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Italy’s Salvini Prefers Transportation Group as Alitalia Partner

MILAN, June 14 (Reuters) – Italy’s Deputy Prime Minister Matteo Salvini said on Friday an infrastructure or transportation group would be his preferred partner for troubled carrier Alitalia.

He added that he had reservations about a possible involvement of Lazio soccer club Chairman Claudio Lotito, who submitted an expression of interest for the airline this week.

Salvini’s comments put pressure on Industry Minister Luigi Di Maio, who is also the leader of the 5-Star Movement and has been handling the Alitalia crisis since the coalition government took office last year.

Di Maio has already had to postpone the deadline for the rescue of the carrier three times and the latest extension is due to expire on Saturday with every expectation it will have to be prolonged yet again as the search for a solution continues.

Italy’s state-owned railway group Ferrovie dello Stato is spearheading an effort to set up a consortium of investors to buy loss-making Alitalia, which is managed by administrators.

So far Ferrovie has secured the commitment of Delta Air Lines but it is struggling to find another partner who is willing to invest more than 300 million euros ($336 million) in Alitalia, which has a long history of financial woe.

Salvini, who is the head of coalition party League, said caution was needed in picking the right partners.

“We are talking about a company (Alitalia) with 11,000 employees, which has a potential U.S. partner (Delta) with dozens of billions in sales, that deals with infrastructure and airplanes,” Salvini told reporters in Milan.

“As far as I know, Lotito, at present, just lets lads play soccer,” he added.

One source with knowledge of the matter told Reuters that Ferrovie had recently had talks with infrastructure group Atlantia over Alitalia, but added that its involvement in any accord still lacked the necessary political green-light.

Di Maio and other 5-Star officials strongly criticised Atlantia over the deadly collapse of a motorway bridge managed by the group, which killed 43 people last August.

After the disaster the government said it would revoke Atlantia’s motorway concession, accusing the company of poor maintenance of its road network.

Atlantia has denied any wrongdoing and could join the Alitalia consortium as a way to mend its relationship with the government, sources had told Reuters. The company, which is controlled by the Benetton group, denied on Wednesday that it had reached a deal to join the rescue.

($1 = 0.8923 euros)

(Reporting by Francesca Piscioneri, Writing by Francesca Landini; Editing by Crispian Balmer)

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)

Airbus Seeks Resolution To German Arms Export Row

PARIS (Reuters) – Airbus is in discussions to try to find solutions to a row with the German government over a ban on arms exports to Saudi Arabia that threatens a border security contract, Chief Executive Guillaume Faury said on Tuesday.

The planemaker has warned of legal action against Germany after taking financial charges over the long-delayed border contract between Airbus’s defence unit and the Gulf kingdom.

“We are not yet there,” Faury told reporters when asked about possible legal action.

“We are very much impacted by the situation which is now being extended and trying to find different solutions,” Faury said, adding that Airbus had been forced into a corner by the unexpected national export embargo.

Germany acted alone with a ban in October after the murder of Saudi journalist Jamal Khashoggi in Istanbul, irritating other European arms exporters including France, where Airbus is based. The measure was extended in March.

The row comes as France and Germany study a new combat jet, in which Airbus is the industrial partner on the German side.

Faury said Airbus remained committed to the manned and unmanned system, adding it could be eventually opened to other nations including Britain “as a more united Europe”.

The arms row also coincides with a separate spat with Germany over 600 million euros of development loans for the A380 passenger jet, which Airbus has said it will stop producing.

The Berlin government said in March it was in talks with Airbus about the outstanding loans, which also feature in a separate trade dispute about mutual claims of illegal aircraft subsidies between the European Union and the United States.

Faury said Airbus “would not be where it is” without its project to build the world’s largest airliner.

Asked at a media event whether the separate disputes with Germany could be settled in a single negotiation, Faury said “We just want to execute the contracts as they are and I will not say more.”

Airbus continues to have good relations with Germany and other founder Airbus nations, Faury said at the event, taking place as Airbus celebrates its 50th anniversary as a planemaker.

(Reporting by Tim Hepher; Editing by Susan Thomas)

Hellenic Navy Receives First Updated P-3 Orion Patrol Aircraft

Leaders from the Greece Ministry of National Defense; Hellenic Air Force, Navy and Army; Lockheed Martin and Hellenic Aerospace Industries participated in a ceremony for the delivery of the first modernized P-3 Orion. (Photo special to Lockheed Martin)

ATHENS, Greece, May 17, 2019 – Representatives from the Hellenic Navy, Lockheed Martin (NYSE: LMT) and Hellenic Aerospace Industry (HAI) hosted a ceremony on today at HAI’s facility near Athens, Greece, for the delivery of the first P-3B maritime patrol aircraft (interim solution aircraft) as part of the Hellenic Navy P-3B maritime patrol aircraft mid-life upgrade and modernization program implementation.

The event was attended by senior leaders from the Greek government and the Hellenic ministry of National Defense, the Hellenic Navy and Air Force, as well as representatives from the U.S. Embassy in Athens, Lockheed Martin and HAI. Local government officials also attended the ceremony.

The government-to-government agreement between the United States and Greece was announced in 2015, providing for the re-activation of one Hellenic Navy P-3B Orion maritime patrol aircraft, which is the aircraft delivered today. This agreement also includes the modernization of four Hellenic Navy P-3B aircraft through the Mid-Life Upgrade (MLU) Program.

MLU kits provide an extension of service life by 15,000 flight hours. In addition, this contract provides for phased depot maintenance; a Greece indigenous mission integration and management system; new avionics; and other ancillary hardware and services.

Evangelos Apostolakis, Greece’s minister of National Defense (MoD), welcomed the delivery of the first interim solution P-3B Maritime Patrol Aircraft of the Hellenic Navy and underlined the operational benefits of their upgrading program of at a national and international level. The MoD stated that this program meets the optimal cost-effectiveness solution, underlining at the same time its contribution to the reinforcement of the domestic defense industry.

The P-3 Orion is the model in maritime patrol and reconnaissance aircraft, and is used for homeland security, anti-piracy operations, humanitarian relief, search and rescue, intelligence gathering, antisubmarine warfare and, recently, to assist in air traffic control and natural disaster relief support. The Hellenic Navy operated the P-3 fleet for 15 years.

“The Hellenic Navy needed enhancements and improvements for its maritime patrol aircraft. The delivery of this first aircraft will cover, initially, an operational requirement of vital importance, while the Hellenic Navy prepares for the delivery of the fully modernized P-3s in the coming years,” said Rear Adm. Nikolaos Tsounis, chief of the Hellenic Navy General Staff.

Work on the Hellenic Navy P-3s is performed at HAI facilities in Greece, as well as at Lockheed Martin’s facilities in Marietta, Georgia, and Greenville, South Carolina. Lockheed Martin is the Original Equipment Manufacturer (OEM) of the P-3 Orion.

“Today we are especially proud as the delivery of this first aircraft, represents an important step in enhancing Greece’s maritime patrol capability. The P-3 MLU and Avionics Modernization Program provides state-of-the-art operational advantages to the Hellenic Navy to not only support present mission requirements, but future ones as well,” said Karmyn Norwood, vice president of International Programs for Air Mobility & Maritime Missions at Lockheed Martin. “This program also exemplifies the power of partnership, from the support of the U.S. Navy and the Hellenic Navy to the outstanding work delivered by the HAI team. Together, we provide the best resources and value to Greece.”

The domestic defense industry in Greece is providing 30 percent of the overall program value, drawing considerable industrial, financial and technological benefits for the autonomous operation and support of the specific weapon system.

“Through this program, the Hellenic Aerospace Industry was given the opportunity to participate in a program of high technical and operational value,” said Zacharias Gikas, chairman of the HAI Board of Directors. “HAI salutes the delivery of this first aircraft as a significant achievement in the effort for a successful program integration. HAI management and employees will continue to effectively work together in delivering the best possible results to the Hellenic government and the Hellenic Navy.”

Find out more about the P-3 Orion here: http://www.lockheedmartin.com/P3

The C-27J Spartan Lives Up To Expectations In Peru


A C-27J of the Fuerza Aérea del Peru (FAP) flying over the AndesA C-27J of the Fuerza Aérea del Peru (FAP) flying over the Andes

February 2019, the Peruvian Government officially declares a state of emergency for the northern coastal regions of Peru. An unusual amount of seasonal rainfall has triggered severe flooding and mudslides throughout the northern regions destroying roads, collapsing bridges, and forcing school closures. Entire towns are being evacuated.

The Sistema de Atención Móvil de Urgencia (SAMU) and the Seguro Integral do Salud (SIS) Health Department call in the C-27J Spartan for urgent transportation of patients, including premature babies and badly injured people out of the otherwise unreachable area of Huánuco, 1,900 mt above sea level. A timely action and long hours of activity were key to saving lives and the suite of advanced avionics that equips the Spartan with the increased night vision capability provided by the Night Vision Goggles (NVG), have given pilots the possibility of landing and taking off throughout the night.


The advanced glass-cockpit of a peruvian C-27J Spartan in flight

In 2017 the Peruvian government sent a C-27J in support of disaster relief following the earthquake in Ecuador and again to support evacuations during the raging fires in Chile.


A FAP Spartan during an evacuation of civilians in 2017

The Fuerza Aérea del Peru has successfully flown over 5,000 hours with their Spartans since the first aircraft landed, in March 2015, at the International Jorge Chavez airport in Lima, home of the Grupo Aereo N°8 (transport wing).

In these 5,000 flight hours the C-27J has bravely met the most challenging conditions moving comfortably between coastal areas at 19°C to forests at 38°, to mountains at 5°C, landing smoothly on semi-prepared strips at either 100 feet or 11,500 feet above sea level. The versatility of the aircraft was also challenged by the diversity of missions required: from delivering humanitarian assistance to medical evacuations, monitoring of illegal activities, and support to firefighting duties in areas that would otherwise be reached only by river navigation in over 6 days!


Take-off with high rate of climb from a small airport in Peru

To keep this kind of fleet availability in such demanding operational scenarios, you need to rely on a very high standard of customer support guaranteed by non-stop commitment, highly specialised personnel on-site, dedicated logistics and very efficient remote technical assistance service.

Piaggio Invites Submissions for Expression of Interest (EOI)

Commissioner Vincenzo Nicastro: “We want to begin exploring the demand in the market to better understand those who are currently potentially interested”.

The Extraordinary Commissioner of Piaggio Aerospace, Vincenzo Nicastro, wants to implement an initial analysis in order to evaluate the market’s interest in buying the company or one of its business units (Aircraft and Engines) or to conduct a reorganization, in accordance with the “Marzano Law”.

Piaggio Aerospace (in Extraordinary Receivership since last December) published today a paid notice in a selected number of financial newspapers after authorization from the Ministry of Economic Development. A copy of the announcement can be found at www.piaggioaeroas.it, where a short presentation of the company is also available.

“The goal of this action,” declares Nicastro, “is to better understand who the interested candidates are as a way to evaluate their characteristics in order to maintain business continuity for Piaggio Aerospace, thus moving forward with subsequent initiatives according to the law”.

In particular, the Aircraft business unit focuses on the design, construction and maintenance of civil and military aircraft, along with customer service activities. The Engine business unit revolves around the design, construction and maintenance of aero-engines.

During a meeting held in Rome on April 24, 2019, the Italian Ministry of Economic Development and the Ministry of Defence agreed on a plan to support Piaggio Aerospace business activities.

The Italian Government indicates the goal on Piaggio Aerospace to conduct all engine maintenance out of one single hub, confirming Piaggio Aerospace as a reliable partner in this specific field. The plan also foresees new contracts for the engine maintenance with a ten-year plan; a contract for the retrofitting of nineteen P.180-Avanti operated by various Italian Institutions and the purchase of ten new P.180-Avanti.

Finally, the plan also includes the completion of the P.1HH HammerHead (the Unmanned Aerial System) certification process, along with the subsequent acquisition of two systems and the development of further technology to support Piaggio Aerospace to compete in the international market arena. Each system is made out of a Ground Control Station and two aircraft. More systems would be acquired in the medium- term.

All EOI, which are non-binding, should be sent (in English or Italian) to the Extraordinary Commissioner by 6 pm CEST on Wednesday, May, 15, 2019 via email at piaggioaeroamministrazionestraordinaria2@pec.piaggioaero.it.

PIAGGIO AERO P.180 AVANTI II
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Australia Receives First Falcon 7X VIP Aircraft

The Commonwealth of Australia has taken delivery of the first of three very long range Falcon 7X trijets it has acquired for government VIP service.

The other two aircraft, to be operated by the Royal Australian Air Force, will be handed over in the following months.

The VIP units are being delivered with the latest connectivity solutions, intended to provide seamless access to high speed broadband data anywhere in the world.

The Falcon 7X offers a combination of range, and operational flexibility that no other large cabin business jet can match. The 5,950 nm 7X can fly from Canberra to any point in Asia nonstop or link Canberra to Washington or London in one hop. It can land on short and challenging runways and operate across a wide range of environmental conditions, including extremely hot and humid and dry desert climates. And the aircraft’s three-engine design provides additional safety margin and frees operators of twin engine operating constraints when flying intercontinental transoceanic routes.

These characteristics explain the immense popularity the 7X has enjoyed since its service introduction more than a decade ago. More than 280 of the big trijets have been delivered to date around the world.

“We are extremely honoured that Australia has once again chosen to renew its confidence in our Falcon product line,” said Eric Trappier, Chairman & CEO of Dassault Aviation. “The RAAF already has decades of successful experience operating Dassault aircraft, from the Mirage III fighter to the Falcon 20 and Falcon 900 business jets.”

Australia has been a key market for the Falcon for almost half century. The company’s first business jet, the Falcon 20, entered commercial service ‘Down Under’ in 1967, two years after its entry into service. The Falcon 20 entered the inventory of the RAAF the same year (under the name Mystère 20) and served in the RAAF’s transport and utility wing for 22 years before being replaced by the Falcon 900. The five-aircraft Falcon 900 fleet remained in operation through the early 2000s.

More than 120 Falcon aircraft, including over 50 Falcon 7Xs, are currently flying with public and private operators in Australia and other Asia Pacific countries.

Airbus & Thales Alenia Space to Build 2 SpainSAT NG Satellites

A four co-primes consortium formed by Airbus and Thales Alenia Space (both in Spain and France) has been selected by Hisdesat Servicios Estratégicos S.A. (Spanish Governmental Satellite Operator) to build two SpainSAT NG satellites. Used for governmental communications, these new generation satellites will replace the existing Spainsat and Xtar-EUR satellites. Airbus will act as “lead partner” of the consortium.

The SPAINSAT NG programme includes two satellites, SPAINSAT NG I and II which will be situated in different geostationary orbital slots to operate in X, military Ka and UHF bands.

The first of these New Generation Spainsat satellites will be launched in 2023 guaranteeing the continuity of the secure communications services to the Spanish Ministry of Defense and Governmental Agencies using the current fleet.

SPAINSAT NG will provide coverage on a wide area of the world ranging from the United States and South America to the Middle East, including Africa and Europe and till Singapore in Asia. Both satellites will allow to:

•  Ensure effective command and control for beyond line-of-sight operations in 2/3 of the Earth.

• Guarantee communication capability in theatres of operation lacking communications infrastructure.

• Develop more satcom on the move, higher capacity, better secured and assured communications.

• Unlock the potential of the network centric battlespace-netcentric warfare and operations.

The communication payloads of both satellites will be provided by the Spanish industry, including the integration of the Communications Module in Spain, a major step forward for the Spanish industry. Airbus in Spain will be responsible for the X band payload, while Thales Alenia Space in Spain will be responsible for the UHF and mil-Ka band payloads. Other companies from the Spanish space industry will also be involved.

UHF is a new capability that was not available on the previous Spainsat fleet. Both satellites will offer redundancy in the zones of interest for the Spanish Armed Forces and will also incorporate advanced protection technologies for anti-jamming and anti-spoofing, plus hardened protection against nuclear phenomena at high altitude.

The satellites will be based on the Eurostar Neo platform, Airbus’ new geostationary telecommunications satellite product, a significant evolution of the highly reliable and successful Eurostar series with an entire range of major innovations. These include an X band fully flexible payload, employing active antennas with in orbit reconfiguration capability, an onboard digital processor that will interconnect the X and mil-Ka band payloads for cross-banding, and a dedicated high speed service link enabling fast re-configuration. This will result in a greater capacity, and increased flexibility allowing for electronic reorientation of the beams depending on the coverage needs.

Hisdesat is the owner and operator of the new generation of communication satellites, SPAINSAT NG. The main customer is the Spanish Ministry of Defence having a Public Private Partnership with Hisdesat and, among others, the new satellites will also contribute to other Spanish governmental bodies, allies and friendly countries with bilateral agreements, the EU governmental Communications programme, “Govsatcom” and hopefully to the future NATO CP130 capabilities package for satellite communications. In addition, SPAINSAT NG will continue providing services to the existing and future customer base of XTAR LLc.

The development of SPAINSAT NG is supported by the Spanish Ministry of Industry, Trade and Tourism, as well as the Spanish Centre for the Development of Industrial Technology (CDTI) in the framework of a public-private partnership between the European Space Agency (ESA) and the satellite operator Hisdesat.

The SpainSAT NG satellites will have an operational lifetime of 15 years being in service up to 2037.

About Airbus

Airbus is a global leader in aeronautics, space and related services. In 2018 it generated revenues of € 64 billion and employed a workforce of around 134,000. Airbus offers the most comprehensive range of passenger airliners. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world’s leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide.

Italy’s Government Extends Alitalia Bid Deadline to June 15

MILAN (Reuters) – Italy’s deputy prime minister Luigi Di Maio extended a deadline to submit bids for the ailing carrier Alitalia to June 15, a government statement said on Friday.

The decision followed a request from Italy’s state railway group Ferrovie dello Stato, which is one of the companies who have said they are willing to contribute to the rescue plan.

The current deadline had expired at the end of April.

The government is arranging a rescue of the ailing company to avoid mass layoffs and has lined up Ferrovie dello Stato and U.S. carrier Delta as potential investors. But it still needs another investor to contribute to a bid that is estimated to be worth around 1 billion euros (850.3 million pounds).

Flagship carrier Alitalia has been run by administrators since 2017 after workers rejected a previous rescue plan.

(Reporting by Elvira Pollina; editing by Francesco Guarascio)

Qatar Airways Says Air Italy Stake Is In Compliance

DUBAI (Reuters) – State-owned Qatar Airways on Thursday dismissed concerns its 49 percent stake in Air Italy breaches a 2018 aviation agreement between the United States and Qatar, designed to address U.S. concerns that Gulf airlines had an unfair competitive advantage.

The U.S is “looking very closely” at the deal after Republicans and Democrats said on Wednesday they were concerned it violated the agreement.

Qatar Airways bought a stake in Italian airline Meridiana in 2017, rebranded it Air Italy and transformed it into a carrier with five announced non-stop U.S. destinations from Milan.

Qatar Airways said the stake was “fully compliant” with the 2018 U.S.-Qatar Understandings, an additional pact that accompanied the U.S-Qatar Open Skies agreement.

Since 2015 the largest U.S carriers – Delta Air Lines, American Airlines Group and United Airlines – have argued their Gulf rivals are being unfairly subsidized by their governments, distorting competition.

Gulf airlines have always denied those accusations and last year separate voluntary agreements were reached between the U.S. and Qatar, and the U.S. and the United Arab Emirates to address the concerns. Measures included the airlines not adding new flights to the U.S.

However, Air Italy has been flying to New York and Miami since June last year and was due to start serving San Francisco and Los Angeles from this month and Chicago in May.

Qatar Airways said in a statement its investment in Air Italy, which closed in September 2017, preceded the 2018 agreement but complied with it.

It said its investments in other airlines were not raised as a point of concern during the discussions that led to the 2018 agreement and that the deal does not mention or prohibit cross-border investments.

Qatar Airways also said it did not codeshare on Air Italy’s flights to the U.S. and has no plans to do so.

(Reporting by Alexander Cornwell; Editing by Alexandra Hudson)

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