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A monthly round-up of space industry developments for the
information of our clients and friends.
MDA to Acquire Space Systems/Loral
On June 26, Canada's MacDonald, Dettwiler and
Associates Ltd. (MDA) and Loral Space and
Communications Inc. (Loral) announced the acquisition
by MDA of wholly-owned Loral subsidiary Space
Systems/Loral (SS/L) for $875m in cash. The addition
of a U.S.-based prime satellite manufacturing business to MDA's
existing surveillance, intelligence, communications and advanced
technology divisions will help achieve MDA's stated desire to
increase its U.S. market presence and diversify its business.
Following consummation of the transaction, which remains subject to
regulatory approvals and closing conditions, MDA will have combined
annual revenues of $1.9b (2011) and a combined backlog of $2.8b (as
of March 31, 2012).
June Satellite Orders
June 24 –
Space-Communication Ltd. (Spacecom)
announced the selection of Israel Aerospace Industries
Ltd. (IAI) to manufacture the
AMOS-6 satellite. IAI has in turn
selected MDA to provide the satellite's communications payload.
AMOS-6 will replace the AMOS-2 satellite
at 4°W following its launch in 2014 or 2015.
June 25 – Hispasat
S.A. announced its procurement of the
Amazonas 4A and Amazonas
4B satellites from Orbital Sciences
Corporation (Orbital). Both satellites will be based
on Orbital's GEOStar platform and
will be used to provide enhanced coverage of South America, from
61°W. Amazonas 4A, scheduled for launch in early 2014, will
carry 24 Ku-band transponders. The design details of Amazonas 4B,
which will be based on a new, higher-power version of the GEOStar
platform and launched in 2015, have yet to be determined.
CIC Purchases Eutelsat Stake from Abertis
On June 22, China Investment Corp.
(CIC) agreed to purchase a 7% stake in Eutelsat
Communications S.A. (Eutelsat) from
Abertis Infraestructuras S.A. (Abertis)
for $438m. The sale leaves Abertis with a 8.35% stake in the
company, having earlier this year sold a 16% stake in Eutelsat in a
private placement. CIC has agreed not to dispose of its newly
acquired shares until the end of the 6 month lock-up period to
which Abertis agreed in its previous sale.
Ex-Im Bank Loans for NewSat and Vietnam
On June 18, NewSat Ltd. (NewSat)
announced that it received preliminary approval from the
U.S. Export-Import Bank (Ex-Im) for a
$280m direct loan to finance the Jabiru-1
satellite. According to NewSat, this loan, together with an
expected $100m loan to be supported by French export credit agency
Compagnie Française d'Assurance pour le
Commerce Exterieur, will fully fund the manufacture
and launch of Jabiru-1. As a condition for its export credit agency
loans, NewSat must raise $200m in new equity. Jabiru-1, which is
being built by Lockheed Martin Space Systems
Company, will be launched in 2014 by
Arianespace S.A. On June 26, U.S.
President Barack Obama issued a Presidential Determination to
permit a $125.8m direct loan by Ex-Im to Vietnam Post
and Telecommunications Group to finance the
procurement of the Vinasat-2 satellite
from Lockheed Martin. Ex-Im's charter
requires a waiver from the President in cases involving a loan of
more than $50m to a Marxist-Leninist country. Both the NewSat and
Vietnam loans will be subject to a mandatory 35-day Congressional
review period before final approval.
Eutelsat to Acquire GE-23
Eutelsat announced on June 19 that it will establish a presence
in the Asia-Pacific region with the acquisition of the
GE-23 satellite, associated customer
contracts and orbital rights from GE
Capital for $228m. Based on the Thales
Alenia Spacebus 4100 platform and equipped with 20
Ku-band and 18 C-band transponders, GE-23 was launched in 2005 and
operates at 172°E.
June Launch Services Orders
June 20 – Arianespace
S.A. and EADS Astrium
(Astrium) of France announced a contract for the launch of the
DZZ-HR optical Earth observation
satellite, currently being manufactured by Astrium for the
government of the Republic of Kazakhstan,
on the Vega launch vehicle in the second
quarter of 2014.
June 22 – International
Launch Services (ILS) announced a contract with
Asia Satellite Telecommunications Co.
Ltd. for a single launch service on the
ILS Proton launch vehicle as early as
2014. The launch service may be used for either AsiaSat
6 or AsiaSat 8 (both
currently being built by SS/L) or its planned AsiaSat
9 satellite.
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Missouri Senators Clare McCaskill and Christopher Bond, concerned about the seniority integration treatment of employees at Trans World Airlines ("TWA") following its purchase by American Airlines and integration of the two airlines' operations and workforce, introduced legislation to guarantee labor protective provisions to airline employees with respect to seniority integration for certain covered transactions.
In a case of first impression, the New York Court of Appeals has held that a court need not undertake a conflicts-of-laws analysis when there is an express choice of New York law in a contract pursuant to New York General Obligations Law §5-1401.
The Department of State and the Department of Commerce are planning to move certain military aircraft, aircraft engines, and specially designed aircraft parts and components off of the U.S. Munitions List.
The European Union Emissions Trading System faced serious international opposition in 2012 for seeking to include carbon emissions from flights into and out of the EU under the ETS regulatory umbrella.
The United States Federal Maritime Commission (FMC) has issued a Notice of Proposed Rulemaking under which foreign unlicensed Non-Vessel Operating Common Carriers (NVOCCs) will be allowed to register with the Commission and begin using Negotiated Rate Agreements (NRAs) with their shippers.
