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Star Alliance, Rockwell Collins Sign Strategic Sourcing Agreement; Agreement Is First of Its Kind Between an Airline Alliance
and an Aviation Electronics Supplier
CEDAR RAPIDS, Iowa (August 20, 2002) - Star Alliance, the world's leading airline alliance, has signed an agreement with Rockwell Collins, (NYSE: COL) a global leader
in aviation electronics and communications, to establish a new strategic sourcing relationship. The agreement will provide
Star Alliance member airlines the benefits of common procurement requirements while positioning Rockwell Collins for increased
opportunities.
The agreement, the first of its kind between an airline alliance and an aviation electronics supplier, represents a new way
for suppliers to work with airlines, while presenting substantial cost savings opportunities for the Star Alliance member
carriers.
Initially, Star Alliance and its member airlines will work together with Rockwell Collins to evaluate and define requirements
for aviation electronics products and support services, and determine electronic needs and cockpit configurations for current
and future aircraft. One area already being looked into by the parties as having a potential for consolidated purchase is
new technology flight deck equipment to replace CRT-based instruments in wide-body aircraft.
"Our member airlines now have an opportunity to work with a key supplier on a new level," said Jaan Albrecht, CEO, Star Alliance.
"With Rockwell Collins, we will find ways to reduce our member carriers' total cost of ownership on existing aviation electronics
and support services, and explore new technologies to improve our overall operational efficiency and provide new and better
services to our customers."
"We expect to be able to realize substantial savings for the airlines as a result of this agreement, which is the first of
its kind between an airline alliance and Rockwell Collins," Albrecht said. "Rockwell Collins has demonstrated a solid commitment
to help Star Alliance carriers achieve greater value for their procurement dollars."
"Under the agreement, Rockwell Collins will create standardized system solutions and procurement requirements for member airlines
that will streamline the purchasing process," said Bob Chiusano, executive vice president and COO, Rockwell Collins Commercial
Systems. "As part of this effort, Rockwell Collins and Star Alliance will identify and pursue mutually beneficial near-term
and long-term opportunities."
Bruce MacCoubrey, vice president - strategic services, Air Canada, and chairman of the Star Alliance Purchasing Steering Committee,
added that "as member airlines of Star Alliance, we can now rely on Star Alliance staff to be working in concert with member
airlines and key suppliers to derive maximum value from our vendor relationships. I am pleased to say that Rockwell Collins
has been extremely proactive in helping us to achieve this goal."
Star Alliance was established in May 1997 as the first truly global airline alliance to provide customers the benefits of
global reach and a smooth travel experience. The member airlines are Air Canada, Air New Zealand, All Nippon Airways - ANA,
Austrian Airlines, bmi british midland, Lauda Air, Lufthansa German Airlines, Mexicana, SAS Scandinavian Airlines, Singapore
Airlines, Thai Airways International, Tyrolean Airways, United Airlines and VARIG Brazilian Airlines.
Asiana Airlines of South Korea, LOT Polish Airlines and Spain's Spanair are scheduled to join Star Alliance in 2003. The future
member carriers will further enhance the Star Alliance network, which currently serves 729 airports in 124 countries with
almost 11,000 daily flights. Additional information is available at
www.star-alliance.com
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