AlliedSignal Wins Major Contract For British Airways' New Airbus
9 December 1998
AlliedSignal Wins Major Contract For British Airways' New Airbus Family of Aircraft
TORRANCE, Calif.--Dec. 9, 1998--
Agreement To Supply Avionics, APUs, and Wheels and Brakes
Has Potential Long-Term Value of $800 Million
Reinforces AlliedSignal Optimism Regarding Aerospace Sales Growth
AlliedSignal Inc. Wednesday announced that British Airways has selected an extensive package of AlliedSignal Aerospace products and services for its order of new Airbus A319/A320 aircraft.
The agreement has an estimated value of $225 million, with another $575 million in potential long-term value over the operating life of the aircraft.
The products selected include a comprehensive avionics suite, the 131-9 (A) auxiliary power unit (APU) and AlliedSignal's patented-design "convertible" wheels and brakes. Deliveries are to begin in 1999.
"This agreement reinforces our confidence that AlliedSignal will grow its aerospace sales by 7% in 1999 and that the longer-term outlook for the business continues to be strong," said Frederic M. Poses, president and chief operating officer, AlliedSignal.
"AlliedSignal won this contract through a combination of its high-quality, reliable products and aftermarket service capabilities," said Poses. "This agreement is an example of the unique set of solutions and deep sense of commitment that AlliedSignal brings to its aerospace customers. We are delighted by this vote of confidence from British Airways."
Comprehensive Avionics
The avionics for the new British Airways aircraft include:
-- The Enhanced Ground Proximity Warning System (EGPWS), which
provides a terrain display and sounds an audible alert a full
minute in advance of a ground collision (AlliedSignal has the
only certified system of this type in the aerospace industry);
-- The Airborne Collision Avoidance System (ACAS), which displays
surrounding air traffic and provides audible traffic alerts;
-- The RDR-4B weather radar system with AlliedSignal's
industry-exclusive forward-looking wind shear detection system;
and
-- Flight data recorders, cockpit voice recorders and related
hardware and software components.
"We are already working with British Airways to retrofit their existing aircraft with EGPWS, and we're pleased that they now have asked us to supply a comprehensive suite of avionics for their new aircraft, as well," said Gary Glynn, vice president, Sales, Marketing and Business Development for AlliedSignal Aerospace's Air Transport & Regional business.
Auxiliary Power Units (APUs)
British Airways' new Airbus aircraft will be equipped with the 131-9 (A) APU, which will start and operate to 39,000 feet and provide pneumatic (155 lb./min.) and electrical power for the aircraft while in flight or on the ground. The 131-9 series incorporates new technologies and design improvements to increase reliability, maintainability and performance.
"The new 131-9 (A) APU's low cost of ownership and high reliability were key elements in the customer's decision," said Tom Johnson, vice president and general manager of AlliedSignal's Commercial APU business. "AlliedSignal's Raunheim, Germany, workforce will assemble, test and service the 131-9 (A), allowing us to quickly and effectively serve the needs of our Airbus customers and the growing airline fleets in Europe."
Innovative Wheels and Brakes
The British Airways purchase of "convertible" wheels and brakes marks the largest sale of this new wheel and brake system to date. AlliedSignal Aerospace's "convertible" wheel and brake system -- the industry's first -- utilizes a unique system of conversion that allows an operator to choose between carbon and steel brakes depending on their operations.
"Our success is more than just providing great products; it's about providing cost-effective solutions to our customers," said Carl Montalbine, vice president and general manager of AlliedSignal's Aircraft Landing Systems business. "Our convertible brake offers an innovative solution to the problem airlines face when choosing between steel and carbon brakes.
"Now, one product meets both needs by providing cost-effective performance under a variety of operating conditions."
AlliedSignal Aerospace is the largest supplier of equipment, systems and services for commercial transport, regional, general aviation and military aircraft. In Europe, AlliedSignal Aerospace is a leading manufacturer of propulsion engines, APUs, wheels and brakes, avionics, environmental control systems, engine controls and accessories, and power generation and management systems.
Since 1995, AlliedSignal Aerospace has doubled the size of its workforce in Europe. Its 3,000 employees operate from more than 20 locations throughout the region and provide equipment, support and repair services to airframe makers and commercial transport, regional, general and military aviation operators.
The parent company, AlliedSignal Inc., is an advanced technology and manufacturing company serving customers worldwide with aerospace and automotive products, chemicals, fibers, plastics and advanced materials. Its 1997 sales were $14.5 billion.
The company, a component of the Dow Jones Industrial Average, employs 70,500 people at 300 facilities in 40 countries. Fortune magazine recently named AlliedSignal the most admired aerospace company in the world in its list of "Global Most Admired Companies" and one of the "100 Best Companies To Work For."
Information about AlliedSignal is available on the Internet at http://www.alliedsignal.com.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts.