Criticism In Malaysia Of Sole Source Submarine Contract

In 2002 the Malaysian Government signed a contract to purchase two advanced diesel electric submarines from European manufacturers. The contract was worth about $1.5 billion. The first vessel has already been delivered and the second will be next year.

The opposition parties are criticizing the government for not doing the contract through competitive bids but rather sole sourcing it to France’s Aramis and Spain’s Navantia. The normal practice in Malaysia is to competitively bid large contracts but the Government defended the contract as protecting defense information. The argument must be that since no public RFP was put out only the builder learned about the requirements and capabilities needed. It is rather a strange argument unless there is an acceptance that only domestic suppliers can be trusted and as in this case there were none.

Brazil’s arms shopping stirs European exporters

August 12, 2009 by admin · Comment
Filed under: Syndicated Industry News 

RIO DE JANEIRO, Aug. 12 (UPI) -- Brazil has gone on a buying spree as part of a National Defense Strategy that includes renewal of the military infrastructure and equipment. Amid a scramble among European suppliers for a share of the Brazilian arms market, Spain is at risk of losing its premier position to neighborly rivals, industry sources said.

Brazil’s arms shopping stirs European exporters

August 12, 2009 by admin · Comment
Filed under: Syndicated Industry News 

RIO DE JANEIRO, Aug. 12 (UPI) -- Brazil has gone on a buying spree as part of a National Defense Strategy that includes renewal of the military infrastructure and equipment. Amid a scramble among European suppliers for a share of the Brazilian arms market, Spain is at risk of losing its premier position to neighborly rivals, industry sources said.

New Report On Global Homeland Security Sector

August 4, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Events, IT, Services, logistics, training 

Our premier sponsor, ASD Reports, has just released a new report by Visiongain on the Global Homeland Security 2009-2019 sector. This report “examines one of the defence industry’s newest and most promising sectors. Governmental spending on products and services for homeland security should reach $141.6bn worldwide in 2009, our report shows.” Over the last ten years nations across the world have invested heavily in security to prevent terrorist attacks such as those in America, Spain, Great Britain and India.

If you are interested the report may be found here.

A400M Talks Continue

With the Paris Airshow coming up there is a great deal of pressure on EADS to be able to announce some good news at the premier showcase for their products. The company is looking at some severe issues on the military side with their major program the A400M facing push back from its customers.

This medium transport program is at a critical juncture as the nations looking to buy it have the right to end their deals and demand several million dollars worth of payments back from the company. England has been the most negative on the project as their budget problems overall are forcing an entire re-look at military procurement. Some of the other smaller countries such as Spain and Turkey have been more positive.

Now it is reported that talks between EADS and its customers have been extended once again to try and work something out. The hope is that more defense work will be able to balance off the decline in the civil aviation market driven by the world’s recession. Unfortunately like Boeing is facing EADS may have to deal with some major cuts to plans for U.S. defense spending. The FY 2011 budget may continue the large cuts to defense programs that Obama’s first one did.

UK Budget Woes Affecting Eurofighter

The Eurofighter program is coming up for the next production buy. England, Germany, Italy and Spain are all planning to buy new aircraft with this batch. The original plan was to buy just over one hundred aircraft for about $180 billion. England was expected to buy sixteen. Now England’s budget problems is leading the Brown government to consider not participating in this purchase.

This decision is being fought by the other nations as a reduction in the quantity will increase the price for all of the them. England wants to negotiate a cheaper price for the aircraft. It doesn’t help that a great deal of high quality manufacturing jobs are based on this program across Europe. Few countries can face more unemployment in the current world economic situation.

The Eurofighter TYphoon is facing much of the same opposition that the F-22 is with some saying it is not the type of aircraft needed for today’s war on terror. The fact that it is the most expensive aircraft in Europe also is not helping. The European aviation industry is struggling right now with the A400M program and a possible cancellation of that. For England to back out of its Eurofighter commitment would only add to the problems.

Support for the A400M from Spain and Turkey

The Guardian is reporting that these two countries have affirmed their support for their orders from EADS for the new transports. Unlike France, the UK and Germany who have openly discussed canceling or modifying their orders Spain and Turkey have said that they still want the new aircraft. The A400M will be assembled in Spain. There two orders make up about 25% of the planned fleet of the aircraft. It has been decided that the seven NATO countries who have bought the plane will talk every two weeks or so to review the status of the program. The decision on whether EADS would have to pay back the customers due to the two year delay in the program has been extended to May 1st. EADS feels that they need relief both in time and price and really need to renegotiate the contract to account for this long delay. Either canceling the contract or making EADS pay the penalties would be a great blow to the company.

Europeon nations developing common UAV

June 10, 2008 by Matthew Potter · Comment
Filed under: EADS, France, Military Aviation, S, development program 

This article describes how EADS is moving forward on a development contract for UAV for Germany, Spain, and France. They have finished the study phase and are now working on risk reduction. Ultimately, if all things go well they will move into production of a UAV for all three nations. There is no discussion as to how they will integrate the requirements of the different countries, or perhaps they will all accept the same solution. As in most programs EADS will have to produce a certain number of aircraft to make back some of the money sunk into the development.

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