• CSBA Paper looks at potential US responses to China’s sea-denial doctrines: “Why AirSea Battle?” [PDF]. Defense Tech moves to strike up a conversation.

• Indian Air Force signs EUR 560 million contract for 12 AW101 VIP helicopters.

• Are trans-Atlantic defense partnerships viable? Wall Street Journal weighs in.

• So do European governments and firms, as ripples continue to spread from the KC-X tanker bid pullout by Round 1 winners EADS/Northrop Grumman.

• US and South Korea exercises prelude to that country taking over wartime operational control of its forces in 2012. Defense against WMD a focus. DoD article | CCTV.com report | AFP | Korea Herald | JoongAng Daily

• Navistar expects orders for US military trucks to raise profits in 2010.

• L-3’s STRATIS division wins $230.9 million contract recompete to provide intelligence support services to US and multinational forces in Iraq; division also snags $24.8 million US Special Ops imagery contract.

• Sikorsky’s H-92/CH-148 Cyclone naval helicopter prototype arrives in Canada for trials.

• Northrop demonstrates LITENING surveillance and targeting pod on a Super Hornet; Raytheon’s ATFLIR had been the only qualified option.

• South Africa: “Navy ready to defend World Cup.” We still don’t think that will be enough to stop the Brazilians.

• China expects to boost defense spending by 7.5% this year, compared to a 14.9% increase in 2009. Washington Post | Wall Street Journal | Los Angeles Times | Xinhua News Agency

• French-Russian gas deal seen as possible preliminary to sale of Mistral amphibious assault ships.

• General Dynamics and Austal will reportedly end their LCS partnership, and plan to bid on Littoral Combat Ship contracts separately.

• Israel adding overlapping surveillance systems, RWS, along Gaza border.

• USAF looking at options to preserve F-22 production tooling. An especially good idea if they actually intend to start retiring F-22s in 2025.

• 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…”

• US Army launches “Apps for the Army” competition for internal developers. But they already have “Gator Six”...

• Orbital Sciences to acquire General Dynamics’ satellite manufacturing unit for $55 million in cash.

• Boeing transfers on-orbit control, as USAF accepts Wideband Global SATCOM broadband satellite #3.

• Lockheed Martin CEO Stevens sees 10% drop in compensation because of bonus and incentive pay shortfalls.

A400M rollout, Seville
(click to view full)

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.

• The A400M Program: A Snapshot
• The A400M Program: Airbus’ Dilemmas
• Updates & Key Events [updated]
• Additional Readings
  
  Continue Reading… »

• USAF is expected to issue final terms for $35 billion aerial tanker competition this week.

• DEW Line: who is behind the dual-sourcing lobby for KC-X?

• USA to retire its BGM-109A nuclear Tomahawk cruise missiles.

• Dutch cabinet collapse freezes F-35 buy [in Dutch]; plane may become an election issue.

• Oshkosh to sell $500 million in senior notes to repay debt.

• USAF: No, we aren’t buying the airborne laser.

• What’s next for BAE’s Mantis close-support UCAV?

• Jacobs secures $38.7 million contract to support transition of Navy Marine Corps Intranet to the NGEN network.

• BAE Systems posts $105 million net loss for 2009 as a result of regulatory penalites, lost US DoD business.

• Were fire support restrictions responsible for the USMC/ANA casualties at Ganjal? NY Times says yes. Official report says the officers who thought so may have been incorrect.

• US DoD’s top weapons buyer says that the pace of cutting costly weapons programs should slow.

• BAE wins order for 400 AN/PAS-13C thermal sights to equip Australia’s Carl Gustaf M3 panzerfausts.

• USA releases “VXX” Presidential Helicopter RFI to replace existing VH-3/60s, canceled VH-71 program.

• Bangladesh orders 2 AW109 Power helicopters for naval duties.

• Three Indian vehicle manufacturers vie for Indian Army’s mine protected vehicle procurement.

• Babcock says it will not launch hostile bid after British defense firm VT Group rejects takeover offer. Bloomberg reports otherwise.

• Ranking House Armed Services Seapower subcommittee Rep. Todd Akin [R-MO] wants increased numbers, renewal of multi-year buy approach for the F/A-18E/F and EA-18G.

• 2nd operational EA-18G electronic warfare fighter squadron “safe to fly.”

• USAF STRATCOM lifts ban on thumb drives.

• US Coast Guard doesn’t have enough National Security Cutters to meet demand.

• Russia is delaying delivery of S-300 air defense missiles to Iran due to “technical problems.” Hmm, do those involve UAVs, by any chance?

• NATO Ministerial: Gates pledges greater sharing of classified technology with allies; NATO chief calls for more resources to train Afghan army and police, while France agrees to send 80 more trainers.

• European defense ministers call for speedy conclusion to talks on troubled Airbus A400M military airlift program.

• The US Navy UCAS program receives $2 billion QDR push.

• US Army pays $253.3 million to service US Stryker vehicles around the world.

• Australia ready to OK final version of $547 million integrated HF communications system for armed forces.

• US Navy orders $122.5 million in spares and extra engine maintenance for V-22 Osprey.

• Obama administration beefs up missile defense budget. BMD report focuses on regional missile threats.

• Romania to allow US ballistic missile defense inceptor missiles to be deployed, following US cancellation of larger BMD deployments in Poland and the Czech Republic.

• Boeing gets $99.3 million order to supply 13 more AH-64D Block II helicopters to the US Army.

• Which defense firms will benefit from FY 2011 defense budget?

• Northrop Grumman feels Pentagon heat over KC-X aerial refueling tanker RFP.

• Taiwan’s order for Eurocopter EC225s could strain China-European Union relations – but hasn’t, so far.

• Asia-Pacific nations revamp their fighter inventories.

• DARPA has enlightened view on funding for ArcLight, a long-range strike weapon that could be launched using the MK 41 system onboard ships and subs.

• US military sends bomb-sniffing dogs to Iraq.

• US QDR 2010 (Quadrennial Defense Review) in bullet points. Plus, some questions to think about. And what about small business and innovation?

• US Army to spend $7 billion to develop replacement for cancelled FCS manned ground vehicles.

• Portuguese Institute of International Relations and Security (IPRIS) – Using BRIC to build at sea: The Brazil-China aircraft carrier agreement and shifting naval power [PDF].

• London-based IISS’s annual military balance report warns that cyber warfare threat is growing.

• Georgian satellite channel taken off-air by French firm as a condition of the proposed Mistral Class amphibious ship sale.

• Eurojet says it will share single-crystal engine blade technologies with India if Eurofighter wins MMRCA, or EJ200 engine is selected for the LCA Tejas Mk2.

• US Intel community funds power-generating silicone implants. No, really.

• Is a Golden Age of the Silicon Economy just ahead of us? That’s silicON – but if the above is true, we suppose it could be silicone…

• Northrop Grumman posts higher quarterly sales across nearly all of its businesses. What do the analysts have to say?

• Canada’s CAE gets C$58 million ($54 million) in Germany military contracts, including several contracts to provide flight simulator upgrade, maintenance and training support.

• Spiderman gets military assignment: DARPA’s web crawler device could enable US special ops forces to scale walls.

• IBM to develop secure cloud computing for US Air Force networks.

• US Air Force mulls $2 billion order for 100 light-weight armed counter-insurgency planes.

• The Royal Navy flagship HMS Illustrious arrives in Scotland to undergo a £40 million ($63 million) maintenance and upgrade program.

• Barak LR-SAM with 120 km range to fly in August 2010?

• Canada’s submarines – finally operational by 2012?

• Is a shortfall in the number of Pashto interpreters threatening the Afghan war effort?

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

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.

• Project Wedgetail: Program and Participants
• Contracts & Key Events, 1997 – Present [updated]
• Additional Readings [updated]
  
  Continue Reading… »

• In the Quadrennial Defense Review 2010 the Pentagon seeks to rebalance the US military and to institutionalize DoD reforms.

• President Obama FY 2011 budget contains a record $708 billion in defense spending, including a 3.4% increase in the Pentagon’s base budget and $159 billion to fund US military missions in Iraq, Afghanistan and Pakistan, Reuters reports. At the same time, the Pentagon may be targeting at least 7 programs for cancellation.

• 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.

• Morgan Keegan analyst Brian Ruttenbur predicts a wave of cyber security firm acquisitions by big defense companies in the next 12 – 24 months, because more federal money is going into that area.

• 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.

• Boeing unveils plans to provide up to $2 billion in subcontracting work to Canadian companies for in-service support for 15 CH-47F Chinook helicopters purchased by the Canadian government.

• 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 Obama administration is working with Saudi Arabia and other Persian Gulf allies to speed up arms sales and upgrade defenses for oil terminals and other key infrastructure, in a bid to thwart future military attacks by Iran.

• DARPA’s Cyber Genome Program is developing “digital fingerprint” technology to track down cyber terrorists.

• The Pentagon is looking to cut its greenhouse gas emissions for non-combat activities, such as buildings and fleet vehicles, by 34% by 2020.

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:

Continue Reading… »