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Reports on the maturing of the C-130 Hercules airplane from Lockheed Martin Corp. as of July 16, 2002. Problems of the Hercules in software; Information on the self-defense capability of the Hercules; Facts on the navigaton system of the airplane.

Reports that Alitalia is forecasting break even for 2002 and a profit in 2003 despite a loss in the first quarter of 2002. Basis of the forecasting; Analysis of the first quarter loss in 2002; Agreement between Alitalia and Air France for an exchange of seats on their boards.

Focuses on the viability of Italian regional airlines. Possible benefits of forming an alliance in the airline industry; Losses posted by regional airlines Meridiana, Air Dolomiti and Gandalf; Effect of financial losses on the airlines.

Provides information on the bid of Italy to join the Joint Strike Fighter systems development and demonstration phase. Amount needed by Italy to gain a stake in the program; Actions taken by the government to raise the funds needed in the program; List of Italian aerospace companies that will participate in the program.

Reports the approval given by the board of directors of Alitalia on a financial rescue plan. Losses incurred by Alitalia in 2001; Details on the cost-cutting plan; Assistance given by the Italian government.

Focuses on Italy's review of its defense status and strategies contained in the so-called white book. Comparison with the 1985 edition; Contents; Plans for the country's defense reform.

Features the unmanned air vehicles launched by Meteor. Information on Nibbio; Description of Falco.

Reports that the Greek defense ministry has selected the Alenia Aeronautica/Lockheed Martin C-27J Spartan aircraft. Number of C-27Js to be acquired by Greece; Cost of the defense contract; Reasons for selecting C-27Js over other transport aircraft.

Reports on the failure of the merger talks between the military aircraft and aerostructures businesses of EADS and Finmeccanica. Objectives of the proposed merger; Overview of the problems regarding the valuation of the civil aerostructures and modification side of the business; Background of the two companies.

Reports the deals signed by the defense ministry of Italy with Agusta Westland in January 2002 for the acquisition and upgrade of its helicopters. Helicopter models included in the deals; Background of each deal; Features of the helicopters included in the contracts.