Rheinmetall AG and Ukrainian Defense Industry JSC establish joint venture in Kyiv

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  June 11, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Lord: Defense Contractors Need Billions In COVID-19 Relief

  The Pentagon is likely to seek double-digit billions of dollars to reimburse defense contractors that were authorized to seek the money by the CARES Act to preserve their workforce during the COVID-19 crisis, the Pentagon's top procurement officer told lawmakers June 10. The problem is that while the section of the $2 trillion COVID-19 relief bill allows contractors to seek that reimbursement, the bill did not provide any related funding. For just one prime contractor, the estimated costs to keep its workforce in a steady state throughout the crisis exceeds $1 billion, Ellen Lord, the under secretary of acquisition, logistics and technology, said during a House Armed Services Committee hearing. Without additional funding, Lord warns that the Pentagon will “eat into readiness and modernization and slow down readiness and modernization on an ongoing basis.” Aviation and aviation propulsion are two of the hardest-hit areas of the defense industrial base, because of the implosion of the civil aviation industry, she said. Satellite launches also have been hit, given their dependence on the commercial industry, Lord said. Lawmakers were looking for details about how much would be needed for defense contractors, as they anticipate a new COVID-19 spending bill will move through Congress at the end of July. According to Lord, there have been 960 closures and 859 reopenings due to COVID-19. The average closure is about 57 days. But contractors will be specifically requesting reimbursement for issues that affected their employees. So far, contractors are holding back from seeking claims because they are aware that no appropriation exists yet. The Pentagon's internal acquisition group has been tracking data from prime contractors; subcontractors, though, may not be sharing all of their issues to avoid revealing proprietary data, she said, while pledging to provide specific guidance on allowable costs within 30 days. “The defense industrial base is the nexus of economic and national security and it's vitally important to make sure it stays as healthy as possible,” she said. https://aviationweek.com/defense-space/budget-policy-operations/lord-defense-contractors-need-billions-covid-19-relief

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  June 8, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  France Plans Billions of Euros to Rescue Aerospace Industry

  By Francois De Beaupuy and Tara Patel The French government will present a plan worth billions of euros to rescue its beleaguered aerospace industry, protect key suppliers from Chinese interests and may bring forward some defense orders, the transport minister said. The aid package to be presented Tuesday is aimed at European jet manufacturer Airbus SE, engine maker Safran SA, defense group Thales SA, and hundreds of French suppliers that have seen their businesses dry up during the coronavirus pandemic. The plan will be worth as much as 10 billion euros ($11.3 billion), Les Echos reported Monday, although it's not clear what will be included in the total. “We will invest several billions over a rather long period,” French Transport Minister Jean-Baptiste Djebbari said on LCI television Sunday. “The state will be here, the European Union will be present.” The package will aim to kickstart air transport, relaunch manufacturing, and develop less-polluting “hybrid planes” toward 2027 and “carbon neutral” aircraft by 2035, the minister said. In exchange, the industry will have to create or relocate as many jobs as it can in Europe, he said. However, the minister said the industry will probably have to cut jobs. With airlines grounding their fleets worldwide because of the health crisis, Airbus faces a 40% drop in its activity over at least two years, he said. Airlines around the world are struggling to survive, with European giants Deutsche Lufthansa AG and Air France-KLM getting state bailouts and carriers desperate to salvage business from what is normally the busy summer. The French government has extended loans and guarantees worth 7 billion euros to Air France-KLM, tying the funds to a reduction in carbon emissions and services on its domestic routes. The rescue will include the creation of several funds to consolidate the industry and to prevent key suppliers from being acquired by foreign investors, Djebbari said. Chinese companies are making “offers” to small and medium-sized companies with “critical skills” that are currently weakened by the crisis, he said. Many of the companies that have been hardest hit are small and medium-sized. While they have limited access to commercial bank funding, some are considered strategic because they are also defense suppliers. Read More: Macron Is Set to Unveil Rescue Package for French Aerospace Many European nations will probably agree to reopen air travel in the so-called Schengen area from June 15 assuming that the coronavirus crisis continue to recede, Djebbari added. The number of Air France's flights may rise from 5% of its usual level to 15% from June 15, and to 40% in mid-August, he said. https://www.bloomberg.com/news/articles/2020-06-07/france-plans-billions-of-euros-to-rescue-aerospace-industry

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  November 7, 2018 | International, Aerospace

  Chinese Stealth UAV Mockup Unveiled At Airshow China

  ZHUHAI, China—A new stealth UAV program announced at Airshow China here Nov. 5 could represent a significant step toward the Peoples Liberation Army Air Force acquiring an anti-airborne early warning (AEW) ... http://aviationweek.com/defense/chinese-stealth-uav-mockup-unveiled-airshow-china