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Note to Readers: this is the last in our series of e-newsletters related to the Berlin Air Show, which will take place 27 May–01 June 2008. There is still time to sign up and join the more than 1,000 companies that will exhibit at 2008's largest aerospace event. We look forward to seeing you in Berlin!
Information recently released to the two competitors indicates that Northrop Grumman and Boeing were quite close on some of the Air Force's requirements but Northrop beat Boeing because 22 fewer aircraft would be required under the Northrop proposal. Boeing says that this is because the Northrop proposal used a larger aircraft (the Airbus A 330) as the basis of their proposal and Boeing used the 767 – a small airframe. Boeing claims that they would have used the 777 if they had known that the Air Force wanted fewer (but larger) aircraft. The GAO has 100 days to decide if the contest was fair and impartial.
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US and European aerospace and defense firms are lining up to compete for one of the globe's fastest growing defense markets – India. India, where defense and security continue to lead national priorities, is in the market for all manner of military hardware including fighter aircraft, UAVs, and related technologies. Recently, Lockheed Martin sold India C-130 cargo planes worth an estimated $1 billion. The US views India as an important bulwark against an increasingly ambitious China and efforts continue to strengthen geo-political relationships. Remember that India is the "Partner Country" at the Berlin International Air Show 2008 and companies can make important contacts with a delegation very much in a buying mood.
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Northrop Grumman, EADS, Airbus, and a lot of folks in Alabama ecstatically celebrated their victory in the tanker competition recently announced by the DoD. Mobile, where much of the final assembly will take place on the KC-45A was a particularly happy place and held a series of events. Allan McArtor, of EADS and Tom Enders of Airbus, had nothing but upbeat words for all those involved and the impressive teamwork among the parties. While the party went on, Boeing was being debriefed by the Air Force and ultimately decided to appeal the decision. An appeal will slow down matters by 100 days or perhaps longer depending on what the GAO determines. Alabama isn't the only state that will benefit from the decision to buy the KC-45A. The list is a long one. EADS, Airbus and Northrop Grumman will be at the Berlin Air Show and you should be there too. Here is an opportunity for suppliers to get up close and person.
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Boeing's protest over the award of the USAF tanker contract to Northrop Grumman-EADS lays out a long list of issues that Boeing claims violated a fair and transparent competition. Among the litany of concerns is the assertion that contrary to press reports, Boeing matched its competitor with equally high marks in Mission Capability, Risk, Past Performance, Cost/Price and Integrated Fleet Aerial Refueling Assessment. In fact Boeing asserts that it would have had better marks on Life Cycle Costs, Risk and Capability if their proposal had been measured in accordance with the RFP.
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With the Boeing protest of the Tanker decision underway, Northrop Grumman has responded to the massive amount of "misinformation" that has attended this closely fought competition. Press reports, and uninformed statements by fans of Boeing have suggested that US jobs will be lost to Europeans, foreign companies will build sensitive US military aircraft, the US military-industrial base will be undermined and perhaps most damaging, military technological secrets will be compromised. Northrop Grumman has addressed these and other issues in a fact sheet recently released.
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Flight Design, the Echterdingen German based builder has 20 % of the light sports aircraft market in both the US and Germany. In fact, Flight Design outsells the 3rd through 5th place companies combined. Flight Design, among others, has asked EASA to adopt the ASTM standards now used to certify light-sport aircraft in the United States. When that happens, the European markets are expected to grow rapidly. North American LSA manufacturers need to get their aircraft in front of those European buyers who prefer LSA over general aviation aircraft by a whopping 4 to 1! In the US, that ratio is 1 to 5. The Berlin International Air Show is the place to show off our North American LSAs. The Light Aircraft Manufacturers Association has just the place in Hall 2 for sellers of LSA. And, static display areas are available and slots for customer flights can be arranged.
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No one at EADS is happy with its first annual loss in 5 years. However, with much of its A380 troubles behind it and a big win in the $40 billion Tanker competition with Northrop Grumman, the future looks bright except perhaps for the continuing worry about the weakening dollar. While EADS has increased its currency hedges, it remains concerned that a continuation in the dollar slide against the EURO will result in further red ink for EADS and Airbus. This difficulty is exacerbated by the fact that EADS and Airbus's order book is filled with orders in US dollars while it must pay the Europeans who build them in Euros. EADS wants to place more work in the US and other countries outside of the EU. North American suppliers are now in the ideal position to sell to European OEMs since they have a 30% advantage over European manufacturers. One way to take advantage of this opening is to exhibit and make connections at the Berlin Air Show (ILA 2008).
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Warren Buffet's Berkshire Hathaway is opening shop in India and plans are in the works for an operation in China as well. Recognizing the rapidly growing markets in India and China, NetJet's Executive VP said that, "In India, wealth creation is taking place at a phenomenal pace," "We think we'll get to our first 100 customers in India very quickly, and that will be just the tip of the iceberg. Colucci notes a 400-percent increase in the number of NetJets flights to and from India over the past four years... many of them for high-net-worth individuals and businesses. "Our customer base is not affected by a market slowdown," he said. "Breakeven will be a few years down the line here, not many years."
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About 100 suppliers are expected to exhibit at the International Suppliers Center, where they will make direct contact with OEMs and 1st tier companies. There are still a few spots open at the three-day show-within-the-show.
Those in need of a quick helicopter flight from Tegel Airport to the show at Schoenefeld can take an Air Berlin chopper for 79 Euros. In 10 minutes you are at the show.
Don't miss the ceremony, daily flights, and other events commemorating the 60th Anniversary and the veterans of 1948–1949 Berlin Airlift!
Click here to visit the official Berlin Air Show website.
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