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An inquiry by the Special Inspector General for Iraq Reconstruction found errors and insufficient documentation in DynCorp International Inc.'s invoicing for defense work performed in Iraq. In the past, the U.S. Department of Defense has recovered $26.5 million of DynCorp's overcharges.

BAE Systems Inc. -the U.S. unit of defense firm BAE Systems PLC -has formally protested the U.S. Army's decision to award a contract to BAE's rival -Oshkosh Corp.- to supply the Army with up to 23,000 military trucks and trailers over the next five years. The loss of the contract translates into billions of dollars in lost revenue for BAE and possible job losses at BAE's plant in Sealy, Texas.

Because of a structural flaw, Boeing Co. will postpone test flights and delivery dates of its 787 Dreamliner jet, possibly costing the company millions of dollars in penalties, concessions to customers awaiting the aircraft, and lost contracts to rival Airbus. A new delivery schedule has not been issued. Boeing's stock fell 6.5% to close at $43.87 in Tuesday trading.

Byline: AUGUST COLE DEFENCE PARIS -- Some of the warplanes drawing the most attention at this year's Paris Air Show are some of the slowest. Aerospace and defence companies are [...]

For many years, Boeing Co. has relied on the sale of military equipment to offset slumps in aircraft sales. The present global recession has caused jetliner purchases to plummet while governments are forced to cut back on military spending. Article discusses Boeing's production cutbacks and financial recovery prospects.

Byline: AUGUST COLE DEFENCE Sikorsky willing to join with Lockheed Martin to revive helicopter deal Helicopter maker Sikorsky is willing to partner with former rival Lockheed Martin Corp. LMT-N to [...]

To capitalize on growing demand for military surveillance systems, aircraft maker General Dynamics Corp. agreed to buy electronic components firm Axsys Technologies Inc. for $54 a share or $643 million. Axsys is expected to have sales of $280 million this year.

Bogged down by pension expenses, Lockheed Martin Corp. reports a first-quarter net income drop of 8.8% to $666 million. Revenue rose 3.9% to $10.37 billion. Lockheed expects full-year revenue in 2009 of between $44.7 billion and $45.7 billion.

Bogged down by $3.1 billion in charges, defense firm Northrop Grumman Corp. reports a fourth-quarter net loss of $2.54 billion, or $7.76 per share. In the same quarter, the company reported record revenue of $9.2 billion, an increase of 4%. Full-year revenue in 2008 grew 6.5% to $33.89 billion.

Byline: AUGUST COLE At a time when captains of the auto industry and Wall Street are seeing their compensation wiped out, defence contractor Lockheed Martin Corp. has raised its chief [...]

Affecting salaried and hourly workers, aircraft manufacturer Boeing Co. plans to reduce the workforce at its airplane-modification facilities in Wichita, Kansas, by 27% or about 800 jobs. To keep the facilities operating at full workforce, Boeing had hoped to win a $40 billion refueling-tanker Air Force contract, the bidding for which has been delayed.

Cutbacks in U.S. government spending bogged down third-quarter results of three aerospace and defense companies. Affected by a machinist union strike, Boeing Co. reports a third-quarter net income drop to $695 million from $1.11 billion a year earlier. Boeing's revenue fell to $15.29 billion from $16.52 billion. General Dynamics Corp. reported an increase in net income to $634 million from $546 million, and a revenue rise 4.5% to $7.14 billion. Northrop Grumman Corp.'s net income grew from $489 million to $512 million while revenue rose 6% to $8.38 billion.

Claiming irregularities in the bidding process, Boeing Co. filed a complaint before the Government Accountability Office against the Department of Defense and the Air Force over the award of a $40-billion refueling-tanker contract to a joint venture of Northrop Grunman Corp. and foreign enterprise European Aeronautic Defence and Space Co. The contract was overturned and the Department of Defense extended the time period for the companies to present new bids. It is expected that the Pentagon will not choose a contract awardee until next summer. Article discusses the new bidding process and its political and financial implications.

Defense contractor General Dynamics Corp. says it seeks to diversify and, as part of its new business strategy, plans to acquire air-services company Jet Aviation for $2.25 billion. Article discusses Jet Aviation's international operations and revenue expectations through 2009.

The U.S. Government Accountability Office has ruled in favor of Boeing Co. and against the U.S. Department of Defense and the Air Force in a case over irregularities in the Pentagon's awarding of a $40 billion tanker jet contract to a foreign partnership composed of Northrop Grumman Corp. and the European Aeronautic Defence & Space Co. Article discusses the implications of GAO's decision for European defense and aeronautics corporations seeking business within the U.S. market, and the effects of U.S. government agencies' contracts with foreign companies on the U.S. economy and labor market.

After the U.S. Air Force granted a $40 billion refueling tanker contract to an international partnership headed by Northrop Grumman Corp. and EADS, Boeing Co. initiated proceedings before the U.S. Government Accountability Office claiming irregularities in the Air Force's bidding process. In a non-binding resolution GAO has determined in favor of Boeing. The decision may compel the Air Force to reopen the bidding process.

Investment company The Carlyle Group announces the acquisition of a majority stake in Booz Allen Hamilton Inc.'s U.S. government consulting business. Article discusses Carlyle's investments and diversification strategies, and Booz Allen's financial standing, and division of its government and commercial consulting units.

Aerospace company Finmeccanica SpA is negotiating the acquisition of New Jersey-based defense company DRS Technologies Inc. Article discusses European aerospace and defense companies' acquisitions and investments in the U.S., and DRS Technologies' stock value and financial standing.

Boeing Co. announces it will file a complaint before the U.S. Government Accountability Office over an Air Force's $40-billion contract for refueling tankers with Northrop Grumman Corp. and the European Aeronautic Defence and Space Co. Article explores social, political, and security issues related to the granting of national defense contracts to foreign companies.

Byline: AUGUST COLE Boeing Co. filed a formal protest in hopes of overturning its loss of a $40-billion aerial-tanker contract, a sign that a bureaucratic appeal may be a more [...]

Airbus parent company European Aeronautic Defence and Space Company EADS N.V. and US-based Northrop Grumman Corp. have won a $40-bil contract with the United States Air Force to build 179 Airbus A330s to replace the Air Force's current fleet of Boeing Co. tanker aircraft. Boeing's loss of the contract has drawn political criticism.

European Aeronautic Defence and Space Company EADS N.V. is joining with Northrop Grumman Corp. in an effort to win a US-based commercial freighter jet and military tanker jet production contract for EADS unit Airbus S.A.S. Such a contract could break the lock that rival aircraft maker Boeing Co. has on tanker jet production.

UK's BAE Systems PLC is under investigation by US authorities regarding the legality of payments it made to Saudi Arabia's royal family in a deal for aircraft and services it made in 1986. The investigation may complicate BAE's offer to purchase Armor Holdings Inc. for $4.1 bil., which would significantly raise its profile in the US defense sector.

SAN FRANCISCO Delta Air Lines' pilots have authorized their union leaders to call a strike if the bankrupt carrier rejects their contract and imposes new terms on them. The voting, [...]

The Special Inspector General for Iraq Reconstruction is soon to release a report about how the United States Department of State spent billions of dollar in contracts&;with DynCorp International Inc. The contracts were for police-training services in Iraq. The auditors say that, due to Dyn-Corp's lack of documentation for its work, some $2.5 billion may have been subject to fraud.

Northrop Grumman Corp. plans to shift the location of its headquarters from Los Angeles to Washington, D.C., a move that will see 300 jobs move, but more than 20,000 will still be in Los Angeles. The move will put the defense contractor in close proximity with those its does business with.

After it was reported that militants in Iraq have managed to intercept video feeds from American military drone aircraft, and that this vulnerability has been known since the early 1990s, a call went up from legislators demanding that vacant government cybersecurity posts be filled immediately. The intercepts were made using cheap, easily-available software.

BAE Systems Inc. and truck maker Navistar International Corp. launched protests after Oshkosh Corp.'s was awarded a U.S. Army contract for military trucks. The Government Accountability Office has found flaws in the awarding of the contract, and in the Army's assessment of past work by Navistar and its report on the ability of Oshkosh to fulfil the contract.