Lockheed Martin secured a $5.3 billion contract to deliver 78 C-130J Super Hercules aircraft to the U.S. armed forces from 2016 through 2020. The C-130J aircraft, one of the longest-running military aircraft programs, is a versatile tactical airlifter used in many different types of missions for the U.S. Air Force, Marine Corps, and Coast Guards.
The Israeli Defense Ministry announced that Israeli firms received ~$770 million worth of work from Lockheed Martin in conjunction with a cooperation package associated with Israel’s F-35I stealth fighter purchase. Elbit Systems, producer of the F-35 helmet mounted display system, and state owned Israel Aerospace Industries, producer of wing sets, were the two largest recipients of the industrial cooperation package.
SpaceX, led by Elon Musk, completed a historic feat by launching an updated version of its Falcon 9 rocket and then landing a large portion of the rocket back on earth. This unprecedented accomplishment comes just six months after a high-profile launch explosion of its Falcon 9 rocket.
The U.S. has brought a World Trade Organization (“WTO”) case against China for their alleged discriminatory taxes on smaller aircraft. U.S. officials are claiming that China has imposed a 17% value-added tax (“VAT”) on imported aircraft, hurting smaller U.S. made planes and part makers and creating a preferential tax policy for its domestic aerospace industry.
I / ITSEC, the largest modeling, simulation, and training conference, was held this past week from November 30 – December 4th in Orlando, FL. At the conference, Maj. General James Lukeman, the commander for Marine Corps Training and Education Command, stressed the importance for affordable high-fidelity training devices that can be deployed with Marines where they fight.
According to Deltek, government spending on information technology is set to grow by $1.9 billion in GFY 2016 to $79.1 billion — a 2.5 percent increase. However, as the chart on the right shows, the Department of Defense (“DoD”) is not expected to reach its GFY 2014 level, and federal health agencies (Department of Health and Human Services’ (“HHS”) and Department of Veterans Affairs (“VA”)) have increased overall spending from GFY 2014 levels yet faced with headwinds from prior year.
President Obama signed the annual defense authorization bill on Wednesday, marking it the 54th consecutive year the bill has passed. One of the major highlights of the bill is an overhaul of the military retirement system, which is expected to provide a form of retirement compensation to roughly four out of five service members, a significant improvement from the current system that benefits only one out of five members.
The annual National Business Aircraft Association (“NBAA”) conference, one of the largest meetings of business and general aviation manufacturers and suppliers, was held this past week, November 17-19th, in Las Vegas. There were mixed messages surrounding the business jet market, as various suppliers and original equipment manufacturers (“OEMs”) are witnessing a weaker larger-cabin market, while small / midsize cabin markets are expecting growth.