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NATO Gives Boeing $1 Billion Deal to Upgrade AWACS Reconnaissance Planes

AWACS part of NATO investment in hi-tech surveillance

Announcement comes days before NATO summit in London

BRUSSELS, Nov 27 (Reuters) – NATO on Wednesday awarded Boeing Co a $1 billion contract to upgrade its fleet of AWACS reconnaissance planes, a deal officials said showed the strength of transatlantic cooperation days before an alliance summit in London.

First flown in 1982 and repeatedly modernised, the Boeing-made planes, which can detect hostile aircraft, missiles, ships and other weaponry far beyond NATO borders, will be overhauled with more powerful computer processors, servers and equipment.

The 14 planes, based at an air base in Germany, can already exchange information via digital data links, with ground-based, sea-based and airborne commanders, but need a greater capacity to transmit data as technology develops.

The upgrade will keep one of the few military assets owned and operated by the Western alliance in service until 2035.

AWACS have been flown in support of the international coalition against Islamic State, gazing deep into Syria from Turkey, as well as along NATO’s eastern flank following Russia’s 2014 annexation of Crimea from Ukraine.

“The modernisation will ensure that NATO remains at the leading edge of technology,” NATO Secretary-General Jens Stoltenberg told a news conference alongside Boeing President Michael Arthur, standing in front of one of the planes.

“It will provide AWACS with sophisticated new communications and networking capabilities, so these aircraft can continue their vital missions,” he said.

One NATO official described AWACS, which have crews drawn from 18 different allies, as a symbol of NATO unity, at a time when U.S. President Donald Trump has questioned its value and French President Emmanuel Macron last month said NATO was dying.

The upgrade will be funded by 16 NATO allies, including the United States, Germany, Turkey, Italy and Spain, and some work will be subcontracted to European suppliers including Leonardo and Airbus.

The modernisation comes as NATO takes delivery of the first of five Global Hawk drones, which will be based in Italy.

After years of delays, the high-altitude drones made by Northrop Grumman give the alliance its own spy drones for the first time and will work with the AWACS to protect ground troops, as well as other tasks.

The drones will be able to fly for up to 30 hours at a time in all weather, providing near real-time surveillance data.

(Reporting by Robin Emmott Editing by Mark Heinrich)

France and Germany Sign Deals on Space and Arms Exports

PARIS, Oct 16 (Reuters) – France and Germany have signed a binding deal on arm exports control rules for jointly developed programmes, such as the tank and the warplane of the future, the two countries said on Wednesday in a statement issued after a joint cabinet meeting held in Toulouse.

German curbs on arms exports to non-European Union or non-NATO countries have been a thorn in bilateral co-operation for years. Germany’s SPD party, part of the ruling coalition, is particularly concerned about the trade.

According to the deal signed on Wednesday, Germany will not block French exports to third countries provided equipment was made with less than 20% German components.

French firms, such as Nexter and Arquus, previously known as Renault Trucks Defense, say German restrictions have hindered export deals. Nexter was also worried about the feasibility of the tank of the future project (MGCS) that should be developed with German firm Krauss-Maffei Wegmann.

Airbus Defence & Space and Dassault equally complained that the SCAF fighter jet project with Germany and Spain could be left in limbo.

France and Germany tentatively agreed to speed up the development of the warplane in the next few months, French President Emmanuel Macron said during a news conference with German Chancellor Angela Merkel.

The two countries will sign in January 2020 a deal to develop the SCAF demonstrator programme, French minister of Armed Forces Florence Parly said on Twitter.

Besides defence deals, Paris and Berlin also said they agreed to give preferential treatment to European companies for the launch of space rockets.

(Writing by Benoit Van Overstraeten and Tangi Salaün; Editing by John Irish)

Saab Signs Contract to provide Belgium with a Combat Training Centre

Saab has signed a supply contract with the Belgian MoD for the deliveries of training systems to the Belgian Army. The order value is approximately SEK 160 million and deliveries will take place in 2021.

The contract includes providing a complete training centre with infantry simulators, anti-tank simulators, vehicle systems and communication systems for controlling, monitoring and collecting training data to enable detailed analysis of exercises. The support contract will be negotiated separately later on.

One of the requirements was interoperability with NATO, and with Saab’s training system Belgium will be capable of participating in multinational exercises.

“This means Belgium will share the same standards as members in the Interoperability User Community (IUC). They can therefore take part in multinational exercises together with, among others, the Netherlands, Poland, Germany, Austria, Sweden, Norway, Finland, the UK and the US 7thArmy,” says Åsa Thegström, head of the business unit Training & Simulation within Saab’s business area Dynamics.

 “The Belgian Army has used our training systems for the last four years and have clearly seen the benefits of realistic training. This order strengthens our position as one of the world’s leading suppliers of solutions for combat training,” says Henrik Vassallo, head of the country unit France & Benelux within Saab’s market area Europe.

The business unit Training & Simulation develops, manufactures and markets advanced military training equipment, such as laser simulator systems, instrumented training systems and target equipment. It also provides service and maintenance for delivered systems.

U.S. Arms Makers See Booming European Demand

53rd International Paris Air Show at Le Bourget Airport

PARIS (Reuters) – U.S. arms makers say European demand for fighter jets, missile defenses and other weapons is growing fast amid heightened concerns about Russia and Iran.

The U.S. government sent a group of unusually high-ranking officials including Commerce Secretary Wilbur Ross to the Paris Airshow this year, where nearly 400 U.S. companies were showcasing equipment as the United States and Iran neared open confrontation in the Persian Gulf.

Lockheed Martin, Boeing and other top weapons makers said they had seen accelerating demand for U.S. weapons at the biennial air show despite escalating trade tensions between the United States and Europe.

“Two Paris air shows ago, there weren’t a lot of orders,” said Rick Edwards, who heads Lockheed’s international division. “Now … our fastest growth market for Lockheed Martin in the world is Europe.”

Many European nations have increased military spending since Russia’s annexation of the Crimea region of Ukraine in 2014, bolstering missile defenses and upgrading or replacing ageing fighter jet fleets. NATO members agreed in 2014 to move toward spending 2% of gross domestic product on defence.

Eric Fanning, chief executive of the Aerospace Industries Association, said the NATO pledge and European concerns about Russia were fueling demand. “I do think it reflects the increasing provocations of Russia,” he said.

Industry executives and government officials say growing concern about Iran’s missile development program is another key factor. Tehran’s downing of a U.S. drone came late in the air show, but executives said it would support further demand.

“Iran is our best business development partner. Every time they do something like this, it heightens awareness of the threat,” said one senior defence industry executive, who asked not to be named.

Edwards said Lockheed’s F-35 stealth fighter, selected by Belgium, is poised to win another new order from Poland, while Bulgaria, Slovakia and Romania are also working to replace Soviet-era equipment.

Edwards and other executives say they see no impact from the ongoing trade disputes between U.S. President Donald Trump and the European Union.

U.S. Army Lieutenant General Charles Hooper, director of the Pentagon’s Defense Security Cooperation Agency (DSCA), said Europe accounted for nearly a quarter of the $55.7 billion in foreign arms sales his agency handled in fiscal 2018.

Hooper said the U.S. government was making concerted efforts to speed arms sales approvals and boost sales to help arm allies with U.S. weapons.

Ralph Acaba, president of Raytheon Co’s’s Integrated Defense Systems business, said the company was boosting automation and working to deliver the Patriot missile system and other weapons in half the five-year period previously typical.

“Europe is really big for us now, and that’s a big change in just the last few years and even the last 18 months,” he said.

In addition to wooing new Patriot customers, Raytheon is upgrading existing systems for customers like Germany, which is likely to finalize a contract worth potentially hundreds of millions of dollars to the company in coming months.

Thomas Breckenridge, head of international sales for Boeing’s strike, surveillance and mobility programs, is eyeing contracts wins for Boeing’s F/A-18 Super Hornet fighter jets in Germany, Switzerland and Finland.

“There’s a huge appetite in Europe for defence as a whole,” he said.

(Reporting by Andrea Shalal; Editing by Jan Harvey)

Bulgaria Sees F-16 Jet Deal With U.S. at $1.2 Billion

  • Defence Minister says $1.2 bln is a reasonable price
  • Final talks to start once Bulgaria gets draft contract
  • Cost will be based on final Bulgarian requirements-U.S. Embassy (Adds defence minister comment, U.S. embassy to Sofia)

SOFIA, June 4 (Reuters) – NATO member Bulgaria expects the United States to offer to sell it eight new F-16 fighter jets for its air force at a discounted price of $1.2 billion, the defence ministry said on Tuesday.

The U.S. State Department approved the possible sale of eight F-16 aircraft and related equipment at an estimated cost of $1.67 billion, a Pentagon agency said on Monday.

Bulgaria, which is also a member of the European Union, is looking to replace its ageing Soviet-made MiG-29s and improve compliance with NATO standards.

A deal for Lockheed Martin’s F-16 Block 70 would be the Balkan country’s biggest military procurement since the fall of Communist rule some 30 years ago.

The defence ministry said the U.S. approval outlined the upper threshold of the cost and it expected a draft contract from Washington within two weeks.

“There is a two-week timeline in which the U.S. government will present to Bulgaria a draft Letter of Offer and Acceptance in which the expected price for the eight jets with a package of necessary related equipment will be within $1.2 billion,” the ministry said in a statement.

The expected price comes above the initial estimate for the deal at 1.8 billion levs ($1 billion) but the Bulgarian parliament has given the defence ministry a green light to go over that.

Defence Minister Krasimir Karakachanov said that the deviation from the initial budget should not be big.

“About 2 billion levs ($1.2 billion) is the upper threshold of a reasonable price,” he told reporters.

The U.S. Embassy in Sofia said that the Departments of State and Defense allow for a margin in all notifications to the U.S. Congress and that the actual cost will be based on Bulgaria’s final requirements.

Final talks on the deal will start once Sofia receives the draft contract. The cost’s reduction would most likely be achieved by scaling down some of the related equipment, local analysts say.

“At that stage…the Bulgarian government may re-scope and re-define the requirements before arriving at the ultimate cost,” the embassy said in a statement. ($1 = 1.7397 leva)

(Reporting by Tsvetelia Tsolova Editing by Keith Weir)

Turkey Says No Delays in Delivery of Russian S-400’s

ANKARA, May 31 (Reuters) – The delivery schedule for Russia’s S-400 missile defence systems to Turkey is continuing as planned, Turkish Foreign Ministry Spokesman Hami Aksoy said on Friday, dismissing reports of delay.

The U.S. and Turkey have been at odds over Ankara’s decision to purchase the S-400’s, which Washington says are not compatible with NATO systems and poses a threat to the F-35 stealth fighter jets. Ankara has proposed to form a working group to assess the U.S. concerns, but has not received a response yet.

On Monday, broadcaster Haberturk quoted Turkish Defence Minister Hulusi Akar as saying that the delivery of the S-400’s may not happen in June, when Turkey previously said the missiles were due to arrive, but added the agreement was a done deal.

“Reports in some media outlets about Turkey evaluating delaying the S-400 procurement upon the request of the United States do not reflect the truth,” Aksoy said in a statement, adding that Ankara’s offer for a joint working group with Washington was still valid.

(Reporting by Tuvan Gumrukcu and Ece Toksabay)

U.S. Air Force F-35A

Canada Bids for Mothballed German Prototype Drone

BERLIN (Reuters) – The German Defence Ministry is evaluating a bid from Canada to buy a high-altitude surveillance drone prototype that has been parked at a German air base for years after the cancellation of the Euro Hawk programme in 2013.

A formal bid for the prototype aircraft, which was demilitarised by the United States in 2017, was received from Canada, a ministry spokesman said on Wednesday without providing further details. The Canadian embassy in Berlin had no immediate comment.

NATO was also considering a bid for the drone, but had not yet submitted it, according to sources familiar with the process.

A sale of the drone would end an embarrassing chapter that raised concerns about the German military’s procurement process and triggered the transfer of former Defence Minister Thomas de Maiziere to another cabinet post.

The German government told lawmakers last year that it had spent about 700 million euros ($793.5 million) on the Euro Hawk prototype built by U.S. arms maker Northrop Grumman and the ISIS surveillance system built by Airbus.

Berlin initiated plans in 2000 to buy five Euro Hawk drones based on Northrop’s Global Hawk unmanned system at a cost of about 1.2 billion euros but later cancelled the programme because of cost overruns and problems obtaining certification for use in civilian airspace in Germany.

It had only received the one prototype aircraft that is now being sold.

Berlin is now negotiating with Northrop to buy several MQ-4C Triton drones for delivery after 2025. Northrop last year said the process could take years to complete.

German opposition lawmaker Andrej Hunko, a member of the radical Left party, said the German government had declared the aircraft incapable of flight after the U.S. Air Force removed key systems.

“The airplane has salvage value at best,” he told Reuters.

“Any proceeds from the sale would be a drop in the bucket, compared with the huge amounts spent on the programme.”

For NATO, the drone could provide additional support to the fleet of five high-altitude unmanned Global Hawk planes it agreed to buy from Northrop in 2012 for $1.7 billion, along with transportable ground stations.

Industry officials said the Euro Hawk saga highlighted problems in German military procurement, noting that NATO’s sister aircraft regularly traverse German air space to conduct surveillance missions over the North Sea. They also have no blanket approval for use in German civilian airspace but use case-by-case permissions from air traffic authorities.

It was not immediately clear what steps would be needed to return the German Euro Hawk prototype to flight.

($1 = 0.8821 euros)

(Reporting by Andrea Shalal, Editing by Riham Alkousaa and David Goodman, William Maclean)

Boeing to Modernize Spanish Chinook Helicopter Fleet

Boeing [NYSE: BA] announced on january 3, 2019 that it will upgrade all 17 of Spain’s CH-47D Chinook helicopters to the F-model configuration, adding features such as the digital automatic flight control system, common avionics architecture system and advanced cargo handling to align that country’s fleet with those of other nations.

This is the first order from a non-U.S. customer placed through a contract Boeing and the U.S. Army signed in July. That contract covers six new F-models for the U.S. and options for up to 150 more Chinooks for U.S. and international customers. Deliveries to Spain begin in 2021.

“The Chinook is a versatile aircraft flown by eight NATO nations, including Spain,” said Chuck Dabundo, vice president, Cargo and Utility Helicopters and H-47 program manager. “With this contract, Spain’s Chinook crews will enjoy the platform’s current technology and capability, while the country gets an affordable upgrade that builds on its existing H-47 investment.”

The CH-47F is a twin-engine, tandem rotor, heavy-lift helicopter. In addition to the U.S. Army and Special Operations Forces, Chinooks are currently in service or under contract with 19 international defense forces. It can fly at speeds exceeding 175 mph and carry payloads greater than 21,000 lbs. In 2017, Boeing and the U.S. Army announced development of CH-47F Block II, which will incorporate a new rotor blade, redesigned fuel system, improved drivetrain and structural improvements to the fuselage.

For more information on Defense, Space & Security, visit www.boeing.com. Follow us on Twitter: @BoeingDefense and @BoeingSpace.

Story and image from http://www.boeing.com

Israel’s Elbit Systems Speeds Up Drone Race

REHOVOT, Israel (Reuters) – Israeli defense firm Elbit Systems on Thursday unveiled a 1.6 ton unmanned aircraft vehicle (UAV) designed to fly in airspace currently reserved for piloted civilian planes as a race heats up to deploy military drones outside combat zones.

The move came hours after a U.S. rival staged a landmark transatlantic demonstration flight, as arms firms vie to develop drones with flexibility to be used in civilian-controlled airspace – a drive that could spawn future technology for unmanned airliners.

Changing security concerns following the dismantling of Islamic State and rising geopolitical tensions have caused European countries to shift defense efforts from far-away conflicts to homeland security, resulting in demand for drones that can be safely integrated into civilian airspace to, for example, monitor border crossings, Elbit officials said.

A version of Elbit’s Hermes 900 StarLiner is being assembled for the Swiss armed forces and is scheduled to be delivered in 2019 in a deal worth $200 million.

“We are getting a lot of interest from other customers for the same configuration … from all over the world,” Elad Aharonson, general manager of Elbit’s ISTAR division, told Reuters.

The StarLiner, being launched ahead of next week’s Farnborough Airshow, is derived from the Hermes 900 operated by Brazil for surveillance during the 2014 World Cup. That operation required closing off airspace to civilian aircraft, something the StarLiner, with technology to detect aircraft and avoid collisions, will not require, Elbit said.

The drone is compliant with NATO criteria, qualifying it to be integrated into civilian airspace, Elbit said. It will still need approval of the various civil aviation authorities.

The StarLiner has been flying in civilian airspace in Israel over the past year.

California-based General Atomics’ MQ-9B SkyGuardian – a version of the widely used Predator family – completed its Atlantic crossing on Wednesday ahead of the world’s largest military airshow at RAF Fairford in western England.

Elbit expects to receive approval from the European Aviation Safety Agency (EASA) for its own product in the coming months.

EASA was not available for comment.

Israel’s drone exports in 2005-2012 totaled $4.6 billion, according to consultancy Frost & Sullivan. They reached $525 million in 2016, accounting for 7 percent of Israel’s defense exports, defense ministry data show.

Drones are a major source of revenue for Elbit and state-owned Israel Aerospace Industries. The United States and Israel dominate the industry but face growing competition from cheaper Chinese drones.

U.S. military drone makers are vying for a larger share of the global market, which market researcher the Teal Group forecasts will rise from $2.8 billion in 2016 to $9.4 billion in 2025.

INTELLIGENCE GATHERING

Flying alongside airliners would expand the horizons of drones originally developed for military surveillance. But it would also call for advanced sensors and software that could eventually filter back into commercial use as developers look at single-pilot and ultimately pilotless cargo or passenger jets.

The StarLiner can reach 30,000 feet – the altitude of some commercial jets – and photograph an 80 square kilometer (31 square mile) area, Elbit said.

“Some customers would like to use the system to gather intelligence,” Elbit CEO Bezhalel Machlis said. “Another example can be for homeland security applications, to fly above an area and make sure it is monitored against terrorist activities.”

The drone can be equipped with radar, cameras to take video and still pictures, and signals intelligence to analyze electronic signals.

“This is a major step towards unmanned civilian planes,” Aharonson said, adding the main barrier to such aircraft would be psychological rather than technical.

(Editing by Jonathan Weber, Tim Hepher and Mark Potter)

Germany raises fears over Airbus A400M capabilities

BERLIN (Reuters) – Germany’s military fears that the Airbus (AIR.PA) A400M aircraft will not fulfill its needs in time as the troubled program faces further problems, a report seen by Reuters reveals.

The confidential German military report said there was a “significant risk” that the A400M would not meet all its tactical requirements by the time the armed forces retires a fleet of aging C-160 Transall transport planes after 2021.

“It is not clear whether, when and how many mature deployable A400M will be available with the contractually required suite of tactical capabilities,” the report said.

“There are significant risks associated with the availability of the required tactical capabilities at the time of the retirement of the C-160. A capability gap cannot be excluded after 2021,” it added.

Problems included data such as fuel usage needing to be entered into multiple systems, meaning it could take up to 50 man-hours to plan medical evacuations and other missions, which the report said was “not acceptable” operationally.

Airbus, which last month took a new 1.3 billion euro charge on the multinational A400M program, declined to comment.

The program was initially valued at 20 billion euros ($25 billion) but has reached well over 30 billion euros, sources told Reuters last year.

Germany, the largest buyer of the A400M, has received over 17 of the 53 A400M aircraft it plans to buy.

“CRITICAL” PROBLEMS

The German report said the mission planning process meant that certain tasks, such as providing disaster relief or evacuating wounded soldiers, “cannot be executed”.

Although planning could be shortened to six to 10 hours, this was only possible by reducing the load of passengers and equipment, said the report.

The latest setback for Airbus comes after a preliminary deal by which Germany and six other NATO nations agreed to slow the planned delivery schedule and negotiate removing certain difficult to achieve requirements for the aircraft.

In return, Airbus has pledged to provide “all necessary support and resources” to Europe’s largest defense project.

The report cited continued concerns about the plane’s inability to meet requirements, such as the ability to drop parachute troops. It said Airbus could also seek additional funds to complete work on the self-defensive capabilities.

It also cited delays in carrying out testing of the plane due to insufficient infrastructure in Europe, and said a site in Yuma, Arizona was now being considered.

There were also “critical” problems with the production of sensor chips for the plane’s airborne warning system that had not been resolved, the report said, noting that Germany had received five A400M aircraft without the warning system.

($1 = 0.8114 euros)

(Reporting by Sabine Siebold; Writing by Andrea Shalal; Editing by Madeline Chambers and Alexander Smith)

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