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  January 14, 2019 | International, Aerospace

  Airbus joins forces with Lockheed to step in Boeing’s backyard

  CLÉMENT CHARPENTREAU One company's demise is another one's opportunity. Or in this case, two companies. Lockheed Martin and Airbus signed a memorandum of agreement to “jointly explore opportunities to meet the growing demand for aerial refueling for US defense customers.” The manufacturers are taking advantage of the difficulties encountered by Boeing's KC-46A Pegasus. It was Airbus (partnered with Northrop Grumman at the time) that initially won the KC-X tender launched by the Pentagon for a new refueling system to equip the United States Air Force. With its A330 MRTT already in production, the European manufacturer was way ahead of its American rival whose KC-46 “Pegasus” was still on the drawing board. However, political concerns invited themselves into the acquisition process, and after several years of lobbying, the contract was eventually taken away from Airbus and given to Boeing. 179 aircraft were ordered, with the first aircraft to be delivered around May 2016, and the following 17 by 2017. But since then, the KC-46 program had a bumpy flight, and the USAF is still waiting for its planes. The development of the tanker exceeded the initial forecast by $3 billion (which hints at a deliberate underestimation to win the contract over Airbus), and the delivery has been constantly delayed. The last precise deadline in date, October 2018, was finally postponed to “a little later” by Air Force Secretary Heather Wilson in an interview to Bloomberg. In March 2018, Wilson commented on the matter in front of the Congress: “One of our frustrations with Boeing is they're much more focused on their commercial activity than on getting this right for the Air Force and getting these aircraft to the Air Force”. As Boeing was contractually obliged to deliver 18 planes and 9 refueling pods by October 2018, it will now face financial penalties. The KC-46 is currently ongoing certification with the FAA. Boeing's struggle comes as a perfect opportunity for Airbus and Lockheed Martin to offer their services to the USAF and its allies, both in the short and long term. “These may range from ways to support critical near-term air-refuelling needs, such as a fee-for-service structure to conceptualizing the tanker of the future,” they said in a common press release. In the coming twenty years, the USAF will need two new types of refueling aircraft. The programs should be respectively known as KC-Y, to replace the gigantic KC-10s, and KC-Z, a stealth tanker. This new partnership could allow Airbus to put its A330MRTT on the table once more, in a version adapted to the needs of the USAF that would use Lockheed Martin's competence in the matter. The tanker is now operated by six air forces around the world, and has already seen some actions. While awaiting for the KC-Y tender to begin, Airbus could offer a leasing service to the USAF, in a similar way as AirTanker is already doing for the Royal Air Force with its ten Airbus Voyagers (A330 MRTT). With Lockheed Martin as a partner, Airbus could set a foot in the U.S. defense industry... for good this time. https://www.aerotime.aero/clement.charpentreau/22151-airbus-joins-forces-with-lockheed-to-step-in-boeing-s-backyard

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  December 11, 2019 | International, Land

  Analysis: NATO's defence budget formula is flawed — and Canada isn't going to meet its target

  Trump is angry that a number of NATO nations haven't met an agreement, reached five years ago, to spend two per cent of their annual Gross Domestic Product on defence DAVID PUGLIESE, OTTAWA CITIZEN Another NATO summit brings another chance for U.S. President Donald Trump to browbeat America's allies for not spending enough on defence. Trump is angry that a number of NATO nations haven't met an agreement, reached five years ago, to spend two per cent of their annual Gross Domestic Product on defence. But that GDP yardstick has been rendered almost meaningless this year as the tiny nation of Bulgaria has joined the U.S. super power as being one of NATO's top military spenders. Bulgaria's GDP is so small that by purchasing eight F-16 fighter jets in a one-time outlay of $1.5 billion, the country will now be spending 3.25 per cent of its economic output on its military. Only the U.S., which spends 3.4 per cent of GDP on defence, is higher. Using the GDP measurement means that Estonia, which has one of the smallest navies in the world with four ships, has reached the NATO gold standard of two per cent. Canada, which spends more than 20 times the amount in actual dollars on its military, is viewed as a NATO deadbeat. For that reason, both Conservative and Liberal governments have pushed back on the GDP measurement, which was agreed to by NATO nations at a summit in Wales in 2014. Prime Minister Stephen Harper, arguably the most supportive leader of the Canadian military that the country had seen in decades, dismissed the notion of reaching that two per cent target, even though Canada signed on to the goal. At the Wales summit, Harper's staff pointed out that reaching the two per cent mark would have required the military's budget to almost double, something that was not fiscally or politically possible. Harper himself had come under fire from defence analysts who pointed out that under his government, the percentage of GDP spent on defence reached almost an all-time low of around 1 per cent. But Harper countered that it's the amount of actual spending and capability of a country's military that matters, not the GDP measurement. Prime Minister Justin Trudeau was essentially using the same argument Tuesday when he met with Trump at the NATO summit. “I think it's important to look at what is actually being done,” with defence dollars, Trudeau said. Canada only spends about 1.3 per cent of GDP on defence. But tabulate the defence dollars actually being spent on the military and Canada ranks an impressive sixth among the 29 NATO nations. The Liberal government's defence policy has promised even more money in the future. Military spending is set to increase from the current $21.8 billion to $32.7 billion in 2026-2027. Trudeau also noted in his meeting with Trump on Tuesday the key role Canada is playing in NATO operations in both Latvia and Iraq. Germany has taken a similar approach to the one used by Canada's Conservative and Liberal governments. It believes the amount of money actually being spent on military forces is more important than measuring it as a percentage of the GDP. Germany has also pointed out it is the second largest provider of troops for NATO operations. Trump is expected to once again criticize Germany for its level of defence spending. But the country does not seem to be in a hurry to make the two per cent goal. Germany currently spends about 1.4 per cent or around $64 billion annually. Earlier this year it told NATO it would reach 1.5 per cent of GDP by 2024. The other issue facing the Department of National Defence and the Canadian Forces related to the two per cent goal is one of capacity. Even if the defence budget was boosted to meet two per cent, the department simply doesn't have the ability to spend that amount of money. Around half the defence budget is for salaries and while the senior military leadership would welcome an increase in the ranks the problem they face is that young Canadians aren't exactly rushing out to join the forces. The military could spend more money on acquiring additional equipment. But a lack of trained procurement staff has been an obstacle standing in the way of even getting approved programs underway. Trudeau's explanation Tuesday about Canada's military spending being on a steady increase seemed to placate Trump, at least for now. The U.S. president responded that he views Canada as “slightly delinquent” when it comes to defence spending. “But they'll be okay,” he told journalists. “I have confidence. They'll get there quickly, I think.” https://ottawacitizen.com/news/national/defence-watch/analysis-natos-defence-budget-formula-is-flawed-and-canada-isnt-going-to-meet-its-target

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  December 11, 2020 | International, Land

  Nammo signs strategic partnership agreement with the Finnish Defense Forces

  By Endre Lunde, December, 9 2020 Nammo and the Finnish Defense Forces (FDF) signed a new long-term strategic partnership agreement today during a brief ceremony at the Finnish Defense Command in Helsinki. The agreement is a continuation of a previous security of supply agreement between the two parties signed in 2014, and comes after the Finnish Minister of Defense approved the new agreement on 20 November “This agreement confirms the close relationship between Nammo and the Finnish government, which has existed since the formation of Nammo in 1998, and before that since our current Finnish factories were founded in the 1920s. We are as committed to Finnish safety and security as we have ever been, and this new agreement will allow us to take on an even greater role and build an even closer partnership with the Finnish Defense Forces,” said Morten Brandtzæg, President and CEO of the Nammo Group. Raimo Helasmäki, Managing Director of Nammo Lapua Oy, Nammo's Finnish subsidiary, is very satisfied with the agreement being signed. “This Strategic Partnership Agreement strengthens and supports Nammo Lapua Oy's position as a major player in domestic security of supply,” Helasmäki said. The Strategic Partnership is a multi-year agreement, and will remain be in force until further notice. The total value is expected to be about EUR 20 million per year. Nammo's history in Finland dates back to the years immediately following its independence, when what is today Nammo Lapua, Nammo Vihtavuori and Nammo Sastamala were founded to produce much-needed munitions for its armed forces. The new agreement continues this long-standing history, and covers every aspect of ammunition, explosives and propellants manufacturing in Finland, thereby ensuring a continued domestic security of supply for the Finnish Armed Forces. Finnish Defense Forces Deputy Chief of Staff for Logistics and Armaments, Lieutenant General Timo Kakkola believes the agreement will strengthen the approach and ways of working that has been developed over the past six years by Nammo and the FDF. At the same time, it represents an important step further where Nammo becomes a true strategic partner for the FDF, helping to manage the full supply chain for ammunition, an essential part of Finnish national readiness. “Our domestic ammunition and propellants industry still has a significant part to play in our security of supply, and this agreement allows us to continue its development through a long-term partnership with Nammo,” said General Kakkola. ABOUT THE AUTHOR ENDRE LUNDE, SENIOR VICE PRESIDENT, COMMUNICATIONS EMAIL endre.lunde@nammo.com TEL +4790853270 View source version on NAMMO: https://www.nammo.com/story/nammo-signs-strategic-partnership-agreement-with-the-finnish-defense-forces/