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Bell's AH-1Z has made its maiden flight, but the avionics are problematic
PAUL LEWIS/WASHINGTON DC
T
HE US MARINE Corps' Bell
AH-1Z/UH-1Y modernisa-
tion programme is facing a 12
month production slippage as the
result of a $100 million cost over-
run, and protracted delays in
Litton Industries completing the
helicopter's new Integrated
Avionics System (IAS).
Litton was contracted by Bell in
1997 to supply the upgraded H-1 's
mission and weapons computers
and integrate the helicopter's
avionics suite. What was intended
to be an 18-month effort has
already stretched to more than
three years, and will require
between 12 and 18 months more to
complete, sources say.
Poor management is blamed
rather than technical complexity of
the IAS, which is described as a
low/medium level effort involving
around 300,000 lines of code.
There has since been a shake-up at
Litton, with IAS project responsi-
bility transferred from its Guid-
ance and Control group to a new
Integrated Systems Division.
"We recognised there have been
difficulties and that's why we've
taken action to re-organise and
form new management teams to
deal with this programme and oth-
ers," says Litton. It has had similar
problems delivering an integrated
avionics suite for Australia's Kaman
SH-2G(A) Super Seasprite.
Bell is putting pressure on Litton
to cut costs and deliver by issuing a
new request for information (RFI)
to augment the IAS development
effort which states: "Options range
from providing point hardware
and/or software solutions to over-
all integration management of
subcontractors."
The IAS has contributed to a
"significant proportion" of the
H-l's $100 million budget over-
run," says an official. The USMC,
as a result, is faced with having to
delay the start of low rate initial
production (LRIP). It had planned
to seek funding in the next fiscal
year (FY) 2002 budget for the first
five machines, followed by a second
LRIP purchase of 17 in FY2003.
This may slip by a year, and the
quantities of helicopters involved
may change. The USMC does not
anticipate a delay to the AH-lZ's
initial operation capability (IOC)
date of late FY2006, having built
into the programme an 18-month
cushion. The UH-lY's earlier
FY2005 IOC will, however, slide a
year to around the same date as the
attack helicopter.
IAS delays did not affect the 7
December first flight of the lead
AH-1Z test helicopter, which will
be employed for structural work
and envelope expansion. The criti-
cal machine for avionics testing is
the UH-1Y, the first flight of which
is now due late next year.
This is dependent upon Litton
delivering hardware and a final
software load by next August. J
C a s h b o o s t f o r S A ir's p l a n n e d A ir F r a n ce r i v a l
S
AIRGROUP and Taipbout
Antibes have agreed to recapi-
talise the three loss-making French
airlines - AOM, Air Liberte and
Air Littoral -acquired with the aim
of creating France's second largest
airline group. Paul Reutlinger, the
new group's president, aims "to go
head-to-head with Air France".
The merger has been jeopar-
dised by the poor financial perfor-
mance of the three, and by strike
threats from unions.
The Fr2 billion ($270 million)
funding is to be split equally bet-
ween SAir and Taitbout, owners of
4 9% and 51 % of the new entity.
Reutlinger has told unions the
three will have a common com-
mercial identity and a new name
and livery "early nextyear" and that
they will be fully merged by the end
of the year. Air Liberte and AOM
have already combined their
domestic shuttle operations.
Reutlinger has meanwhile con-
finned that the lease of at least eight
Airbus A3 20s, for delivery next
year, is being studied to begin
replacement of 16 Air Liberte/Air
Littoral Fokker 70/100s, which he
says have "operating disadvan-
tages", and 23 Air Liberte/AOM
Boeing MD-80s, which would
require "heavy modification" to
operate after 2005. He says the aini
is to build "a unified, harmonised
fleet around Airbus products".
A third A34 0 has been delivered
to AOM from Flightlease, while
the overall requirement has been
increased from six to eight. J
L o a d m a s t e r lif e lin e
a s A y re s f l o u n d e r s
E
NGINEERING WORK on
the Loadmaster cargo aircraft
has been restarted after Ayres filed
for Chapter 11 bankruptcy protec-
tion and received interim financing
from major creditor GATX.
Albany, Georgia-based Ayres
entered Chapter 11 in late Nov-
ember, burdened by debts incurred
developing the Loadmaster.
GATX Capital has provided an ini-
tial infusion of debtor-in-posses-
sion (DIP) financing to allow work
on the aircraft to resume, says new
chief executive Russ Heil.
An interim agreement has been
reached allowing Czech manufac-
turer LET to resume engineering
work on the Loadmaster, Heil says.
LET, owned by Ayres, was forced
into bankruptcy in October. The
Czech company will finish design-
ing the aircraft and will plan the
flight test programme. Work has
been stopped for several months,
after Ayres ran out of money.
Ayres, meanwhile, is launching
efforts to find new equity investors.
"To properly recapitalise the com-
pany, we need $80 million to
resolve the debts and provide funds
to see the Loadmaster into produc-
tion," Heil says. Key to this is the
continued commitment of launch
customer FedEx, which has 7 5 firm
orders and 275 options for the
Loadmaster. "We [GATX] would
not be involved unless FedEx still
wanted it," says the ex-Delta
Airlines and IPTN executive.
The goal is to fly the Loadmaster
in the third quarter of next year and
begin deliveries in the "first or sec-
ond quarter of 2003", Heil says.
This is four years behind schedule.
"Ayres took on a programme
that was beyond the resources of
the company," he says. In return for
DIP financing from GATX, owner
Fred Ayres has agreed to give up
control of the company but will
continue in a marketing and sales
role, Heil says.
Ayres hopes to emerge from
Chapter 11 within six months. The
financial restructuring could also
involve LET, Heil says, and will
require resolution of a lawsuit filed
against Ayres by US start-up carri-
er Pan Pacific Airways over an
unfulfilled order for four LET
L-4 20 regional turboprops. J
FLIGHT INTERNATIONAL 12 - 18 December 2000 7