Monday, February 21, 2011

Italy on Alert as Libyan Colonels Flee to Malta

ROME - Italy put its air bases on maximum alert on Feb. 21 after two Libyan air force colonels fled to the Mediterranean island of Malta in fighter jets saying they had refused orders to bomb protesters.
Prime Minister Silvio Berlusconi, who had been reticent to criticize veteran Libyan leader Moamer Kadhafi, also condemned the "unacceptable" use of violence against civilians and said he was "alarmed" at the turmoil in Libya.
The violence in Libya also sent shockwaves through the Italian stock market, which dropped 3.59 percent as some of Italy's biggest companies have extensive Libyan capital or major investments in the north African state.
Meanwhile, authorities in Malta said they were holding two Libyan pilots who landed earlier on Feb. 21 for questioning after the men said they were forced to flee their base in eastern Benghazi when it was taken over by protesters.
"One of the pilots requested political asylum" after the two descended from their single-seater Mirage F1 jets, a government spokesman said.
Two helicopters also landed at the same time carrying seven passengers who said they were French nationals working on oil rigs near Benghazi, the base of the popular uprising.
The markings on the French-registered Super Puma helicopters were for Heli Union - a company specializing in air transport for oil and gas majors.
The helicopters were given permission to land but had not been given clearance to leave Libya, indicating they had escaped, military sources said.
Malta is the European Union member state closest to Libyan shores, located just 340 kilometres (210 miles) north of the Libyan coastline.
After the landings in Malta, Italy said it had put its air bases on high alert and was moving air force and navy helicopters to southern Italy.
Defense Minister Ignazio La Russa said Italy was also deploying the Elettra, a military vessel used for intelligence and reconnaissance.
Italian experts have warned of a massive influx of refugees from Libya if there is a power vacuum in the country.
Berlusconi is to meet with the defense, foreign and interior ministers Feb. 22 for talks on the crisis in north Africa.
Italy and Libya signed a friendship treaty in August 2008 that opened a new chapter in relations and led to massive investments, formally ending historic resentment against Italy - Libya's colonial ruler between 1911 and 1942.
Berlusconi said at the time that Italy would invest five billion dollars in Libya as compensation for colonization over the next 25 years.
Italy has since become the biggest exporter to Libya, with a 17.5 percent share of the market, and it is the main outlet for Libyan exports.
Libya and veteran ruler Moamer Kadhafi's family have also taken major stakes in leading Italian businesses including its biggest bank UniCredit, the defense and industry giant Finmeccanica and first-division football club Juventus.
Italian energy giant ENI, the biggest foreign oil producer in Libya, saw its share price plummet 5.12 percent after it said it was evacuating "non-essential" expatriate employees and the families of all foreign staff.
Finmeccanica, whose share price dropped by 2.69 percent and in which Libya has a 2.01 percent stake, also said it was also pulling out of the country.

Alleged Break-In Clouds S. Korea-Indonesia Deal

SEOUL - South Korean intelligence officials allegedly broke into the hotel room of a visiting Indonesian delegate last week to copy computer files on possible arms deals between the two governments, according to sources here and Feb. 21 news reports.
Seoul officials are expressing concern that the episode could provoke a diplomatic feud and harm the government's efforts to sell its T-50 supersonic trainer jet and other defense equipment to the Southeast Asian nation.
The Indonesian government has asked Seoul's Ministry of Foreign Affairs and Trade to figure out just what happened, said ministry spokesman Cho Byung-jae.
"We are verifying the facts, and we agreed to inform the Indonesian authorities as soon as we are done," Cho said.
Officials with the National Intelligence Service (NIS) denied the allegations and declined to elaborate.
South Korean police has been investigating the Feb. 16 incident, which occurred at the Lotte Hotel in central Seoul, where a 50-strong Indonesian delegation was staying.
The delegation led by Hatta Rajasa, coordinating minister for the economy, and Defense Minister Purnomo Yusgiantoro, arrived here Feb. 15 for a three-day run to discuss ways of boosting economic ties with Seoul.
Indonesia's potential purchase of South Korea's T-50 Golden Eagle trainer aircraft was referred to as a top topic, as Jakarta has shortlisted the T-50, co-developed by Korea Aerospace Industries and Lockheed Martin of the United States, as one of the three candidates for its advanced jet trainer requirement.
Competitors are said to be Russia's Yak-130 and the Czech-built L-159B, according to the Defense Acquisition Procurement Agency.
According to police officers, three unidentified intruders, two men and one woman who are believed to be members of the NIS, broke into a suite on the 19th floor of the five-star hotel.
The break-in was made right after most of the delegation departed for the South Korean presidential office for a courtesy call on President Lee Myung-bak.
The alleged trespassers may have used a USB memory stick to copy files from one of the two laptop computers left in the room but fled after being witnessed by an aide to a visiting Indonesian envoy.
Whether or not the intruders succeeded in getting access to the computer files remains unclear, according to the police. The laptops were handed over for an investigation, but the Indonesian aide requested their return the next day.
"If that's true, I'm just surprised that this kind of amateurish operations had been conducted," a military source said. "Only thing we can guess is that the Lee Myung-bak administration could be too pressed to make the first sale of the T-50 following the back-to-back defeats in the trainer contests in the United Arab Emirates and Singapore for the past years."
Citing an unidentified government source, the Chosun Ilbo newspaper said the agents "were trying to figure out the Indonesian delegation's negotiating strategies" regarding the potential purchase of the T-50, K2 Black Panther main battle tank and the K30 Biho 30mm self-propelled twin-gun system.
The KAI-Lockheed team has fought an uphill battle to explain to potential customers the T-50's performance-to-price ratio after it lost to Italy's M-346 jet both in the UAE and Singapore because of the "luxury" jet's price of about 25 billion won ($22 million).
The single-engine T-50 features digital flight controls and a modern, ground-based training system. It is designed to have the maneuverability, endurance and systems to prepare pilots to fly next-generation fighters, such as the Eurofighter Typhoon, the F-22 Raptor, the Rafale and the F-35 Lightning II.
The jet has a top speed of Mach 1.4 and an operational range of 1,851 kilometers.
Potential customers for the South Korean trainer jet include the United States, Iraq, Greece and Poland.
Meanwhile, in an interview with the Jakarta Post, Hatta claimed the intrusion was a "misunderstanding." The Indonesian economy minister said the three intruders were actually hotel guests who happened to enter the wrong room.
"Instead of entering their own room, 1961, the guests unintentionally entered room 2061, which belonged to an Industry Ministry official," Hatta said. "But the misunderstanding was immediately cleared up. And the laptop which was unintentionally opened by the guests consisted only of PowerPoint slide shows about the condition of our industry, which would be presented by Industry Minister M. Hidayat before our Korean counterparts."

IDEX: UAE To Modify Black Hawks Into Gunships

ABU DHABI - The United Arab Emirates is set to turn a number of its Sikorsky Black Hawks into gunships in a deal with the U.S. helicopter maker worth nearly 1 billion Arab Emirate dirhams ($272 million).
The announcement of a plan to buy weaponization kits for 23 of its Black Hawk UH-60M helicopters was the pick of a 4 billion Arab Emirate dirham order bonanza unveiled by the UAE armed forces at the IDEX show Feb. 21 in Abu Dhabi.
Included in the list of 21 orders was a second deal with Sikorsky, this time a program to train Black Hawk pilots and technicians in a contract valued at 65 million Arab Emirate dirhams. The scheme to turn the UH-60M into an air assault machine gives the U.S. helicopter maker a launch customer for the Battle Hawk weaponization package it has been working on for some time now.
A Sikorsky spokesman here was unable to give additional information on the deals.
Information previously released by the company shows the weaponization package will give the UAE military a helicopter able to fire rockets, heavy-caliber machine guns and missiles from four weapon stations.
The bulk of the work will be undertaken by AMMROC, the maintenance, overhaul and repair center set up here last year in a joint venture between Sikorsky and a local company, Abu Dhabi Aircraft Technologies.
With further development work still needed on the weaponization package, sources said it was likely the first modified helicopters would be handed over to the UAE around 2014. The deal could be expanded later to cover further weaponization kits, the sources said.
UAE has long been tipped as a launch customer for the Battle Hawk package, but Sikorsky wasn't the only helicopter manufacturer to benefit from new orders here.
AgustaWestland secured a 336 million Arab Emirate dirham order for the delivery of four AW139 rotorcraft for VIP duties.
The helicopter deals kicked off what is likely to become a daily routine of contract announcements here if the last IDEX show provides an example. Almost every day at IDEX 2009, the IDEX spokesman arrived in the press center to reel off a long list of orders running into billions of dirhams.
The centerpiece announcement in 2009 was the purchase of Alenia Aermacchi M-346 trainers and light attack aircraft. That deal remains on ice with the two sides at loggerheads over a number of issues, and there is little indication the deal will be signed any time soon.
Asked whether there had been any progress toward signing the deal, IDEX spokesman Maj. Gen. Obaid Al Ketbi said there was "nothing much happening in that area."
Then, as now, many of the announcements for small-value deals caught contractors by surprise.
Included in the list of contracts this time around is South Korean company Hanwha, which is supplying arms and ammunition; engines for unmanned air systems from Denel of South Africa; fire control systems for naval guns from Selex of Italy; munitions from Diehl BGT Defence of Germany; and bulletproof vests from local company Al Naboodah Protection.
The IDEX spokesman there would be more deals to come over the next few days.

Mullen: Iran Not Behind Mideast Protests

DOHA, Qatar - Iran foments instability in the Middle East but is not behind popular protests in Bahrain and other countries in the region, top U.S. military officer, Adm. Mike Mullen, said Feb. 21 in Qatar.
"Iran, I still believe, is a country that continues to foment instability in the region, take advantage of every opportunity," said Mullen, who is the chairman of the Joint Chiefs of Staff.
But "from my perspective that has not been the principal focus of what happened in Egypt or what happened in Bahrain or any of these other countries," he said, referring to popular protests against various Middle East regimes.
"Those are by and large internal issues, as opposed to issues fomented by some external forces," Mullen said, although "there's always concerns in this region with Iran and certainly the U.S. has them as well as all the regional players."
Iran "was part of the discussions today with the Saudis," Mullen said.
Mullen, who began a Gulf tour Feb. 20 in Saudi Arabia, could travel to Bahrain, where the U.S. Fifth Fleet is headquartered, as part of his trip, people travelling with him said.
Protests in the tiny Gulf kingdom, which is ruled by a Sunni dynasty but has a Shiite majority, began on Feb. 14, and are still ongoing.
Seven demonstrators have been killed since the anti-regime protests began, according to an AFP tally based on relatives of victims and opposition officials.
However, the U.S. Navy has said the demonstrations have not disrupted American operations in the kingdom.
"As far as Fifth Fleet operations, no, the demonstrations have not had any impact here - we're continuing to conduct our regular business out here," a spokesman for the Fifth Fleet told AFP on Feb. 21.
In the Qatari capital Doha, Mullen met with Crown Prince Sheikh Tamim bin Hamad al-Thani and army chief of staff Gen. Hamad al-Attiyah.
Mullen is to also travel to the United Arab Emirates, Djibouti, possibly Bahrain, and then to Kuwait to participate in ceremonies marking the 20th anniversary of the liberation of the country from Iraqi occupation.

Libyan Fighter Jets, Helicopters Land in Malta

VALLETTA - Two Libyan fighter jets with four military personnel on board who said they had escaped Benghazi air base after it was taken over by protesters landed in Malta on Feb. 21, military sources told AFP.
Two civilian helicopters also landed on the Mediterranean island around the same time, carrying seven people who said they were French nationals working on oil rigs near Benghazi, although only one had a passport, the sources said.
The helicopters were given permission to land in Malta but had not been given clearance to leave Libya, indicating that they had escaped, they added.
The fighter jet personnel requested fuel for their aircraft.
All those who have landed are being held at the airport in Malta until their identities are confirmed.

IDEX: Airbus Predicts Mideast A400M Sales

ABU DHABI - Airbus Military sees potential sales of 50 to 100 of its A400M military airlifter in the Middle East and North Africa, Didier Vernet, head of market development at the aircraft company, said Feb. 21 at the IDEX trade show.
Asked about export prospects for the turboprop transport plane in the Middle East region, Vernet said, "Yes, we have prospects."
Airbus Military estimates the world market for military airlifters to total about 800 units over the next 30 years as replacements for the current 1,800 transport fleet. The European company hopes to snare about half the replacement market with the A400M, which aims to hit the segment for payloads of 25 to 50 tons.
The planned KC-390 from Brazil and the Lockheed Martin C-130J would grab sales in the market segment for 12- to 25-ton payload.
Airbus Military hopes the A400M will meet requirements for flying heavier armored vehicles, humanitarian equipment and helicopters.
The company needs to sign contract changes agreed with the seven European launch customers before it can begin selling the A400M to potential export clients.
With a total of 174 units ordered - 170 for the European nations and four for Malaysia - Airbus would fit export deliveries around the planned production of 2.5 to three units per month that is expected from around 2015-2016.
Export prices for the A400M would depend on the mission package selected - 50 "plug in" options are offered - the number of units and services required.
Belgium, Britain, France, Germany, Luxemburg, Spain and Turkey are the seven European launch customers. Britain has canceled three orders and Germany seven for the A400M amid budget constraints.

IDEX: Dassault-UAE Talks Progress on Rafale Sale

ABU DHABI - Talks between Dassault Aviation and the United Arab Emirates (UAE) on a possible sale of the Rafale fighter jet are going well, with Dassault officials hoping for a deal in the medium to long term, an executive of the aircraft company said at the IDEX trade show.
"The discussions are going well," the executive said. An announcement on the Rafale was not expected in the near term, he said. In the short term, Dassault was supporting the Mirage 2000 operated by the UAE, while the Rafale was seen as a medium- or long-term prospect, he said.
Good relations between the UAE and France have been restored after hitting a rough patch last year, when a report ran late June in the daily newspaper Le Figaro which offended the Abu Dhabi authorities.
The Dassault family owns the Figaro and is the controlling shareholder of Dassault Aviation.
At a low point in bilateral relations, UAE defense officials asked the U.S. government for technical information on the F/A-18 Super Hornet. Subsequently, relations were smoothed out between France and Abu Dhabi.
"They managed to fix it," a gulf defense official said. "The talks are back on."
French Prime Minister François Fillon recently visited Abu Dhabi, seen as a sign of improved ties between Paris and the UAE.
France sets great store by an export sale of the Rafale, which is the standard bearer of national prestige in world politics, a much-needed source of cash for the straitened defense budget and an export beacon for the French aerospace industry.