Tag: Ministry (Page 5 of 6)

Japan’s Military Seek Eighth Straight Annual Defense Spending Hike

August 30, 2019 / WIL BALDWIN

TOKYO, Aug 30 (Reuters) – Japan’s military has asked for an eighth straight annual increase in defence spending to help pay for U.S.-made interceptor missiles, stealth fighters, and other equipment it wants to counter threats from North Korea and China.

The Ministry of Defence budget proposal released Friday calls for spending to increase 1.2 percent to a record 5.32 trillion yen ($50.48 billion) in the year starting April 1. Finance ministry officials will scrutinise the request before it is approved by Prime Minister Shinzo Abe’s cabinet.

Already one of the world’s biggest military spenders despite a constitution that forbids the possession of weapons to attack other countries, Japan has increased military outlays by a tenth over the past seven years. That growth is being driven by alarm over military build ups by its neighbours.

Japan’s spending, much of it on advanced weapons from the United States, has benefited the likes of Lockheed Martin Corp and Raytheon Co, and worried local contractors such as Mitsubishi Heavy Industries who have seen their share of defence spending shrink.

U.S. President Donald Trump has thanked Japan for buying the expensive U.S. equipment, helping curtail criticism of Japan amid trade tensions between Tokyo and Washington.

For the next fiscal year, Japan’s defense officials have asked for 115.6 billion yen to buy nine Lockheed Martin F-35 stealth fighters, including for the first time six short take-off and vertical landing (STOVL) B variants that it wants to operate from aircraft carriers. That purchase will help Japan project military power by extending the range at which the country’s Self Defense Forces can operate.

The defence ministry also wants 116.3 billion yen to bolster ballistic missile defences (BMD), including money for a new generation of interceptor missiles designed by Raytheon to shoot down incoming warheads in space. It also wants funds for vertical launch systems for ships and two planned ground-based Aegis Ashore radar missile tracking stations.

($1 = 105.3900 yen)

(Reporting by Tim Kelly; Editing by Michael Perry)

African Court Impounds Tanzanian Airplane

August 24, 2019 / WIL BALDWIN

DAR ES SALAAM/JOHANNESBURG, Aug 24 (Reuters) – South African authorities impounded an Airbus 220-300 aircraft leased by Tanzania’s national flag carrier following a court application by a retired farmer who is owed compensation by the Tanzanian government, the farmer’s lawyer said.

The plane had been scheduled to fly from the Oliver Tambo International Airport in Johannesburg, South Africa, to Dar es Salaam, Tanzania on Friday, but was seized on an order issued by the Gauteng High Court in Johannesburg, Tanzania’s transport ministry said in a statement on Friday.

Roger Wakefield, of Werksmans Attorneys, said his client, an elderly farmer who asked not to be named, was owed $33 million, including interest, in compensation from the Tanzanian government after his land in the country was expropriated several decades ago. The farmer was subsequently awarded the compensation in an arbitration, he said.

Wakefield said the only way Tanzania could secure the release of the plane was if it put up security or paid the debt.

A Tanzanian government spokesperson was not immediately available for comment.

Calls to the High Courts in Gauteng province went unanswered outside of usual business hours.

Speaking by phone to Reuters, Wakefield said the plane was impounded in line with South African and international laws allowing for an asset owned by a foreign entity to be attached to a case related to a foreign arbitration award.

The plane was chosen because there is evidence it is owned directly by the Tanzanian government and its value is commensurate with the amount owed to the farmer, who was born in Namibia, he said.

While the Tanzanian government has acknowledged it owes the farmer money, has previously made some payments and promised to pay the rest, it has not made a payment since around 2014, Wakefield said.

The plane is leased by loss-making state carrier Air Tanzania Company Limited (ATCL).

President John Magufuli has personally taken charge of the revival of the airline, spending hundreds of millions of dollars purchasing eight new planes since 2016.

The airline’s existing fleet, which is leased from the state-run Tanzania Government Flight Agency (TGFA), includes one Boeing 787-8 Dreamliner, two Airbus A220-300 jets and three DHC Dash 8-400 aircraft, formerly known as the Bombardier Q400 turboprop.

ACTL managing director Ladislaus Matindi told Reuters earlier on Saturday that the impounded plane was an Airbus 220-300, and arrangements had been made for its passengers to use another plane for their planned flight.

Tanzania has pinned hopes on the revival of the national airline to turn the country into a regional transport hub and boost the tourism sector, its biggest foreign exchange earner.

In 2017, a Canadian construction firm seized one of Tanzania’s new Q400 turbo-prop planes in Canada over a $38 million lawsuit related to a compensation ruling by the International Court of Arbitration.

The Q400 was released in March 2018 after Magufuli sent the country’s prime minister and attorney general to Canada to negotiate its release. Aviation sources said the government reached a financial settlement to secure the aircraft.

(Reporting by Fumbuka Ng’wanakilala in Dar es Salaam and Emma Rumney in Johannesburg Writing by Hereward Holland and Emma Rumney Editing by Angus MacSwan and Frances Kerry)

British Airways Suspends Flights to Cairo for Seven Days

July 20, 2019 / WIL BALDWIN

CAIRO, July 20 (Reuters) – British Airways and Lufthansa abruptly suspended flights to Cairo from Saturday over security concerns, but giving no details about what may have prompted the move.

“We constantly review our security arrangements at all our airports around the world, and have suspended flights to Cairo for seven days as a precaution to allow for further assessment,” British Airways said in a statement.

Lufthansa later said it had cancelled its flights to Cairo on Saturday from Munich and Frankfurt and will resume its flights on Sunday

British Airways, a unit of IAG, also said that it would never operate an aircraft unless it was safe to do so. When asked for more details about why flights had been suspended and what security arrangements the airline was reviewing, a spokeswoman responded: “We never discuss matters of security.”

Three Egyptian airport security sources told Reuters that British staff had been checking security at Cairo airport on Wednesday and Thursday. They gave no further details.

The British Foreign Office updated its travel advisory on Saturday to add a reference to the British Airways’ suspension, advising travellers affected to contact the airline.

Egypt’s Ministry of Civil Aviation said in a statement late on Saturday that it had contacted the British Embassy in Cairo which had confirmed that the decision to suspend the flights was not issued by Britain’s transport or foreign ministries.

The Egyptian ministry added that it will add more flights from Cairo to London starting on Sunday “to facilitate transporting passengers during this period.”

The British government has long advised against all but essential travel by air to and from the Egyptian resort of Sharm el-Sheikh, where a Russian passenger jet was bombed in 2015, but has not issued similar warnings against air travel to and from Cairo.

“There’s a heightened risk of terrorism against aviation. Additional security measures are in place for flights departing from Egypt to the UK,” the British advisory says.

Tourism, a key source of foreign revenue for Egypt, has been recovering after tourist numbers dropped in the wake of a 2011 uprising and the 2015 bombing of the Russian jet, which killed all 224 people on board shortly after takeoff.

That attack, which was claimed by Islamic State, prompted Russia to halt all flights to Egypt for several years and a number of countries including Britain to cease flights to Sharm el Sheikh, which have yet to resume.

(Reporting by Lena Masri and Amina Ismail; editing by Peter Graff, Diane Craft and G Crosse)

Qatar Agrees to Buy U.S. Aircraft, Engines, Defense Equipment

July 9, 2019 / WIL BALDWIN

(Bloomberg) — Qatar has made agreements with U.S. companies to spend billions on airplanes and jet engines and to develop a petrochemical complex, the White House said on Tuesday.

At least some of the deals were previously made but were publicly touted by the Trump administration Tuesday. Among them: Qatar Airways purchasing Boeing Co. 777 freighters and large-cabin aircraft from Gulfstream Aerospace, the private jet unit of General Dynamics Corp.

“They’re investing very heavily in our country,” Trump told reporters at the White House. “They’re creating a lot of jobs. They’re buying tremendous amounts of military equipment including planes.

Qatar’s defense ministry committed to acquire Raytheon Co.’s NASM and Patriot Systems, according to the White House. In addition, a unit of Chevron Corp. entered into an agreement with Qatar Petroleum for the development, construction and operation of a petrochemicals complex in Qatar.

The agreements, whose total cost wasn’t disclosed by the White House, were announced during a visit to the White House by the emir of Qatar, Sheikh Tamim Bin Hamad Al Thani.

The deals come amid a two-year economic blockade of Qatar led by U.S. ally Saudi Arabia and supported by nations including Egypt and the United Arab Emirates. Trump initially appeared to support the Saudi move — echoing its assertions that Qatar supported terrorists — even though it put the U.S. in an awkward position because it has a major military base in Qatar.

But Qatar has looked to improve relations in the U.S., with the emir saying the country was committed to doubling the economic partnership between the two countries. Mansoor bin Ebrahim Al Mahmoud, who leads the Qatar Investment Authority, said earlier this year that the country’s sovereign wealth fund will look to increase its U.S. investment portfolio from around $30 billion to about $45 billion over the next two years.

The country has also made significant gestures toward increasing its spending on U.S. defense contractors, with the U.S. approving a large weapons systems purchase ahead of Sheikh Tamim’s last visit to the country. In 2017, the country signed a deal to spend $12 billion for the purchase of 36 F-15QA fighter jets.

And the U.S. has announced plans to expand and renovate the al-Udeid Air Base near Doha, which houses the forward headquarters of the U.S. military’s Central Command and some 10,000 American troops. During a dinner with the leaders on Monday, Trump thanked Sheikh Tamim for Qatar’s $1.8 billion investment in the project which will be used to construct housing and entertainment facilities.

Several companies have released specifics of some of the agreements that were formalized on Tuesday.

Gulfstream said its deal is for $1 billion in corporate jets that General Dynamics announced in January without giving the customer’s name. Boeing said last month it made a deal to sell five 777 freighters at a list price of $1.8 billion.

Qatar Airways plans to use General Electric Co. jet engines for Boeing 787 and 777 aircraft, according to the White House.

A Chevron statement Tuesday said the company was signing a new agreement at the White House for a previously unannounced $8 billion U.S. Gulf Coast project. The White House statement mentions only a prior deal, announced last month, in which the company would join forces with Qatar Petroleum to build a facility in Qatar.

(Story by Justin Sink and Thomas Black, Edited by Alex Wayne, Justin Blum, and Larry Liebert)

Airbus, Boeing May Pull Out of Canada Fighter Jet Race

July 8, 2019 / WIL BALDWIN

OTTAWA (Reuters) – Airbus SE <AIR.PA> and Boeing Co <BA.N> may pull out of a bidding process to supply Canada with new fighter jets because they say the contest is unfairly tilted towards Lockheed Martin Corp <LMT.N>, two sources with direct knowledge of the situation said on Monday.

The three companies competing with Lockheed Martin’s F-35 jet have already complained about the way the contest is being run, and expressed concern some of the specifications clearly favour the U.S. firm, industry sources have said in recent weeks.

Next week the government is due to release the so-called request for proposals – the final list of requirements – for the 88 new planes it wants to buy. The contract is worth between C$15 billion (£9 billion) and C$19 billion and the planes are due to be delivered between 2025 and the early 2030s.

Boeing and Airbus have now formally written to Ottawa expressing concerns about the current requirements, said two sources familiar with the matter who declined to be identified given the sensitivity of the situation. The fourth bidder is Sweden’s Saab AB <SAABb.ST>.

Pat Finn, the defence ministry’s top official in charge of procurement, confirmed one of the four companies had sent a formal letter but gave no details. The final request for proposals is due out on July 17 and modifications are still being considered, he said.

“We continue to engage all four of them,” he said in a telephone interview. “We have had some comments (such as) ‘If changes are not made in such a place then we would frankly consider possibly not bidding.'”

“We are looking at those very seriously. I can’t say that we will make every change, but as far as we know we continue to have four bidders in the race.”

Airbus declined to comment. Boeing did not respond to a request for comment.

Canada has been trying unsuccessfully for almost a decade to buy replacements for its ageing F-18 fighters. In May, Ottawa changed the rules to allow Lockheed Martin to submit a bid, prompting Boeing to take the unusual step of announcing publicly it was surprised.

“Anyone who is not Lockheed Martin has expressed a very strong view,” said one of the sources. “We have been pretty clear with the government that this is not a request for proposals that lends to our participation.”

At least one firm has expressed unhappiness that the requirements emphasize the ability to carry out first strikes on targets abroad, a strength of the F-35, said the sources.

The government of Prime Minister Justin Trudeau insists the competition is not rigged. Finn said the defence ministry also had made changes to the requirements at the request of Boeing, Airbus and Saab.

Canada is part of the international consortium that developed the F-35. The former Conservative administration said in 2010 it would buy 65 of the jets but later scrapped the decision, triggering years of delays.

Trudeau came to power in 2015 vowing not to buy the F-35 on the grounds that it was too costly, but Ottawa has since softened its line.

(Reporting by David Ljunggren in Ottawa; Editing by Matthew Lewis)

FILE PHOTO: A real-size mock of F-35 fighter jet is displayed at Japan International Aerospace Exhibition in Tokyo

Daimler Cuts 2019 Profit Outlook on Diesel Issues

June 23, 2019 / WIL BALDWIN

FRANKFURT (Reuters) – Daimler has cut its earnings outlook for this year after lifting provisions for issues related to its diesel vehicles by “a high three-digit million euro amount”, the carmaker said on Sunday.

Group earnings before interest and tax for 2019 are now expected to be at last year’s level. Previously, the carmaker had expected the figure to be “slightly higher”.

The revision is related to an increase in expected expenses linked to “various ongoing governmental proceedings and measures with regard to Mercedes-Benz diesel vehicles,” the company said.

A spokesman declined to elaborate on the nature of those issues.

However, Sunday’s profit warning follows news over the weekend that Daimler must recall 60,000 Mercedes diesel cars in Germany after regulators found that they were fitted with software aimed at distorting emissions tests.

The transportation ministry said it was expanding its investigation into further models.

The company also said it was reducing its forecast for the return on sales for Mercedes-Benz vans.

It now sees a return between minus 2% and minus 4%, below its previous forecast of a return on sales of 0% to 2%.

(Reporting by Tom Sims; Editing by Jan Harvey)

Viking Signs Deal for Next Generation CL-515 Aircraft

June 19, 2019 / WIL BALDWIN

PARIS, June 18, 2019––Longview Aviation Capital (“Longview”) and its subsidiary Viking Air Limited, a global leader of utility aircraft, support and services and manufacturer of the world-renowned Twin Otter, today announced a seven aircraft sales contract for six new-production CL-515 aircraft and one CL-415EAF.

The CL-515 is a newly developed, technically advanced multi-mission aerial firefighting aircraft – the next generation of the CANADAIR CL-415, the aviation industry’s benchmark amphibious aircraft and the backbone of firefighting missions around the globe. With enhanced firefighting capabilities, and the flexibility to support a wide range of critical mission operations, the CL-515 will be a vitally important strategic asset to fleets around the world.

The Republic of Indonesia’s Ministry of Defense has agreed to purchase six all-new CL-515 aircraft, four of which will be delivered in “First Responder” multi-mission configuration, and two delivered in optimized aerial firefighter configuration. The purchase agreement also includes one CANADAIR CL-415EAF “Enhanced Aerial Firefighter” aircraft converted from a CANADAIR CL-215 to EAF standard by Longview Aviation Capital’s subsidiary, Longview Aviation Services.

The Republic of Indonesia’s purchase agreement is a firm commitment that is conditional only on Longview Aviation Capital’s Board of Directors approving the production launch program.

“We are thrilled to welcome the Republic of Indonesia as the first customer for this extraordinary aircraft,” said David Curtis, Chairman and Chief Executive Officer of Longview Aviation Capital. ”This contract is a major milestone in bringing the next generation CANADAIR to market. The confidence of a sovereign government in our program is matched by our own confidence in our ability to deliver this new aircraft platform to the world. We are very well advanced in all aspects of program planning, including our supply chain, and we are nearing a final decision on manufacturing and final assembly sites. We expect to complete the remaining program milestones in the near future, and deliver the first new CL-515 on schedule in 2024.”

Program Development Process

Since acquiring the type certificates for the CANADAIR amphibious aircraft program from Bombardier in 2016, Longview has had positive discussions with numerous potential customers from around the world, including both governments and private operators, who have enthusiastically encouraged a production restart.

On the basis of the global interest in the unique and unrivalled capabilities of the CL-515, Longview and Viking have invested in a rigorous process ahead of full production launch decision:

Consulted extensively with current global operators to understand their future aerial firefighting resource requirements
Conducted extensive market research and feasibility studies and developed a new all-season multi-mission platform, leveraging advanced technology not previously included in the CL program
Consulted with key supplier partners
Undertaken advanced supply chain and manufacturing planning, including options associated with Longview’s current facilities and potential new facilities in Western Canada

CL-515 Highlights

Up to 15% better aerial firefighting productivity, including increased tank capacity and ability to refill in 14 seconds
State-of-the-art Collins Pro Line Fusion® digital avionics suite for unrivaled situational awareness
Flexible architecture to support multi-mission capabilities including aerial firefighting, maritime patrol, surveillance, medevac, environmental monitoring, insect control, oil spill detection and dispersant
Reduced maintenance and operating costs through improved, scalable avionics and superior design
Unmatched mission efficiency and flexibility, requiring no runway or reloading capacity during waterbombing firefighting

“Indonesia is on the front lines of increasing challenges like forest fires, and as an island nation has extensive needs for a range of amphibious capabilities,” said Air Chief Marshal Yuyu Sutisna, chief of staff for Indonesia’s Air Force. “We have chosen to invest in this aircraft based on the CANADAIR’s solid track record demonstrated around the world over the last 50 years, and Viking’s established capabilities as an aircraft developer and producer. The next generation CL-515 will have unmatched operational performance, particularly as a firefighter. This aircraft has the best productivity of any aerial firefighting aircraft, capable of delivering the highest quantity of foam retardant per day, while at the same time providing the flexibility to save lives and protect our coastal areas through its multi-role SAR and Maritime Surveillance functionalities. We are proud to sign the first contract for this extraordinary aircraft that will enhance our mission capability at excellent value.”

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

May 31, 2019 / WIL BALDWIN

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)

French Ministry Brings Future Joint Light Helicopter Forward

May 28, 2019 / WIL BALDWIN

Marignane – The French Minister of the Armed Forces, Florence Parly, has announced that the launch of the Joint Light Helicopter (Hélicoptère Interarmées Léger; HIL) programme has been brought forward to 2021. The HIL programme, for which the Airbus Helicopters’ H160 was selected in 2017, was initially scheduled for launch in 2022 by the current military budget law. Launching the programme earlier will enable delivery of the first H160Ms to the French Armed Forces to be advanced to 2026.

During a visit to the Airbus Helicopters headquarters, the Minister also revealed the full-scale mock-up of the H160M that will be presented on the Ministry of the Armed Forces stand at the next Paris Air Show. The helicopter was also given its official name and will be designated as “Guépard” (“Cheetah”) by the French Armed Forces.

The H160 was designed to be a modular helicopter, enabling its military version, with a single platform, to perform missions ranging from commando infiltration to air intercept, fire support, and anti-ship warfare in order to meet the needs of the army, the navy and the air force through the HIL programme.

“We are proud that the HIL is considered a strategic programme. I would like to thank the Ministry, the French Defence Procurement Agency DGA and the armed forces for their trust and for the close collaboration which helped create the conditions for the programme to be brought forward within the framework of the current military budget law. This will make it possible to speed up the replacement of the older generation of aircraft, while optimising the support and availability of the French State’s helicopter fleet,” said Bruno Even, CEO of Airbus Helicopters. “Our teams are committed to delivering an aircraft in 2026 that meets the needs of the French armed forces in terms of availability, performance and capability, thus enabling it to rapidly become the new benchmark on the world’s medium-lift military helicopter market.”

Built around a platform that will enter service next year, the HIL programme will benefit from many of the advantages inherent in the civil H160, particularly in terms of support, with simplified maintenance and lower operating costs than the previous generation of helicopters in this category.

Piaggio Invites Submissions for Expression of Interest (EOI)

May 8, 2019 / WIL BALDWIN

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.

Program Development Process

CL-515 Highlights

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