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February 1, 2024 | International, Security

Saab and MBDA to strengthen co-operation

They signed Letters of Intent to strengthen the co-operation between their companies in these two fields, at the Business Forum organised in the presence of the highest French and Swedish...

https://www.epicos.com/article/788134/saab-and-mbda-strengthen-co-operation

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  • Getting Brexit Done Brings Defense Challenges

    December 17, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

    Getting Brexit Done Brings Defense Challenges

    Tony Osborne Boris Johnson's election landslide on Dec. 12 makes Brexit on Jan. 31 a certainty. But as the chants of “Get Brexit Done”—a slogan used by the Conservative party in their election messaging—fade away, Britain's place in the world appears infinitely more vulnerable. Johnson's parliamentary majority means he can now sweep aside any opposition to pursue his vision of Brexit. But he was not the only victor. The Scottish National Party secured 48 of Scotland's 59 seats, which the party says is a mandate for a second independence vote. If it were to succeed, there would be far-reaching consequences to Britain's national defense capability. Scotland is home to strategically important air bases and, most significantly, the UK's Trident-based nuclear deterrent. Johnson is unlikely to approve such a referendum at least in the short-term, but the Scottish nationalists could make life difficult for his government, and preventing a referendum could be seen as undemocratic. The complexities of having Northern Ireland as the only part of the UK to share a land border with an EU country, the Republic of Ireland, mean that after a Brexit there will be a border in the Irish Sea between Northern Ireland and the rest of the UK. This, too, could have security implications and lead to renewed violence from unionist groups, as they see their political influence being eroded. Nationalists see an opportunity for a united Ireland once again. There is also uncertainty about the futures of Gibraltar and Diego Garcia. Exiting the EU means British security forces no longer will be linked to EU databases on criminals, organized crime and terror. Questions also have arisen about Russia's influence in the British democratic process, with Johnson suppressing publication of an intelligence report on Russian infiltration in British politics during the election run-up. And there is a fiscal aspect as well. Since the Brexit vote in 2016, Britain's GDP has begun to stagnate as economic output and investments fall away. National debt also is rising. The British Parliament's own analysis suggests GDP could be 7% lower over the next 15 years than without Brexit, and even with a free-trade agreement established with Europe. Questions then would arise about whether Britain could afford to maintain military spending. Currency fluctuations will affect big-budget programs such as the ongoing purchase of the Lockheed Martin F-35 Joint Strike Fighter (JSF). Britain is one of a handful of NATO countries with defense spending at or above NATO's target of 2% of GDP. The Conservative manifesto published in the run-up to the election calls for this to increase by at least 0.5% above inflation every year. Britain's defense budget for 2019-20 was £39.5 billion ($52.7 billion), and this will rise to £41.3 billion for 2020-21. The government will maintain and renew the Trident nuclear deterrent but also support the defense industry with “ambitious global programs,” including local construction of Type 31 frigates and local production of the Boxer armored vehicle. In December, the Royal Navy commissioned the second new Queen Elizabeth-class aircraft carrier, HMS Prince of Wales, in a further step toward restoring the country's carrier capability. Following operational trials in the fall off the Eastern U.S., more are planned around the UK during 2020, paving the way for the first operational deployment in May 2021. The UK plans to have 35 F-35s in service by the end of 2022, and the government has committed to buying all of the 138 F-35s it planned to purchase when it joined the JSF program in the early 2000s. Whether that commitment is met and if the UK will purchase additional variants could be determined in a strategic defense and security review planned for 2020. With the retirement of the Panavia Tornado last March, the Eurofighter Typhoon fleet has become the heavy-lifter of the UK's air defense mission and is continuing air strikes against Islamic State group sites in Iraq and Syria along with the UK's MQ-9 Reaper unmanned aircraft systems. The UK now is stepping up development of a Typhoon replacement for the mid-2030s with the Tempest future combat air system, supported by Italy and Sweden. More nations could join in 2020, with Japan a key target. And with delivery of the first of nine Boeing P-8 maritime patrollers, the UK is back in the long-range antisubmarine-warfare business, with an initial operating capability expected in April. https://aviationweek.com/defense-space/getting-brexit-done-brings-defense-challenges

  • EU Commission proposes 1.5 billion euro common defence industry package
  • A&D Industry And The Chinese Conundrum: Get In Or Out?

    October 16, 2020 | International, Aerospace

    A&D Industry And The Chinese Conundrum: Get In Or Out?

    Michael Bruno Western airlines are begging for more government aid, the International Air Transport Association does not expect the industry to see positive cash flow before 2022, and credit agency analysts forecast depressed aerospace and defense business activity for up to another 1.5 years. Meanwhile, data continues to portray China as the lone bright spot in the aviation world. By August, Chinese domestic flights had recovered to about 90% of 2019 levels. “China has been effectively controlling the spread of COVID-19, limiting cases to less than 100 a day. Combined with a large domestic market, the recovery in commercial aviation is expected to outpace the rest of the world,” Jefferies analysts Sheila Kahyaoglu and Greg Konrad noted in late September. “Right now, really, the two areas of traffic that are close to normal are domestic China and the roughly 2,000 all-cargo aircraft out there today,” echoes AeroDynamic Advisory Managing Director Kevin Michaels. Otherwise, “it's a bloodbath, and we're all aware of that,” he told an Aviation Week SpeedNews conference in September. For aerospace and defense (A&D) suppliers, the dichotomy sets up a critical decision: Should suppliers and servicers run toward China—or run away? It is easy to understand why they are debating the question. Long before COVID-19 gutted commercial air traffic and kick-started what is expected to be the greatest makeover of aircraft manufacturing and the maintenance, repair and overhaul industries since the dawn of the jet age, there were already good reasons to debate being in China. Topping the list was the Trump administration's trade war with the world's second-largest economy. Ongoing questions lingered about intellectual property rights and the specter of inadvertently creating future competitors in Avic, Comac and other Chinese companies. Proponents of reshoring industry to the U.S.—or “nearshoring” to Canada or Mexico—are certainly touting potential opportunity. “The logical thing is to fill longer-term and COVID-revealed supply chain gaps,” Reshoring Initiative President Harry Moser told an Aerospace and Defense Forum audience on Oct. 6. Others agree that conditions are ripe for reshoring, not least because automation and advanced technologies that replace humans can offset North American costs. Also, A&D has been deemed a critical part of U.S. infrastructure. And Chinese unit labor costs have risen fivefold in recent decades. This summer, site-selection consultant Duff & Phelps identified A&D as a top candidate for moving to America (see chart). But siting decisions are complex, and supply chain moves are even more so. Not only is commercial aviation looking strongest in China now and in the near future, but it could accelerate a long-expected toppling of the U.S. as the world's leading aviation market, possibly as soon as 2025. Increasingly, Beijing officials talk about relying on domestic supply instead of imports. Indeed, the “Sleeping Giant” could boast a future estimated aviation market value of more than $1 trillion, according to Yi Zhang, general manager of OCO Global China. That catches suppliers' attention. Zhang spoke in June to a well-attended webinar hosted by Washington state economic development officials about aerospace opportunities in China, and that was a month before Boeing revealed it was even thinking about scrapping 787 production in Puget Sound, Washington. Now China's opportunities beckon brighter with no snapback in Western air traffic. Still, in his Sept. 24 report titled “Caveat Venditor,” or “seller beware,” Vertical Research Partners analyst Rob Stallard cautions Western A&D companies against rushing toward China. “We see the Chinese government leveraging its position of relative post-COVID strength in coming years, and no doubt aerospace will see some of the fallout,” Stallard says. “As the biggest show in town, we would expect to see more quid pro quo in China's relationship with what is still very much a Western aerospace industry. Price, supply chain and technology transfer could be on the table, as could politics. “Aviation could conceivably suffer collateral damage as part of a broader trade war,” Stallard writes. “So while investors will probably see good news in a Chinese-led aero recovery, we would be looking for any strings attached.” https://aviationweek.com/aerospace/manufacturing-supply-chain/ad-industry-chinese-conundrum-get-or-out

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