USAF disputes on testers of KC-46 Tanker

The U.S. Air Force disputes the assessment by the Pentagon’s top tester that the test program for its prized KC-46 tanker program is not executable.

“The Air Force respects the opinions of the Office of the Director, Operational Test & Evaluation, but does not agree with its assessment that the KC-46 test program is ‘not executable,’” Air Force spokeswoman Jennifer Cassidy said in an email. “The Air Force does acknowledge that Boeing’s overall KC-46 program schedule is considered medium risk, in part due to its aggressive flight-test schedule.”

Cassidy wrote that the service worked with plane-maker Boeing, the U.S. Federal Aviation Administration and the Pentagon’s operational and developmental test force to build a plan that is comparable to the flight test programs for other commercial-derivative aircraft. She cited the KC-10 tanker program as an example.

“The Air Force structured the KC-46 program to ensure that no decision to enter operational test or production would be made without first meeting specific and measurable flight test results,” Cassidy wrote. “The Air Force also structured the KC-46 development contract as a fixed price contract to protect the DoD and taxpayers from any cost growth on the program if the test program is not executed as planned.”

Earlier in the month, J. Michael Gilmore, the Pentagon’s chief tester, found in his annual report that the program will likely need at least eight more months than planned by the Air Force and the prime contractor Boeing. That test schedule for the KC-46A tanker is far too ambitious and “not executable,” Gilmore said.

According to the report, the test program includes several “deficiencies.” The number of proposed flight hours per test aircraft, per month, exceeds “the historical average that the Air Force and Navy have experienced during other large aircraft test programs,” the document says.

In addition, the monthly schedule “is far too aggressive for flight tests that are more specialized, higher risk and more resource-intensive” than Federal Aviation Administration certification, the report says. The Air Force acknowledged last fall that Boeing’s flight test schedule is so aggressive; the company stands to lose money early on.

The development portion of the KC-46A contract — which the Air Force awarded to Boeing last February— has a ceiling of $4.83 billion. Boeing estimates the program’s cost at $5.2 billion, which means that the company will swallow a loss of about $300 million unless it can bring costs down, Shay Assad, the director of defense pricing, told lawmakers in October. The entire program, including development and production of 179 aircraft, is valued at more than $30 billion.

Boeing officials said they were unable to comment by press time.

Cassidy said, “The Air Force will continue to work with the Office of the Director, Operational Test & Evaluation and all our test stakeholders to ensure the test program is executed in an effective and efficient manner.”

France Offers Heron for NATO Role

PARIS - France is offering the Heron TP as its contribution in kind to the NATO Alliance Ground Surveillance program, but technical and financial problems related to adapting the medium-altitude, long-endurance (MALE) UAV to French standards are holding up a deal with Dassault and Israel Aerospace Industries (IAI), industrial and political sources said.

DASSAULT IS NEGOTIATING with Israel Aerospace Industries on the contract for the Heron TP, which the French company would then deliver to French authorities. (Israel Aerospace Industries)

French Defense Minister Gerard Longuet told the French aerospace journalists' press club that the deal would be sealed by "the end of 2012."

Dassault is negotiating with IAI on the contract for the Heron TP, which the French company would then deliver to French authorities.That's later than expected by industry and parliamentary sources, who had thought the controversial contract would be signed before the presidential elections starting in April.

"There are many difficulties" on adapting the Heron TP, driving the cost above the 320 million euro ($408 million) budget, a parliamentary source said. An extra 150 million euros each for Dassault and Thales has been estimated for the modifications, the source said.

That would push the cost to 620 million euros, approaching the 700 million euro price tag of a previous Dassault offer of the Système de Drone MALE.

The Defense Ministry has asked Dassault to submit a technical-financial proposal on the Heron TP at the end of the month.

Among the key modifications are a satellite communications link and de-icing equipment, vital to plugging the UAV into the French - and NATO - network and fly in the northern European climate, the industry executive said.

Procurement officials are working hard to make progress on the UAV case, and one option might be to acquire the Heron TP with little or no modification, the executive said.

That might create problems of interoperability within NATO as Paris has offered the Heron TP as its asset contribution, instead of paying cash, toward maintaining the AGS system, the executive said.

Although 13 nations are acquiring AGS, based on the Northrop Grumman Global Hawk UAV, all 28 alliance members help maintain the system in return for access to AGS information.

"The AGS package is still being discussed at NATO," an alliance press officer said. "It is a topic to be discussed in the February meeting of defense ministers."

NATO has long sought to launch the AGS program, intended to provide commanders with a common operational picture.

France has had a troubled relationship with AGS, as Paris looked to gain a big technological role. The planned AGS system relies on five Global Hawks to provide radar and optical pictures of conditions the ground, and a network of transportable ground stations. The UAVs will be based at Sigonella airbase, Italy.

The choice of the Heron TP sparked resistance in the French Senate, which argued for acquisition of General Atomics' Reaper on grounds of cost, performance and interoperability with allied forces.

Longuet defended the choice of the Israeli UAV as "a compromise between capability and a long-term interest for industrial policy," he told the press club.

"We could have found a cheaper, more efficient, quicker solution, but at the [unacceptable] price of long-term dependence," he said.

Longuet denied that most of the contract value would go to IAI, saying that air vehicle is the smallest part of the system, with communication and observation more important.

The government argues that adapting the Heron TP to French needs will help develop competences among about 10 domestic companies in high-value areas, particularly in communications. Critics of the choice say there would be more work for French companies on the Reaper, pitched by EADS and General Atomics.

"No proposition was made by Reaper, which did not want to share, nor to adapt to French standards," Longuet said.

General Atomics did not make a formal offer because France did not send a letter of request, an industry executive said.

In 2010, the U.S. company signed a technical-assistance agreement with EADS detailing its offer, the executive said. The agreement listed modifications, including a communications link developed by French equipment firm Zodiac for the Harfang UAV flying in Afghanistan.

General Atomics also wrote in June 2011 to French Sens. Jacques Gautier and Daniel Reiner, setting out a $209 million offer for seven air vehicles, ground gear and service support.

The government, however, sees Dassault as holding a key position on a strategic roadmap intended to ensure interoperability in observation, surveillance, targeting and air power. That position stems from its work on the Rafale and Anglo-French cooperation, in the government's view.

Longuet said risk-reduction work on the Heron TP would start in 2013.

Dassault and DGA were unavailable for comment.

On a proposed new MALE UAV to be developed with Britain, Longuet urged a pan-European rather than a strictly bilateral approach.

The project "should accept the construction of Europe," he said. "We can't ignore countries with industrial capabilities. We'll probably have an Anglo-French project, which cannot avoid opening to other European partners."

On the Anglo-French cooperation treaty, Longuet said, a new date for a summit meeting would be set for before his birthday on Feb. 24.

"There are no doubts on defense," he said on relations between London and Paris.

EADS and Finmeccanica signed a deal in December to team on UAV development, reflecting wider discontent in Italy and Germany over the Anglo-French defense accord.

France would not develop the EADS Talarion Advanced UAV, Longuet said.

One way of bringing a European dimension into the planned Anglo-French MALE UAV would be to integrate it into the European combat aircraft environment, dominated by the Eurofighter Typhoon and Rafale aircraft, Longuet said.

"If we're intelligent, we should say, 'You British work on Eurofighter with Germany, Italy and Spain, and we'll work on Rafale,'" he said. "It would be good if the MALE UAV were to be compatible with one and the other."

OTHER PROGRAMS

France will buy the A330 Multi-Role Tanker Transport (MRTT) from Airbus "in 2013 for delivery four years later," Longuet said, leaving Boeing out in the cold.

Longuet dismissed previous official denials that Airbus had been chosen as "semantic elegance."

The U.S. Air Force's $35 billion pick of Boeing over Airbus for its KC-X tender effectively shut the door on a French tender.

France is expected to order five to seven A330 MRTT units in a first-batch order that could total 14.

Paris had been considering leasing part of Britain's A330 tanker fleet, but the Libyan air campaign led French authorities to decide they wanted their own aircraft.

On domestic consolidation, Thales would likely take a 10 percent to 20 percent stake in Nexter in exchange for handing over its TDA Armements mortar and munitions business to the land systems specialist, Longuet said.

Thales' holding would be significant but would not leave Nexter "dependent," he said.

Answering a question on anxiety at DCNS, where Thales is raising its stake in the naval company to 35 percent from 25 percent, Longuet said, "Thales is not the obligatory supplier of systems. DCNS can choose its systems."

DCNS makes naval combat management systems, and executives fear Thales will impose its own products, relegating the company to being a platform maker.

Nexter and DCNS had to forge European alliances to compete with companies from emerging economies such as Brazil, but first they had to consolidate their domestic base, Longuet said. Nexter had to look to German partners, as that was where the land sector was strong, he said.

Asked about the health of French defense companies, Longuet said, "Thales is a company necessarily in more peril because it is innovative on creative subjects on a world scale. It is more difficult. It has to take risks and goes through periods of uncertainty."

Regarding arms exports, the 2011 total for France would be around 6.5 billion euros, helped by an Indian contract for modernization of its Mirage 2000 fighters, Longuet said. That compared with 5.12 billion in 2010.

In October, procurement chief Laurent Collet-Billon had told lawmakers in October he expected 2011 export sales to reach 7.5 billion euros.

On export prospects for the Rafale, Longuet said a UAE decision to pick the Rafale would help sell the fighter to Kuwait and Qatar, which want to be interoperable with their neighbor's Air Force.

"They are interested" but would not be the first to commit, he said. "If they think no decision is being made [by UAE], they will look elsewhere."

Kuwait is looking at acquiring 18 to 22 jet fighters, with Qatar potentially 24, industry executives said, according to La Tribune.

The Defense Ministry appeared to harbor worries about Qatar raising its stake in Lagardère, the family-controlled company which owns 7.5 percent of EADS.

"There are fewer problems in football than in military aeronautics," Longuet said. "It's a subject."

But the decision on Qatar's shareholding in Lagardère was up to the Finance Ministry, not the Defense Ministry, he said.

A Qatari sovereign fund holds 10.07 percent of Lagardère stock, making it the largest single stockholder in the French company, and has asked for a seat on the board. Qatar bought 70 percent of the Paris Saint Germain football club for 30 million euros in May.

Julian Hale in Brussels and Tom Kington in Rome contributed to this report.

Crash Temporarily Grounds India's Su-30 Fleet

NEW DELHI - India's mainstay fleet of Russian-made Sukhoi-30MKI aircraft have been temporarily grounded following a Dec. 13 crash in Pune. Though no reason has been attributed for the latest crash, an inquiry has been set up by the Indian Air Force.

Air Force sources said the entire fleet of Sukhoi-30MKI aircraft have been temporarily grounded for technical checkups. The Air Force has lost three Sukhoi-30MKI aircraft since 2009.

India license-produces Sukhoi-30 MKI at its Bangalore facility of state-owned Hindustan Aeronautics. So far, about 130 Sukhoi-30 MKI aircraft have been delivered to the Air Force. The total fleet strength of the Sukhoi-30 MKI will reach about 275 aircraft in 2015.

In 2009, the crash of Sukhoi-30 MKI was attributed to fault with the fly-by-wire system.

The Sukhoi-30 MKI aircraft are capable of carrying a nuclear weapon, and can fly deep inside China with the help of midair refuelers, as they have a range of more than 2,500 kilometers (1,550 miles).

Italy Gives Bombing Stats for Libya Campaign

ROME - In their first official breakdown of facts and figures about Italy's air campaign over Libya this year, officials said military aircraft deployed 710 guided bombs and missiles during sorties. Italian Air Force Tornados and AMX fighter bombers deployed 550 bombs and missiles, while Navy AV8s deployed 160 guided bombs, the officials said during an event at Trapani Air Base in Sicily to honor military personnel involved in the conflict.

The Air Force total included Storm Shadow missiles, which sources put at between 20 and 30, which were fired from Tornado IDS aircraft - the first time the Air Force has deployed the missile during operations. The success rate of the Storm Shadow was 97 percent, one official said.

Otherwise, the Air Force deployed Paveway and JDAM guided munitions. AMX bombers for the first time used Litening III targeting pods, while Tornado IDS aircraft used JDAM munitions operationally for the first time.

Although the Air Force used guided bombs in its Kosovo campaign, Libya marked its first "extensive" use of guided munitions, said Air Force chief Gen. Giuseppe Bernardis.

With up to 12 different aircraft flying missions on given days during the seven-month operation, the Air Force racked up 1,900 sorties and 7,300 flying hours using Tornado IDS and AMX aircraft for strike missions, Tornado ECR for air defense suppression, F-16s and Eurofighters for no-fly zone patrol, C-130J and 767 tanker aircraft for refueling, and the unarmed Reaper UAV for reconnaissance.

Patrol and air defense flights accounted for 38 percent of flying hours, surveillance and reconnaissance flights took up 23 percent, ground-attack missions made up 14 percent, air defense suppression flights took up 8 percent, refueling flights took up 8 percent, flights detecting electromagnetic emissions and undertaking electronic warfare were 4 percent, while "armed reconnaissance and attacks on targets of opportunity" took up 5 percent.

More than 340,000 high-resolution pictures were taken by Reccelite pods on Tornado and AMX aircraft while 250 hours of video was transmitted in real time by Reaper UAVs.

Eight Italian Navy AV8 Harrier jets, which enforced the no-fly zone over Libya and operated bombing missions, flew 1,221 hours from the carrier Garibaldi, while 30 ship-based helicopters, including the EH-101, SH-3D and AB-212 types, flew 1,921 hours as part of the operation.

The Air Force also rushed into service its new Boeing 767 tanker aircraft. A third aircraft was delivered in November and the final aircraft is expected in the first quarter of 2012.

Italian Navy statistics released about the campaign revealed that two submarines, the Todaro and the Gazzana, were involved in the NATO Unified Protector operation.

French Senate's Call: Buy Reaper, Not Heron UAV

PARIS - A left-led French Senate has adopted a budgetary amendment calling for procurement of the General Atomics Reaper UAV while safeguarding funds for development of a new-generation combat drone planned as a common project with Britain, the upper house said in a statement.

The amendment seeks to reverse a government decision to acquire the Heron TP drone from Israel Aerospace Industries (IAI), partnered with Dassault Aviation.

"The Senate wanted, in the general interest, to separate the operational needs of the Armed Forces from the industrial policy considerations," the amendment text said. "With this in mind, the Senators wanted, in the short term, to put priority on the safety of our troops by giving them the best equipment at the best price, in this case, the Reaper from General Atomics, while allowing, in the medium term, the emergence of an industrial sector by setting aside a larger amount of funds for French and European companies than that envisaged in the government's industrial plan."

The amendment, adopted Nov. 29 by a Socialist-led Senate, seeks to cut the amount for UAV acquisition in the draft 2012 defense budget law from 318 million euros ($423.8 million) to 209 million.

The 209 million euros is the amount General Atomics proposed in May for a non-French modified package consisting of seven air vehicles, two ground stations and maintenance for 10 years.

Under the Reaper offer, EADS would modify the U.S.-built UAV at a cost of 40 percent of the acquisition, or 88 million euros, bringing the total value of the package to 297 million euros, the amendment said.

That compares with an offer made by Dassault and IAI, also in May, for a package of seven modified Heron TP UAVs for 320 million euros. Modifications by Dassault, mainly adapting the satellite communications and integrating extra sensors, would bring the total amount to 370 million euros, the amendment said.

The Dassault-IAI deal also included two ground stations and 10 years' maintenance, the amendment said.

The senators debated the amendment until 4 a.m., a parliamentary official said.

"It was Homeric," the official said.

But senators of both right and left voted in favor of the amendment, which pushes the government to buy the American Reaper UAV, which can be armed.

The U.S. Air Force's selection of Boeing over Airbus for its KC-X tanker program made it extremely difficult for French senators to call for the purchase of a U.S. system, the official said. But the lack of operational and industrial sense in the French government's decision to buy the Israeli drone meant the Senate adopted the amendment, he said.

Besides the cut in procurement funding, the amendment called for the move of 80 million euros into technology studies for the future Anglo-French drone, and 29 million euros for upgrades to the current Harfang medium-altitude, long-endurance UAV operating in Afghanistan.

The 80 million euros for research studies would benefit Dassault and/or EADS for work on the planned Anglo-French program, rather than IAI, the amendment said.

Although the amendment does not specify the money should go to the unmanned combat aerial vehicle (UCAV) project in the Lancaster House Treaty, that was the intention, the parliamentary official said.

The amendment pointed up concern over the lack of competition in the government's pick of the Heron TP.

"This decision to choose the Heron TP drone, with a tender, is difficult to understand: it is financially disadvantageous, militarily debatable and industrially hazardous," the amendment said.

Defense Minister Gérard Longuet told the Senate's foreign affairs and defense committee that the Heron TP was 30 percent more expensive and 20 percent less effective than the Reaper, the amendment said.

Dassault was not available for comment.

A bipartisan group from the Senate foreign affairs and defense committee drafted the amendment, which will go to a joint committee of seven senators and seven members of parliament from the National Assembly for review.

It is unlikely the joint committee will agree on the same text, and the lower house, the National Assembly, will probably carry the day, the parliamentary official said.

The Senate and National Assembly defense committees put the safety of service personnel above any political concerns, an industry source said.

http://event.on24.com/r.htm?e=360313&s=1&k=099757C5FD830DAD8762FAFFA44FD71D France to Buy Airbus Tankers From 2013: Air Force Chief

PARIS, Nov 19 - France will buy the new Airbus A330 MRTT tanker aircraft from 2013, French air force chief Gen. Jean-Paul Palomeros was quoted as saying Saturday by an aviation website.
But he added that the Telemos unmanned drone being developed by France and Britain would not enter service until 2020, Aviation International News (AIN) said.

Palomeros said France's missions during the NATO-led action in Libya had shown the need to replace its fleet of 14 Boeing KC-135s for in-flight refueling.
Paris planned to buy a similar number of Airbus multi-role tanker transport (MRTT) aircraft, beginning with five to seven in 2013 for speedy delivery, he said.
A second batch also would have the role of replacing France's A340 and A310 VIP and transport fleet.
The French defense ministry denied in September that it had fixed on the Airbus, and said that deliveries of a KC-135 replacement were not planned for earlier than 2017.
One option introduced was to lease A330s purchased by Britain under the two countries' 2010 military cooperation agreement.
Regarding the Telemos drone being developed by Britain's BAE Systems from its Mantis prototype in partnership with French Dassault Aviation, "We need to define the operational requirements and develop a clear roadmap," Palomeros said.
"The Mantis is a good platform, but we have real work to do regarding systems and communications."

New Bomber Won't Be Nuclear-Capable at First: USAF Chief

The U.S. Air Force's top uniformed officer said the service's new Long Range Strike bomber will be built with nuclear capability but will operate as a conventional strike aircraft initially.
Testifying before Congress on Nov. 2, Air Force Chief of Staff Gen. Norton Schwartz said deferring the new aircraft's nuclear certification until the B-52 and B-2 bombers start to retire would help the service manage costs.

"The reason is that we're trying to control costs," Schwartz said.
Testing for the nuclear role is much more elaborate than testing for conventional weapons.
Nonetheless, "the airplane will be dual-capable," Schwartz said.
Schwartz reiterated that the aircraft will be designed and built with all the hardware for both the nuclear and conventional missions from the outset.
"This will not be backed in later," he said.
At least for the time being, the service's Air Combat Command (ACC) is the lead command for developing the new bomber, Schwartz said. That is because ACC has the capability and expertise to build requirement.
The Global Strike Command is still not fully up to speed, Schwartz said. Eventually, however, the command might take over the program, he said.
For the nuclear mission, Schwartz appealed to the congressional committee to ask the Department of Energy to modernize and upgrade the B-61 nuclear bomb.
During the rest of his testimony, Schwartz reiterated that defense cuts beyond the current $450 billion would seriously damage the U.S. Air Force. Already, he said, the service is looking at divesting itself of "hundreds" of aircraft.
Entire fleets, including the entire logistical train, may have to be removed if further cuts are made, Schwartz said.
Lt. Gen. Herbert Carlisle mirrored those sentiments later in the afternoon during his testimony.
Schwartz also stressed the importance of the KC-46 tanker, F-35 fighter and the new bomber. However, this time, he added the MQ-9 Reaper to his three priority programs.
Cyberwarfare is the only area in which the Air Force or Defense Department forces might expand, Schwartz added.

Despite Sales Drop, France 4th Largest Exporter

PARIS - French arms export orders fell in 2010, but the country held its ranking as the world's fourth-largest exporter, an annual report on foreign defense sales to parliament said Oct. 26.
Exports declined to 5.12 billion euros ($7.12 billion) in 2010 from 8.16 billion euros in the previous year, according to the report.

The foreign sales were secured in a "difficult climate and in an extremely volatile context," a Defense Ministry spokesman, Army Gen. Philippe Ponties, told journalists.
Exports are seen as vital to French defense industry and the government, as the domestic budget is expected to fall sharply as part of deficit reduction plans.
A major objective next year is to pursue at a New York conference an international treaty on arms sales, said Foreign Ministry spokesman Bernard Valero.
France held a 6 percent share of the world market based on an annual average of deliveries, behind the United States, which dominates with a 53.7 percent share, Britain with 12.5 percent, and Russia with 8.2 percent, the report said.
The world market was estimated at 60 billion to 70 billion euros in annual sales, Ponties said.
Major deals sealed last year included a sale of the A330 multirole tanker transport aircraft to Saudi Arabia, Cougar helicopters to Malaysia, and the upgrade of Alphajet trainer jets for Morocco.
This year, France sold two Mistral-class command and projection ships to Russia, and signed a long-awaited contract to modernize Mirage 2000 fighter jets for the Indian Air Force.
Winning a big contract for 60 Rafale fighter jets with the United Arab Emirates has proved elusive, as the UAE balked at an initial $10 billion price tag.
Defense Minister Gérard Longuet said Paris is in "final negotiations" with the UAE on the Rafales, but there has been no comment from UAE authorities.
Paris supports foreign arms sales, which are seen as a key foreign policy tool, helping France hold its place at the top in international affairs, Ponties said.
The sales are conducted under a strict export control regime, he said.
The foreign contracts also are seen as vital to maintaining the country's defense industry and technology base and supporting 135,000 directly employed in the domestic economy, he said.

U.K.'s Marshall to Supply Fuel Tanks for USAF KC-46A

LONDON - British company Marshall Aerospace has secured an order to supply body fuel tanks to boost the performance of the Boeing 767, selected by the U.S. Air Force to become its new KC-46A in-flight refueling tanker.
European industry may have missed out on the big prize when EADS failed to win the huge KC-46A contract, but U.K. companies aligned with the 767 bid have started to see their position on the Boeing team turn into firm contracts.

Marshall Aerospace announced it has been awarded a deal to design and supply body fuel tanks for the 767-derived tanker to increase flight range and refueling capability.
Each aircraft will carry four of the tanks. Initially, the Marshall deal covers a batch of tanks destined to be fitted to development aircraft, but the Cambridge-based company said in a statement that it expects production orders will follow from the USAF for more than 650 tanks over a 15-year period.
The value of the program is expected to exceed 100 million pounds ($165 million) over the duration of the program, and Marshall said it expects that number to rise on the back of export prospects for the tanker.
Boeing has previously awarded Marshall body fuel tank work on aircraft such as the P-8 Poseidon, the 777 and the 747.
Earlier this year, Boeing's 767 beat out a bid by its European rival, which offered a variant of the Airbus A330 airliner, to supply 179 KC-46A tankers to the USAF.
In February, British company Cobham announced it was to supply the hose and drogue refueling systems for the KC-46A. Most of that work will be conducted at a new facility in Davenport, Iowa.
Cobham was in a win-win situation; its market-leading refueling systems were also specified for the Airbus plane.
A Cobham spokesman in the U.K. said he expected the total amount of work generated for the company by the tanker order would be about $1 billion over the life of the program. That work would be dominated by supply and support of the refueling systems, he said.

IAF losing edge over PAF

Shiv Aroor and Durga Nandini

The Pakistan Air Force is stronger than ever. Since the last Indo-Pak air war of 1971, the Pakistan Air Force has with steely determination built up numbers, lethal capabilities and a combat force now counted as one of the most disciplined and well-trained air forces in the world. Headlines Today has a disturbing proof that all this has made India worried. A recent presentation by the defence intelligence establishment paints a morbid picture of how the numbers and capability advantage that the Indian Air Force has always found comfort in is rapidly slipping away. Headlines Today has accessed the recent presentation made to the Ministry of Defence. The document makes singularly ominous projections. The most glaring warning is about combat force ratio. The presentation says that the ratio of 1:1.7 is likely to progressively dip to 1:1.2 by the end of 2012. It describes this as a "historic low". It also says that the traditional hi-tech advantage is almost equal now with 9.5:11 squadron ratio.

With Pakistan rapidly acquiring early warning aircraft, mid-air refuellers and long-range missiles, the technology gap is at a historic low. It is a wake-up call to India's military planners. The decisions taken now could forever doom the crucial advantage that the Indian Air Force has always enjoyed against an adversary that can never be underestimated.

A formidable adversary

The last time the air forces of India and Pakistan fought a full-blown war was 40 years ago. But if the Pakistan Air Force of 1971 was an enemy to be reckoned with, circumstances have made it an even more formidable adversary today. The internal assessment by the Indian defence establishment makes some grimly practical projections in the light of an adversary emboldened by an unfettered modernisation spree. The government has been warned that with the Indian Air Force's edge slipping fast, the Pakistan Air Force's assertiveness is likely to increase. Once seen as a primarily defensive force, the Pakistan Air Force will use its new strength to employ offensive and defensive operations in equal measure. With new precision weapons, the Pakistan Air Force will conduct limited strikes to achieve strategic effects. The one thing that won't change - high-value targets in the Indian held Jammu and Kashmir will be high-priority targets for the PAF. There's a deeper threat at play than just fighter numbers. Consider these newly inducted force multipliers that all but kill the Indian air advantage. Pakistan is inducting four Swedish Saab Erieye and four Chinese Y-8 airborne early warning aircraft, while India, currently, has three. India no longer has the mid-air refueller advantage. Pakistan is inducting four identical IL-78M aircraft. The Indian Air Force's UAV advantage is also disappearing. Pakistan is acquiring 25 European UAVs, with more in the pipeline. Despite the ominous projections of the presentation, there are those who believe the Indian Air Force will always remain on top. Among them, Air Marshal Denzil Keelor, one half of the legendary Keelor brothers, who scored independent India's first air-to-air kill against Pakistan in 1965. But for the IAF to remain ahead, and stem the swiftly dwindling capability advantage over Pakistan, it needs to make some hard decisions across-the-board.

Brazil's Global Player

LONDON - Take a regional flight from an airport in the U.S., Europe or Asia and there's a good chance you will be flying on a jet developed and built by Embraer.
In little more than a decade, the Brazilian company has grown from a state-owned aerospace also-ran into a privatized global player in the regional and business jet markets.
Now Embraer is turning its attention to defense and security. It has high hopes for growth in the business unit it created last year to pursue its ambitions in the sector, Luiz Carlos Aguiar, the first president of the new Embraer Defense and Security operation, said at the recent Latin American Aerospace and Defense (LAAD) show in Rio de Janeiro.
"By the end of the decade, we want to grow business in the sector to represent 20 percent of total Embraer revenues, taking into account our other businesses are going to also grow," Aguiar said.
In 2010, defense accounted for revenues of $670 million, 12.5 percent of the company's $5.5 billion in annual sales.
On top of sales, Embraer reckons its aviation support services business last year earned military revenues of $150 million. Much of that came in Embraer's traditional military markets involving the Super Tucano trainer and light attack aircraft and various adaptations of civil jet airliners into specialist platforms for airborne early warning and other tasks.
The company also is heavily involved in modernizing Brazilian military aircraft, including A-4 fighter jets for the Navy and AMX and F-5 fighters for the Air Force.
Still, company officials said, the traditional airframe business will continue to provide the core of Embraer's defense and security business for the foreseeable future.
The company is developing the KC-390, a jet-powered rival to Lockheed Martin's C-130 Hercules airlifter, and will also assemble a new fighter jet if the Brazilian government ever gets around to picking a winner.
The KC-390 is being built for the Brazilian and other air forces; first flight is scheduled for 2014.
The company also is expecting a decision from the U.S. Air Force (USAF), which is choosing between the Super Tucano and Hawker Beechcraft's AT-6 for a light attack requirement.
That could mark Embraer's long-sought foothold in the U.S. defense market. Company officials thought they had one when the U.S. ordered the ERJ-145 in 2006 as a surveillance aircraft, but that deal was canceled through no fault of the Brazilian company.
Now its U.S. priority is the light attack requirement.
"It's very important to win this campaign," Aguiar said. "We did a great job in the U.S. when we demonstrated our capability, and it's very well rated by the USAF. Better relations following [U.S. President] Barack Obama's visit here will help the process a lot."
If it wins, Embraer has a deal with contractor Sierra Nevada, an aerospace company based in Sparks, Nev., to build the aircraft.
Embraer also is transforming more generally under the government's 2008 national defense strategy to bolster local industries.
The first four months of operation at Embraer Defense and Security has seen the business already signal the intended direction of travel with moves to acquire radar, unmanned air systems and C4I and systems integration capabilities.
Much of that change became evident at the LAAD show, where in the space of two days, Aguiar announced the he had struck a deal with Elbit Systems' local subsidiary AEL Sistemas to jointly develop tactical UAVs, and then acquired 50 percent of local systems integration and C4I provider Atech Negocious em Tecnologias.
Part of the deal with Elbit, an Israeli company, involves Embraer becoming a minority stakeholder in AEL itself.
A few weeks earlier, Aguiar, who had previously been Embraer's chief financial officer, made the new business unit's first acquisition when it took a 64.7 percent stake in the radar division of Orbisat.
The UAVs, radar and particularly Atech's capabilities all reinforce a key Embraer objective to secure the lead position on a pair of massive Brazilian land border and maritime surveillance programs.
Together worth around $10 billion, the first of those programs could kick off next year and run for the next decade.
Uncertainties There are some uncertainties about the timing of these and other defense programs with the new government of Brazilian President Dilma Rousseff reviewing major requirements here, including the long-running scrap between Boeing, Dassault Aviation and Saab for the fighter deal.
This year's defense budget has taken a big hit, and although the cut is said not to be directed at programs, executives at LAAD were nervous about the collateral damage the cutback could cause.
Rebecca Barrett, Forecast International's Latin American military markets analyst, said that Brazil needs to protect its strategic interests.
"This should be reflected in the defense budget and government's spending pattern during the Rousseff administration," Barrett said. "In that regard, programs that will be used for surveillance and the protection of Brazil's borders and off-shore oil assets will be top priority."
The analyst said the Brazilian defense budget for next year is set at 60.2 billion real ($38.4 billion). Forecast International says that figure will rise moderately to 64 billion real by 2015.
Aguiar told reporters at LAAD that, for the short term at least, Embraer's main focus would be on building the business at home rather than buying foreign assets.
"Acquisition has not traditionally been how Embraer has grown," Aguiar said. "Acquisition in country is a good way of learning as it is easier to do something close to us. We have a small team looking [at M&A opportunities], and not only in Brazil, but there is nothing in the short term."

Embraer

Headquarters: São Paulo, Brazil
Employees: 17,000
2010 revenue: $5.5 billion total; $670 million in defense revenue, including $150 million from military aviation support services.

French Willing to Assume Command of Libyan Air Ops

PARIS - France is capable of providing the command and control for the multinational military forces ranged against Libya in support of U.N. resolution 1973, which is aimed at protecting the civilian population and enforcing a no-fly zone, a French defense spokesman said.

A French Rafale jet fighter prepares to land March 21 at the aerial military base of Solenzara in Corsica. (Stephan Agostini / AFP via Getty Images)

The U.S. authorities provide the command structure that coordinates national contributions, and American officials have said they would like to hand over the command to the allies leading the European effort, namely Britain and France.

Asked if France has the means for assuming the command role, Army Col. Thierry Burkhard, spokesman for the Joint Staff, told the daily briefing on French operations in Libya, "France has the means."
Each country proposes its military capabilities in the Libyan theater and the U.S. command structure "deconflicts" them, deputy Defense Ministry spokesman Philippe Pontiès said.
Any NATO involvement in the command structure would be in a "support" role, Pontiès said.
France opposes the command function being assumed by NATO, which French officials view as highly bureaucratic, daily Le Monde reported.
The U.S. Ramstein base in Germany has the most extensive facilities for the command mission, French Defense Ministry spokesman Laurent Teissere told journalists.
On the third day of air operations over Libya, dubbed Operation Harmattan, the French Air Force had flown more than 55 sorties and over 400 hours, Burkhard said. The aircraft did not fire on the third day, he said.
Amid international concern over the bombardment of Libya over the weekend by coalition forces, French Foreign Minister Alain Juppé said March 21 that the allies' action had prevented a "bloodbath" in Benghazi by saving civilian lives in the city.
Some 20 aircraft had flown on March 22 to enforce the no-fly zone, as Rafale and Mirage 2000 jets patrolled the skies over Benghazi, flying air superiority missions and threatening ground strikes against Libyan Army armor. They were supported by in-flight refueling tankers and airborne warning and control systems aircraft. The Corsican airbase of Solenzara has become the base for those combat aircraft.
As announced, the Charles de Gaulle carrier and its task force would arrive on station off the Libyan coast on March 22, and its fleet of Rafales and Super Etendard fighters would be operational over Libya "as of tomorrow," a French defense spokesman said.

USAF to Tightly Control Tanker Requirements Changes

U.S. Air Force leaders are taking draconian steps to ensure the service's prized Boeing KC-46A tanker program stays in line.

U.S. Air Force leaders said its KC-46 program will be scrutinized microscopically. (Boeing)

To protect the aerial refueling plane from ever-expanding requirements, changes will not be allowed except at the "highest level," Air Force Secretary Michael Donley told the Senate Armed Services Committee March 17.

Gen. Norton Schwartz, Air Force chief of staff, who was testifying alongside Donley, added that the KC-46 program would be scrutinized "microscopically" to make certain the "offeror delivers what he promised.
"The level of approval for engineering change orders is not going to be at the program office level," Schwartz said.
Though it has yet to be decided who will have final authority to approve such changes, it might be at the very top level of the Air Force leadership.
"It might be at our level," Schwartz said. "The bottom line is, we intend to maintain discipline on this thing."
Analysts applauded the Air Force's move. Historically, contractors would bid low to win competitions and then use the engineering change order mechanism to avoid fulfilling their contractual obligations, said Loren Thompson, an analyst at the Lexington Institute, Arlington, Va.
"It used to be a common practice in the industry that people would bid low and then try to use engineering changes to restore [profit] margins on the program," he said.
With the new approach, the Air Force cuts off that loophole for any potential contractor, Thompson said.
Byron Callan, an analyst at Capital Alpha Partners in New York, also applauded the move.
"That's pretty prudent on their part. … It's the only way they're going to keep the tanker at the cost that it was bid for," he said.
"It may not be great from a Boeing standpoint," Callan added.
However, in cases where a technology is particularly cutting edge, such an approach could backfire.
"If you were to limit engineering changes on something revolutionary like the F-35 [Joint Strike Fighter], you could really foul up the program," Thompson said.
Callan agreed that the new approach to the tanker program would not be a good idea if it were to be applied to all Air Force contracts.
"Trying to think you can just freeze a design that will last five or six years, that's locking yourself into obsolescence," he said.

EADS Won't Protest USAF Tanker Pick

EADS North America will not protest the U.S. Air Force's decision to award a $35 billion aerial refueling contact to Boeing last week, senior company officials announced March 4.
The announcement clears the way for the Air Force to begin buying KC-135 replacements after more than a decade of trying to get the program off the ground.

Ralph Crosby, chairman of EADS North America, told reporters that while the company still believes it offered a better aircraft, it would not contest the service's selection of a smaller Boeing offer.
"After meeting with the Air Force and the Department of Defense, and evaluating the information they provided to us in their debriefing, EADS North America has decided not to protest the KC-X contract award," he said. "Our reasoning is simple: The acquisition architecture for this procurement ... was quite mechanistic and mathematical. The outcome was decided by price, and Boeing's offer was at a lower price than ours."
The company made the announcement during a briefing with reporters at the National Press Club in Washington. On Feb. 24, the Air Force announced it had chosen a tanker variant of the Boeing 767 to be its KC-X aircraft.
Sean O'Keefe, president and CEO of EADS North America, said the company believes it offered an "incredibly aggressive, very, very solid proposal."
Still, Crosby said the Air Force did not fully answer all of the company's questions during a debrief earlier this week.
"In this case, the debriefing was very brief," he said.

Tanker Victory Spells Risks For Boeing

NEW YORK - Boeing's triumph over European rival EADS for a major U.S. Air Force tanker contract poses risks amid defense spending cutbacks and multiple delays to its commercial projects.
On Feb. 24, the Defense Department declared Boeing the "clear winner" of a $30-plus billion contract to supply up to 179 refueling tankers to the Air Force.

It is undoubtedly a major prize for the firm, but industry analysts highlighted the challenges that come with submitting what the Chicago-based firm itself called an "aggressive" bid.
"Since the KC-46A is a very competitively bid fixed-price contract for both development and production phases, it carries some execution risks for Boeing," Standard & Poor's analysts said in a client note.
Particularly, they said, "given the company's substantial cost overruns on some of its commercial and military programs in recent years."
Moody's Investors Service said that the difficulties could start early for Boeing, in the initial development phase.
"The development could distract engineering resources from other key programs including the near-term ramp-up of the B-787 Dreamliner," said Robert Jankowitz, senior vice president at Moody's.
The tanker contract comes as Boeing is under pressure from its new 787 Dreamliner program that is now running three years behind the original schedule.
"Given Boeing's headaches getting its new passenger planes out the door, there should be concern about the company's ability to deliver the new tanker on time and on budget," said Paul Ausick of 24/7WallSt.com.
And budget will be at the forefront of policymakers' minds, as the Pentagon, like other U.S. government bodies, struggles to cut the country's massive budget deficit.
"If Boeing misses deadlines and busts budgets, it's reasonable to expect that the Congress and the Pentagon will be reluctant to go ahead with the full complement of tankers," he said.
But there are definite rewards for the company, despite the risks.
Jefferies analysts said the contract spells benefits of "a few pennies per share" in the short term, and in the long-term a healthier business.
"Tomorrow's benefit is that the award adds balance to Boeing's business base, and continues a successful product line into the foreseeable future," they said, referring to the 767 commercial aircraft that will serve as the basis for the KC-46A tanker.
The 767 production line "would have closed within five years without this win," according to Richard Aboulafia, an analyst at aerospace consultancy Teal Group.
Orders for the long-haul, wide-body plane, which entered service in 1982, have dwindled in recent years. Only three 767s were manufactured last year.
But whatever the drawbacks and advantages, the contract may not yet be in the bag.
Feb. 24 was the second time Boeing bested Airbus parent EADS for the contract in the world's largest defense market.
The contract was awarded in 2008 to EADS and U.S. partner Northrop Grumman, but the deal was canceled after the government upheld Boeing protests of a flawed process.
EADS has 10 days after the award to protest the Pentagon decision.
"The battle could go into overtime if EADS decides to appeal, and it's not out of the question given the outlook for defense spending in the years ahead," said Ausick of 24/7WallSt.com.
"Given the budget environment and increasingly high fuel costs, the (EADS) KC-30 was at a disadvantage. But there are a few Southern Republican politicians who may decide to hold up funding," Aboulafia told AFP.

Merkel 'Regrets' U.S. Tanker Decision

ERLIN - The U.S. Air Force's decision to award a huge tanker contract to Boeing is disappointing and Washington has missed a chance to deepen the transatlantic relationship, Germany's chancellor said Feb. 25.
"The chancellor ... took note of the decision with regret. From the German point of view this is a missed opportunity to deepen the transatlantic partnership," a spokesman for Angela Merkel told a regular briefing.

The Pentagon on Feb. 24 announced that Boeing had won the contract, worth over $30 billion, to supply aerial refueling tankers to the U.S. Air Force, at the end of a long and tortuous contest.
The head of EADS, Airbus' parent company, has already said he was "disappointed and perplexed" by the decision.
Germany's economy minister Rainer Bruederle also said Berlin considered the EADS offer an attractive one.
The U.S. firm is now tasked with delivering 18 aircraft by 2017, but the contract is expected to grow to 179 tankers.
The planes, effectively flying filling stations, give the U.S. aircraft global reach and allow Washington to project military power well beyond its borders.
The decision capped a nearly 10-year attempt by the U.S. Air Force to begin to replace an aging Boeing-built fleet of 400 tankers dating back to the 1950s.
But it was an upset, with most experts predicting the European Aeronautic Defence and Space Company would land the contract.

France's Lagarde Confident About Airbus

SINGAPORE - French Economy Minister Christine Lagarde said Feb. 25 confident about Airbus' ability to compete in the global market after the European aircraft maker lost a key U.S. military contract to rival Boeing.
Lagarde, who is on a visit to Singapore, would not comment on the Pentagon's decision on Feb. 24 to award the $30 billion contract to supply aerial refueling tankers for the U.S. air force to Boeing.

"I have no comment at this stage," she told reporters.
"All I know is Airbus is a magnificent company and I have full trust and confidence in its ability to face competition and challenges of the markets," Lagarde told reporters.
A spokesman for German Chancellor Angela Merkel said in Berlin on Feb. 25 that the Pentagon's decision was disappointing and Washington had missed a chance to deepen the transatlantic relationship.
The head of EADS, Airbus' parent company, has also said he was "disappointed and perplexed" by the decision.
Boeing is now tasked with delivering 18 aircraft by 2017, but the contract is expected to grow to 179 tankers.
The planes, effectively flying filling stations, give the U.S. air force global reach and allow Washington to project military power well beyond its borders.
The decision capped a nearly 10-year attempt by the U.S. air force to begin to replace an ageing Boeing-built fleet of 400 tankers dating from the 1950s.

Lawmakers React to USAF Tanker Pick

Here are the initial statements from several U.S. lawmakers on the U.S. Air Force's decision to select Boeing to build the service's KC-X next-generation tanker.
■ Sen. Patty Murray, D-Wa.: "Today's long-awaited decision by the Pentagon is the right one for our military, our taxpayers and our nation's aerospace workers," said Murray, an avid Boeing supporter. Boeing intends to build its 767-based tankers in her home state.

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"At a time when our economy is hurting and good-paying aerospace jobs are critical to our recovery, this decision is great news for the skilled workers of Everett and the thousands of suppliers across the country who will help build this critical tanker for our Air Force," she said." This decision is a major victory for the American workers, the American aerospace industry and America's military. And it is consistent with the President's own call to 'out-innovate' and 'out-build' the rest of the world.
■ Rep. Jo Bonner, R-Ala.: "After having already won the competition three years ago and having brought to the table the best refueling aircraft for our military, it's deeply disappointing that Mobile and the Gulf Coast were not chosen as the home of the new Air Force tanker," said Bonner. EADS intended to assemble its tankers in Bonner's district of Mobile, Ala. "Unfortunately, the best tanker for our military was not selected. I intend to demand a full accounting as to why.
"While there was great optimism that our team would ultimately prevail, we've also been conditioned to expect the unexpected," he continued. 'This competition has been challenged before and it's not unlikely it will be challenged again. It will ultimately be up to EADS to determine whether they will protest this decision and I will fully support whatever decision they make."
■ Sen. Jeff Sessions, R-Ala.: "I am deeply disappointed that the EADS team was not selected to build the next air refueling tanker for the Air Force," Sessions said. "Three years ago, EADS won this competition because their aircraft had objectively superior capabilities and offered dramatic savings for the taxpayer. In light of today's result, I intend to examine the process carefully to ensure it was fairly conducted.
"Regardless of today's unfortunate outcome, the EADS team's decision to manufacture the aircraft in Mobile was a clear affirmation by a world-class corporation of our state's remarkable workforce," he continues. "EADS would not have chosen Alabama if they did not firmly believe that our state was a great place to do business in the global economy. I look forward to assisting them in expanding their presence in Alabama."
■ Rep. Rosa DeLauro, D-Conn.: "I applaud the Obama administration for this decision, especially after such a long process, and I am delighted to see the Department of Defense select the best air refueling tanker for our nation's brave war fighters at the best price for our taxpayers," said DeLauro. Boeing intends to install Pratt & Whitney-built engines, which are built in Connecticut.
"The award comes at a critical time when we need to be creating jobs and driving long-term economic growth, in Connecticut and nationwide," she said. "Along with terminating the costly and unnecessary Joint Strike Fighter alternate engine program, this has been a great week for defense manufacturing jobs in Connecticut."
■ Sen. James Inhofe, R-Okla.: "Today, I applaud the United States Air Force and Boeing on bringing 50,000 jobs to our nation and taking the first step in assuring current and future U.S. air dominance," Inhofe said. "The KC-135 tanker aircraft has proven essential to our nation's defense as the success of our recent military operations would not have been possible without the utilization of our tanker inventory. Replacing the first 179 aging Eisenhower-era KC-135s is paramount to maintaining our military's strategic advantage.
"Now, we must ensure that funding levels remain constant and quality planes are delivered on time. I look forward to the next steps, including determining basing locations," he said. "The 97th Air Mobility Wing at Altus, AFB has long stood ready to train the next generation of tanker operators, and they look forward to continuing the mobility training mission. The 76th Maintenance Wing (MXW) and Oklahoma Air Logistics Center Aerospace Sustainment Directorate at Tinker, AFB will play key roles in maintaining the new tanker."
■ Sens. Orrin Hatch, R-Utah, and Kent Conrad, D-N.D., co-chairmen of the Senate Tanker Caucus: "I'm pleased the Defense Department has finally awarded the contract to replace our nation's aging fleet of KC-135 tanker aircraft," said Hatch.
"The awarding of this contract is long overdue," Conrad said. "The men and women of our Air Force need and deserve the most up to date equipment. That includes the best refueling tankers in the world. This announcement is the first step to getting a long, drawn-out process back on track so that we can deploy these much-needed replacements to support our troops."
■ Sen. John McCain, R-Ariz.: "I am pleased that the Air Force has made a decision to award a contract for a replacement aerial refueling tanker," McCain said. "The tanker aircraft that the Air Force will ultimately buy under this contract will be critical to how joint operations are conducted for the foreseeable future. I look forward to the Air Force demonstrating over the next few weeks how today's decision was made fairly, openly and transparently. Only such a process will ensure that we obtain the most capable aerial refueling tanker at the most reasonable cost."
■ House Armed Services Committee leaders: "Today's announcement moves us closer to providing the world's premier aerial fighting forces with a new and much-needed aerial refueling capability," they said. 'Our primary goal on the Armed Services Committee is to provide our military's men and women with the resources they need in the most effective and efficient way possible.
"Moving forward, the committee will continue the necessary oversight to ensure the evaluation was transparent and fair to each competitor," they continued. "We look forward to receiving more information from the Air Force as we review their decision-making processes. The Seapower and Projection Forces Subcommittee will hold a hearing on this issue as soon as enough information is publicly available."