Aviation Daily

Michael Bruno
Michael O'Hanlon, senior fellow of foreign policy studies at the Brookings Institution, is not too worried about an al Qaeda cell popping up in lawless Somalia because the U.S. military is increasingly orienting itself to fight such threats. O'Hanlon thinks Defense Secretary Donald Rumsfeld will be remembered at least as much for doubling the budget of special operations forces since 2001 as he will be for overextending U.S. ground forces. "Those will be the most important tools," he said of combating terrorist cells.

By Joe Anselmo
U.K.-based BAE Systems is denying a report in the British media that it is considering selling off its 20 percent stake in Airbus to fund a $10 billion bid for L-3 Communications Holdings. BAE, which has used acquisitions to establish a large presence in the U.S. defense market, said the report in the Guardian newspaper was baseless. A spokeswoman at L-3's New York headquarters said the company would not comment on rumors.

Aviation Week & Space Technology

Staff
PREDATOR CRASHES: A U.S. military MQ-1 Predator unmanned aerial vehicle crashed in Iraq on March 21, the Defense Department said. The UAV went down while operated by a pilot at Creech Air Force Base, Nev. The aircraft was based with the 46th Expeditionary Reconnaissance Squadron at Balad Air Base, Iraq. The wreckage was recovered and returned to Balad Air Base.

Michael Bruno
Congress seems wary to grant immediate funds for the Navy's nascent Naval Expeditionary Combat Command (NECC), including for renewed riverine forces to free up Marines in Iraq for infantry duties.

Staff
TANK WORK: General Dynamics Land Systems said March 20 that it has been awarded two contract modifications worth up to $41.8 million to do work for the Abrams Integrated Management (AIM) tank program, which refurbishes M1A1 Abrams main battle tanks. A $25.9 million contract will pay for labor costs in producing 92 M1A1 AIM tanks for the U.S. Army from July 2006 to July 2007. A $15.9 million contract is for long-lead materials needed to start delivery of up to 100 additional tanks in July of 2007.

Staff
Air Force Space Command (AFSPC) is briefing key Pentagon decision-makers on the results of its analysis of alternatives (AOA) for replacing the Minuteman III intercontinental ballistic missile, according to AFSPC acting commander Lt. Gen. Frank Klotz. "We've begun the process of briefing it through the successive levels that it goes through in the Pentagon, both on the air staff side and on the OSD side," Klotz said.

Staff
MPFF APPROVED: The Defense Department has approved the Navy's revamped Maritime Prepositioning Force (Future) program to enter the technology development phase of acquisition, and has set another benchmark review for mid-2007. The Defense Acquisition Board met March 15 and the Pentagon's chief acquisition official, Ken Krieg, subsequently slated a Milestone B - or other integrated investment review - for next year, according to a DOD statement.

Michael Bruno
As part of its newly passed fiscal 2006 supplemental bill, the House would provide the Defense Department with an additional $100 million that was not officially requested for advance procurement of fiscal 2008 C-17 aircraft, according to the chamber's recently released report accompanying the March 16 bill.

Aviation Week & Space Technology

Staff
ELTA WINNING: The Boeing Co. is about to lose a competition to Israel Aircraft Industries subsidiary Elta Electronic Industries Ltd. for four South Korean airborne early warning and control systems, Peter Arment of JSA Research Inc. is telling investment clients. Elta received a necessary U.S. clearance to sell its Phalcon advanced radar developed with the United States. South Korea has indicated it would choose the low bidder. Boeing's bid was for $1.5 billion; Elta's, $1.1 billion.

Staff
SMARTER A-10C: A Lockheed Martin Corp.-led industry team has delivered the latest software version of its Digital Stores Management System (DSMS), a new weapons delivery system, to the U.S. Air Force's A-10C flight-test program, the company said March 21. DSMS is integrated with the Sniper and LITENING targeting pods to give the aircraft a "smart" weapons ability for close-air support missions. The software was delivered as scheduled under the A-10 Precision Engagement program. The service has been flight-testing the A-10C since early 2005.

Staff
SUB WORK: Northrop Grumman Corp. said March 20 that it was awarded a $248 million Navy contract to support the Los Angeles, Ohio, Seawolf, and Virginia-class submarines through 2008. Roughly $59 million is designated for work to be performed this year. Northrop Grumman's Newport News sector is the prime contractor for the work, including maintaining and altering ship class drawings, maintenance analysis and modernization and repair services.

By Jefferson Morris
The new request for proposals (RFP) for the Joint Cargo Aircraft (JCA) is largely the same as the draft RFP for the Future Cargo Aircraft (FCA) released by the Army last year prior to the Air Force coming onboard the program, according to competitor Raytheon. "It looks very much like the draft," said Jim Hvizd, Raytheon's Team JCA vice president. "The Army and Air Force have clearly collaborated in a positive way. The order quantities, most of the contractual terms and conditions ... have remained pretty much the same."

By Adrian Schofield
British Airways yesterday announced plans to switch all domestic check-in procedures to self-service by April 25. From this date, the only way BA domestic customers will be able to check in will be on the carrier's web site or at a self-service kiosk. The check-in desks will be converted to "fast bag drop" desks; staff will still be available to assist passengers.

Lori Ranson
Support for full funding of Essential Air Service is gaining steam in Congress as members from both sides of the aisle support Rep. James Oberstar's (D-Minn.) push for the full $127 million in funding for the program. Oberstar, in a letter this month to the chairman and ranking member of the Appropriations Committee and the subcommittee on transportation, asked the lawmakers to reject the Administration's proposal to cut EAS funding for fiscal 2007 by 54% (DAILY, March 7).

John Doyle
Homeland Security Secretary Michael Chertoff on Friday travels to Asia to meet with his counterparts in China, Japan, Hong Kong and Singapore on exploring ways to improve air cargo screening. In Hong Kong, Chertoff plans to inspect a pilot program that scans ship cargo containers before they are loaded. "I want to see it for myself," Chertoff told an audience at The Heritage Foundation in Washington, adding that any valuable techniques he sees would be adopted by U.S. security authorities.

Luis Zalamea
Seven companies bought spec sheets for the 20-year contract to develop and manage Bogota Eldorado Airport, a project with an estimated value of $600 million. Abertia, Aena, Aeropuertos Argentina 2000, Mario Huertas Cote, MVN, Pisa and Stratis Cia each purchased spec sheets on the concession bidding, which ends April 18. Colombian Transport Minister Fernando Sanclemente said proposals would be considered from April 18 on and the concession awarded on July 9. -LZ

Annette Santiago
US Airways and AirTran submitted to the U.S. Transportation Dept. applications for the two within-perimeter slot exemptions for service from Washington National to a small hub or non-hub airport that became available after Spirit discontinued its Myrtle Beach service (DAILY, Feb. 28).

Staff
The Allied Pilots Association's views on FAA's taxi into position and hold procedure were mistakenly attributed to the Air Line Pilots Association (DAILY, March 21). Mike Leone, quoted in the story, is APA's Safety Committee chairman. ALPA's position is that FAA's review of the TIPH procedure promises to enhance safety and contributes to balancing capacity with safety in all airport operations.

Seabury Airline Planning Group