Friday, January 22, 2010

Pentagon underscores commitment to F-35

By Andrea Shalal-Esa
Defense News ~ WASHINGTON, Jan 21 (Reuters) - Deputy Defense Secretary William Lynn on Thursday underscored the Pentagon's commitment to Lockheed Martin Corp's (LMT.N) $300 billion F-35 fighter jet, saying the U.S. government and its allies still planned to buy 3,000 of the new fighters over time.
"We are heavily investing in the F-35. A successful Joint Strike Fighter is at the heart of our continued air superiority," Lynn told industry and military officials at a conference hosted by Tufts University and the Institute for Foreign Policy Analysis.
Draft budget documents obtained by Reuters show the department will request $10.7 billion to continue the F-35's development and buy 42 aircraft in fiscal year 2011, 10 less than initially planned.
The Pentagon "has adjusted F-35 procurement quantities based on new data on costs and on likely orders from our foreign nations partners and realigned development and test schedules," the document said without giving details.
Lynn, speaking to reporters after his speech, acknowledged the program had run into some problems typical of large new weapons programs, but said the department was implementing steps to bring the program back "in line."
He said there was no plan to halt work on any of the three variants of the radar-evading new fighter jet. "There's no thinking of changing that kind of fundamental," he said.
Asked if the program could breach cost thresholds that would trigger a notification to Congress and a life-or-death program review, Lynn said Pentagon officials would address that issue next week.
He said he was aware of reports that Britain could halve its proposed buy of F-35 fighters for an aircraft carrier due to rising unit costs and increased budget pressures, but said the British had not yet made a final decision on the issue.
Lynn said he did not anticipate that any such cuts would increase the unit cost of the new fighters and undermine its business case as a relatively low cost replacement for Lockheed's F-16 and 12 other warplanes.
"There's always going to be puts and takes on orders. I think the fundamental core of the buy is still there -- it's going to be several thousands purchased," Lynn said. "I don't think there's a threat there right now."
A senior Pentagon official told Reuters in November that a "couple" of unnamed co-development partners were delaying planned purchases of the jet, a move that will boost initial prices of the costliest ever U.S. arms purchase.
Eight international partners have co-financed the F-35: Britain, Italy, the Netherlands, Turkey, Canada, Australia, Denmark and Norway.
Northrop Grumman Corp (NOC.N) and Britain's BAE Systems (BAES.L) are Lockheed's key subcontractors on the new fighter.
(Reporting by Andrea Shalal-Esa; Editing by Phil Berlowitz)

New ATI Radeon E4690 MXM Delivers Blazing-Fast Graphics for the Embedded Market

New Industry Standardized Module Offers High-Performance Graphics and Superior HD Video Playback in a Compact Form Factor
Defense News Updates ~ TAIPEI, Taiwan--January 22, 2010, (BUSINESS WIRE)--At the DIGITIMES Tech Forum (DTF) 2010, AMD (NYSE: AMD - News) today introduced the ATI Radeon™ E4690 Mobile PCI Express module (MXM) for the graphics-intensive embedded systems. The industry-standard MXM 3.0 specification for graphics subsystems calls for reduced power, improved cooling capability and a lower z-height, enabling designers to create smaller, more efficient embedded systems and speed time to market. The ATI Radeon E4690 MXM features more than triple the 3D graphics performance of previously available solutions with low CPU utilization and brilliant picture quality.1 With its massively parallel, programmable architecture, the ATI Radeon E4690 MXM is designed for compute intensive, embedded applications such as digital signage, image recognition, signal processing and surveillance, arcade and casino games, medical imaging, and more.
Working in collaboration with ALT Software, a leading supplier of 2D and 3D graphics, AMD is able to offer customers an alternative to custom programming by developing a standards-based parallel processing API, helping them to improve performance in embedded computing systems by leveraging the power of the graphics processor (GPU). For example, the GPU has become a standard hardware component in many aerospace and defense systems, making it an ideal parallel processing solution.


Unsurpassed Performance, Power Efficiency, and Flexibility
*The ATI Radeon E4690 MXM features 512MB of on-board GDDR3 memory, 320 shader processors, a comprehensive set of display output options and adjustable system clocks for exacting power and performance requirements.
*As the industry’s only embedded graphics chip to offer support for both Microsoft DirectX® 10.1 and AMD’s Unified Video Decoder 2 (UVD 2), the ATI Radeon E4690 MXM enables competitive advantages for AMD’s embedded customers by providing outstanding graphics support coupled with high quality video playback performance.
*Incorporating ATI PowerPlayTM intelligent power management technology, the ATI Radeon E4690 MXM is designed to optimize power consumption and enable exceptional performance per Watt for power sensitive embedded applications.
*System designers have ultimate flexibility with a comprehensive selection of outputs including dual independent display controllers, integrated DisplayPortTM, integrated single & dual-link LVDS, integrated single & dual-link DVI/TMDS/HDMI and analogue outputs.
*Supported by ATI Stream technology, the ATI Radeon E4690 MXM can replace numerous system hardware components (e.g. FPGAs, DSPs etc.), helping to reduce overall system power, size, and cost.

“As the graphics requirements for embedded systems continue to increase, AMD has armed the ATI Radeon E4690 MXM with features that are important to our customers and done so within an industry-standard specification that helps simplify design, development and market delivery,” said Richard Jaenicke, director of Embedded Discrete Graphics for AMD. “Based on the successful ATI Radeon™ E4690 GPU, the ready-made ATI Radeon E4690 MXM solution provides the graphics performance, energy efficiency and reliability customers need. This, coupled with the module’s five year product life cycle, makes the ATI Radeon E4690 the easy answer for system designers looking to gain competitive advantage in the marketplace.2”
“The ATI Radeon E4690 MXM module is an ideal solution for our aerospace and defense customers,” says Dan Joncas, VP Sales ALT Software. “Its parallel processing capabilities open up a whole new range of applications including video surveillance, radar processing, target acquisition and synthetic vision. This module is ideal for manufacturers of embedded systems that require high-performance computing and advanced graphics.”


Supporting Resources
Product page: http://www.amd.com/us/products/embedded/graphics-processors/Pages/embedded-display-graphics.aspx
DTF 2010 page: http://www.digitimes.com.tw/seminar/DTF_990121.html
About AMD
Advanced Micro Devices (NYSE: AMD - News) is an innovative technology company dedicated to collaborating with customers and technology partners to ignite the next generation of computing and graphics solutions at work, home and play. For more information, visit http://www.amd.com.

Copyright 2010, AMD, the AMD Arrow logo, ATI, the ATI logo, PowerPlay, Radeon, and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and may be trademarks of their respective owners.


1) Performance is based on the comparison of ATI Radeon E4600 to ATI Radeon E2400 using 3DMark06 tests run in the similar system configuration: MSI K9A2 Platinum (790FX, SB600), AMD Athlon X2 7850 (2.8 GHz), 2 GB DDR2 800MHz 5-5-5-12, Video Driver: 8.612 RC1 (Catalyst 9.5), Windows Vista Ultimate 32-bit SP1 Note graphics components of 3DMark06 are insensitive to system configuration when there is sufficient frame-buffer size.
2) Availability subject to change without notice.

Contact:
AMD Global Communications
John Swinimer, 905-882-2600 ext. 2704

US Air Force says Lockheed missile "back on track"

* Contract underscores support for program
* Work underway to upgrade mechanical fuze
By Andrea Shalal-Esa
Defense News Updates ~ WASHINGTON, Jan 21 (Reuters) - Lockheed Martin Corp's (LMT.N) $6 billion radar-evading JASSM cruise missile is "back on track" after acing 18 of 19 tests since September 2009, the Air Force colonel in charge of the program said on Thursday.
The Air Force on Wednesday awarded Lockheed a $245 million contract to build an eighth lot of 160 more baseline and extended range Joint Air-to-Surface Standoff missiles (JASSM) for the Air Force and foreign military customers.
"With the award of the Lot 8 contract, the Air Force has further expressed its confidence that the program is back on track to continue delivering its unique combination of stealth, standoff precision, and flexibility off of both fighters and bombers," Air Force Colonel Stephen Demers told Reuters.
The Air Force last year threatened to cancel JASSM, a long-range missile designed to destroy fixed and moving targets, after years of repeated technical problems if the next round of tests did not show markedly better missile reliability.
The missile succeeded in 15 of 16 tests last August, assuaging those concerns.
The weapon was declared combat-ready five years ago and has been deployed despite several testing failures, but it faced increased scrutiny as Pentagon officials targeted weapons programs with cost overruns and technical problems.
Demers declined comment on the fiscal 2011 budget, which is due to be released on Feb. 1, but said the program now had the support of the Air Force and Pentagon leaders, and he did not anticipate any "future programmatic issues."
Alan Jackson, director of JASSM programs for Lockheed, said Wednesday's contract brought the total number of missiles under contract to 1,200, about one-fourth the total number of missiles the Air Force plans to buy in coming years.
The missile reached a 94 percent reliability rate in the most recent tests, and has an overall reliability rate of well over 80 percent over the history of the program. The Air Force aims to reach a reliability rate of 90 percent by 2013.
Demers said the Air Force would continue testing the reliability of the missiles, although the number of tests could be reduced in coming years.
In his annual report to Congress, the Pentagon's chief weapons tester acknowledged that testing had shown improved reliability, but said more flight tests were needed to characterize the performance of the weapons.
The report, a copy of which was obtained by Reuters, also raised questions about the Air Force's decision to halt work on an electronic fuze for the missile, noting that 4 of 26 missiles launched in fiscal year 2009 had fuze issues.
"The Air Force should renew the pursuit of the Electronic Safe and Arm Fuze, ensuring the availability of a second fuzing option," said the report.
Demers said the service had funded an alternate program to upgrade the missile's existing mechanical fuze to a model with fewer moving parts, an effort he said would help the missile achieve the reliability target "even faster."
Officials familiar with the issue, who were not authorized to speak on the record, said upgrading the current mechanical fuze would save millions of dollars in development costs.
While industry had developed an electronic fuze, it would be difficult to use on JASSM, they said, noting that the missile is designed to penetrate many feet of concrete.
(Reporting by Andrea Shalal-Esa; Editing by Phil Berlowitz)

ViaSat Awarded First Limited Production Order for MIDS JTRS Terminals

Production marks major milestone in JTRS program
Defense News Updates ~ CARLSBAD, Calif., Jan. 21 /PRNewswire-FirstCall/ -- ViaSat Inc. (Nasdaq: VSAT) has been awarded a Limited Production (LP) order valued at $14.4 million for Multifunctional Information Distribution System Joint Tactical Radio System (MIDS JTRS) terminals for the U.S. government. The LP award resulted from a competitive procurement for 41 terminals through the Space and Naval Warfare Systems Command (SPAWAR). ViaSat was awarded 100% of the terminals in the procurement. The order is being awarded under the MIDS Indefinite Delivery/Indefinite Quantity contract initially executed in January 2000. The MIDS JTRS terminals are for F/A-18E/F and E-8C Joint STARS aircraft and spares.
(Logo: http://www.newscom.com/cgi-bin/prnh/20091216/VIASATLOGO)
The MIDS JTRS program was implemented as a Pre-Planned Product Improvement (P3I) to the current MIDS Low Volume Terminal (MIDS-LVT). MIDS JTRS has completed contractor qualification testing and initial F/A-18E/F integration in anticipation of operational testing in 2010. Pre-production terminals have been undergoing flight tests at Patuxent River Naval Air Station and China Lake Naval Air Weapons Station for several months. The terminal has successfully completed security verification testing and is in the final stages of obtaining NSA certification. ViaSat expects to receive conditional first article approval in February 2010.
MIDS JTRS is a joint development of ViaSat and Data Link Solutions and provides a migration path from the MIDS-LVT to a certified, reprogrammable, software-defined radio architecture for tactical data links. The MIDS JTRS adds three programmable channels to the legacy Link-16 and TACAN capabilities of the MIDS-LVT. The three new channels are designed to host future advanced airborne networking waveforms. MIDS JTRS is "plug-and-play" backward compatible with MIDS-LVT so it can easily replace the MIDS-LVT, but remain interoperable.
About ViaSat (www.viasat.com)
ViaSat produces innovative satellite and other digital communication products that enable fast, secure, and efficient communications to virtually any location. The company provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies and products to the U.S. government; is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services; and owns WildBlue, the premier Ka-band satellite broadband service provider. ViaSat also offers design capabilities and a number of complementary products including monolithic microwave integrated circuits and modules, DVB-S2 satellite communication components, video data link systems, data acceleration and compression, and mobile satellite antenna systems. ViaSat is based in Carlsbad, CA, has major locations in Duluth, GA, Germantown, MD (Comsat Laboratories), and Greenwood Village, CO (WildBlue), along with additional field offices and service centers worldwide.
Safe Harbor Statement
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934, including statements about operational testing, First Article Approval, and deliveries and performance of the ViaSat MIDS JTRS terminal. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially, including but not limited to: contractual problems, product defects, manufacturing issues or delays, regulatory issues, technologies not being developed according to anticipated schedules, or that do not perform according to expectations; and increased competition and other factors affecting the wireless communications and secure networking industry generally. In addition, please refer to the risk factors contained in ViaSat's SEC filings available at
www.sec.gov, including ViaSat's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. ViaSat undertakes no obligation to update or revise any forward-looking statements for any reason.
Comsat Labs and Comsat Laboratories are tradenames of ViaSat Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. "Comsat" is a registered trademark of COMSAT Corporation. All additional products are trademarks of their respective owners.

Northrop Grumman Will Enter Competition as Prime Contractor for Missile Defense Agency's Ground-based Midcourse Defense Contract

Defense News Updates ~ HUNTSVILLE, Ala., Jan. 21, 2010 (GLOBE NEWSWIRE) -- Northrop Grumman Corporation (NYSE:NOC - News) today said it will enter the competition as a prime contractor for the U.S. Missile Defense Agency's (MDA) Ground-based Midcourse Defense (GMD) Development and Sustainment contract.
The company cited its ability to leverage extensive experience and best practices from missile-related programs for the missile defense program, commenting on a draft Request for Proposals issued Jan. 19 by MDA.
"We have the core people, processes, and tools in place to deliver robust missile defenses under this contract," said John Clay, vice president of Missile Systems for Northrop Grumman's Aerospace Systems sector. "Northrop Grumman already is well underway in bringing together the capabilities to meet GMD's development, testing, training, operations, support and sustainment challenges."
Northrop Grumman is a primary supplier of technologically advanced missile and missile defense weapon systems, including the ICBM Prime Integration Contract, MDA's Space Tracking and Surveillance Demonstration program, and the Missile Defense Integration and Operations Center, Colorado Springs, Colo.
Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

Contact:
Bob Bishop

Northrop Grumman Aerospace Systems
310.812.5227
Cell: 310.251.0261
bob.j.bishop@ngc.com

IDGA: Extending Service Life of Aging Aircraft

Defense News Updates ~ NEW YORK-- January 21, 2010, (BUSINESS WIRE)--IDGA’s Cockpit Avionics Summit is the premier military avionics conference in the United States. As the continually aging aircraft fleet is tasked at the highest levels in history, the DoD has outlined road-maps to extend their service life and utility with technological avionics improvements across the board. “At the same time, the growing needs of a constantly changing war environment must be addressed while increased congestion and safety concerns require attention as well,” says Keith Johnson, General Manager of IDGA and 12 year veteran aviator of the US Air Force.
This year’s Cockpit Avionics Summit will detail current efforts and developments in the fields of NextGen requirements and how the DoD will meet the timeline, interoperability, and plans to adapt in an uncertain future. In today’s complex and rapidly changing battle environment, aircraft operators are becoming increasingly inundated with never-before seen challenges necessary for mission success and ultimately safety.
IDGA’s Cockpit Avionics Summit will be held February 9 -11, 2010 at Hilton Old Town Alexandria in Alexandria, VA.
The Institute for Defense & Government Advancement (IDGA) is a non-partisan information-based organization dedicated to the promotion of innovative ideas in public service and defense through live conferences and events. We bring together speaker panels and events comprised of military and government professionals while attracting delegates with decision-making power from military, government, and defense industries. For more information, please visit www.idga.org

Contact:
Marketing IDGA

Andy Kaftan, 646-502-3267
andrew.kaftan@idga.org
www.cockpitavionicssummit.com

US Air Force sees no big changes to tanker terms

* No details on changes to financial terms
* Final competition terms due out next month

By Andrea Shalal-Esa
Defense News Updates ~ WASHINGTON, Jan 21 (Reuters) - The U.S. Air Force is eyeing some changes to "financial arrangements" for a multibillion dollar competition for new aerial refueling tankers, but Pentagon officials declined to say whether that could signal a departure from the fixed price terms they initially sought.
Air Force Chief of Staff General Norton Schwartz said on Thursday he did not expect any substantial changes on the requirements for the tanker, but declined to elaborate on possible changes to what he called the financial arrangements.
Schwartz, speaking to reporters on the sidelines of an aerospace conference, said the Air Force planned to release the final terms for the competition within a month after the release of the Pentagon's fiscal 2011 budget on Feb. 1.
Industry executives have said they expect the terms to be released around mid-February, possibly around Feb. 12.
Schwartz said possible changes to the financial structure of the tanker competition were sparked by the Air Force's dialogue with industry about possible financial risks associated with the proposed contract terms.
Deputy Defense Secretary William Lynn also declined on Thursday to discuss any possible changes, saying the Pentagon and Air Force would explain their views when the final request for proposals (RFP) is released next month.
Pentagon budget documents obtained by Reuters include funding for development of a new aerial refueling tanker at an estimated cost of $35 billion, forecasting a contract award this summer and procurement to start in fiscal 2013.
Northrop Grumman Corp (NOC.N) and Europe's EADS (EAD.PA) won a projected $35 billion contract for 179 tanker planes in February 2008, but the Pentagon canceled it after government auditors upheld a protest filed by rival Boeing Co (BA.N).
Northrop and EADS have told the Pentagon they will not bid for the work this time around unless major changes are made to draft rules for the competition that were released last year.
Asked if he was worried about the prospect of awarding a sole-source contract to Boeing given the long history of the Air Force's attempts to buy new tankers, Schwartz said the clear preference was to have a competition.
"I'm not going to speculate what others might do, but clearly we hope to have two or more offerers," he said. "But the bottom line is again that we on the customer side get to decide what we need."
Congress killed an earlier Air Force plan to buy 100 767-based tankers from Boeing amid a huge procurement scandal that sent a former top Air Force official and Boeing's former chief financial officer to prison for violating federal conflict of interest rules.

(Reporting by Andrea Shalal-Esa; Editing by Tim Dobbyn)

World's Fastest Rad-Hard PowerPC Processor Ready for Space

Broad Reach Engineering Completes Development of BRE440 PowerPC® CPU
Defense News Updates ~ TEMPE, Ariz.--January 21, 2010, (BUSINESS WIRE)--Broad Reach Engineering today announced completion of development and delivery of the aerospace industry’s fastest, highest performance radiation-hardened microprocessor.
“The Rad-Hard BRE440 PowerPC CPU is fully developed, in stock and ready to serve in radiation-rich environments ranging from on-orbit and interplanetary space to nuclear, defense and medical applications,” said Broad Reach CEO Chris McCormick. “With its combination of memory controllers, Ethernet, high speed and low power consumption, the BRE440 chip represents one of the most significant system-on-a-chip advancements for space flight in more than a decade, and is poised to enable a new generation in high-reliability processing solutions. We are currently using this chip on our next-generation GPS receivers and our Mirideon 3U single board computer.”
The device is built on Honeywell’s rad-hard HX5000 150nm SOI process and is based on a PowerPC 440 core licensed from IBM. The BRE440 processor design includes on-chip floating point unit, memory controllers, L2 cache, two Ethernet ports, two serial ports, four DMA channels, EDAC controller and PCI interface. Speed is configurable up to 133MHz and is 2 MIPS/MHz.
About Broad Reach Engineering
Broad Reach Engineering produces spaceflight hardware and software solutions, integrating vehicle design, component design and engineering services for aerospace, scientific, commercial and military customers on four continents and for global space centers and contractors. The company’s radiation-hardened avionics and electronics product lines include the next-generation BRE440 “system-on-a-chip” – the world’s fastest radiation-hardened microprocessor. Founded in 1997, the company has office and laboratory locations in Tempe, Ariz., Boulder, Colo. and Golden, Colo. For more information, please visit www.broadreachengineering.com.

The PowerPC name is a registered trademark of IBM Corp. and used under license there from.

Contact:
Broad Reach Engineering
John Metzger,
303-641-1062

SAMSUNG Techwin and SAMSUNG | GVI Security Joining Forces

Will Be One Unified SAMSUNG Product Line
Defense News Updates ~ RIDGEFIELD PARK, NJ and CARROLLTON, TX--(Marketwire - 01/21/10) - Samsung Techwin America and GVI Security Solutions today announced that they will establish a strategic partnership to provide optimal security solutions to both companies' customers that will ultimately lead to one product line. This is in response to the announcement that the Samsung Techwin and Samsung Electronics Video Security Products businesses are being merged effective January 1, 2010, due to the acquisition of the Samsung Electronics Company's Video Security Products business by Samsung Techwin. Both the Techwin and Electronics names will be dropped for the surveillance product line and the company will go to market strictly as Samsung.
"The combination of Samsung Techwin and Samsung Electronics resources are in essence doubling the resources that Samsung is dedicating to electronic security in order to become an industry leader. It will allow us to effectively increase the Video Security Products business and technological capabilities of both companies into a stronger, singularly focused digital video security systems organization. We are taking actions to ensure increasing sales, continued service and customer satisfaction for all Samsung Security Products," said JW Ahn, President and CEO of Samsung Techwin America.
"This is very good news for our customers and the video surveillance market in the Americas," emphasizes Steve Walin, CEO of GVI. "It is only natural, therefore, that we enter into a strategic partnership with Samsung Techwin America, replicating a similar symbiotic relationship we had with Samsung Electronics. Our SAMSUNG GVI Security name will change to SAMSUNG SECURITY."
According to Walin, legacy product lines will be maintained until superior replacements are developed and released, ultimately leading to one cohesive Samsung product line. In Latin America, SAMSUNG SECURITY (formerly SAMSUNG GVI Security) will serve the entire region except for Argentina, Brazil and Chile, where both companies will continue to serve these markets together.
About SAMSUNG Techwin:
Samsung Techwin America is a leading supplier of cutting edge video products to the security industry offering IP, Thermal and Analog Cameras, Network and Digital Video Recorders and LCD Monitors. Office locations on the East and West Coast facilitate extended technical support hours and an extensive inventory permitting same day shipments. Samsung Techwin America is a subsidiary of Samsung Techwin, a four billion dollar organization in the high technology industry. For more information, visit www.samsungcctvusa.com.
About GVI Security Solutions:
GVI Security Solutions (GVI) (dba SAMSUNG GVI Security) is a leading provider of video security solutions to the homeland security, institutional and commercial market segments. GVI offers the complete Samsung line of video security products. GVI recently announced the acquisition of its first owned Intellectual Property (IP) VMS technology called autoIP™. The company offers its products and services through local, regional and national system integrators and distributors in North and Latin America. GVI operates sales and support offices in Dallas, Texas; Mexico City, Mexico; Sao Paulo, Brazil; and Bogota, Colombia. For more information, visit www.gviss.com.

Contact:
For More Information, Contact:
Henry Kim
Samsung Techwin America
310-605-3302
Esra Pope
SAMSUNG GVI Security
972-245-7353 ext. 2288

EADS may need finance if A400M efforts fail-report

Defense News Updates ~ BERLIN/PARIS, Jan 21 (Reuters) - EADS (EAD.PA) could be forced to raise new finances if A400M buyer nations fail to agree a price increase for the delayed plane and costs continue to rise, according to a report commissioned for buyer nations.
It does not say how such finances would be raised, but EADS has consistently said it does not need a capital increase.
The report, delivered in December by PricewaterhouseCoopers, a summary of which was obtained by Reuters, lays out the dilemmas facing the Airbus parent and seven European countries being discussed in talks on Thursday.
EADS wants 5.2 billion euros ($7.4 billion) of extra support to complete the transporter project, which is running 7.6 billion euros over budget after planned cost savings, according to the PwC report.
Below are some of the options discussed in the report.
For accompanying tables, please click on
EADS declined to comment on the six-week audit and report.
OPTIONS
PwC considers various options summarized below by Reuters from the textual summary of the audit report.
A) STATUS QUO ("CONTINUATION" SCENARIO)
If the A400M continues with no price increase and EADS is forced to shoulder the entire projected 7.603 billion euro cost overrun, with low cash payments from the nations up to 2013:
* Short-term liquidity would remain adequate
* Gross cash in 2013 would be below a level deemed acceptable by the EADS board
* Credit rating downgrade likely
* EADS still able to access existing funding sources
* Reduced customer payments
* Market reaction (credit downgrade/reduced payments) could have significant negative impact on the Airbus business model.
B) NO PRICE INCREASE AND COSTS CONTINUE TO ESCALATE
The report says that if the projected loss rises above the current 7.603 billion euros, and there is still no price increase, "we believe the group would be unable to continue without a fresh source of financing support".
C) CANCELLATION
* Cancelling the project would have more severe implications for EADS than the "continuation" scenario, the report says.
* There would be a "more adverse" credit rating impact
* Funding sources would likely be restricted.
D) "WALK AWAY"
A scenario in which EADS walks away from the contract (a prospect floated by Airbus officials in recent weeks) would be worse than cancellation due to extra costs and damages claims.
E) FINANCIAL HELP FROM PURCHASING NATIONS
If nations put more funding into the programme from 2010 to 2013, this would alleviate the gross cash deterioriation forecast by PwC and reduce the risk of negative market reaction, the report says.
The report's conclusion said: "Whilst the case for a recurring price increase is not proven, not least because the level of the loss remains unclear, an aggregate increase in A400M funding would reduce the external risks that we (PwC) have identified."
But it warns European purchasing nations that any such increase "should be contingent on gaining assurance on the implementation of much improved programme management controls".
(Reporting by Tim Hepher and Sabine Siebold)

Thursday, January 21, 2010

Royal Netherlands Air Force Selects AAI's Advanced Boresight Equipment for Two Helicopter Platforms

Defense News Updates ~ : HUNT VALLEY, Md.--January 20, 2010, (BUSINESS WIRE)--AAI Corporation, an operating unit of Textron Systems, a Textron Inc. (NYSE: TXT - News) company, announced today that the Royal Netherlands Air Force has selected its Advanced Boresight Equipment (ABE®) for aircraft harmonization on the AH-64D Apache Longbow® and CH-47F Chinook® helicopters.
ABE is a gyro-stabilized, electro-optical angular measurement system designed to align aircraft subsystems. Under these new awards valued at more than $1.8 million, AAI will deliver an additional ABE AH-64D Apache Depot Boresight System to align various sensor, weapon and sighting systems, as well as an additional ABE AH-64D Apache Maintenance Aircraft Survivability Equipment (AMASE) Boresight Kit for AMASE alignment. AAI’s ABE boresight solution has supported the AH-64D Apache for the Royal Netherlands Air Force since 2004.
In addition, AAI’s ABE system has been selected as the harmonization solution for the Royal Netherlands Air Force’s CH-47F Chinook aircraft survivability equipment. Under these awards, AAI will design, develop and deliver adapters, platform-specific firmware called a Personality Module, training and manuals.
“AAI is committed to creating reliable, cost-effective test solutions that provide confidence to warfighters. ABE is the boresighting solution of choice for dozens of platforms in several countries,” says Vice President of Test & Training Systems Robert Peters. “Not only is it a proven, accurate and repeatable resource, it minimizes harmonization time and required manpower. The Royal Netherlands Air Force will now use our common ABE Model 310A alignment system on both of these helicopter platforms.”

About AAI
AAI Corporation and its indirect wholly owned subsidiaries Aerosonde Pty Ltd and ESL Defence Limited design, produce and support industry-leading aerospace and defense products and services, including unmanned aircraft and ground control technologies; high-fidelity training and simulation systems; automated aerospace test and maintenance equipment; armament systems; and logistical, engineering, supply chain and operational support services. AAI Corporation is an indirect wholly owned subsidiary of Textron Inc. More information is available at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.aaicorp.com&esheet=6149468&lan=en_US&anchor=www.aaicorp.com&index=1&md5=0ce7e87a540422ab056ded5b9fec2b6b.

About Textron Systems
Textron Systems Corporation has been providing innovative solutions to the defense, homeland security and aerospace communities for more than 50 years. Known for its unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment services, Textron Systems includes AAI Corporation, Lycoming Engines, Overwatch, Textron Defense Systems and Textron Marine & Land Systems. Textron Systems Corporation is an indirect wholly owned subsidiary of Textron Inc. More information is available at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.textronsystems.com&esheet=6149468&lan=en_US&anchor=www.textronsystems.com&index=2&md5=fd3a790697813c653fd8b7e3977567ba.

About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.textron.com&esheet=6149468&lan=en_US&anchor=www.textron.com&index=3&md5=8e38987f61dcfe584464be973d106730.

AAI and ABE are registered trademarks of AAI Corporation
AH-64D Apache Longbow is a registered trademark of Boeing Management Company
Chinook is a registered trademark of the Department of the Army


Contact:
Investor Contact:

Textron
Doug Wilburne,401-457-2288
or
Textron
Bill Pitts, 401-457-2288
or
Media Contact:
Textron Systems Corporation
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US Army's war budget includes big weapons orders

* Boeing, Sikorsky helicopters get funding
* Over 6,000 Humvees included

Defense News Updates ~ WASHINGTON, Jan 20 (Reuters) - The U.S. Army's proposed $9.3 billion war budget for Afghanistan includes significant funding for new helicopters, ground vehicles, missiles and ammunition, and upgrades to existing equipment, according to a Dec. 23 draft budget document obtained by Reuters.
Following is a list of major items included in the Army request, which is part of the $33 billion the Obama administration is seeking for emergency war funding in fiscal 2011 to pay for a major buildup of U.S. troops in Afghanistan:
-- $486 million in targeting and surveillance sensors built by Raytheon Co (RTN.N), the Base Expeditionary Targeting and Surveillance System
-- $751 million in orders for Family of Medium Tactical Vehicles, which would likely be built by BAE Systems Plc (BAES.L) under a bridge contract from its existing pact
-- $1.07 billion to rebuild and repair 6,670 existing Humvee trucks, work that would likely be done at military depots rather than benefiting any single contractor
-- $445 million in modifications to better protect existing Stryker vehicles built by General Dynamics Corp (GD.N) from attacks in Afghanistan
-- $105 million to replace three Boeing Co (BA.N) CH-47 helicopters that were damaged in Iraq and Afghanistan, as well as $47 million in modifications for CH-47 cargo helicopters
-- $199 million for modifications to the video feed capabilities of 288 AH-64 Apache helicopters, also built by Boeing
-- $187 million in orders for 15 new Kiowa Warrior helicopters built by Bell Helicopter, a unit of Textron Inc (TXT.N)
-- $190 million in Hellfire missile orders for Lockheed Martin Corp (LMT.N)
-- $113 million in TOW 2 heavy anti-tank missiles built by Raytheon
-- $188 million in orders for 418 Family of Heavy Tactical Vehicles built by Oshkosh Corp (OSK.N)
-- over $700 million in orders for ammunition, which would largely benefit Alliant Techsystems Inc (ATK.N) and General Dynamics
-- $159 million in high-frequency radios built by Harris Corp (HRS.N), and
-- $226 million in Warlock jamming systems built by ITT Corp (ITT.N).
The budget plan also includes significant funding to increase purchases of unmanned aerial vehicles, and to step up intelligence and surveillance efforts, according to the document. (Reporting by Andrea Shalal-Esa, editing by Gerald E. McCormick)

BAE Systems Unveils New Modernized Howitzer Vehicle For U.S. Army

Defense News Updates ~ YORK, Pa.--January 20, 2010, (BUSINESS WIRE)--BAE Systems today unveiled its upgraded PIM (Paladin Integrated Management) vehicle to military customers, Congressional representatives, community leaders and employees at a ceremony held at its York facility. PIM is the next generation howitzer in the M-109 Paladin family of vehicles, a combat proven weapon system manufactured by BAE Systems at York.
“The modernization of the Paladin is a critical step in providing the Army with a sustainable and supportable fleet of upgraded vehicles,” said Joe McCarthy, vice president and general manager of the Heavy Brigade Combat Team (HBCT) systems for BAE Systems. “The roll-out of our PIM system will ensure that the HBCT continues to have the premier Fire Support Platform needed to support the warfighter.”
BAE Systems was awarded a $63.9 million contract in August 2009 to produce seven PIM vehicles: five Self Propelled Howitzers and two Field Artillery Ammunition Support Vehicles. Today’s roll-out introduces the first of the seven vehicles awarded in that contract.
The PIM uses the existing main armament and cab structure of a Paladin M109A6 and replaces the out-of-date chassis components with up-to-date components from Bradley Combat Systems. PIM incorporates a state-of the-art “digital backbone” and robust power generation capability and integrates electric elevation and traverse drives, electric rammer and digital fire control system. The upgrade of the PIM ensures maximum commonality with existing systems in the Heavy Brigade Combat Team (HBCT), and reduces its logistical footprint and operational sustainability costs by replacing obsolete components within the mobility chassis.
The BAE Systems Paladin Integrated Management vehicle is the first production vehicle equipped with the company’s enhanced on-board power management capability, representing the first implementation of the U.S. Army’s Common Modular Power System (CMPS) requirement. BAE Systems enhanced on-board power management solution will double the electrical power of most military vehicles, exponentially increasing the mission effectiveness of ground forces in theatre.
Design and engineering analysis work for the vehicle structure, automotive systems and electric and vehicle electronics will be performed at the BAE Systems facilities in Pennsylvania, California, New York, Minnesota and Michigan as well as U.S. Government facilities at the Army Research and Development Center in Picatinny, New Jersey. The remanufacture for the Paladin fleet will be performed in partnership with the Anniston Army Depot in Alabama and at BAE Systems facilities in York, Pennsylvania and Elgin, Oklahoma.
About BAE Systems
BAE Systems is the premier global defense, security and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. With approximately 105,000 employees worldwide, BAE Systems' sales exceeded £18.5 billion (US $34.4 billion) in 2008.

Contact:
BAE Systems

Shannon Smith
Tel: +1 703-894-3545
Mobile: +1 703-967-3854
shannon.n.smith@baesystems.com
or
Susan Lenhardt
Tel: +1 301-838-6907
Mobile: +1 703-850-1621
susan.lenhardt@baesystems.com
www.baesystems.com

US STOCKS-Wall St drops on China, IBM; eBay jumps late

* Manufacturers, commodity stocks fall on China concerns
* IBM sparks tech rout as 2010 forecast disappoints
* Dow, S&P 500 each off 1.1 pct; Nasdaq off 1.3 pct
* For up-to-the-minute market news, click [STXNEWS/US]
By Ellis Mnyandu
Defense News Updates ~ NEW YORK, Jan 20 (Reuters) - The Dow suffered its worst drop of 2010 on Wednesday as U.S. stocks succumbed to fears that China's curbs on bank lending might jeopardize the global economic recovery, while IBM's outlook sparked caution about the technology sector.
Chinese authorities have ordered some major banks to curb their lending over the rest of this month after an early burst of credit, banking industry sources said. For details, see [ID:nTOE60J09N].
Signals that China, the world's third-largest economy, may restrain its economic expansion hurt shares of natural resource companies, including Alcoa Inc (AA.N), off 2.5 percent at $15.23, and big manufacturers, with Caterpillar Inc (CAT.N), down 1.9 percent at $59.76.
The S&P materials sector index .GSPM fell 1.5 percent.
"This is really a direct result of concerns around the tightening of credit in China," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.
Although IBM posted a stronger-than-expected quarterly profit late on Tuesday, investors had misgivings about its guarded 2010 outlook, sending the stock down nearly 3 percent.
The Dow Jones industrial average .DJI tumbled 122.28 points, or 1.14 percent, to end at 10,603.15. The Standard & Poor's 500 Index .SPX fell 12.19 points, or 1.06 percent, to finish at 1,138.04. The Nasdaq Composite Index .IXIC dropped 29.15 points, or 1.26 percent, to close at 2,291.25.
The Dow suffered its largest daily percentage decline since late December, while the Nasdaq took its largest daily percentage loss in a week. It was the worst drop for the S&P 500 since Friday.
On Tuesday, the Dow and the S&P 500 ended at 15-month highs on bets the Democrats would lose a Senate seat. The S&P 500 is up 68.2 percent since bottoming out in early March 2009.
Earlier on Wednesday, the major indexes had dropped about 2 percent or more, but recovered some ground in the last hour of the session, thanks to some buying of bank stocks.
LATE JUMP FOR eBAY, STARBUCKS
The latest earnings season picked up pace after the bell, when e-commerce company eBay Inc (EBAY.O) and coffee chain Starbucks Corp (SBUX.O) posted stronger-than-expected quarterly earnings. [ID:nN20152285]
Shares of eBay rose 4.6 percent to $23.25 in extended trade, after ending the regular session at $22.23 on Nasdaq. Starbucks shares jumped 3 percent to $24 in after-hours trading, after ending on Nasdaq at $23.29.
Still, in the regular session, shares of International Business Machines Corp (IBM.N), a major technology services company, ended down 2.9 percent to $130.25 as investors perceived that its 2010 outlook is pointing to a potential slowdown in profit growth. [ID:nSGE60J0I7].
IBM was the Dow's biggest drag, followed by energy company Chevron Corp (CVX.N), down 1.9 percent at $78.15. Diversified manufacturer United Technologies Corp (UTX.N), another Dow component, was down 1.2 percent at $71.43.
The S&P energy index .GSPE dropped 1.7 percent. A run-up in the U.S. dollar weighed on dollar-denominated commodity prices. U.S. February crude CLGO fell 1.8 percent, or $1.40, to settle at $77.62 a barrel.
The U.S. dollar index .DXY was up 1.1 percent against major currencies, helped by worries about Greece's ability to refinance its deficit.
On the Nasdaq, Apple Inc (AAPL.O) was the heaviest weight, down 1.5 percent at $211.725. Other tech bellwethers off 1 percent or more were Google (GOOG.O), Microsoft (MSFT.O) and Cisco (CSCO.O).
Investors count on emerging economies like China to underpin a nascent global recovery, so any restrictive policy there could be a setback for those that bet on a sustainable rebound and recently propelled the S&P 500 to 15-month highs.
Healthcare stocks, which led an advance on Tuesday on signs that a healthcare overhaul could face new hurdles in Congress, declined on Wednesday as some investors booked profits. The Morgan Stanley healthcare payor index .HMO lost 2.1 percent and an index of pharmaceutical companies .DRG dipped 0.3 percent.
On a busy earnings day for U.S. banks, Wells Fargo & Co (WFC.N) and U.S. Bancorp (USB.N) reported better-than-forecast quarterly earnings, helped by recent acquisitions, while a larger rival, Bank of America, got a boost from Merrill Lynch.
Bank of America (BAC.N), the top U.S. bank by assets, reported a wider-than-expected loss, but said its credit problems were beginning to stabilize. [ID:nN20148741].
U.S. Bancorp shares rose 2.1 percent to $25.01 and Bank of America gained 1 percent to $16.49. The KBW bank index .BKX rose 1.4 percent.
On the New York Stock Exchange, about 1.05 billion shares changed hands, below last year's estimated daily average of 2.18 billion. On the Nasdaq, about 2.39 billion shares traded, above last year's daily average of 1.63 billion.
Declining stocks outnumbered advancing on both the NYSE and Nasdaq by a ratio of about 3 to 1.
(Reporting by Ellis Mnyandu; Additional reporting by Rodrigo Campos; Editing by Jan Paschal)

Tuesday, January 19, 2010

DynCorp International Given Option Year for F-18 Maintenance in Kuwait

Defense News ~ FALLS CHURCH, Va.--January 19, 2010, (BUSINESS WIRE)--The United States Navy has awarded DynCorp International (NYSE:DCP - News) a $16.9 million modification to a previously awarded contract for maintenance services in support of the Kuwait Air Force F/A-18 program under the Foreign Military Sales program. This modification exercises the final option year under the contract, initially awarded in 2006 by the Naval Air Systems Command in Patuxent River, Md.
DynCorp International (DI) provides organizational and intermediate-level aviation maintenance support for F/A-18 aircraft, as well as supply support, quality control, training, and maintenance and material documentation services for these aircraft owned by the Kuwaiti military.
DI has supported the Kuwait Air Force F/A-18 program since 1997.
About DynCorp International
DynCorp International is a provider of specialized mission-critical services to civilian and military government agencies worldwide, and operates major programs in law enforcement training and support, security services, base operations, aviation services, contingency operations, and logistics support. DynCorp International is headquartered in Falls Church, Va. For more information, visit www.dyn-intl.com.
Forward-Looking Statements
Certain statements made in this announcement, other than historical data and information, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. All forward-looking statements reflect the expectations of management and are based on estimates and assumptions that, although believed to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, and technological factors outside of the Company's control that may cause its business, strategy or actual results or events to differ materially from the statements made herein. These risks and uncertainties may include, but are not limited to, the risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.


Contact:
DynCorp International

Media Contact:
Douglas Ebner, 571-224-7822

Sikorsky in US helicopter deals totalling $1.52 bln

Defense News ~ Jan 19 (Reuters) - United Technologies Corp's (UTX.N) Sikorsky Aircraft won two U.S. military helicopter contracts worth a total of $1.52 billion, the Defense Department said on Tuesday.
The first contract, totaling $923.7 million, funded the fourth year of a multiyear contract for a range of Army Black Hawk helicopters.
The second, for $600.7 million, covered the fourth year of funding for various Navy MH-60 Sea Hawk helicopters, the Pentagon's daily contract digest said.
(Reporting by Jim Wolf, Editing by Tim Dobbyn)

Textron Defense Systems' XM1100 Scorpion Intelligent Munitions System Demonstrates Operational Capabilities in Successful End-to-End Testing

Defense News ~ WILMINGTON, Mass.--January 19, 2010, (BUSINESS WIRE)--Textron Defense Systems, an operating unit of Textron Systems, a Textron Inc. (NYSE: TXT - News) company, announced today that its XM1100 Scorpion networked sensor and munitions system successfully completed a rigorous test series at White Sands Missile Range in New Mexico.
Testing culminated in the first end-to-end, live-fire engagement by the Scorpion networked sensor and munitions platform, with the Scorpion system scoring a perfect three for three against vehicle targets. Remote-controlled military targets were driven through multiple fields of emplaced Scorpion systems, which identified and tracked the targets and passed information to an operator overlooking the fields. The operator then armed a fully functional Scorpion system with a high-explosive munition, destroying the targets and demonstrating the system’s effectiveness.
The Scorpion system includes networked, arrayed lethal and non-lethal engagement effects and components for command and control, situational awareness and communications, all of which are linked by a central command-and-control module. The system can detect, track, classify, report and engage enemy vehicles, making it effective for battlespace shaping and force protection.
A full network of 16 dispensing modules was employed during the White Sands Missile Range test event, which included demonstration of command and control, ground sensor tracking, target engagement, anti-vehicle munitions launch and warhead lethality, as well as self-destruction testing and soldier interaction testing and assessment. Additional achievements included the testing of a fielded Scorpion system overnight to observe its force protection capability.
“The White Sands Missile Range end-to-end test event demonstrates that our Scorpion system operates as intended — to protect warfighters from surrounding threats and provide them critical force protection capability,” says Textron Defense Systems’ Senior Vice President and General Manager Mark Catizone. “The demonstration’s successful completion brings us an important step closer to delivering this system into the hands of warfighters.”
Following this major program milestone, Textron Defense Systems plans to deliver production representative systems for government qualification testing, which is expected to commence early this year.
About Textron Defense Systems
Textron Defense Systems employs advanced technology and industry expertise to develop and manufacture state-of-the-art smart weapons; airborne and ground-based sensors and surveillance systems; and protection systems for the defense, aerospace and homeland security communities. Its innovative systems for the military provide precision effects, actionable intelligence and force protection. More information is available at www.textrondefense.com.
About Textron Systems
Textron Systems Corporation has been providing innovative solutions to the defense, homeland security and aerospace communities for more than 50 years. Known for its unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment services, Textron Systems includes AAI Corporation, Lycoming Engines, Overwatch, Textron Defense Systems and Textron Marine & Land Systems. Textron Systems Corporation is an indirect wholly owned subsidiary of Textron Inc. More information is available at www.textronsystems.com.
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at www.textron.com.
Forward-looking Information: Certain statements in this press release are forward-looking statements and speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including but not limited to the following: (a) changes in worldwide economic and political conditions that impact demand for our products, interest rates and foreign exchange rates; (b) changing priorities or reductions in the U.S. Government defense budget, including those related to Operation Iraqi Freedom, Operation Enduring Freedom and the Overseas Contingency Operations; (c) changes in national or international funding priorities, U.S. and foreign military budget constraints and determinations, and government policies on the export and import of military and commercial products; (d) our ability to perform as anticipated and to control costs under contracts with the U.S. Government; (e) legislative or regulatory actions impacting defense operations; (f) the timing of new product launches and certifications of new products; (g) the efficacy of research and development investments to develop new products (h) the launching of significant new products or programs which could result in unanticipated expenses; and (i) performance issues with key suppliers, subcontractors and business partners.
Scorpion is a trademark of the U.S. Army.

Contact:
Investor Contact:

Textron
Doug Wilburne, 401-457-2288
or
Bill Pitts, 401-457-2288
or
Media Contact:
Textron Systems Corporation
Sharon Corona, 410-628-3184
or
Textron
Michael Maynard, 401-457-2474

BAE Systems Partners with National Oceanic and Atmospheric Administration on First Test Flight of Coyote Unmanned Aircraft System

Defense News ~ TUCSON, Ariz.--January 19, 2010, (BUSINESS WIRE)--BAE Systems, in partnership with the National Oceanic and Atmospheric Administration (NOAA), has completed the first successful test flight of its small, electric-powered Coyote unmanned aircraft system. The system deployed in midair from a 3-foot-long sonobuoy dropped from a P-3 aircraft.
The flight, which lasted 49 minutes, marks a significant milestone in the development of the Coyote for military uses and scientific research.
“This is a major step forward for this innovative and one-of-a-kind system,” said John Wall, vice president of aviation programs for BAE Systems.
Initially funded by the U.S. Navy, the Coyote weighs only 13 pounds and has a 58-inch wingspan. During freefall, the system is designed to emerge from a sonobuoy, unfold its wings, and begin a directed flight path. Equipped with sensors or cameras, it can perform intelligence, surveillance, and reconnaissance missions while the host aircraft remains in safe airspace.
NOAA funded the test flight, using its WP-3D Orion aircraft, to explore the Coyote’s potential use in weather research. Future testing will assess the system’s suitability to be dropped into a hurricane or tropical storm to measure wind speed and other data critical to forecasting.
“Small unmanned aircraft systems are important tools that can help improve our understanding of the environment,” said Lt. Cmdr. Nancy Ash, NOAA manager for the Coyote project. “The Coyote has demonstrated the potential to provide researchers with valuable observations of high-wind environments.”
About BAE Systems
BAE Systems is the premier global defense, security and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. With approximately 105,000 employees worldwide, BAE Systems' sales exceeded £18.5 billion ($34.4 billion) in 2008.
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Contact:
BAE Systems

Neil Franz,
+1 301-838-6112
Mobile: +1 240-687-0127
neil.franz@baesystems.com
or
Susan Lenhardt,
+1 301-838-6907
Mobile: +1 703-850-1621
susan.lenhardt@baesystems.com
www.baesystems.com

Facing budget cuts, UK navy sets lofty ambitions

* Navy chief defends heavy military spending ahead of review
* Fear of budget cuts brings friction between army, navy

By Estelle Shirbon
Defense News ~ LONDON, Jan 19 (Reuters) - Britain's naval chief on Tuesday defended spending on aircraft carriers and major hardware, as lobbying for cash intensified ahead of a defence review.
Admiral Mark Stanhope acknowledged budgetary constraints at a time when Britain is struggling to emerge from recession and cope with a deficit forecast to reach 12 percent of GDP, but he nevertheless laid out an ambitious agenda for his service.
"I must retain and develop the quality to deliver success across the full spectrum of defence activity up to and including high intensity warfare," Stanhope said in a speech.
He insisted on flexibility, urging the government to look beyond the Afghan conflict and ensure that the armed forces are prepared for "surprises and strategic shocks" in coming decades.
Whichever party wins an election due by June, the next government will conduct an in-depth review of defence priorities and the amount of money allocated to each service.
But the Ministry of Defence is just one of many government departments that will struggle to shield their budgets from the Treasury's eye as it looks for costs it can reduce.
While the government has yet to give a breakdown of spending cuts, media speculation that some areas could see funding cut by up to 17 percent has raised anxiety levels, with advocates of universities among those already kicking up a fuss.
HARD POWER
Fighting the navy's corner, Stanhope defended a delayed and costly programme to build two aircraft carriers, saying these were a requirement of the British military as a whole.
"People that keep turning around and talking about 'the navy's carriers' have missed the point entirely. These carriers are about supporting (troops) ashore, not protecting a fleet."
His views contrasted with comments from the army chief, who said on Monday that new forms of warfare and tight budgets required giving priority to troops on the ground capable of winning over hearts and minds on a mass scale. [ID:nLDE60H2KX]
General David Richards spoke of "reducing investment in higher-end war-fighting capability" and suggested that foreign allies could make up for a lack of any particular equipment.
Stanhope was at pains to stress that he and his army colleague were "not at loggerheads" and were merely engaging in a "well-articulated debate" ahead of the strategic review, but he did acknowledge the potential for friction.
"My business, and where I am pushing harder maybe than he is, is that I'm about using armed force to be a deterrent mechanism to try and prevent the engagement ashore," he said.
"But if engagement ashore is what is required and it is what the nation decides is important, then we need to make sure we can do that properly."
Stanhope said the armed forces recognised the importance of activities like peacekeeping, humanitarian missions and diplomacy, but they should not lose sight of their basic role.
"These soft power activities and the benefits that accrue from them depend on the underpinning credibility of our armed forces through success on operations and their ability to fight and win wars, which is our ability to deliver 'hard power'."

Monday, January 18, 2010

EADS calls A400M buyers' signals positive-report

* EADS chairman welcomes buyers' signals on costs
* Meeting set for end of week in Berlin

Defense News ~ FRANKFURT, Jan 17 (Reuters) - The chairman of Airbus parent EADS (EAD.PA) on Sunday welcomed signs by its partners in the Airbus A400M military plane project that they are ready to talk about additional costs which threaten the deal.
"That its a very positive sign," Louis Gallois said in an interview with Frankfurter Allgemeine Sonntagszeitung (FAS), confirming he had knowledge of a planned meeting.
"We are ready to work constructively towards a solution that is acceptable to all sides," he said.
The buyers of the 180 Airbus troop transporters, seven European governments, pledged this week to seek a joint deal with Airbus.
EADS had complained it was been left out of crucial meetings and had set a Jan. 31 deadline for an agreement to avoid scrapping the plane.
"The A400M even at a higher price is cheaper, more modern and more flexible than the (U.S.) American competition," Gallois said in the FAS story.
The Handelsblatt business daily in pre-release abstracts of a story due to be published on Monday said that the meeting between governments and Airbus was likely to take place at the end of the week in Berlin, citing government sources.
The paper added that the governments are ready to offer a compromise under which they would be willing to forego some of the handling characteristics sought by the military -- a step which could significantly reduce the plane's production costs.
There was no comment immediately available from the German Defence Ministry, which has been negotiating on the project.
The A400M's future has been threatened by an 11 billion euro ($15.87 billion) or 55 percent blow-out in development and production costs, overshadowing a successful maiden flight carried out last month.
The planes had been due for delivery in 2009 but the maiden flight only took place last month and delivery is now set for 2012.
Gallois said the planned development schedule had been too tight initially and no comparable plane had needed less than 12 years to come to fruition.
"...with about 10 years for the A400M, we will be ready in very good time," he said.
He said that 40,000 jobs depended on the plan, including 11,000 in Germany.
He also said a civilian plane, the long-haul A350, was planned to be delivered from 2013 onwards and while there were no delays at this stage, the schedule was ambitious.
(Reporting by Vera Eckert; Editing by Erica Billingham)