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The US military will cut costs by relying more on technologies developed in the commercial sector, which is a strategy Canada has already adopted. Congress deliberations on the Fiscal 1996 budget should result in the eighth straight year of reduced military spending.

The new Republican majority in Congress wants to allocate more money for defense. However, political observers believe that they will not be able to achieve much in this regard because of their promises to lower taxes and eliminate the budget deficit.

Northrop Grumman has reached an agreement with the US Advanced Research Projects Agency to work on the Common Affordable Lightweight Fighter program. The goal is to win one of the two expected Defense Dept Joint Advanced Strike Technology contracts.

Commander Fogleman of the Air Mobility Command believes that 120 C-17s are needed but that there is only enough support for 70 of the aircraft. His statement may be an attempt to head off a possible acquisition of only 40 of the aircraft.

The CIA will put two long-endurance UAVs and a ground station into Albania by Feb 1994 to track military operations in the former Yugoslavia. The deployment is the first tier of a four-tier program to use UAVs to improve US military reconnaissance.

Pentagon officials who are studying Operation Desert Storm have identified intelligence, airlift and sealift, and accurate use of precision-guided munitions as key areas that need improvement. Progress has been slowed because of technical and budgetary limitations.

The Lockheed-Boeing team designing the F-22 for the Air Force is restructuring the program to meet budget concerns prompted by the Defense Department's Bottom-Up Review. The engineering and manufacturing development phase of the program is already underway, and the project is only 1.9% over budget.

Several high-ranking Defense Dept officials, including Secretary Les Aspin, declare that Aspin's review of the department's budget gave great weight to the need to maintain the US's defense industrial base. Officials concede that the review falls some $15 billion short of Pres Clinton's savings targets.

The Defense Dept may have to rely more on weapons systems upgrades instead of developing new systems, as the Clinton Administration plans to cut the defense budget by $127 billion through 1998. The US military troop strength will also drop by 350,000 under this plan.

The US Navy will upgrade its Grumman F-14 Tomcats and add bomber capability to the already multimission aircraft. Reduced budgets are forcing a conversion to more versatility in a smaller variety of aircraft. Specific upgrades are described.

The US Air Force is having to restructure its F-22 program because of budgetary restraints. Production may be delayed until 2001 and may be preceded by fewer developmental planes. There may be problems getting Congress to make the needed appropriations.

The US House Armed Services Committee plans to lower defense costs by forcing the Department of Defense to cut spending on developing four aircraft and several multirole fighters. Defense personnel plan to fight these cuts.

The US Defense Dept's post-Cold War acquisition plan is being debated by politicians and industry officials. The huge defense industry is dependent on the plan not drastically cutting funds.

Soviet aerospace companies are seeking to form alliances and to create ties with the West. The collapse of central planning and state-controlled subsidies and pricing are bringing about rapid privatization. The changes are also bringing about instability for companies.

An ultrawideband synthetic aperture radar system has undergone successful field tests in Kosovo. The radar, which was tested by the United Kingdom's Defense Evaluation and Research Agency, is designed to locate unexploded bombs and land mines.

A new 60,000-troop rapid reaction force has gained the support of the 15-member European Union. The force, which would be deployed by 2003 with about 100 ships and 400 aircraft, will be founded on the rapid reaction forces already deployable in France and the United Kingdom.

Germany, South Africa and the UAE are talking about several defense projects that may leave British Aerospace and Lockheed Martin out of current negotiations. Daimler-Chrysler Aerospace is working on the Mako trainer/light attack aircraft for UAE and also more than 30 AlphaJet trainers.

Debonair was lowcost, but not no-frills. And it used BAe 146s, not the most economical choice. Triangular routes in Europe were another factor adding cost to operations. Debonair stopped flying October 1st, the third failed such carrier in one month. No other carriers were interested in taking it over.

Using alarming language to make a point, the IATA is urging the adoption of a strategy to improve the crisis-level of air traffic delays over airports in Europe. The strategy calls for a new plan, the inclusion of the EU in Eurocontrol and regulatory powers, the expansion of capacity planning to all of Europe instead of just member states, liberalizing Air Traffic Services, and creating incentives to make the new strategies work.

BAE Systems, which was formed through the merger between Marconi Electronic Systems and British Aerospace, is negotiating with EADS over the future of Airbus Industie. EADS was formed through the merger of DamilerChrysler Aerospace and Matra.

A new three-year plan has emerged at British Airways to cut capacity by 12 percent. The airline, which has reported a 45.7% decline to $152 million in its operating profits for the first quarter of the financial year ending June 30, is in talks with Airbus Industries and Boeing Co. over the replacement of its forty-seven 757s with more economical aircraft, such as the 100-seat Boeing 777. British Airways, also is replacing its fleet of 747s with the smaller 777s. The airline reports that competitive fare wars have contributed to its drop in profits.

U.S. allies in Europe and elsewhere are depending on the U.S. to develop the technology suited for a ballistic missile defense system. European countries do not perceive any immediate threat to the continent while allies in the Middle East and Asian regions, who feel more threatened, are working hard to develop new missile defense systems. NATO provided a $500 million contract to Air Command Systems International for the development of its Air Command and Control System.

The Predator unmanned aerial vehical (UAV) being developed by U.S.-based General Atomics Aeronautical Systems has attracted the interest of European firms, such as Alenia's Meteor-C.A.E. of Italy and U.K.-based Marconi. General Atomics has signed partnership deals with Meteor and Marconi Avionics Group to meet requirements for the development of unmanned surveillance vehicles in Italy and the United Kingdom. General Atomics also has signed a partnership deal with France's Sagem to build the Horus UAV.

The United Kingdom's Ministry of Defence has awarded a $1.3 billion contract to Raytheon Co. UK-based subsidiary Raytheon Systems for its Stand-Off Radar program. Raytheon, which beat out rivals Lockheed Martin Corp. and Northrop Grumman, has agreed to meet a 2005 deadline for putting the Astor system into operation. The contract puts Raytheon into a leading position for NATO's planned airborne ground surveillance system. The British government intends to fit modified Bombardier Global Express aircraft with five Astor systems to provide a 24-hour operational capability.

Two out of four members of the Airbus Industrie (AI) consortium, Germany's DaimlerChrysler Aerospace (DASA) and Spain's CASA, have agreed to a merger. The new company, which will have 53,000 employees and combined revenues of $10 billion, will receive the greatest production share among AI partners for the Eurofighter. CASA, which is controlled by Spain's SEPI, had received takeover bids from Aerospatiale Matra, Finmeccanica's Alenia, and British Aerospace. The new company will control 42.1% of AI.

British Airways has ended its controversial use of ethnic world images. The designs had replaced the Union Jack on BA aircraft's tails two years ago. Virgin Atlantic, taking a swipe at BA, announced a $64 million refurbishment plan for its aircraft, which includes Upper Class double-beds, silver-painted aircraft, and the use of the Union Jack on its new livery. BA had drawn fire from the public for its rejection of the British flag in favor of ethnic art.

Marconi Electronic Systems, previously known as GEC-Marconi, wants to export the Helicopter Integrated Defensive Aids System (Hidas) which it has developed for the British army's WAH-64 Apache. The company, with the backing of the UK government, plans to pitch Hidas to Apache operators in the Netherlands, Singapore and Kuwait. Hidas embraces an entire suite of radar, laser and missile warning sensors, as well as a countermeasures launching system. The user-programmable system features a library that can accommodate 4,000 threat modes.

Raytheon received over $1.4 billion worth of new contracts after Greece decided to buy Patriot PAC-3 air defense systems; improve its Hawk missile systems; and buy T-6A trainers. Conditions surrounding the final deals have not been discussed, although it is estimated that the Patriot purchase alone could have a value of over $1.1 billion. Four of the air defense systems will be bought by Greece and the country has options to buy two additional systems. Patriot was selected over the S-300 (SA-10) from Russia. The country's Hawk air defense system, meanwhile, will be upgraded to the Phase 3 configuration.

PauknAir, an airline company from Spain, suffered on Sep. 25, 1998, a plane crash with its British Aerospace 146-100 aircraft. The plane crash resulted to the death of all of the plane's crew and passengers. The reason behind the crash of the 146-100 aircraft is being investigated by experts from Morocco and Spain, who have retrieved the cockpit voice recorder and flight data recorder of the aircraft.

The Ministry of Defense is gathering information for getting the RAF's rapid reaction forces outfitted with short-term need for strategic airlifters. The longer-term need is for additional transports and aerial refueling tankers without buying everything outright. The information gathering in the form of bids from private industry is also about creative financing. Still to be resolved is the issue of contracting out combat-related tasks.

British Aerospace plans to introduce an advanced version of its Hawk trainer aircraft, called the Lead-In Fighter Aircraft (LIFT), as a lead-in trainer for the Royal Air Force's Eurofighter. LIFT is derived from the company's work on Australia's lead-in fighter trainer program, for which the company won a contract in 1996. LIFT features an advanced cockpit design that incorporates a moving map display and three-color, multi-function displays. The company aims to capture a third of the trainer market with LIFT. The company estimates the new trainer market at about 150 aircraft a year through 2007.

Raytheon is offering Eraam (extended-range air-to-air missile) to the UK as a stop-gap option while the UK searches for a new beyond-visual-range air-to-air missile (BVRAAM). Eraam, a dual-pulse rocket motor-powered derivative of Amraam, would supply 80% of the kinematic performance of Raytheon's proposed FMRAAM ramjet-powered design at half the cost. FMRAAM, a new-generation Amraam derivative powered by a liquid-fueled ramjet, is being offered by a Raytheon-led consortium to the Royal Air Force, which plans to use Amraams on its Eurofighter aircraft until the procurement of new BVRAAMs in 2007-2008.

The UK's Future Offensive Air System (FOAS) program is looking at a range of new and emerging technologies that combined could meet deep strike requirements. The FOAS is designed to replace the Royal Air Force Tornado GR4 ground attack aircraft and will assume the primary role of air interdiction and offensive counter-air at long range. Program officials are considering three options: unmanned aircraft, manned aircraft and cruise missiles. British Aerospace, meanwhile, believes that the program will serve as a springboard for futher consolidation in Europe's defense/aerospace industry. This is because the program's examination of a host of technologies could pave the way for for technology insertion efforts in other countries wanting to enhance existing systems.

The Eurofighter consortium expects to secure a fixed-price contract for production of the first 148 Eurofighter Typhoon aircraft before the Sept. 27, 1998, federal elections in Germany. A deal was expected to be signed at the air show in Farnborough, England, but several details still need to be straightened out. The first production contract will set a fixed price to the first batch of 148 aircraft. In January 1998, the four-nation consortium signed an umbrella production contract for 620 Eurofighters with its four member nations, namely the UK, Germany, Italy and Spain. UK officials estimate the entire order to be valued at about $53 billion.

Braathens ASA of Norway is acquiring Sweden-based local carrier Malmo Aviation for $73.2 million that is expected to bolster its position in the Swedish market. Braathens will get an estimated 25% share of the domestic market in Sweden with the purchase of Malmo, as well as be pitted against Scandinavian Airlines Systems. The acquisition is also anticipated to boost the Scandinavian presence Braathens' alliance partners KLM Royal Dutch Airlines, Northwest Airlines and Alitalia. Malmo has a fleet of 11 British Aerospace 146s with operates domestic flights.

European Commission competition regulators blasted the UK's Office of Fair Trading's (OFT's) recommendation of a plan by British Airways and American Airlines to sell takeoff and landing slots they must divest to proceed with their planned alliance. European Union Competition Commissioner Karel Van Miert said the plan to sell the 267 weekly slots at Heathrow and Gatwick airports would violate EU law and raise barriers to new players. UK's Minister of Trade and Industry Peter Mandelson is scheduled to rule on the OFT recommendation after industry consultations that end on Sept. 4, 1998.

Wizard, the bid submitted by Northrop Grumman and British Aerospace for the UK's Airborne Stand-off Radar (Astor) program, will heavily borrow elements from existing software developed for the US Air Force Joint-STARS aircraft. Wizard, which will use a Gulstream 5 business jet as its airborne platform, will use an active electronically scanned radar, which is based on fourth-generation module technology. The radar system offers concurrent spot synthetic aperture radar and moving target indicator modes. The Astor program is expected to procure up to five aircraft and nine ground stations.

Eurofighter, originally designed to counter Soviet-built MiG-29 and Su-27 fighter aircraft, is also deemed fit to perform missions in medium-size, out-of-area operations common in the post-Cold War scenario. Also, Soviet technology continues to be around and the cash-starved Russians are looking at exporting more, said officials at the British Royal Air Force, which is the fighter's largest customer. The twin-engine, delta-canard aircraft features a quadruplex, full-authority digital fly-by-wire control system. Signature suppression has also been built into the aircraft.