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U.S. arms firms in Paris rethink markets
Paris (UPI) Jun 16, 2009 U.S. defense firms at the 2009 Paris Air Show are vying to win international contracts to help make up for flatter defense spending after years of strong growth. And while defense program cuts and tighter budgets in the United States are keeping many aircraft in service longer than before, military vendors are counting on reeling in some lucrative contracts for upgraded weapons systems. Aerospace manufacturers with a strong military presence are especially encouraged by growing overseas markets and a jump in U.S. spending on intelligence, surveillance and reconnaissance. Nevertheless, the United States still accounts for more than 40 percent of the world's military purchases. The Pentagon intends to increase its ISR spending by $2 billion in 2010 as part of its counter-terrorism efforts in Iraq and Afghanistan. Unmanned aerial vehicles have only recently been recognized as a cost-effective and safe addition to the aerospace arsenal. Many manufacturers around the world are gearing up for growing UAV sales. And in the United States, Defense Secretary Robert Gates is looking for safer, more efficient ways to fight wars. The U.S. defense budget for fiscal year 2010 increases spending on UAVs by 18 percent to reach $5.3 billion, even as other programs lose out. Extensive defense cuts by Gates in other areas have hit some big programs hard. Boeing's Future Combat Systems Army modernization program is one, as well as the U.S. Air Force's Transformational Satellite program. So Boeing is also working on unmanned vehicles and expects its global sales to expand to 20 percent of its defense sales from 16 percent now. The Pentagon's No. 1 contractor, Lockheed Martin Corp., has also diversified its portfolio into new areas of security, according to its chief executive, Robert Stevens, who defined global security as including things such as access to clean drinking water, secure transportation and alternative energy sources. Lockheed's super-advanced radar-evading F-35 fighter jet is being developed by nine countries to replace up to 13 different current fighters. Sikorsky Aircraft Corp. said helicopters are in great demand and projects a stable backlog of government orders over the next several years. The firm is negotiating $1.4 billion of foreign sales in the next three to five years to Mexico, the United Arab Emirates, Saudi Arabia and Bahrain, as well as to Albania and Georgia. Taiwan is interested in buying around 60 Black Hawk helicopters from Sikorsky, with a price tag of $1 billion. Sikorsky is also looking at developing a remotely piloted aircraft for the Pentagon. The United States is looking to help Middle East countries bulk up their air defenses. And India, Brazil and Switzerland are shopping for fighter aircraft and helicopters, with India also in the market for 126 fighter jets in an order worth up to $10 billion. Brazil, too, is looking to buy up to 100 jets over the next 15 years, while Switzerland has expressed interested in a much smaller order. The Paris Air Show, which opened Monday, is celebrating its 100th anniversary. Share This Article With Planet Earth
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European military carrier delayed Berlin (UPI) Jun 15, 2009 France and Germany have decided to further delay the decision whether to build their troubled A400M military transport plane. French President Nicolas Sarkozy and German Chancellor Angela Merkel said they would make room for another six months of negotiations to agree on the future of the $28 billion project. "We said we'd give ourselves a little delay of six months to continue ... read more |
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