No; but signed a "Plan of space collaboration activities for European Co-operating State" with ESA on 24 November 2004

Technology Centre AS CR
Mr J. Fuchs
Rozvojová street 135
CZ-16502 Prague 6
Tel: +420 2 20390727
Fax: +420 2 20922698
E-mail: fuchs@tc.cas.cz
www.tc.cz

Aeronautics sector:

The Czech aeronautics sector is based on a very long industrial tradition and is relatively important in the national economic context. The Czechs have a long industrial history of producing high quality aircraft and heavy equipment, as well as sophisticated technologies for radar. Aeronautics is considered to play a strategic role in the Czech economy and the government has always been actively involved in sustaining the local industry. This has been especially the case for the research base in aeronautics, which not only has preserved its capabilities but also gradually increased over the last years its resources in terms of employees.

Local companies perform very little research activity but actively interact with national research institutions. Local research institutions in aeronautics however, offer first class research capabilities and are tightly networked in research programs and institutional agreements.

The industry still accounts for some State owned companies and State orders are very important for the national industry. Nevertheless, an extensive privatisation process is taking place and foreign investors have been increasingly interested in the country.

Most of aerospace research activities are concentrated in VZLÚ, a.s. (Aeronautical Research and Test Institute in Prague) and in IAE (Institute of Aerospace Engineering in Brno).

Together with Poland, the Czech Republic is a major aerospace power which joined the EU in May 2004. Talks on funding a new strategic partner were reported to be under way at the start of the year with BAE Systems and Airbus.

Space sector:

Space exploration and research have a long tradition in the Czech Republic. The INTERKOSMOS 1, launched on 14 October 1969, was the first satellite carrying instruments developed in the former Czechoslovakia. Several dozens of Czech instruments and systems have been employed during the following twenty years in the subsequent INTERKOSMOS and Soviet space projects containing near Earth environment investigations and planetary missions as well.

Vladimir Remek spent six days on board of the Salyut 6 orbital station.

Space research activities include the development of micro-accelerometers, spectrometer for measuring hard x ray emissions, measurements of near earth surface plasma, materials and medical research.

The Czech Republic is a member of INTERSPUTNIK (from 1972), INTELSAT (1992), EUTELSAT (1992) and a stockholder of INMARSAT Ventures plc (2000). The Czech Republic, teamed with Hungary and Poland, is involved in preparation of a geostationary communication satellite for direct digital television and radio transmission for the Central European region.

The Czech Republic is getting ready to participate in a significant European GALILEO project. In 2001, the Ministry of Transport awarded 2.3 Million Euro, six-year contract to develop several applications in air, rail and road transport based on advanced possibilities of GALILEO system.

In November of 1996, the Czech Republic signed the Intergovernmental Agreement on Co-operation with ESA. In the following years, 10 experimental projects were carried out within the frame of this agreement. The PECS agreement was signed on 24 November 2003 in Prague. For minimum of one million Euro per year, Czech institutions can bid for and be a part of the European space projects.

The Ministry of Education, Youth and Sports of the Czech Republic is responsible for space activities in the country on governmental level. Ministry's decisions on space rely on recommendations of its advisory body - the Czech Board for Space Activities. The administration and management of space projects is the responsibility of the Czech Space Office (CSO). The CSO is a non-profit organisation supporting development of space related activities in the Czech Republic. The office manages PECS projects, communicates with ESA and other national space agencies, represents the Czech Republic in the International Astronautical Federation (IAF), supports to the Czech delegation in the Committee for Peaceful Uses of Outer Space of the United Nations and is a member of EURISY. CSO organises seminars and workshops in various space themes.

Defence/Security sector

The country has begun a sweeping overhaul of its armed forces to create a smaller but more mobile force to support NATO operations. It has plans to increase defence spending this year to $1.8 billion - around 1.9% of GDP. The country, like Hungary, has opted to lease Gripen fighters from BAE Systems/Saab. With offset contracts reported to be worth around 150% of the value of the contract over 10 years, one of the major beneficiaries of the deal should be Aero Vodochody, the troubled Czech manufacturer of advanced trainers and regional passenger aircraft. Until recently the firm had sought partnership deals with U.S., rather than Western European, companies.

The structure and ownership of major firms within the Czech defence sector are still going through a major transition. Many of these companies are looking for an injection of western technology and direct foreign investment to bring them in line to compete on an equal basis with their western counterparts. Czech companies are therefore seeking foreign partners to help them enter new western-style markets with competitive products.

Top modernization priorities of Ministry of Defence acquisitions in the next five years are Command, Control, Communication, Computer and Intelligence (C4I) systems integration and the upgrade of air defences.

Current Czech law prohibits government-to-government sales. Therefore, third party organizations are used to execute a purchase. These trading companies are required to have licenses. The responsibility for issuing licenses is shared by the Ministry of Foreign Affairs, the Defence Ministry, the Ministry of Interior and the Ministry of Industry and Trade.

There are more than 100 licensed military trading companies in the Czech Republic.

European manufacturers Mirage (France) and British Aerospace/Saab (Sweden), and their respective governments, are actively marketing advanced aircraft to the Czech Republic as well as to Poland and Hungary. Israeli's Nimda is participating in the project of T-72 modernization.

Since the Czech Republic was founded in 1993, the U.S. has played a leading role in helping the Czech military transition to NATO compatibility. Programmes such as the Warsaw Initiative and Foreign Military Sales (FMS) include advisory assistance for restructuring as well as funds for acquisitions.

After Boeing in 1998 made the investment of 35% ($39.5 million) ownership of Aero Vodochody, other U.S. companies, such as AlliedSignal and the former Rockwell-Collins, invested in the L-159 development project. After contracting for the sale of 72 of these aircraft to the Czech Air Force, this international consortium is actively pursuing sales in Western Europe, former Soviet bloc countries, Africa, Asia and South America.

U.S. company Allison was contracted as a supplier of transmissions for T-72 tank modernization. U.S. company Novus Holding acquired a 75% share in the Czech company Walter, a turboprop engines manufacturer.

In October 2004, the Czech government announced it would buy back the 35% stake held by Boeing in Aero Vodochody, following a dispute between the two sides over loan guarantees. Sales of the company's L-159 trainer/light combat aircraft-which features around 50% U.S. content by value-have not matched expectations, and production has ceased. Now the future of Aero Vodochody could well depend on Gripen offset agreements. In December 6, 2004 the Czech government has bought the Boeing stake in the company. Since that time the state is again the majority owner of the Aero Vodochody,

Aero Vodochody was awarded a seven-year contract worth $230 million by Sikorsky Aircraft. The contract involves the production of the S-76C helicopters, and includes the production and sub-assemblies of more than 100 units. Production started in November 2000.

In 2003, Aero Vodochody made a profit of 313 million CzK, but on top of heavy losses in previous years. The manufacturer is now making money predominantly from modernisation of its L-39 Albatros jet trainer, which it sold to countries including Algeria and Tunisia in the 1980s and 1990s. The Ae270 is in development.

The most promising seems to be the branch of the radar production and technology in the Czech Republic mainly in the connection with the building of the NATO AGS system where the consortium of EADS and Northrop Grumman (TIPS) is a major favourite in obtaining the contract. The Czech consortium in this bid is lead by the company Mesit P?ístroje from Uherské Hradišt?. Members of the consortium are also Aero Vodochody (Prague), Terex-Tatra (Kop?ivnice), Ray Service (Kunovice), ERA (Pardubice) etc. But this project is still opened and was not officially issued.

2000

• Auxiliary Power Units
• Blades, Turbine Engine
• Engine (Jet) Airstart Systems
• Engines, Gas Turbine

• Landing Gear
• Landing Gear Controls
• Shock Absorbers/Mounts
• Machine Parts, Precision
• Machine tools
  

• Fairings
• Composites, Manufacturing Services
• Non-destructive Testing Equipment
• Certification Services
• Instrument. / Measuring systems
• Machine tools
  
• Safety management
• Tools / Dies

• Fuel Control Systems
• Measuring Equipment
• Monitoring Equipment & Systems
• Non-destructive Testing Equipment
  

• Altimeters
• Avionics Equipment
  
• Gyroscopes
• Warning Systems/Equipment
  

• Ground Station Equipment
  
• Recorders
  
• Avionics Equipment
  
• Computers, Air Data

• Coatings,
  Metal & Alloy Forgings
• Metal Treatment
• Instruments, Testing
  

• Air Traffic Control Systems
• Antennas
• Navigation Systems
  
• Radar
  
• Electronics
  
• Sensors / Signal processing
  

Karlovo nám. 13
121 35 Prague 2
Václav Brož, Prof.Dr.Ing.
E-mail:
brozv@fsik.cvut.cz