AIR FORCE REVITALIZING ITS RECONNAISSANCE CAPABILITIES, AVIATION WEEK & SPACE TECHNOLOGY REPORTS.

NEW YORK--(BUSINESS WIRE)--January 6, 1995--Aviation Week & Space Technology reports in its January 9th edition that the U.S. is poised to begin revitalizing its tactical reconnaissance capabilities this year with the introduction of several new unmanned air vehicle (UAV) systems, one of which the CIA is already operating over Bosnia, and the reactivation of manned SR-71s on a limited basis.

Air Force officials predict that 1995 will be the year they begin learning to operate with reconnaissance UAVs.

Tactical reconnaissance was targeted after Desert Storm as one of the major areas needing improvement and the U.S. military has been steadily moving to field new systems despite technical problems and budgetary constraints.

After years of skepticism among operational users, however, UAVs are finally overcoming the cultural barriers that slowed their acceptance. Indeed, the Pentagon's joint-service Tier 2 long-endurance UAV program is now ready to deploy a contingency force. The CIA's Tier 1 UAV program overcame technical delays, and is now conducting flights from a new base on Brac Island, Croatia, about 90 air miles from the Bosnian capital of Sarajevo.

The current issue also details the following:

-- ATR Decision Pending: FAA officials will make a decision next week whether installation of new wing deicers on ATR aircraft is justification to modify or rescind an airworthiness directive prohibiting flight by ATR aircraft in icing conditions.

The directive, which was issued December 9, 1994, effectively canceled winter flight operations by ATR42/72 aircraft, and forced regional operators to shift their fleets to warmer climates in the southern U.S.

After completing a series of icing flight tests at Edwards AFB, Calif. last month with an ATR72, a team of Avions Transport Regionale (ATR) officials presented their case to the FAA to modify or rescind the directive. A key facet of the company's proposal is the installation of a redesigned, wider pneumatic deicer.

If the new deicers are accepted by the FAA, the agency probably will require additional flight testing to verify their effectiveness, an FAA official said.

-- U.S. Aerospace Sales Down; Profits Up in 1994: U.S. aerospace sales declined for the third consecutive year to $113 billion in 1994, as fewer orders for military, civil, space and missile equipment accelerated a downward spiral in employment.

In terms of profit, 1994 was a record year. Net profit rose $612 million to $5.2 billion, although that figure lagged behind overall U.S. manufacturing as a percentage of sales, assets and equity, Aerospace Industries Association officials said.

Last year's $11 billion overall decline in aerospace sales was spurred chiefly by a $7.5 billion decrease in the number of civil aircraft produced and the consequent reduction in spare parts manufactured. Together, sales in both sectors fell 22% to $26 billion, according to the AIA.

-- Passenger, Freight and International Traffic Up in '94: Passenger traffic increased 5% in 1994 and freight traffic was up 12% overall as the world's air carriers recovered to more typical rates of growth than those experienced immediately following the Persian Gulf War.

Chris Lyle, chief of the International Civil Aviation Organization's economics and statistics branch, said he expects to see a fairly consistent growth pattern over the next 2-3 years before any slow down might occur. The results for 1994 were pretty much as anticipated by ICAO forecasts, but international traffic growth did exceed expectations a bit. Lyle characterized 1994 as a "cautious good news scenario." But, the world's airlines are still dealing with a heavy debt service load.

Aviation Week & Space Technology, published by McGraw-Hill, is the world's leading journal for technology, business and operations in the global aviation, aerospace and defense industries.

NOTE: Aviation Week & Space Technology is sponsoring "Aerospace Finance 2000," a global aerospace/defense industry financial conference on April 3 - 5, 1995. The conference has already attracted key executives from industry and government, including Northrop Grumman Corp., Airbus Industries, Litton Industries, Martin Marietta Corp, Boeing, Pratt & Whitney, as well as senior financial analysts, investment fund managers and members of the military services.

CONTACT: Aviation Week

Eileen Gabriele, 212/512-3852