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The article considers the market potential of AleniaAermacchi's M-346 advanced jet trainer. For the Italian company, seeing the M-346 through was a more natural decision than for others, because it is fundamentally a trainer house. The M-346 trainer will be used to fully test, develop and then freeze the production configuration, and to certify the full structure.

The article reports that Italian researchers are making breakthroughs in passive radar technology, opening the door to detecting previously hard-to-track targets such as stealthy aircraft. The Italian work is being driven by Finmeccanica, Elettronica and several academic institutions. North Atlantic Treaty Organization's Consultation, Command and Control Agency is also involved by supporting the multi-static passive radar activity. An active radar system sends out radio-frequency energy and waits for the returns to track a target. The passive system needs to know the location of the emitters and measures the general electromagnetic environment when it's not disturbed by a target flying in an area.

The article focuses on Pier Francesco Guarguaglini, chairman and CEO of Finmeccanica SpA. When he took the helm in 2002, this Italian company seemed destined to operate in the shadows of the global aerospace/defense industry's industrial juggernauts. Guarguaglini will be the first to admit his work is far from over, despite the already considerable accomplishments. These include making Great Britain another "domestic" market for the Italian company by becoming the second-largest defense contractor there, and by winning competitions that at times seemed unwinnable.

Reports the proposal of Italian defense staff to overhaul the armed services for better requirements and security demands. Creation of a balanced force structure to meet the emerging requirements; Transformation from conscript to an all-professional force structure; Avoidance of duplicating existing assets of North Atlantic Treaty Organization.

The article examines the space programs of Italy and Great Britain. Italian cabinet minister Mariastella Gelmini states that the country's space agency will be spared most of the spending cuts being imposed on other agencies by the government. David Willets, Great Britain's cabinet officer for space, says that his priority will be cooperation with other countries and with the aerospace industry.

The article reports on the contract awarded by the Turkish defense ministry to Telespazio to design, build and launch a submetric optical-imaging spacecraft. The satellite itself, to be launched by the end of 2011 and commissioned early the following year, will be built by Thales Alenia Space, which is also part of the Space Alliance. Telespazio will also supply the entire ground segment, including satellite control and data acquisition/processing facilities, along with a satellite integration and test center.

The article focuses on the showmanship efforts of Alenia Aeronautica as it tries to persuade buyers in the Middle East, Asia and the Americas to purchase its C-27J aircraft. The features of the aircraft include autothrottle and a moving map display. The author's experience of flying with Alenia chief test pilot Marco Venanzetti and test pilot Enrico Scarabotto aboard the aircraft is described.

The article discusses efforts by Alenia Aeronautica officials to create plans for derivatives for the C-27J aircraft. The centerpiece of the mission expansion is a stretched version of the aircraft that will allow it to carry more military troops or equipment, according to Alessandro Franzoni, chief technical officer and head of Alenia's C-27J business unit. The goal would be to broaden the company's customer base.

The article evaluates AleniaAermacchi's M-346 advanced jet trainer.

This article reports that Italy and Russia are expected to conclude by May the second phase of a joint research and development project that could lead to a new class of diesel submarine. The S1000 advanced attack submarine, a mid-sized boat displacing about 1,000 tons, would be affordable for a burgeoning export market, and a candidate for the navies of both countries. The project dates to a bilateral agreement between Italy and Russia that was signed in November 1996. The program did not go anywhere, however, until 2003, when it was restarted by Italy.

The article reports that a major reorganization of European Aeronautic Defence & Space Co.'s (EADS's) Sogerma MRO unit looks like the only hiccup in what otherwise is shaping up as a trouble-free, record-breaking year for the European aerospace and defense giant. Co-CEO Noel Forgeard says initial restructuring undertaken last year to turn around the maintenance, repair and overhaul division had proven insufficient, and a much more radical plan is now anticipated. The plan will involve closing Sogerma's VIP customizing business, adjusting European military MRO activities to meet demand, and redeploying civil MRO work to better performing overseas sites.

This article reports that aviation company Aermacchi SpA has its hands full with its two trainer programs, the M-346 and M-311, over and above preparing them for their first appearance at the Paris air show at Le Bourget. The Finmeccanica unit is in the midst of an intensive technical and commercial effort to fully develop the two aircraft. Along the way, it is signing up industrial partners in the hope the international ties will lead to informal commitments by various governments to buy the aircraft, which is already in flight testing. Aermacchi's strategy mirrors what the U.S. is trying to do with the F-35 Joint Strike Fighter program and the P-8 Multimission Maritime Aircraft.

This article focuses on developments in Boeing airplanes. Boeing is moving toward reaching major Italian air force KC-767A tanker milestones early next year, but meeting key offset requirements is in jeopardy as long as the U.S. Air Force's counterpart tanker program remains stalled. Although Boeing is addressing some of the offset demands within the Italian program, fully complying with Rome's requirements would take additional sales of the KC-767, a senior Boeing official acknowledges. The aircraft will replace Italian air force Boeing 707TTs.

The article focuses on the helicopter industry firms Eurocopter and AgustaWestland. Development of upgraded versions of T-129 military attack helicopter by AgustaWestland for sales to the armed forces of Italy and Turkey is examined. Sales of the Tiger attack helicopter by Eurocopter to Germany, Australia, France and Spain are discussed.

The article discusses cuts to the defense budget in Italy, examining the possibility that the country will no longer participate in the F-35 Joint Strike Fighter (JSF) program or will reduce the number of planes on order. The article attributes changes in defense spending to the government under Mario Monti, austerity measures, and reduced foreign policy ambitions. The reduction of the country's force level under Defense Minister Giampaolo Di Paola is discussed.

An interview is presented with Giuseppe Orsi, the chief executive officer (CEO) of the Italian aerospace company Finmeccanica. Orsi discusses the reorganization and restructuring of the company's businesses and skill base, the acquisition of the company DRS Technologies, and the defense electronic business. Concerns about the Italian government's spending cuts, competition in the market, and the company's relationship with the aerospace company Boeing are examined.

The article discusses the possibility that the private equity fund Cinven, which owns the majority of the aerospace engine company Avio, may sell their stakes The company could be sold to another private equity firm, though it is possible that it will go public, especially if the Italian financial market improves. The Italian industrial conglomerate Finmeccanica might also unload stakes in the company.

The article focuses on the design, construction and marketing of military helicopters. Operations in the Afghan War have created increased demand for helicopters in armed forces of numerous countries, with Sweden used as an example. The introduction of a new military helicopter by the company AgustaWestland is discussed.

The article discusses flight trials of prototypes of the Airbus Military A400M aircraft under Europe's military airlifter program. The schedule for testing protoypes of the A400M aircraft referred to as the MSN3 and MSN4 is noted. Airbus Military Chief Executive Domingo Urena-Raso is cited regarding progress being made with the airlifter program through flight testing of the prototypes.

The article looks at a low-Earth-orbit satellite system designed by Iridium Communications Inc., focusing on various companies involved in development and funding. Satellite makers Thales Alenia, Boeing Commercial Satellite Systems, and Ball Aerospace are noted for their involvement in the project. The author comments on how on the satellite constellation, which will be named Iridium Next, is expected to cost over $2.9 billion to build and launch.

This article reports that Alitalia airline has changed its breakeven date to a date late in 2011. Airline officials blame the poor global economy on the delay in the recovery. Rocco Sabelli, chief executive officer for Alitalia, also noted that the company will money because of the problems with air travel caused by the volcanic ash from Iceland's volcanic eruption in April 2010.

This article reports that Airbus Military is deciding whether to further develop its C-212, CN-235, and C-295 military transport planes. Because of strong competition for such light military transport planes, Airbus is working with its Indonesian partner to reduce its manufacturing costs so that it can remain competitive. Indonesian manufacturing has the benefit of low overhead costs.

This article looks at the impact of changes in U.S. space exploration plans on the international and commercial partners of the U.S. National Aeronautics and Space Administration (NASA). The 2011 budget of NASA has revived old debates in Europe and elsewhere as the station partnership starts to understand what the greater emphasis on low-Earth-orbit research and an opening of the path beyond might mean for them. Paragon Space Development Corp. is developing and testing a standard air revitalization system optimized for low-Earth orbit.

The article reports on the strong performance of major European space contractors in the aerospace industry as they focus increasingly on services. The major contracts include Astrium and the Thales/Finmeccanica Space Alliance, which won seven telecommunications satellite orders in 2009. An 11 percent increase in revenue was posted by Astrium to 4.8 billion euros in 2009.

The article reports that the British Defense Ministry and industry are pursuing a novel design of active, electronically scanned array (AESA) radar for the Eurofighter Typhoon. The work was undertaken as an element of the Advanced Radar Targeting System (ARTS) demonstrator project. Led by Qinetiq, with Selex providing the AESA, the radar was integrated on a Tornado GR4A, with trials carried out in Great Britain and using ranges in the U.S.

The article reports on the state of the market for military aircraft as of 2009. Saudi Arabia and Oman are reorganizing their combat aircraft inventories as France and Russia are trying to persuade nations to buy their aircraft. Qatar took delivery of C-17, which is considered one of the biggest deals for 2009. French President Nicolas Sarkozy is closely involved in top-level lobbying for Rafale aircraft.

The article reports on the challenge being faced by the Eurofighter consortium as it tries to convince its major stakeholder governments to invest on two major capability upgrades for the Typhoon fighter plane. The upgrade plans include the integration of the Meteor ramjet-powered missile and radar of MBDA with an active, electronically scanned array (AESA) on the aircraft. It is noted that the first Tranche 3A aircraft will be delivered to customers in 2013.

The article reports on the decision of AgustaWestland to continue its development and production activities to offset the temporary difficulties of the commercial market. According to AgustaWestland chief executive Giuseppe Orsi, the military business will remain robust and there is no reason to adjust performance targets for 2009. The company is continuing to develop the XX9 helicopter in spite of the current weak economic climate.

The article deals with the design changes introduced by AgustaWestland for its 8-metric-ton-class AW149 troop transport helicopter The aggressive pace of activity has been prompted by the need for the company to secure a possible $2-billion launch order for the rotorcraft in Turkey. According to AgustaWestland Chief Executive Officer (CEO) Giuseppe Orsi, the compony is offering the AW149 configuration for the Turkish Utility Helicopter Program (TUHP) as a codevelopment with Turkish industry.

The article reports that the ability of the F-35 Joint Strike Fighter (JSF) to win an air-to-air engagement is getting increased attention as the U.S. military and industry's focus includes the expansion of the Joint Strike Fighter's customer base beyond the core purchasing nations. Lockheed Martin contends that the combination of stealth, multisensor situational awareness, advanced pilot-machine interface and basic aeromechanical performance of the F-35 make it also a credible fighter aircraft.

The article reports that Italy, France and Germany are starting work on the radar and optical components of Europe's next-generation satellite surveillance system, which is expected to enter service toward the middle of the next decade. The system, called the Multinational Space-based Imaging System (Musis), will replace a heterogenous mixture of national systems on which European forces currently depend, according to the authors.

The article reports on the future of Alitalia after partnering with Aifr France-KLM. Two major issues are still unresolved by the carrier, whether its route system will be built around hubs in Rome and Milan, and determining if it can survive without being fully merged into the Air France-KLM group. Air France-KLM projects a 15% return on equity starting in the third year

The article reports on the production plans of Sukhoi and Alenia Aeronautica for the Superjet 100 regional jet. Managers of the Sukhoi-led program are now targeting a 70-aircraft annual rate for 2013 instead of 2011. Sukhoi Commercial Aircraft Co. and Superjet International will draw on support from Italian and French credit agencies. The companies are joining forces to offer up to 85% of delivery-price financing.

The article reports that Italian defense expenditure could fall by as much as 4% in 2009 as the result of a Finance Department program to rein in government spending over a three-year period. It is said that the cuts will affect defense programs across the board. Support has been withdrawn for the combat search-and-rescue helicopter program, as well as a tri-service signals intelligence aircraft, the Joint Airborne Multi-sensor Multi-mission System (Jamms).

The article reports that Italy plans to procure a small batch of Predator B medium-altitude endurance unmanned aerial vehicles (UAVs), but is struggling to define how to meet its longer-term unmanned reconnaissance needs. The deal for General Atomics Predator Bs, which would include four vehicles and up to three ground stations as well as logistics support, comes on top of a purchase of Predator As several years ago.

The article reports on the actions taken by Finmeccanica concerning its acquisition of DRS Technologies and deal with the U.S. on the C-27J Joint Cargo Aircraft. The company is finalizing key elements of its U.S. footprint, coming to terms with U.S. partners on C-27J Joint Cargo Aircraft production and preparing financial resources to complete the acquisition of DRS Technologies. Giorgio Zappa, the chief operating officer (COO) of the company, stated that the two companies are close to an agreement about partnering on the C-27J.

The article reports that the Italian air force is embarking on a second phase of testing to fit the Israeli Rafael RecceLite airborne reconnaissance system on a first batch of upgraded Tornado fighter-bombers. The upcoming Tornado test campaign will focus primarily on the data link capabilities to allow the two-seat crews to transmit imagery to the RecceLite Ground Exploitation Station and to receive updated imagery-collection assignments in near-real time. It adds that the service is also planning to buy the lighter RecceLite Portable Station.

The article reports that Italy is planning to sign up for its first F-35 Joint Strike Fighter (JSF) by the end of June 2008. The country is also backing a multinational approach to crafting a five-year production contract, avoiding the pitfalls of annual purchasing. Italy will buy two Lockheed Martin F-35s for the initial operational test and evaluation phases of the JSF program.

The article reports on the expectation of Italy to further grow its armaments trade surplus in 2008, building on a trend that began in 2005. But industry is seeking changes in regulations that could accelerate growth even more. According to the Italian government's annual report to parliament, Italy exported arms worth €1.27 billion ($2.06 billion) in 2007, up from around €1 billion the year before and €894 million in 2005.

The article reports on the plan of Finmeccanica to improve its industrial business in Japan and sees its helicopter business as one of the hottest prospects for near-term inroads. According to Chief Operating Officer (CEO) Giorgio Zappa, the company intends to open a permanent office in Japan in 2009 with the goal of developing industrial and technological collaborations with local players. Finmeccanica has identified several projects around which to build teaming agreements.

The article reports on the negotiations being conducted by Alenia Aermacchi and Chile's Enaer about collaborating on production of Alenia's trainer family, including the M-346 advanced jet trainer. Across the Pacific Rim, senior officials at Taiwan's Aerospace Industrial Development Corp. (AIDC) say they are also looking at the aircraft as the potential baseline for a jet trainer development. AIDC is planning to redesign the M-346 to meet Taiwanese requirements.

The article reports that Air France faces several weeks of difficult negotiations with Alitalia as it tries to devise a politically palatable way to assume control of the struggling Italian airline. After a successful merger with KLM, and a virtual merger with Delta to take advantage of the coming open skies agreement between the U.S. and the European Union, the company has maneuvered itself into a premier position in Europe. Air France-KLM CEO Jean-Cyril Spinetta has vowed the airline would not jeopardize its financial health to take over Alitalia.

This article explains that a Malaysian requirement for 12 medium utility helicopters may lead to much larger sales if the country works toward a proposed inventory of 74 units, making the program one of the most attractive in Asia. The competition is attracting interest from Sikorsky, Kazan Helicopters, Eurocopter, Boeing and AgustaWestland, with bids due on January 8, 2007. The eventual order is only part of a broad push by the Malaysian armed forces to buy more helicopters, and it is taking money from other programs.

The article focuses on the aim of the Italian government to boost defense spending by 3.6% in 2008 and launch key surveillance and intelligence projects. Key procurement activities include signals intelligence and maritime patrol aircraft as well as additional Predator unmanned aircraft. Total budget request stands at €20.9 billion, short of the €21.6 billion being targeted by the defense ministry. Italy is expected to opt for used aircraft to replace the Atlantic maritime patrol aircraft due to limited budget.

The article offers information on a patchwork of agreements to share data and tasking rights for imaging intelligence between France, Italy and Germany, which is set to go into effect with the commissioning of new X-band radar satellite networks. Under the agreement, Medium- and low-resolution imagery will be available to all users, but access to high-definition imagery will be controlled by the Italian Ministry of Defense.

The article focuses on the development of the Sky-Y unmanned aircraft by Italy-based Alenia Aeronautica. Alenia Aeronautica hopes its work on a medium-altitude long-endurance (MALE) unmanned aircraft demonstrator will spur interest in a future European collaborative program. The so-called Sky-Y has been underway in secret for several months, but the company is expected to reveal the project at the Paris air show, while the real version is undergoing trials at the Vidsel test range in Sweden.

The article reports that Germany and Italy will bolster reconnaissance capabilities for North Atlantic Treaty Organisation (NATO) forces in Afghanistan, with the deployment of manned and unmanned aircraft. Before the end of April 2007, the German air force hopes to have six reconnaissance Tornados operational. They deployed last week to the Mazar-e-Sharif air base in northern Afghanistan. NATO first requested the reconnaissance improvement in December 2006.

The article focuses on EADS North America Inc.'s first victory as a prime contractor for the Pentagon. The young company is now considered as a serious contender in the largest defense market on the globe. This status could bolster its future bid to wrest some of Boeing's business building refueling tankers for the U.S. Air Force. The win is also taking the focus away from problems in Europe with EADS's leadership turnover and delays in developing Airbus's new flagship A380. EADS North America is also teamed as a subcontractor to Northrop Grumman for the U.S. Air Force's impending refueling tanker competition against Boeing.

This article reports that Boeing Co. is building parts for almost two dozen C-17 transports in the U.S. beyond its current order book to continue production as it tries to snag additional domestic and international orders. The company is in the final days of talks with potential foreign buyers of the transport to lock in the $220-million unit flyaway price, which Boeing says will remain in place only until the end of the month. Boeing is working on parts for 22 aircraft for which it doesn't have contracts. Pushing parts production beyond that would become costly and represent a financial risk Boeing isn't willing to take on.

This article reports that Boeing Co. is ready to begin delivering a new group of F/A-18E/F Super Hornets, and it is devising upgrades to ensure the multirole fighter will remain combat-capable well into the future. Although the F/A-18E/F was never conceived as an all-stealth platform, unlike the canceled A-12 it supplanted, it has featured low-observable characteristics from the start. But additionally, Boeing's secretive advanced programs group is coming up with a further step-change in stealth performance to minimize the difference between the F/A-18E/F and the Lockheed Martin Corp.'s F-35 Joint Strike Fighter, a stealth aircraft from the ground up.