acquire troubled Mexican satellite operator Satmex, which emerged from Chapter 11 on Nov. 30. According to local sources, the interested companies include Echostar, Eutelsat, Intelsat and Loral, which already has a 2% stake in Satmex, as well as Grupo Medcom, a partner in SES Global's Mexican affiliate Quetzsat, and SES Global itself. Private equity firms like KKR were also named. Satmex officials estimate the sale, to begin in late January or early February, could fetch up to $500 million.

Edited by Frank Morring, Jr.
NASA hopes to launch its first crew into space on an Orion crew exploration vehicle in October 2013, only slightly ahead of the 2014 deadline President Bush set for Orion's first piloted mission. The agency had been trying to hold open the possibility of a first flight in 2012 (AW&ST July 24, 2006, p. 54). But a new draft request for proposals for production of the Ares I crew launch vehicle's upper stage shows the longer gap between the final space shuttle mission in September 2010 and the first Orion mission.

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The European Regions Airline Assn. has prevailed in a dispute with the EC over information on air passenger rights. The lobbying group had charged the EC with disseminating inaccurate information, which gave rise to passenger claims against airlines. The European ombudsman sided with the association, arguing that the EC should apologize for the problems.

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Compiled in cooperation with Richard Pettibone/Forecast International Inc. For more information, contact Forecast International, 22 Commerce Road, Newtown, CT 06470 USA. www.forecastinternational.com; phone +1 (203) 426-0800; e-mail [email protected] Russian company data provided by Alexander Velovich, Forecast International's Russia-based correspondent

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PO Box 41, Ben Gurion International Airport 70100 Tel Aviv, ISRAEL Code: LY Employees: 5,417 www.elal.com Tel. (972-3) 971-2333 Fax (972-3) 629-2312 Ownership: 40% Knafaim-Arkia Holdings; 30% state; 30% private investors Executive Management CEO Haim Romano VP Finance Nissim Malki

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PO Box 727 Memphis, TN 38194, USA Tel: (901) 369-3600 www.fedex.com