India will soon buy from Israel an additional 262 Barak-I anti-aircraft missiles for the navy, as part of an apparent bid to counter the growing naval power of neighboring China. The Indian navy has been lobbying the government to clear the Barak missile purchase because it needs to resupply its Barak anti-missile defense-system-equipped warships. The proposal to buy 262 missiles—built by Rafael Advanced Defense Systems at a cost of 8.8 billion rupees ($142 million)—was approved by the defense acquisition council, headed by Defense Minister A.K. Antony on Dec. 23.
DEFENSE: Global hotspots and country-by-country analyses of national priorities, budgets and programs. See pages 38-47. MILITARY AVIATION: Rivals upgrade their combat aircraft as the F-35 Joint Strike Fighter begins to gain international traction. Special missions become a key part of transport market. See pages 58-67. UNMANNED AIRCRAFT: Europe finally may be getting its act together on UAS, but China and civil developments are moving faster. See page 68.
The German government's draft defense budget for 2014 is around €32.8 billion ($45 billion), a €400 million decrease compared to 2013. The budget will be reduced to around €32.1 billion by 2016 as the Bundeswehr—Germany's armed forces—reduces personnel in line with its transformation. End-strength has already been cut to near its planned maximum of 185,000.
After the major technology leaps of Boeing's 787, the new single-aisle airliners now in development seem anti-climactic –but they are more advanced than they seem on the surface. New airframe, engine and system technologies are combining to produce signficant fuel-efficiency gains over today's narrowbodies.
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Graham Warwick (Washington), Larry Dickerson (Forecast International)
Turkey's revelation in October that it was negotiating to buy air-defense systems from China shocked not only its NATO allies, but also Western missile manufacturers. Although not a done deal, Ankara says China's offer of CPMIEC FD-2000 anti-missile systems costs less and promises better technology transfer.
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Analysts tracking the commercial aircraft turbine engine MRO market see a growth period for the industry from 2014 through 2023, although at a percentage rate in the low-to-mid-single digits. According to data generated by Aviation Week analysts, the global value of the engine MRO market for 2014 is estimated at $20.3 billion, based on the in-service engine fleet of 63,000 for that year—including 3,952 new deliveries. Some aviation industry analysts project slightly higher numbers for the same period.
Israel's defense budget of approximately $15 billion puts the nation at 16th place in defense expenditure, after South Korea, Australia, Canada and Turkey, but ahead of the United Arab Emirates, Colombia, Spain and Pakistan. In terms of its estimated share of GDP, Israel's defense budget dropped from a double-digit level in the 1990s down to about 6% since 2010. Yet these statistics do not tell the full story.
In an industry used to constant growth—with a few hiccups here and there—Russia will deliver the conclusion of an astonishing story in 2014: 24 years after its previous traffic peak in 1990, the Russian air transport industry is finally reaching similar traffic levels.
BAE Systems and South Korea have reached a final agreement on an upgrade program for 134 KF-16 fighters, which will be fitted with a Raytheon active, electronically scanned array radars, new mission computers and new cockpit displays. The company has set up a new unit at Alliance Airport, near Fort Worth, to run the KF-16 fighter updates and to pursue update programs for the F-16, F-15 and F/A-18. About 300 people are expected to be employed there by the end of 2014.
Latin America has been viewed by most as one of the most promising airline markets. Impressive growth and huge steps in quality and safety have made the continent the turnaround story in the industry. And 2014 appears set to become a year of further improvement.
Hong Kong's Cathay Pacific has ordered 21 Boeing 777-9Xs for delivery in 2021-24, seeing the type as ideal for heavily trafficked routes to Europe and North America. Cathay will be a very early operator of the huge Boeing twinjet, which was launched into full-scale development in November and is due to enter service in 2020. The aircraft's operating range of at least 8,200 nm (15,185 km) makes it well suited for Cathay Pacific's ultra-long-haul network, the airline says, citing a catalog price for the order of HKG$58 billion ($7.48 billion).
With certification of Eurocopter's new EC175 expected early next year, the manufacturer is working to build interest in the helicopter in the Asian region. Eurocopter has 48 orders for the EC175, predominantly from oil and gas industry operators with a few orders for the VIP version. Despite a lack of orders from Asia, there are “a lot of ongoing discussions” with operators in this region, says a company executive. Overall, the EC175 orderbook is as strong as Eurocopter expected at this point in the program, the company says.
Middle East defense needs are diversifying. Nations are going beyond new combat aircraft and weapons, seeking intelligence, surveillance and reconnaissance (ISR) and other assets, as well as increased participation in industrial and technical matters.
