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Rapid Fire: 2010-03-12

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Rapid Fire: 2010-03-08

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  • Israel adding overlapping surveillance systems, RWS, along Gaza border.
  • As cluster munitions treaty prepares to activate on Aug 1/10, US DoD states that “The United States is not a party to the Convention on Cluster Munitions and is not bound by its obligations…”

A400M Delays Creating Contract Controversies

Related Stories: Africa, Aircraft, Alliances, Asia - Other, Britain/U.K., Budgets, Corporate Financials, EADS, Europe - France, Europe - Other, Events, Partnerships & Consortia, People, Rumours, Spotlight articles

A400M rollout
A400M rollout, Seville
(click to view full)
DII

Contract re-negotiation final, capabilities reduced, Spanish threat to Britain, EADS’ loss provisions, MSN1 flies to France, Visions of American sales. (March 15/10)

Airbus’ A400M is a EUR 20+ billion program that aims to repeat Airbus’ civilian successes in the full size military transport market. A series of smart design decisions were made around capacity (35-37 tonnes/ 38-40 US tons, large enough for survivable armored vehicles), extensive use of modern materials, multi-role capability as a refueling tanker, and a multinational industrial program; all of which leave the aircraft well positioned to take overall market share from Lockheed Martin’s C-130 Hercules. If the USA’s C-17 is allowed to go out of production, the A400M would also have a strong position in the strategic transport market, with only Russian IL-76 and AN-124 aircraft as competition. To date, 184 orders have been placed by Germany (60), France (50), Spain (27), Britain (25), Turkey (10), South Africa (8), Belgium (7), Malaysia (4), and Luxembourg (1); and Chile has expressed an unfinalized interest in 3 planes.

EADS firm’s biggest issue, by far, has been funding for a project that is more than EUR 7 billion over budget. The next biggest issue was timing, as A400M delivery penalties and Lockheed Martin’s strong push for its serving C-130J Super Hercules cast a pall over the A400M’s potential future. The entire project has been under moratorium for over a year as all parties decided what to do. Cancellation was not a realistic contractual option for most customers, but late deliveries could be refused, giving both Airbus and its customers negotiating leverage. This DID Spotlight article covers the latest developments, as the A400M project slides toward a new agreement, and production.

Rapid Fire: 2010-02-24

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  • Dutch cabinet collapse freezes F-35 buy [in Dutch]; plane may become an election issue.
  • Jacobs secures $38.7 million contract to support transition of Navy Marine Corps Intranet to the NGEN network.

Rapid Fire: 2010-02-19

Related Stories: Americas - USA, Asia - India, BAE, Budgets, Corporate Financials, Issues - International, Mergers & Acquisitions, Middle East - Other, Missiles - Surface-Air, Policy - Procurement, Russia, Trucks & Transport

Rapid Fire: 2010-02-08

Related Stories: ABM, Alliances, Americas - USA, Asia - Central, Asia - China, Asia - Other, Australia & S. Pacific, Boeing, Budgets, Contracts - Awards, Corporate Financials, DARPA, Europe - E.U., Europe - France, Europe - Other, Fighters & Attack, General Dynamics, Helicopters & Rotary, Industry & Trends, Issues - International, Logistics, Middle East - Other, Mines & Countermine-IED, New Systems Tech, Northrop-Grumman, Official Reports, Other Corporation, Policy - Doctrine, Pre-RFP, Specialty Aircraft, Submarines, Support Functions - Other, Surface Ships - Combat, Tanks & Mechanized, Transport & Utility, UAVs

Rapid Fire: 2010-02-05

Related Stories: Americas - Other, Americas - USA, Britain/U.K., Contracts - Awards, Corporate Financials, DARPA, Electronics - General, Equipment - Other, Europe - Other, IT - Cyber-Security, IT - General, IT - Networks & Bandwidth, New Systems Tech, Northrop-Grumman, Other Corporation, R&D - Contracted, Simulation & Training, Specialty Aircraft, Support Functions - Other, Surface Ships - Combat, T&C - IBM


Australia’s Troubled E-737 “Wedgetail” AWACS Program

Related Stories: Americas - USA, Australia & S. Pacific, BAE, Bases & Infrastructure, Boeing, C4ISR, Contracts - Awards, Contracts - Intent, Corporate Financials, Events, Issues - Political, Lockheed Martin, Middle East - Israel, New Systems Tech, Northrop-Grumman, Other Corporation, Project Failures, R&D - Contracted, Radars, Raytheon, Specialty Aircraft, Testing & Evaluation, Thales, Transformation

E-737 NSW
E-737 Wedgetail
over New South Wales
(click to view full)
DII

Successful C2 test, 5-year support contract for Thales. (Feb 2/10)

The island continent of Australia faces a number of unique security challenges that stem from its geography. The continent may be separated from its neighbors by large expanses of ocean, but it also resides within a potential arc of instability, and has a number of important offshore resource sites to protect. Full awareness of what is going on around them, and the ability to push that awareness well offshore, are critical security requirements.

“Project Wedgetail” had 3 finalists, and the winner was a new variant of Boeing’s 737-700, fitted with an MESA (multirole electronically scanned array) radar from Northrop Grumman. That radar exchanges the traditional AWACS rotating dome for the E-737’s stationary antenna and its “top hat” look. That design, and the project as a whole, have run into severe turbulence, creating problems for Boeing earnings, the ADF, and other export orders for the type. DID’s FOCUS articles offer in-depth, updated looks at significant military programs of record. This one covers contracts, events, and key milestones within Australia’s E-737 program, from inception to the current day.

Rapid Fire: 2010-02-01

Related Stories: Alliances, Americas - USA, Boeing, Contracts - Awards, Corporate Financials, DARPA, Environmental, General Dynamics, Helicopters & Rotary, IT - Cyber-Security, Industry & Trends, Issues - Environmental, Issues - International, Issues - Political, Lockheed Martin, Mergers & Acquisitions, Middle East - Other, Other Corporation, Policy - Doctrine, Policy - Procurement, Raytheon, Signals Radio & Wireless, Submarines, Support & Maintenance, Transport & Utility

  • US defense firms felt the economic pressure this quarter, as Rockwell Collins’ profits fell 20% and Lockheed Martin’s earnings were flat, notes the Wall Street Journal. Bucking the trend, Raytheon’s profit rose 20% for the quarter.
  • Research and Markets: The market for military tactical radio systems is predicted to grow substantially in the coming years. Also, technical issues with JTRS are driving the need for more legacy radios.
  • General Dynamics Electric Boat says it will lay off 434 workers at its Groton, CT, shipyard due to lost submarine maintenance, overhaul and repair work.
  • USAF is undertaking a massive restructuring of the C-17 Globemaster Sustainment Partnership after 2012, which the service predicts will save $9-12 billion over 30 years.
  • The Pentagon is looking to cut its greenhouse gas emissions for non-combat activities, such as buildings and fleet vehicles, by 34% by 2020.

Eurocopter Sees Civilian Slackening as Military Rises

Related Stories: Corporate Financials, EADS, Helicopters & Rotary, Industry & Trends

EC725 SAR/SOF
EC725 SAR/SOF
(click to view full)

Eurocopter recently reported its 2009 figures, and offered forecasts for 2010. While Robinson is far and away the leading global helicopter builder by numbers, Eurocopter is generally accepted as the #1 firm when measures include order value, competition across multiple major segments, etc. This makes their fate and forecasts an interesting bellwether for the sector.

In general, the global economic crisis has hammered the civil market for light helicopters, and the firm sees continuing weakness and further production scale-backs in 2010. On the other hand, the firm is seeing a significant uptick in military orders (48% of sales in 2009), thanks to the demands of counter-insurgency warfare, and the natural aging and replacement cycle drive new purchases around the world.

2009 civilian and military orders were placed for 344 production helicopters as follows:

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