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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.

Regional authorities in Rome are contemplating shutting down Ciampino airport in an effort to promote Fiumicino as the city's primary airport. However, the closing of Ciampino as a commercial destination and promoting Viterbo as an alternative could impact the effectiveness of the low-cost carriers that use Ciampino.

Germany, Italy, Spain, and the U.K., the four partner nations in the Eurofighter Typhoon program, are expected to agree on a Tranche 3 deal by the second quarter of 2009. The Tranche 3 standard is expected to enhance the aircraft's multi-role capabilities.

The restructured Alitalia is facing major issues following the plan of the Air France-KLM partnership to hold a 25% share in the airline. Alitalia has to decide on whether its routes will operate around hubs in Rome and Milan, and whether it can survive without merging fully with the Air France-KLM group.

The revamped Alitalia airlines is all set to operate again with a renewed fleet, improved network and reduced operating costs. It is hoped these changes will help make Alitalia competitive and avoid past mistakes that led to losses.

Italy is planning to purchase maritime patrol aircraft (MPA) and tactical unmanned aerial vehicles to meet the surveillance needs of the country. An Alenia Aeronautica ATR 72-based MPA system is expected to replace the Atlantics and will operate jointly with the Air force and the Navy, but final decisions on UAV acquisitions programs have not yet been taken.

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 Italian Air Force has satisfactorily flight tested three systems of the mini-unmanned aircraft Strix. Procurement of Strix is expected to meet the requirements of the Italian special operation forces deployed in Afghanistan.

The article presents the progress on the Italian CosmoSkyMed Earth Observation constellation. The third CosmoSkyMed military-civil Earth-observation radar satellite was launched on October 24 and the next launch is scheduled for 2009.

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.

Finmeccanica will acquire DRS Technologies despite the global financial crisis. The additional debt due to the takeover may deter prospects of another acquisition.

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.

Political instability in South Africa may affect military acquisitions. This was voiced by participants at the African Aerospace and Defense show held recently.

The A-Darter dogfight missile is expected to be tested within the nest few months. Developed by Denel the design may form the basis of the active radar-guided, medium-range air-to-air missile.

A strategic agreement between Rome and Tripoli has been responsible for helping Italy's defense and aerospace industry secure substantial business in Libya. Some of the different benefits of the bilateral agreement between the two are discussed.

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.

Italy may not be in a position to participate in forthcoming high-profile multinational efforts due to impending cuts in its budget that will affect acquisition of military equipment and ongoing programs.

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 first Boeing P-8A Poseidon maritime patrol aircraft has incorporated several design changes and is undergoing final production at Boeing Commercial Airplanes' Renton. Some of the changes are the modification to a rear door, installation of 100 antennas for communications and electronic intelligence gathering.

The proposed purchase price of Alitalia by the Air France-KLM group has different sections opposing the valuation price.

Finmeccanica is planning to combine its defense electronic activities with Selex Galileo being the core of its electronics operations. Galileo Avionica in Italy and Selex in the U.K. will remain separate entities till they start running smoothly their various operations and then will be absorbed by Selex Galileo.

The Defexpo India, a land and naval systems conference, witnessed the signing of 20 defense contract partnerships with foreign manufactures. Major deals included Mahindra Defense Systems' joint venture with Whitehead Alenia Sistemi Subacquei of Finmeccanica Group, BAE Systems discussion with Indian air force, and Tata Group's partnership with Sikorsky Aircraft, Boeing, and Urban Aeronautics of Israel.

Italian and Russian aviation industries are looking at new avenues and cooperation after the rollout of the Superjet 100.

Alenia Aeronautica is stepping up its Boeing 787 production and is trying to cope with all the pressure due to delays. Alenia Aeronautica plans to work for Boeing's 787 in 10 different sections a month and has allocated about $707 million for upgradation.

With the pullout of Air One, one of the last serious bidders from the race to purchase the Italian airline AIitalia, the government is in the process of deciding what to do about the airline, and in the meantime has asked them to continue business as usual.

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 Italian space agency aims to enhance the lift capacity of its Vega booster to avoid its fall in the market. The new technologies that increase the propulsion rate are investigated.

The increasing demand for NH90 and rotorcraft compels the manufacturers- Eurocopter and Agusta Westland to raise their production.

After a successful launch, the first of four CosmoSkyMed radar observation satellites became operational and work on the second-generation design has also begun with the X-band radar satellite safely in orbit.

Increasingly sophisticated electronic jamming systems that could thwart fighter's radar system have forced the U.S. Navy to look for the upgrade of F/A-18E/Fs. The Navy wants to upgrade F/A-18E/F with an infrared search-and-track system.

Lockheed Martin faced several setbacks that risked the cancellation of its premier standoff program, the U.S. Joint Air-to-Surface Stand-off Missile (Jassm), but the company officials maintain outward optimism and are betting on new concepts to shore up weapons business.

The U.S. Air Force has chosen a subsonic platform for its next-generation bomber which has put emphasis back on high-speed weapons to deal with time critical targets.

The heavy demand for Special Forces and heavy-lift helicopters such as the Chinook has led to a difficult politically sensitive decision for Augusta Westland as to where they should locate the final assembly line for the Boeing Chinook.

The increase in orders might raise the Italian helicopter maker, AgustaWestland's financial status to newer levels, with a 3 billion euro turnover mark in sight by the end of 2010. The company has delivered around 170 helicopters in 2006 and its A109 family and AW139 are continuing to sell satisfactorily.

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.

AgustaWestland and Boeing are joining hands to pursue the sales of CH-47 Chinook in Europe. They are targeting the sale of CH-47F Chinook to the Italian army and are also planning for expansion to the U.K. and beyond.

The Italian government is looking for a new investor for its ailing Alitalia, which is losing money since 2002. The Italian government is planning to sell at least 30.1% stake of the airline and the Italian treasury is compelled to speed up the process, since Alitalia is losing almost 1 million euros every day.

The Italian air force is planning to use an interim simulation training capability for its Eurofighter Typhoon aircraft until the full simulator is available. The air force would be using an enhanced cockpit trainer/interactive pilot station to provide initial and proficiency training for its Typhoon crew.

Stakes in the business relationship between Finmeccanica and ATR are likely to increase as Finmeccanica aims to gain control over the turboprop-maker ATR in its talks with EADS. The talks are expected to concentrate on Italian participation in the A350 program.

South African Air Force is having problems with the operational use of its Rooivalk attack helicopter due to low operational availability, parts obsolescence, training challenges and the crashing of one of them due to technical problem. Military officials however note that the helicopter is ready for combat and are considering a foreign deployment of the rotor aircraft for some time to underscore the fact that the helicopter is effective.

The deployment of a Franco-Italian-led United Nations (UN) task force to Lebanon in 2006 could profoundly modify perceptions of Europe in the international security arena, and Italy's stature within the European defense structure. The force, known as Unifil 2, is expected to have 4,500 troops in place by mid-September and another 1,500 or so by October.

Engineers at AgustaWestland in 2006 are starting work on a new utility helicopter to fill the gap between its A139 light-medium twin and NH90 medium-heavy-lift models and make it more competitive with other leading manufacturers, particularly archrival Eurocopter. Designed for a cruise speed of 160 kt., the AW149 would be a militarized derivative of the popular A139, but with a more powerful drive train and a bigger, heavier fuselage more suited to military payloads.

A plan being negotiated between Rome and Athens will include Greek air force pilots undergoing jet training in Italy. This negotiation comes as Italian government and industry officials continue to convince Greece to buy the Aermacchi M-346 advanced jet fighter, even as Italy has already offered a risk-sharing partnership to Hellenic Aerospace Industry.

Boeing is set test fly a ramjet-powered missile demonstrator, which could represent a large step toward achieving the Pentagon's goal to able to quickly strike fleeting targets at great distances. It is revealed that the goal is to fly the missile up to speeds of Mach 4-6, and achieve ranges of 400-600 naut.mi.

Boeing is expected to fly the first Japanese KC-767 refueler in July 2006, even as it continues flight testing a slightly redesigned version of the aircraft for Italy to tackle a buffet problem that set back delivery . Boeing officials insist they will meet performance requirements, and are awaiting a draft request for a US KC-767 offering.

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.

Airbus is continuing to battle with production problems and operational issues surrounding the A380's entry into service, along with reducing separation limits. An International Civil Aviation Organization working group would be facilitating the November 2005's standards, with the separation distance between the two A380s down to 4 naut. mi.

Eight nations are planning to bid for a multibillion-dollar Saudi Arabia border surveillance system aimed at equipping the desert nation's 5,000-km border with an array of advanced sensor systems to protect against intrusions from neighboring states, especially Yemen and Iraq. Riyadh has opted for a nation-to-nation setup, with each country identifying a national champion to bid for the Saudi Border Guard Development Program (also called as Miksa), instead of dealing directly with industry.

Finmeccanica is planning a multi-path strategy that includes aggressive cost-cutting as well as efforts to expand its defense electronics empire through the possible acquisition of Sweden's Ericsson Microwave Systems in May 2006 as part of a new operational push. Finmeccanica has about 2 billion euros $2.5 billion to spend on potential deals and Ericsson is the latest target in its Chairman/CEO Pier Francesco Guarguaglini's campaign to dominate Europe's defense electronics business.

Airbus has new partners in Russia and China for future plans of A320 family as the company has signed a deal with Russia for A320 conversion and is nearing a deal with China to open another A320 final assembly line there. The conversion of A320s and A321s into freighters to be done jointly between Airbus' EFW facility in Dresden and Russian aircraft maker MiG and Irkut near Moscow will start around 2011.