WTO affirms improper subsidies ruling

The World Trade Organization said Tuesday that Airbus received improper subsidies for the A380 jet and several other airplanes. The ruling affirmed interim findings last September on the U.S. complaint. According to multiple published reports, the WTO found most of the loans from European governments to develop the A380 were at below market rates and amounted to prohibited subsidies. The WTO also found that Europe had provided improper subsidies for the A300, A310, A320, A330 and A340. (Sources: Multiple, including New York Times, AP via Google, 03/23/10) Gulf Coast note: Airbus parent, EADS, may still compete in the contest to build tankers for the Air Force. It wants to assemble the planes, based on an A330, in Mobile, Ala.

Deadline extension decision expected soon

MOBILE, Ala. - EADS could find out as early as this week whether it will get more time to bid on the tanker project. That's the word from EADS North America CEO Sean O'Keefe, who was in Mobile to help prepare an aid shipment to Haiti. Boeing appears in line to be the only bidder for the $40 billion contract. EADS North America's former partner, Northrop Grumman, opted out because it felt the requirements favor the smaller Boeing tanker. EADS feels the same, but has asked for a 90-day extension of the May 10 deadline to consider its options. EADS still plans to build the tankers in Mobile should it win the contract. (Source: Mobile Press-Register, 03/23/10)

Russian CEO denies tanker bid

Russia's United Aircraft Corp. isn't planning to bid for the tanker program, Chief Executive Officer Alexei Fyodorov told Bloomberg. Both the Wall Street Journal and Washington Post reported the maker of Ilyushin transports planned to bid, citing John Kirkland, an attorney in Los Angeles who represents the group. Fyodorov said he wasn't familiar with Kirkland. For his part, Kirkland said it's either a huge misunderstanding or the Russians not wanting to confirm a plan until something is officially announced. Kirkland had said something would be announced Monday. He provided the Mobile Press-Register with copies of correspondence between his firm and United Aircraft in addition to incorporation papers for a U.S. subsidiary, UAC America Inc., formed to pursue the tanker contract. (Source: Bloomberg via BusinessWeek, Mobile Press-Register, 03/21/10)

F-35 school impact study updated

EGLIN AIR FORCE BASE, Fla. - An updated study of the impact of the Joint Strike Fighter training school at Eglin Air Force Base shows 59 planes will have an impact of $613 million, down from the $2.15 billion that would have occurred between 2010 and 2016 with all 107 planes originally planned. Though the other 48 planes may still come to Eglin, the Air Force is looking at other bases as well. The study by the University of West Florida, originally done in 2005 and updated since, was commissioned by the Economic Development Council of Okaloosa County. (Source: Northwest Florida Daily News, 03/20/10)

Russians interested in tanker bid

Russia's United Aircraft Corp. is planning to bid on the contract to build tankers for the Air Force. The Wall Street Journal, citing a person familiar with the plans, said the company will offer the Ilyushin Il-96 wide-body jet. The plane would be largely built in Russia and assembled in the United States. United Aircraft, a consortium owned by the Russian government, is planning to partner with an unnamed "small" U.S. defense contractor. (Source: Wall Street Journal, 03/19/10) Gulf Coast note: EADS’ plans are to assemble its tankers in Mobile, Ala.

EADS seeks 3 months to bid on tanker

EADS is seeking three more months to prepare a bid for the multibillion-dollar refueling tanker, the Defense Department said today. "We're considering that request," Bryan Whitman, a department spokesman, told reporters. The current deadline is May 10. EADS said it could rejoin the competition if it decides there's a chance to win. EADS' North American, which partnered with Northrop Grumman until that company opted out last week, may wind up as prime contractor. EADS North America is a prime contractor for the Mississippi-built UH-72A Lakota light utility helicopters. (Source: Reuters, 03/19/10)

NG making market play in D.C.

Northrop Grumman, which plans to move corporate headquarters from Los Angeles to the Washington D.C. area by next year, has plastered the Capitol South metro stop with more than 25 banners and signs boasting its weapons capabilities. Among the images: close-up photos of Fire Scouts and Global Hawks, two unmanned aerial systems built in part in Moss Point, Miss. (Source: Forbes, 03/19/10)

EADS reconsiders tanker contest

EADS may be interested in having the Pentagon extend the deadline for bids for the Air Force tanker competition. Defense News reported Pentagon spokesman Geoff Morrell saying DoD "has received notification from EADS North America indicating possible interest in competing for the Air Force's KC-X tanker and we would welcome that." The Mobile Press-Register said EADS, in a statement Friday morning, said it was "assessing this new situation." Last week EADS and partner Northrop Grumman said they were dropping out of the competition on grounds the rules favor the smaller tanker from rival Boeing. May 10 is the deadline for bids. (Sources: Defense News, 03/18/10; Mobile Press-Register, 03/19/10) Gulf Coast note: Northrop Grumman, Alabama and Mobile-area governments have ended their incentives agreements on a site at Brookley Field where the companies planned to build an assembly plant.

F-35 notches first vertical landing

NAVAL AIR STATION PATUXENT RIVER, Md. - An F-35B made a vertical landing for the first time Thursday. The Joint Strike Fighter performed a 93 miles per hour short takeoff from Naval Air Station Patuxent River. Some 13 minutes into the flight, the pilot positioned the aircraft 150 feet above the airfield, where the F-35 hovered for a minute then descend to the runway. The aircraft, BF-1, is one of three F-35B STOVL jets undergoing flight trials at the Patuxent River test site. (Source: Lockheed Martin, 03/18/10) Gulf Coast note: Eglin Air Force Base, Fla., will be home to the Joint Strike Fighter training center.

Tanker incentives agreements end

MOBILE, Ala. - Northrop Grumman, Alabama and Mobile-area governments formally ended their incentives agreements after the company opted to drop out of the competition to build tankers for the Air Force. Northrop Grumman had planned to build a $600 million assembly plant at Brookley Field, should it win the contract. It did, in 2008, but the contract was overturned on a protest from Boeing. Northrop and bidding partner EADS, which said the terms of the new competition favored the smaller Boeing plane, decided last week not to bid. The two companies received a $110 million package of cash and tax breaks tied to the creation of 1,500 job. (Source: Mobile Press-Register, 03/18/10)

Admiral picked to head F-35 program

Defense Secretary Robert Gates picked Vice Adm. David Venlet to run the F-35 Joint Strike Fighter program. The three-star officer will need Senate confirmation. Gates said in early February that he would remove Marine Corps Maj. Gen. David Heinz as manager of the JSF and replace him with a three-star officer. The nomination comes as the Pentagon prepares to formally tell Congress that the cost of the F-35 has increased by more than 50 percent. (Source: The Hill, 03/16/10) Gulf Coast note: Eglin Air Force Base, Fla., is scheduled to become home of the JSF training center.

Commander picked for NAS

PENSACOLA, Fla. - The Navy has selected Capt. Christopher Plummer to take over as commander of Naval Air Station Pensacola. Plummer, a naval aviator, is attending Joint Forces Staff College in Norfolk, Va., and will assume command in mid-April. Capt. William Reavey was relieved of command earlier this month after allegations of inappropriate conduct. Cmdr. Greg Thomas is serving as commanding officer until Plummer arrives. (Source: WEAR-TV, WKRG-TV, 03/16/10)

Blue Angels return from California

PENSACOLA, Fla. - The Blue Angels flight demonstration team returned home to Sherman Field at Naval Air Station Pensacola Monday. The team just wrapped up its off-season training program in El Centro, Calif. The team is scheduled to perform 67 shows at 35 locations across the country this season. (Source: WEAR-TV, 03/15/10)

Contract: Rockwell Collins, $11.1M

Rockwell Collins Inc., Cedar Rapids, Iowa, was awarded an $11,111,767 contract modification which will provide for systems development, integration, and verification phase of the P5 range instrumentation waveform. This waveform is in support of the F-22 and F-35 aircraft. 689 ARSS, Eglin Air Force Base, Fla., is the contracting activity. (Source: DoD, 03/15/10)

Contract: Kaman Precision, $46.3M

Kaman Precision Products Inc., Orlando, Fla., was awarded a $46,253,422.83 contract modification which will provide a quantity of 12,994 joint programmable fuze systems. At this time, entire amount has been obligated. 679 ARSS, Eglin Air Force Base, Fla., is the contracting activity. (Source: DoD, 03/15/10)

Contract: Raytheon, $19.5M

Raytheon Co., Tucson, Ariz., was awarded a $19,505,458 contract which provides an Advanced Medium Range Air-to-Air-Missile system improvement program. At this time, $2,770,000 has been obligated. 696 ARSS, Eglin Air Force Base, Fla., is the contracting activity. (Source: DoD, 03/15/10)

Airbus eyes selling A400M in U.S.

Airbus said it plans to sell about 210 of its A400M military airlifters in the United States, according to the AP and BBC. Domingo Urena, chief of Airbus Military, said it’s too early to tell if Airbus would seek a U.S. partner. Airbus parent EADS partnered with Northrop Grumman in the competition to build tankers for the Air Force. Just last week both companies bowed out of the competition when they said the request for proposals from the Pentagon favored the smaller Boeing plane. (Source: AP, BBC, 03/15/10) Gulf Coast note: Northrop/EADS had planned to assemble the tankers in Mobile, Ala.

F-35 cost up dramatically

The projected cost of the F-35 Joint Strike Fighter has increased 60 to 90 percent in real terms since 2001, well past a level requiring the program to be revamped, Pentagon officials said Thursday. The estimated price of each F-35 jumped to $80 million to $95 million, as measured in 2002 dollars, from $50 million when Lockheed Martin was awarded the contract in 2001. (Source: New York Times, 03/11/10). Eglin Air Force Base, Fla., is slated to be the location for the Joint Strike Fighter Training School. More than 100 of the initial cadre at 33rd Fighter Wing have arrived, said Ashley Wright, a spokeswoman for Eglin. Training is still expected to begin this year. However, that training could be on simulators only. (Source: Northwest Florida Daily News, 03/12/10)

Keesler impact $1.1B

KEESLER AIR FORCE BASE, Miss. - South Mississippi's Keesler Air Force Base's total economic impact for fiscal year 2009 has been calculated at more than $1.1 billion. "We're proud that Keesler continues to have a significant positive impact on the Mississippi Gulf Coast's economy," said Brig. Gen. Ian Dickinson, commander, 81st Training Wing. In addition to employee payroll figures and construction and purchases, the total impact includes military retiree pay and the value of volunteer services as well as jobs indirectly created on the Gulf Coast. Keesler, in Biloxi, is where the Air Force does training in electronics. It's also home to the 403rd Reserve Wing. (Source: Keesler Air Force Base, 03/10/10)

Contract: McDonnell Douglas, $8.8M

McDonnell Douglas Corp., St. Louis, Mo., was awarded an $8,823,078 contract which purchase 100 focused lethality munitions-small diameter bomb I variant. At this time, the entire amount has been obligated. 681 ARSS, Eglin Air Force Base, Fla., is the contracting activity. (Source: DoD, 03/10/10)