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Italy's Finmeccaica, which is one of the country's leading defense contractors, has acquired Aermacchi. Finmeccaica, which will assume control over Aermacchi's military training aircraft program, has reported it will expand its avionics, space and helicopter operations.

The U.S. and European helicopter industry is busy preparing itself for the upcoming German military rotorcraft requirements, making it very competitive. GermanyEs plans to field 30 maritime helicopters and roughly 19 German air force combat search-and-rescue (CSAR) rotorcraft on an urgent basis mainly for deployment in Afghanistan.

The large financial guarantee by French export credit agency Coface to cover 95% of the financing will enable Iridium to proceed with a new low-Earth-orbit satellite system. The new satellite will replace Iridium's existing 66-satellite LEO constellation more attuned to the needs of 3G users.

The article discusses the additional problems and challenges that are being faced by the partners of the F-35 Lightning II Joint Strike Fighter (JSF) program. The sentiments regarding JSF participation continue to remain multifaceted.

European space contractors appear to be doing very good business while making inroads in the global market by focusing on services, where profits are much higher. Astrium and the Thales/Finmeccanica Space Alliance have bagged numerous telecom satellite orders as well as in the remote sensing arena as well.

Agusta Westland continues to retain its strong market position in the aviation and aerospace industry, by augmenting the slump in the commercial aircraft sector with increased orders from the defense sector. The global economic meltdown has not affected Agusta much, with very few cancellations, however, there has only been a delay in delivery schedules.

Augusta Westland has made several vital changes to its 8-metric-ton-class AW149 troop transport helicopter in the hope of getting a launch order for the Turkish Utility Helicopter Program (TULP). Turkey's initial requirement is for 100 helicopters; however, this is expected to go up to 200 in the long-term.

Recent losses in the defense business have forced Boeing to exit from the Joint Cargo Aircraft (JCA) program. Amidst these troubles, a bright spot is Boeing's deal with Qatar for purchase of C-17s.

MBDA has revealed that the Saudi Arabian contracts for upgrading Tornado will boost the overseas order in 2007 and it is also emerging as a key customer in 2008. The increase in the orders from the Middle East has become a key component for MBDA along with its other orders from the domestic markets like Italy, France, Germany and the U.K.

Italy and the US are planning to commit $1 billion to the US Joint Strike Fighter (JSF), without the purchase of a single airframe, and Turkey might also receive a similar bill. The three countries will invest around $1 billion over the 40-year Production Sustainment and Follow-on Development (PSFD) period, where the signature of the PSFD memorandum of understanding (MoU) incurs annual costs associated with setting up production of the Lockheed Martin F-35 Joint Strike Fighter, along with funding for further development of the aircraft.

The South African funding will prioritize the purchases of defense equipments such as surveillance aircrafts, communication networks and helicopters to help support security of the 2010 Soccer World Cup. The military is planning to highlight the short falls of current modernizations as some new purchases that are not directly linked to the sporting event are gaining momentum.

EADS North America have won as prime contractors for the Pentagon, which says volumes about their credibility in the U.S. as well as bolstering its future bid to wrest some of Boeing's business building refueling tankers for the United States Air Force.

Boeing is ready to deliver its first lot of C-17s to the US and UK and is keeping its production going by building almost 2 dozens of C-17 transports more than its confirmed orders and is looking for domestic as well as international customers. The company has offered a deal for $220-million unit flyaway price till end of June and many countries like Italy, Netherlands, and Sweden have shown interest while Canada is expected to confirm its commitment for the buy of four C-17s.

The improvements are being carried out by US Navy in the new group of F/A-18E/F Super Hornets to make sure that the multirole fighter will be combat-compatible in future. The aircraft's stealth performance is being enhanced and enhanced EA-18G Growler is being introduced and also Raytheon APG-79 active electronically scanned array radar will be retrofitted in the aircrafts and efforts are in progress to improve on the drawing board which would allow the aircrafts to gather its own images.

The Italian navy's plan to acquire three ATR 42s to temporarily support the country's aging Atlantic patrol aircraft could prove to be a setback for the US Navy and the Boeing Company who had hoped to include Italy in the 737-based P-8A Multimission Maritime Aircraft project. The move on Italy's part would greatly benefit the low-cost surveillance platform.

Germany and France are looking to kick off a new heavy-lift transport program to replace the aging Sikorsky German CH-53s operating in Afghanistan out of neighboring Uzbekistan. Eurocopter expects to receive type-certification for the helicopter, designated the EC175, from the European Aviation Safety Agency in 2010, followed by China's approval in 2011, the expected service-entrance date and the first flight would take place in 2009.

The Italian government would sign up for the US Navy's P-8A Multimission Maritime Aircraft (MMA) by the end of 2005, and with it, could commit the country to buying new airborne early warning aircraft. The commitment would make Italy, the Pentagon's last prospect of bringing in a foreign partner for the MMA's system design and development phase since Australia and Canada, which had contemplated partner status, but withdrew owing to budget problems.

Measures are being undertaken by the European nations to overcome shortcomings until the Airbus Military A400M transport bought by them is fielded and could act, as an insurance policy should the program encounter delays. Italy is considering lease of Boeing C-17s similar to the UK arrangement while France is considering fielding new tactical transports.

The Spanish government's announcement on May 20, 2005 to acquire the NH-90 helicopter is likely to give a further boost to the transport/frigate helicopter program, say observers. However, negotiations are still under way and are expected to hinge on industrial issues, in particular how to organize local participation in production and assembly.

The Pentagon's decision in favor of the Lockheed Martin led US101 team to develop the US presidential helicopter that is looked at as a watershed event, even though experts are divided over the larger ramifications of the $6.1 billion deal. The presidential helicopter (VXX) decision shows that it is the second time the Pentagon has opted for a Lockheed Martin-led team, as it meets the government requirements on schedule, with lesser risk and at lower cost.

The Italian air force is nixing the idea of leasing a further batch of F-16s in favor of a life-extension program and capability improvements for its AMX and Tornado strike aircraft. Military officials say the air force is considering early retirement of its AMX light strike aircraft, and initially replacing them with additional F-16s until the Lockheed Martin F-35 Joint Strike Fighter is available.

The Alenia Aermacchi M-346 became the leading contender in the international jet trainer market after its selection by the Republic of Singapore Air Force. The M-346 faces strong competition from Korea Aerospace Industries' T-50 to replace the Israeli air force's aging fleet of A-4N Skyhawks and F-16A/Bs.

South Africa offers foreign and domestic suppliers several niche areas for new defense procurement deals. Denel Dynamics is developing the Impi, a new guided missile for use from unmanned aircraft while helicopter manufacturers such as Augusta Westland and Eurocopter are competing for a possible replacement of the South African air force's Oryx fleet.

Alenia Aermacchi had found another first export customer for its M-346 advanced jet trainer in Singapore, now that the United Arab Emirates (UAE) remains unsure. The deal with Singapore will also boost the alliance between Alenia and Boeing for further business.

The U.S. presidential helicopter competition has resulted in several partnerships being broken and new ones being forged among defense manufacturing companies vying for the race. However, all will depend on the analysis of alternatives (AOA) being currently worked out by the U.S. Navy (USN).

The future of the trinational U.S.-German-Italian Medium Extended Air Defense System (Meads) is under scrutiny and will depend on several political and programming developments. The results of three major studies will help shape the future course of action for Meads including funding and other issues.

Competitors for Malaysia's fighter and airborne early-warning systems are not giving up despite two earlier failed attempts. The Malaysian Parliament is again deciding on making available funding for the same; and the third request for information (RFI) has been issued for the fighter acquisition while the second for the AEW aircraft.

The deal between France and Italy for Sicral-2, a new 4-ton class military communications satellite to be built and launched by Thales Alenia Space and Telespazio sets the stage for tighter European military satellite cooperation. The spacecraft is scheduled to be orbited in 2013. While the launch vehicle for the same is still to be selected.

India and the United Arab Emirates (UAE) appear to be the most likely launch partners on the MBDA Marte extended-range (ER) version of the antiship missile. India is looking to the Marte to fulfill its requirement for a helicopter-launched antiship missile.

The Guardia di Finanza (GdF), the Italian military force under the authority of the minister of economy and finance is looking at a maritime surveillance version of the Agusta Westland/Bell BA609 tiltrotor as a partial fleet replacement option for its Piaggio P-166DP1 twin-engine fixed-wing aircraft. Some of the advantages that the tiltrotor will offer the GdF for various operations are highlighted.

Boeing, in order to ramp up production and keep to delivery schedules for the Boeing 787, has acquired a South Carolina fuselage integration facility. The acquisition of a 50% stake in Global Aeronautica will give Boeing control of a crucial supply link in the 787 chain; and also help outsource major parts of the 787.

Italy's efforts to seal the M-346 advanced jet trainer contract with the United Arab Emirates (UAE) are being hindered by technical and financial obstacles. However, other options like Korea Aerospace Industries' (KAIs') T-50 could still be in the reckoning.

An increase in the number of defense deals and nonaerospace related activities has helped Finmeccanica to sustain growth targets following a drop in deals for commercial aircrafts and helicopters. The company is entering into a joint venture with the Libyan Investment Authority and the Libya Africa Investment Portfolio to establish company operations in Libya and other parts of Africa and the Middle East.

Boeing and General Electric are developing an improved version of the F414 which could increase exports of the F/A-18E/F Super Hornet and EF Growler. The new version will have 20% more thrust, better durability and fuel efficiency.

Turkey is preparing for the first flight tests for its T-129 attack helicopter, built in part with Augusta Westland and Turkish Aerospace Industries (TAI). The Turkish Army is buying 50 of the helicopters, with an option to purchase another 49, and is expected to be fielded in 2013.

Nations that are deploying the Eurofighter are examining options of reducing future requirements by cutting the present order by half. Other issues that could affect acquisition of Typhoon under the Tranche 3 production line are highlighted.

The United Arab Emirates will purchase from Italian aircraft manufacturer Alenia Aermacchi forty-eight M-346 aircrafts to meet the requirements of its Air Force for advanced jet trainers and light strike fighters. The deal was finalized at the Idex defense exhibition held from the 22-26 February 2009 and delivery is expected to commence by 2012.

Selex Galileo is incorporating design changes in the tactical unmanned air vehicle Falco based on feedback from its customers. Most of the upgrades are based on information received from the Italian Defense Ministry who has indicated interest in the vehicle while the Pakistan Army has specified the changes it desires.

The Italian government has authorized the acquisition of additional AW101 and CH-47 Chinook produced by Augusta Westland and Boeing. But the only hurdle that still remains is the providing of requisite funding for the purchase of the additional aircraft.

The Rooivalk attack helicopter acquired by South Africa is yet to be fully integrated into operational service. Delivery was completed in 2004 but different levels of fittings have made it obsolete to a certain extent.

Selex Communications, the U.S. arm of Finmeccanica has been awarded the avionics for Alenia North America's refurbishing of G222 aircraft for the Afghan National Army Air Corps. Further details of breakup of sub-contracting for refurbishment of the G222s are also highlighted.

Alitalia is to be merged with Air One and will back in operation the Intesa and Imi banks that will help overcome financial and structural problems put following the Phoenix plan together.

Britain and Italy will send additional strike aircraft to Afghanistan following a request from NATO for its International Security Assistance Force (ISAF). Both countries will send Tornado strike aircrafts.

The launch of the Sicral 1-B satellite, to help ensure a secure military satellite communications system, has been delayed due to a hammering out of the agreement between Italy and NATO although the approval has been given for the production of two more satellites.

The United Arab Emirates (UAE) is planning revamping its air force inventory by acquiring Airbus A330-based tankers and is also narrowing its choice of selecting the winners of its trainer competitions by the end of 2007. The service is planning to acquire 24-30 basic trainers and up to 40 advanced jet trainers as it is presently using a Grob screener aircraft, with the Pilatus PC-7 as the basic trainer and the BAE Systems Hawk 63 and Hawk 102 operated in the advanced role.

Airbus is planning to launch A330-200F cargo aircraft, which is the platform the Northrop Grumman/EADS team, is planning to offer as part of the KC-30 competition. The A380-200F would bring to the freighter market the cross-crew commonality approach it has long championed for airlines, slated to enter service in the second half of 2009.

Lockheed Martin prepares in 2006 to join the US Army/Air Force Joint Cargo Aircraft program with the its C-130J short fuselage variant, a first four engine offering in what had been a contest between twin-engine designs. Meanwhile, Boeing plans to announce an alliance with Alenia and L-3 Communications to market the C-27J in which Lockheed Martin also has a stake.

Asia Pacific nations such as India and Singapore are in the process of refurbishing their surface-to-air missile (SAM) systems. Missile manufacturers such as Rafael, MBDA, Lockheed Martin, Raytheon and some Russian manufacturers are all set to meet the countries' requirements.

Italian planners face fundamental choices over the extent of Rome's participation in the Joint Strike Fighter and regardless of its political makeup the new government will have to review the country's ambitions for the Lockheed Martin F-35. Decisions on level of Italian participation, the number of aircraft to be bought, and version of the JSF is at stake while the issues of industrial participation and technology access may limit Italy's participation in the program.

The difficulties that would be faced by the Spanish air force during the next decade in opting to buy additional Eurofighter Typhoons, or taking the big step and embrace unmanned combat air vehicles, are discussed. With Spanish industry heavily involved in two UCAV projects, but also in Typhoon production, Spain's decision could signal to what extent UCAV have matured.