Defence Industry Bulletin - April 2014 (#1) by Defence IQ

Insider knowledge for the discerning defence and security professional

Issue #1, April 2014

BRITISH ARMY 2020 Future capabilities demoed

INTERVIEW

Canadaâ&#x20AC;&#x2122;s Air Force Commander on training and budgets

M-346 SALES

From ItalyBulletin to Israel :: Defence Industry

UKRAINE CRISIS

Impact on 1 industry defence

AFRICAN DEMANDS

Chiefs of Staff compare naval wish lists

Welcome 1 Land 2 Sea 8 Air 13

Security 18 Quarterly Statistics 20 The Briefing Room 23 The Broader Picture 28

Welcome to Defence Industry Bulletin!

The first issue of Defence Industry Bulletin has launched – proving there’s more to the industry than the F-35...

n behalf of the editorial team we’d like to extend to you a warm welcome to the first edition of Defence Industry Bulletin, providing insider knowledge for the discerning defence and security professional. This new quarterly magazine is designed for professionals in the commercial security and defence sector who want to read about the latest market intelligence and industry news. When compiling this issue our aim with was to commission exclusive articles that would provide you with news, information and insight from every facet of the defence industry you can use to get ahead of the competition. The inaugural edition comes at an important time for the defence industry. Against the backdrop of Russia’s annexation of Crimea, the geopolitical posturing in the Asia-Pacific region and the recently announced US defence budget, how will the West respond

to threats both old and new? Securing major events against international terrorism is becoming an ever more difficult task – how will Brazil install an iron ring of defence around its cities when the FIFA World Cup kicks off in June? Meanwhile, conflicts in Africa persist, with the EU to send 1,000 troops to the Central African Republic (CAR), and violent unrest still troubling Mali, South Sudan and Somalia, to name a few. In the first edition of Defence Industry Bulletin we’ve had contributions from some of the leading defence journalists around the globe covering topics from all corners of the industry. Read about the latest news on Colombia and Brazil’s armoured vehicle requirements, understand more about the overhaul of Honduras’s air defence capabilities and get the inside track on the UK’s Army 2020 new initiative, Morocco’s latest combat ship, Brazil’s $4.4 billion SisGAAz programme, and

the U.S. Navy’s investment into virtual training. Read about the major changes to Italy’s defence industry…and so much more! We hope you find Defence Industry Bulletin an informative and interesting read. A new edition will be available online every quarter – keep your eye out for the magazine that keeps its ear close to the ground in the defence industry.

Andrew Elwell and Richard de Silva

Cover: British Mastiff 6x6 protected mobility vehicle by MOD; Lt Gen Yvan Blondin by USAF; M-346 in production by G Mader; Nigerian pirates from Movement for the Emancipation of the Niger Delta (MEND) by G Mader

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Land Colombia seeking to acquire more armoured vehicles after last Textron 4x4 delivered Victor M.S. Barreira

y April, the Colombian Army (Ejército Nacional de Colombia) will receive the last eight of 28 COMMANDO Advanced APC highmobility 4x4 armoured vehicles that were purchased by the South American country in July 2013 from Textron Marine & Land Systems (TM&LS). The $31.6 million contract also included repair services for two previously acquired vehicles. The first vehicle was received by Colombia in December 2013 and further deliveries were made in February and March 2014. All are being delivered in the personnel carrier configuration outfitted out with the company’s 40 mm/.50 standard protected manned turret armed with 12.7 mm heavy machine gun and 40 mm Mk 19 automatic grenade launcher,

as well as eight smoke grenade launchers as option. The fleet complements an initial 39 similar vehicles purchased in December 2009 through a FMS contract worth $54.6 million and fielded since May 2010, while they were equipped with OGPK (Objective Gunner Protection Kit) protected cupola armed with 12.7 mm machine gun or Mk 19 grenade launcher. Twelve of the vehicles will be retrofitted with the 40 mm/.50 turret acquired in 2013 for $5.5 million with deliveries to be complete in April 2014. TM&LS is in negotiations with the Colombian authorities for additional vehicles and to provide logistic support services. COMMANDO Advanced APC has a combat weight of 16.3 tons,

length of 6.6 m, width of 2.6 m, top speed of 105 km/h and a maximum range of 644 km. It is powered by a Cummins 6CTA8.3 diesel engine with 260 BHP, which is coupled to a 6-speed automatic transmission by Allison Transmission. The vehicles purchased for Colombia feature additional ballistic armour and digital communications. The Colombian firm Corporación de Alta Tecnología para la Defensa (CODALTEC) developed and delivered the MARKAB simulation system for the vehicle in December 2013.

Brazil receives first VBTP-MR Guarani vehicles delivered Victor M.S. Barreira

n March 24, the Brazilian

Army’s 15th Mechanized Infantry Brigade (15ª Brigada de Infantaria Mecanizada) took possession of 13 VBTP-MR Guarani 6x6 amphibious armored vehicles. The unit, located in Cascavel, Paraná, is the first regular combat unit to receive the wheeled vehicle within the Army. The VBTP-MR Guarani family of armoured vehicles will progressively replace EE-11 Urutu personnel carriers and EE-9 Cascavel light tanks that were built by the former local armoured vehicle specialist ENGESA (Engenheiros Especializados). Of the 2,044 vehicles the Brazilian Army is expected to purchase from Iveco Latin America, so far 86 vehicles were purchased in August 2012 and 26 vehicles in the mechanised infantry configuration

for experimental doctrine, which were purchased in December 2013 by the Department of Science and Technology (DCT). On top of that there was the 16 of the pilot-batch ordered in December 2007 and the prototype. Looking at the weapons, the Army has so far purchased AEL

Sistemas UT-30BR and ARES Aeroespacial & Defesa REMAX remote weapon stations, as well as W&E Platt MR550 protected weapon mounts. VBTP-MR Guarani has a combat weight of 18.3 tonnes, is 6.91 metres long, a top speed of 90 km/h and maximum autonomy of 600km. It is expected to be produced in troop transport, command post, ambulance, signal, mortar carrier, anti-aircraft defence, mobile workshop, and engineering configurations.

Brazil’s Guarani 6x6 armoured vehicle. Photo: Victor M.S. Barreira

Defence Industry Bulletin :: 2

Land British Army 2020 offers dog of an idea Angus Batey

nnovation in defence

technology doesn’t have to mean complicated electronic systems or advanced engineering projects. One new capability the British Army introduced during the launch event for Force Troops Command, held at Upavon airfield on Salisbury Plain in March, is a combat-tested variation on a weapon system that’s been in use for millennia. Yet the way it has been developed and fielded could apply to just about any piece of kit in the modern fighting force’s arsenal. This new addition to the Army’s core equipment programme is a “bespoke capability,” is “highly manoeuvrable” and “easily transported,” and is capable of carrying out both explosive-search tasks and “strike” missions. The language used to introduce the Dual-Role Military Working Dog could come from any number of defence-industry product brochures, but is still just as applicable to the way the Army has defined and procured its new canine requirement. “Being a little bit of a history buff, I’ve looked into this,” says Ian Moran of the First Military Working Dog Regiment, when asked how long fighting forces have deployed four-legged warriors. “Trajan’s Column shows Roman soldiers alongside military working dogs.” The dual-role dog is not a new concept - militaries and civilian police have trained animals in

search techniques and also used them in a deterrent, or “strike”, role. The British military has used dogs to carry out both functions in Afghanistan, but this is the first time that the capability has become a part of the field Army. “Other NATO forces will often work a dual-role dog, but their forces are a lot smaller than ours and are a lot more specialised,” Moran explains. “So they will have a handler and a dog who’ll be teamed for years and years, and they can get very good results after such a long period of time. The operational pressures that have been on the [1st MWD] regiment over the last 10 years, with Iraq and Afghanistan, have precluded us being able to focus that much time, because the demand on the ground for what we already had has been too great to enable us to develop this concept further. It is now the opportune moment to develop that dual-role capability.” Gun dogs - spaniels and Labradors - continue to be used for explosive-search and vehicleor building-search roles, but the preferred breed for the dual-role capability is the Belgian Shepherd, or Malinois. Partially, this is because the perceived strike - or bite - effect produced by the larger dog provides a far greater level of deterrence, but a proven capability in both roles is also key. “We’re using Malinois in preference because lots of other

Corporal Kelly Wolstencroft demonstrating use of a “bespoke capability” as part of the Force Troops Command launch event, Salisbury Plain, UK. Photo: Angus Batey

nations have had success with that breed, so rather than starting from scratch we’re taking a known capability and developing it,” says Moran. “There’s been an extensive training and breeding programme in mainland Europe for a long time, so we know we can procure very high-quality dogs.” As with any other defence equipment programme, there is room for upgrades, too. “The next extension from the dual-role would be a multi-role dog,” Moran says. “So it would do search, it’ll do protection, and then it may do tracking on top. That’s a proven capability, because civilian police dogs will do those three. So with our shift in focus from the enduring operation in Afghanistan to much more flexible contingency operations, we need the tools in the toolbox - and this will become one of those.”

The increase in reservist recruitment is also a feature the Army was keen to talk up as a key component of its future plan. Photo: UK MOD

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Land Key light armoured land mobility requirements in Latin America Inigo Guevara

s Latin American militaries

shift their gears to concentrate on internal security operations, the need for additional land mobility, particularly of 4x4 light armoured vehicles, has developed into a multitude of ingenious ad hoc solutions throughout the region. The Mexican Army selected the Oshkosh SandCat as the basis for its own DN-XI and production of 1,000 vehicles that began in 2013; the Mexican Navy and the newly created Gendarmerie remain in the market for light APCs and protected patrol vehicles to equip its growing infantry forces. Brazil

and Colombia remain the other two large markets in the region. Colombia has also selected the SandCat, placing separate orders from Oshkosh and Plasan for its Army and National Police, although the potential market still remains significant. In late 2013 Brazil decided to launch the wheeled light-armoured multi-role VBMT-LR programme which expects to select an existing platform to begin reaching Army units by 2016. Bids are expected by April 3 and a decision will take place in June 2014. An initial 186 vehicles will be ordered with

the first 32 to be sourced directly from the selected company. The remaining 154 will be built locally in Brazil and the type will likely see further orders from the Army as well as from the Navy to equip its Marine Corps and various State Police forces. Uruguay and Paraguay have opted for the Land Rover Defender series and have acquired small batches. Other militaries, including Chile, Peru, Ecuador and most of Central America, all present interesting opportunities throughout the region.

Army 2020: £20 million armoured vehicle investment Andrew Elwell

he UK team of Morgan

Advanced Materials, Ricardo and Ultra Electronics has won a £20 million deal to support and develop the Ministry of Defence’s Cougar family of protected patrol vehicles. Morgan Advanced Materials, which used to be known as NP Aerospace, is the programme lead. Covering the Mastiff, Ridgback and Wolfhound vehicles, the deal could be extended for as long as seven years in total with the team delivering an annual service contract, with experts on hand around the clock to provide technical and project management services to successfully manage and support the in-service Cougar family vehicle fleet. Defence Minister Philip Dunne said: “As we bring our battle winning vehicles back from Afghanistan our focus turns to how best we benefit from these life-saving assets in decades to come. Our Cougar, Mastiff, Ridgback and Wolfhound fleet, comprising of over 600 vehicles, have proven themselves time and again on operations and will now

support a more efficient Army. This investment which is set to be worth up to £20m over the first 2 years of the contract, will not only ensure our vehicles are adapted to their new roles, but will sustain the livelihoods of highly-skilled employees at three British based Defence companies.” While at significantly lower levels than once promised, the deal with Morgan et al shows the UK is still investing in its armoured vehicle capabilities. At the International Armoured Vehicles conference in Farnborough, Dunne said in his keynote address that investment in the UK’s future armoured vehicle programmes will need to focus on a broad set of capabilities to allow for a flexible response to potential conflicts in as yet unknown terrain. “We do not know today where those future flash points will be and we cannot assume we will be in another place like Basra in the future,” said Dunne. “As one vista closes, another opens up – we have to scan the horizon and reset our armoured vehicle capabilities.”

The key words for the future are modularity, commonality, and agility. That is one of the aims of Army 2020: Future-proofing equipment. British Forces require armoured vehicles that are designed with common bolting fixtures that allow appliqué armour to be removed and added – in theatre – with minimal effort and equipment. They will need to be flexible enough to incorporate various mechanical components specific to different operating environments and they must be considered within the wider defence engineering sector so that solutions can be designed and built into the platforms, rather than added to at a later date. He said that, “the new operational horizon will be affected by financial constraints.” While declaring the UK’s armoured vehicle industry in “good shape,” everything came with the caveat that cost-effective acquisitions would be the priority.

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Land New unmanned ground vehicles set for Italian Army Eugenio Po

to Melara is near to completing the development of a new family of Unmanned Ground Vehicles (UGV) suitable for ISTAR, IEDD/EOD, CBRNE and light combat roles. The family is made up of four UGVs: TRP-2 HEAVY DUTY, TRP-2 COMBAT, TRP-2 RISTA and TRP-3 RISTA. The TRP-2 HEAVY DUTY, an evolution of the previous TRP-1 GAMMA, is a medium/light weight system (200-350 kg) designed specially for IEDD/EOD missions, has a four hour endurance and can be radio-controlled from long distances (up to 1500 m on clear line of sight and up to 500 m in urban scenarios). The TRP-2 COMBAT has a weight

of 100 kg designed for ISTAR and force protection duties. Eight TRP2 COMBAT vehicles have already been ordered by the Italian Army for filling an Urgent Operational Requirement. The most interesting systems are last two: the TRP-2 RISTA and TRP-3 RISTA. These vehicles are under development within Forza NEC, the Network centric initiative carried out by Italian MoD under the guide of the Army. The TRP-2 RISTA, also known as TRP-2 cavalleria (cavalry, because it will be distributed to cavalry regiments), is a 60/70 kg UGV with three hours of autonomy and a maximum speed of 15 km/h. At the end of last year, Italian Armed

Forces ordered two TRP-2 RISTA, followed this year by another four. These vehicles are conducting test activities for system homologation (to be obtained by mid 2014). The vehicle is part of a more complex ISTAR capability for Cavalry “Recce” Regiments. The TRP-3 RISTA is the smallest member of the family, weighing in at 3kg with three hours endurance. The TRP-3 RISTA evolved from the Armadillo by US firm MacroUSA and has been designed for infantry needs. Last year, the Italian Armed Forces ordered six TRP-3 RISTA, with one more vehicle expected to follow this year. A bigger order is expected for mid-2014 followed by distribution to infantry units.

French Army to make first Contact Thomas Withington

rench defence contractor

Thales will move forward with its Contact tactical communications programme for the Armée de Terre (AdT/French Army) in 2014. The company was awarded a contract worth €600 million in October 2013 for the development of the Contact hardware and software, although the value of Contact programme could rise to over €3.5 billion once it enters from 2018. The work covered by the October 2013 contract will include the production of sufficient software-defined radios and hardware to equip two brigades. According to a written statement supplied by Thales the company is currently pursuing three work streams with regards the Contact programme. These cover, “the overall communication system architecture,” and “hardware definition, with specific efforts on miniaturisation and performance.” The work also includes “the

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definition of software and specifically new radio waveforms providing a high data rate networking capability and new cooperative services. This definition task is expected to continue in 2014, including validation of key radio performance objectives.” The Contact programme will replace the existing Thales PR4G F@stnet family of tactical radios which are currently used by the AdT. The family includes the TRC9105 and TRC-9110 Very High Frequency (VHF/30-88 megahertz) handheld radios, the TC-9210 VHF manpack radio; the TRC-9310A/ AP and TRC-9310B/C single and dual fit vehicular radios; the TRA6030-N VHF/Ultra High Frequency (300 megahertz to three gigahertz) airborne radios used by AdT and Armée de l’Air (AdlA/French Air Force) aircraft and the TRC-5100 VHF handheld radio and VHF repeater. These radios will be replaced by several new designed

of VHF/UHF software defined radios currently under development by Thales. The first new radios developed for the Contact programme are expected to enter AdT service in the 2018 timeframe. Although the largest customer for the radios will be the AdT, airborne transceivers and shipborne radios will also be rolled out across the AdlA and the Marine Nationale (French Navy) to enable cross-service communications. Alongside the hardware, Thales will develop several new waveforms to allow inter-service networking and networking with allied forces when French forces are operating in a coalition context. Moreover, the Contact radios will also be backwards-compatible with the existing PR4G waveforms to allow them to interoperate with these legacy transceivers as the former are phased in and the latter phased out.

Land 3D radars set to guard U.S. Army unmanned tests Thomas Withington

nited States-based radar specialist SRC has been awarded a contract worth over $7.2 million for the supply of its LSTAR (Lightweight Surveillance and Target Acquisition Radar) radars to several US Army bases around the country. The LSTAR is a family of radars which provide three-dimensional (3D) 360-degree coverage for the detection of airborne targets. The company produces the LSTAR in two variants; the LSTAR (V)2 and LSTAR (V)3. Covering a 0-30 degree angle of elevation, the LSTAR (V)2 is transportable weighing 68 kilograms (150 lbs). The LSTAR(V)3 has similar performances, although it is heavier weighing under 227kg (500lb).

The US Army will receive ten of the radars which will be used to support Unmanned Aerial Vehicle (UAV) testing, principally of the US Armyâ&#x20AC;&#x2122;s Ground-Based Sense And Avoid system (GBSAA). According to Tony Albanese, executive vice president at SRC, the radars will be supplied to five sites, namely Fort Hood, Texas; Fort Riley, Kansas; Fort Stewart, Georgia; Fort Campbell, Kentucky and Fort Drum, New York. First deliveries will commence in July 2014, according to Albanese, with deliveries concluding in 2016. In US Army service, the radars will be used to detect airborne traffic so as to allow a UAV operator to maintain a safe distance between their aircraft and other aircraft in their vicinity. The GBSAA

initiative uses radar to enable the operation of UAVs in US national airspace according to national Federal Aviation Administration requirements. The GBSAA works to alter UAV pilots of potential aircraft collisions and to advise on evasive courses of action to avoid such collisions.

Two US Army unmanned aircraft system operators fly a UAS during a synthetic flight vignettes. Ground Based Sense and Avoid System (GBSAA) is shown on right. Photo: US Army

Defence Industry Bulletin :: 6

When it comes to defence and intelligence solutions, Textron Systems provides a powerful combination of unique capabilities and proven expertise to solve our customersâ&#x20AC;&#x2122; vital requirements. Individually, our operating units are known for precision smart weapons, intelligent battlefield systems, surveillance systems, intelligence software solutions, armored vehicles, performance based logistics and unmanned aircraft systems. Together, our combined strength delivers the advantage.

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Sea Brazil puts our RFP for $4.4 billion SisGAAz programme Inigo Guevara

he official request

for proposals (RFP) for the Brazilian Navy’s Sistema de Gerenciamento do Amazonia Azul (Blue Amazon Management System – SisGAAz) was launched on March 19. Proposals will be received until 16 July 2014 and a shortlist of contenders will be announced on 25 November 2014. Emgepron will serve as management consultant while Fundacao Ezute (formerly ATECH) will be the main technical consultant to the Navy. Both organisations will oversee implementation once a main contractor is announced in June 2015. SisGAAz will support a R$10 billion ($4.4 billion) investment in defence procurement programmes. SisGAAz’s mission will be to provide monitoring and surveillance to counter terrorism, piracy, illegal fishing, weapons, narcotics, human trafficking in Brazil’s jurisdictional waters as

well as potentially hostile naval forces. The protection area, which is designated by Brazil as the ‘Blue Amazon’ because it’s resource-rich, includes its 7,500 km coastline, 68 ports, 3.5 million sq. km of its exclusive economic zone, 950,000 sq. km of continental platform and 8.5 million sq. km of its SAR area of responsibility. A heavy dose of remote sensing technology is expected to bridge the gap between the available and projected naval forces. SisGAAz will integrate with the Air Force’s air defence network (SISDABRA) and the Army’s border surveillance system (SISFRON), both of which are also being established. The Air Force’s participation is critical as it operates the fleet of nine Airbus Military-upgraded Lockheed P-3BR Orion long-range maritime patrol aircraft and ten EMBRAER P-95M maritime patrol aircraft being upgraded by Elbit subsidiary Aeroeletrônica in Brazil. The

Brazilian Navy expects to procure a network of air and surface radars that will be installed on the coast and on platforms, a fixed network of acoustic submarine sensors, a land-based over the horizon (OTH) radar capability, satellite, aerostat and UAS-based synthetic aperture radar capabilities, in addition to sensors mounted on 48 new patrol vessels. The system will also require broad IT solutions for the fusion of existing military and civilian sub-systems, including the PREPS national fishing vessel tracking system, long-range identification and tracking system (LRIT), automated identification system (AIS), Petroleum Activity Maritime Monitoring System (SIMMAP), Integrated Radiogoniometric High Frequency System (SIR) and its Vessel Traffic System (VTS) to achieve total maritime awareness.

New developments illustrate rising demand for OPV-launched UAVs Edward Lundquist

ffshore patrol vessels may

be small, but they can embark an air capability with unmanned aerial vehicles. The Spanish Navy recently deployed a BAM to the Indian Ocean to support the EU NAVFOR Operational Atalanta protecting World Food Programme shipments to the people of Somalia with an embarked Saab Aeronautics Skeldar vertical takeoff VTUAV. Skeldar is a rotary wing, short to medium range UAV that can be controlled from a tailored control station. It can be equipped with a wide range of payloads, including surveillance,

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reconnaissance, target acquisition and 3D mapping. The system can be used for both civil and military purposes. The Skeldar V-200 vehicle can lift a 40 kg payload (88 lbs.), but can trade fuel for payload. It has a ceiling of about 12,000 feet and a maximum speed of approximately 75 knots. Again, depending on payload and fuel, missions can range from 1.5 to 7 hours. The datalink has a range of about 150 km or about 80 nm. Skeldar uses “heavy fuel,” which is pressurised diesel fuel, instead of aviation gasoline, which is dangerous on ships.

The Armada Española conducted integration trials of a Skeldar V-200 aboard one of its offshore patrol vessels (OPVs), the Relámpago, in the Canary Islands before deploying the system operationally. Spain refers to its OPVs as Maritime Action Ships (BAM in its Spanish initials). The Skeldar system was deployed to the Indian Ocean aboard the BAM Meteoro. During the deployment the system showed its flexibility when the mission changed from watching for boats leaving the pirate lairs on the beach to gathering intelligence about the “pattern of life” in those villages.

Sea Scan Eagle The U.S. Navy has deployed the Scan Eagle UAV from frigates and demonstrated the ability to launch and recover the system aboard a small riverine command boat using a catapult for launching and a sky-hook for recovery. The U.S. Coast Guard Research and Development Center has also evaluated Scan Eagle for use aboard the USCG’s Bertholf-class national security cutters. The Coast Guard has validated a mission need for cutter-based UAS to significantly expand the field of regard for cutters at sea and developed a concept of operations and requirements for small UAS (sUAS) to be deployed on the NSC. To support these activities, the Coast Guard Research and Development Center (RDC) conducted a series of demonstrations both from land (at Naval Surface Warfare Center Dahlgren and NASA Wallops Flight Facility) and at sea onboard the USCGC Stratton and the USCGC Bertholf using a variety of ScanEagle UAS configurations. The most recent RDC testing of

ScanEagle was at Wallops Island, Virginia, in February 2014. The ScanEagle served as a surrogate vehicle to focus on payloads carried on small UAVs, such as mid-wave infrared (MWIR) thermal imagers, NanoSar C synthetic aperture radar and auto-target detection systems. These payloads were evaluated against a range of stationary and moving targets at varying altitudes and sensor field of view settings.

FireScout The U.S. Navy’s littoral combat ship was originally intended to operate with the MQ-8 Fire Scout. The Northrop Grumman MQ-8A VTUAV was originally based on a Schweizer 330SP turbine powered manned helicopter with a three hour endurance carrying a 90 kg (200 lb) payload such as an EO/IR camera. But the system has grown. Northrop Grumman’s MQ-8B had a larger takeoff weight, and is able to carry weapons and bigger sensors, including radar. Today, the MQ-8C Fire Scout is based upon

a Bell 407 helicopter, can carry a 1,000 lb. payload and remain aloft for 24 hours. It can carry weapons, including Hellfire missiles.

Radar control The French navy deployed its L’Adroit OPV to the Middle East and Asia with a Schibel S100 VTUAV. On this deployment, which has included fisheries patrols and participation in anti-piracy escorts of World Food Programme shipments to Somalia, the ship is fitted with a mission package that includes the Schiebel S-100 UAV and a strengthened boarding team. L’Adroit is fitted with Terma SCANTER 4102 air and surface surveillance and SCANTER 6002 naval surveillance radar. As the ship is not IFF fitted, the SCANTER 6002 is used to monitor and track the drone.

A Scan Eagle launches from a pneumatic wedge catapult launcher on the flight deck aboard the amphibious assault ship USS Saipan in the Atlantic Ocean. Photo: Defense.gov

Defence Industry Bulletin :: 9

Sea Royal Netherlands Navy joint support ship christened Victor M.S. Barreira

he joint support ship A833 Hr.Ms “Karel Doorman” of the Royal Netherlands Navy (RNLN) was christened on March 8 at the shipyard of Vlissingen in the Netherlands. The multi-purpose vessel was ordered in December 2009 by the Dutch procurement organisation DMO (Defensie Materieel Organisatie) to the local shipbuilder Damen Schelde Naval Shipbuilding (DSNS) for a final cost of EUR365.5 million ($503 million). It is expected to be fully operational with the RNLN by 2015. Displacing about 27,000 tonnes

at full load and measuring 240 metres in length, the ship was built in Romania by Damen Shipyards Galati, where it was launched in October 2012 and joined the Netherlands on 16 August 2013 for final outfitting. It includes the IM400 integrated mast, Scout Mk3 low probability of intercept shipborne surveillance radar and Goalkeeper close-in weapon system by Thales Nederland, remote weapon stations armed with 30 mm automatic cannon and 12.7 mm heavy machine gun, as well as decoy launchers.

Hr.Ms “Karel Doorman” offers shock resistance, blast bulkheads, NBC citadel, a fully equipped Role 3 hospital, degaussing system, underwater noise- and magnetic signature reduction and was designed to perform missions such as RAS/FAS operations, sea basing, strategic transport, disaster relief and training. The ship will be capable to accommodate NH90 NFH, CH-47D/F (NL) Chinooks and AH-64D Apache helicopters, armored vehicles, rigid-inflatable boats and landing crafts.

Morocco inducts its latest combat ship Victor M.S. Barreira

The FREMM (Frégate Européenne Multi-Missions) multi-mission frigate “Mohammed VI” in its homeport of Morocco. Photo: Victor M.S. Barreira

he FREMM (Frégate

Européenne Multi-Missions) multi-mission frigate “Mohammed VI” (701) of the Royal Moroccan Navy has now reached its homeport in Morocco after it departed from

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the French Navy Naval Base of Brest on the morning of March 12 after it was commissioned from the French shipbuilder DCNS on January 30. “Mohammed VI” complements three light frigates of SIGMA (Ship Integrated Geometrical Modularity Approach) type commissioned in 2011 and 2012 from the Dutch shipbuilder Damen Schelde Naval Shipbuilding, “Tarik Ben Ziyad” (613), “Sultan Moulay Ismail” (614) and “Allal Ben Abdellah” (615). After negotiations between the French and Moroccan authorities concluded in October 2007 and a contract become effective in August 2008, DCNS begun to build the ship in December 2008 at its Lorient Shipyard and launched it in September 2011. It is armed with a 76 mm gun system, vertical launchers for MBDA Aster 15 surface-to-air missiles, quad launchers for MBDA Exocet MM40 Block 3 surface-tosurface missiles, two launchers

for EuroTorp MU 90 lightweight torpedoes, and mounts for heavy machine guns. It also includes two Sagem NGDS decoy launchers and two DCNS Contralto-V anti-torpedo systems. The vessel was outfitted with several advanced technologies including Thales HERAKLES 3D multi-role radar suite, DCNS SETIS combat management system, Thales ARTEMIS infra-red search and track system, Thales Altesse-X electronic warfare system, Sagem Vigy MM multi-role fire control system, as well as Thales UMS 4110 and CAPTAS 4 sonar systems. It also feature BEST hybrid propulsion and Shipmaster integrated ship management systems from DCNS. “Mohammed VI” has a displacement of about 6,000 tonnes, length overall of 142 metres, beam of 20 metres, maximum speed of 27 knots, range of 6,000 nm and is crewed by a complement of 108.

Sea Brazil’s future surface combat fleet Victor M.S. Barreira

hrough its modernisation

plan – known as PAEMB (Plano de Articulação e Equipamento da Marinha do Brasil) – which was set up as part of the country’s defence strategy or Estratégia Nacional de Defesa (END), the Brazilian Navy is seeking to renew its surface combat fleet with the aim of guaranteeing the protection its local maritime domain, also known as Amazonia Azul (Blue Amazon). Three Amazonas Class offshore patrol vessels (Amazonas, Apa and Araguari) purchased from BAE Systems Maritime Naval Ships in December 2011 as part of a deal worth £133.8 million are the latest additions to the fleet. They are armed with a 30 mm DS30M remote weapon station and two 25 mm DS25M manually operated weapon stations from MSI Defence Systems. Two 500 ton Macaé Class patrol vessels, which are based on the Vigilante 400 CL54 design of France’s Constructions Mécaniques de Normandie (CMN), were received in 2009 and 2010 from INACE (Indústria Naval do Ceará). A further five will be received from EISA (Estaleiro Ilha SA) between 2014 and 2016, and an additional 39 are scheduled to be

ordered in the future. It is armed with a single ST Kinetics 40 mm NADM 330 and two 20 mm Oerlikon GAM-B01 guns. Prior to the arrival of these five patrol ships, the service received the “Barroso” corvette in 2008, which was locally built by AMRJ (Arsenal de Marinha do Rio de Janeiro). The ship is armed with locally upgraded Exocet MM40 Block I anti-ship missiles, Mk-46

Brazil seeks to modernise its surface combat fleet. Photo: Victor M.S. Barreira

lightweight torpedoes and MK-8 and Mk-3 artillery. The PROSUPER (Programa de Obtenção de Meios de Superfície) programme calls for five 6,000 ton frigates, five offshore patrol vessels (OPVs) of 1,800 ton class

and a single 20,000 ton logistic support vessel. Proposals were received from Daewoo Shipbuilding & Marine Engineering, DCNS, Navantia, Damen Schelde Naval Shipbuilding, ThyssenKrupp Marine Systems, Fincantieri and BAE Systems Maritime Naval Ships. The local authorities are currently analyzing each bid prior a decision being made and a government-togovernment agreement is signed. In the future, the Navy is considering ordering another 25 frigates, 7 OPVs and four logistic ships. Brazil recently selected the local shipbuilder and naval engineering specialist VARD Niterói of Fincantieri to elaborate the basic design of a new corvette-sized ship that has about 2,400 tonnes displacement, of which four units will be locally produced starting in late 2014. Brazil is also expecting to procure two aircraft carriers as part of the PRONAE (Programa do Novo Navio Aeródromo), one replacing the current ‘São Paulo’ unit, as well as two amphibious ships according the PROANF (Programa de Obtenção de Navio Anfíbio) programme.

New BSA torpedo tested by Italian Navy Eugenio Po

he new Wass Black Shark

Advanced (BSA) heavyweight electric torpedo has been fired from the Italian Navy’s Scirè submarine. The new Black Shark Advanced, dubbed Nuovo Siluro Pesante (New Heavyweight torpedo), is an evolution of the original Black Shark, an advanced weapon already adopted by the Navies of Chile, Malaysia, Portugal and Singapore, which includes a lot of entirely new

features. The test launch, called “ShortFire”, took place in the La Spezia gulf in cooperation with the Italian Navy. The successful launch represents another step toward the acquisition of the torpedo by the Italian Navy. Over the next few years, the BSA is expected to replace the old A-184 Mod.3 heavyweight torpedo, currently in service. The new BSA will

operationally debut in 2017 on board the two U-212A currently under construction (Pietro Venuti and Romeo Romei). Later on the BSA will be integrated and used on the first batch of U-212A vessels (Todaro and Scirè). Sources said that the Italian Navy has a need of around 60 to 70 torpedoes, although the exact amount is classified.

Defence Industry Bulletin :: 11

Sea ‘Science of learning’ investment proving sound result for U.S. Navy Edward Lundquist

he Navy’s investment

into virtual training and other simulation is paying dividends. Science and technology (S&T) is making training more effective, efficient and economical, and expanding the “science of learning.” According to Capt. Steve Nakagawa, USN, Commanding Officer, Naval Air Warfare Center, Training Systems Division (NAWCTSD), the proper media selection of a fully immersive situation, computer-based trainer, instructorled curriculum, or all of it together in some piece parts, is the first step. “We have the science of learning scientists and engineers that help them understand how to teach the human being to be able to drive the ship, run the mission bay package, fly the airplane, or dive the submarine,” Nakagawa says. “We can apply a lot of this early in the process when defining the requirement. It’s a smarter way of doing training than later on when you have a system and you then wonder how to train people to use it.” “We look at situations we need to train to determine the smartest way to do it. Sometimes the best way is too expensive for the resource providers to buy. If we can’t afford the optimal training solution, okay, we’ll look for the best affordable alternative that provides the training needed.” Chief of Naval Research Rear Adm.

Matt Klunder says the Navy is embracing new technologies like “adaptive learning.” “We can accelerate their learning through intelligent adaptable training, says Klunder. “I’m not talking about ‘computer based training.’ What I’m talking about is interactive training where the avatar or the processing and brains behind the unit you’re interacting with can now sense that that the student is moving a lot faster than we expected, so we can increase and ramp up the knowledge for him. For another student, the result may be we’re finding that student needs help grasping certain concepts, and the training then adapts to help that student improve where needed. We call it Intelligent Tutoring—and we have a hands-on lab to reinforce it. We think that’s an area where there’s a lot of room to grow for accelerating our folks’ learning capacity.” “We work closely with the Office of Naval Research (ONR),” Nakagawa says. “For example, intelligent tutoring is a category under adaptive learning that’s focused on changing the classroom, book-type learning. The intelligent tutor system learns about the student and then adapts the training syllabus for that person.” “It goes beyond putting information in front of somebody and then testing them on it. It involves using virtual synthetic

training to make them a critical problem solver, and a critical thinker in a team situation. And the adaptive part is where the embedded software assesses the student behaviour and compares that response to the expected response. This software then modifies the training, remediation and feedback in order to help that person learn where he is a little weak in an area, to suggest ways to improve, or adapt based on the student’s optimal learning mode,” Nakagawa says. “You do virtual training so you know how to do something when you’re in the real world. We’ve done simulations for training for a long time. But the modern way of doing it involves applying the science of learning. It’s the adaptive learning that really moves us beyond that old school way of training,” says Nakagawa. “We want to get students to really understand the stuff we want them to understand, and get the real check marks in the stuff that we care about.” “This is the future of training for the Navy,” said Dr. Terry Allard, head of ONR’s Warfighter Performance Department. “With simulation, you can explore endless possibilities without the expense and logistical challenges of putting hundreds of ships at sea and aircraft in the sky.”

The Navigation, Seamanship and Shiphandling Trainer (NSST) master control station operated during a simulation of a ships transit and mooring at Naval Station Pearl Harbor. Photo: US Navy

12 :: Defence Industry Bulletin

Air Delivering to Israel, Alenia Aermacchi’s CEO targets USAF T-X trainer programme Georg Mader

side the Roll-Out of the

first of a total of 30 M-346 advanced-trainers for the Israeli Air Force (IAF) in late March, Giuseppe Giordo, the CEO of Alenia Aermacchi told DIB that “the swift realisation of this complex job in supply to the IAF, involving Honeywell and an Israeli consortium, will give us the drive for the most precious goal on the trainer-market: the USAF’s T-X programme to replace the T-38. With 350 platforms, it is a huge opportunity, and is to be launched in 2017-18.” Nine M-346s will be ferried to Israel this year, 18 in 2015 and three in 2016. The IAF’s material-director Gen. Ran Bashvitz explained that he sees Giordo’s pitch “as absolutely realistic.” “The M346 - which we call ‘Lavi’ - is the most modern trainer-jet out there on the market. Since our selection and the beginning of the programme, the IAF has received excellent cooperation and support, by all of the partners. By Alenia Aermacchi, Honeywell, the Italian Air Force and the Israeli subcontractors-consortium involved. From all information, technical assistance and knowledge we experienced, we have the confidence we require to operate this aircraft safely in Israel. The first one, by the way, we have acquired since the 1970s, which is not from US-Industry...” Contract values given for the Israeli order are US$ 625 m for

From left: Giuseppe Giordo, Brig Gen. Tzuker and Gen. Bashvitz at the M-346 Roll-Out in Venegono (Varese), Italy. Photo: Georg Mader

the part of Alenia Aermacchi, US$ 750 m for the Honeywell-engines (under FMS provisions) and US$ 600 m for the consortium to which Gen. Bashvitz was referring, including 20 years of systemssupport in Israel. The later is called TOR and teams ELBIT and IAI as the system-integrator for the M-346integration in Hatzerim/Israel. It also includes four simulators built by CAE to be delivered by July, with software provided by Alenia. While CAE has itself been the general integrator for the simulators in the M-346 contracts for Italy (6 aircraft) and Singapore (12), TOR/ Elbit will not only take over that role for Israel but, interestingly, also for its next customer, Poland (8), to be delivered from 2017 onwards. CAE is also teamed with Alenia Aermacchi and General Dynamics to pitch the M-346 for the aforementioned USAF’s T-X trainerprogramme. Another aspect of a targeted defence-industrial collaboration in context to the ‘Lavi’-deal was explained to DIB by Brig Gen. Shmuel Tzuker, head of procurement & production at the Israeli MoD. In describing the M-346 as “a milestone for the future”, he pointed out that the Israeli delegation also visited Italy’s Cameri airbase near Milan. There, a final assembly-line and maintenance-facility is emerging for the Italian and Dutch F-35 JSFs, another future mainstay being acquired by both the Italian AF (AMI) and the IAF. Against further cuts into the number of Italian F-35s as likely, B rig Gen. Tzuker said that “it would make a lot of sense for the IAF to maintain JSFs in Italy, instead of doing all that work the US. While the ‘Lavi’ means a deepened cooperation between us and this important European country, we in Israel are very much looking forward to this new partnership – into a long-

lasting broadening of resources and mutual success – in several projects.”

The popularity of the M-346 gives Alenia Aermacchi hope of further foreign sales. Photo: Georg Mader

What was not initially told to DIB at Venegono was the fact that just two hours before the IAF-ceremony, the plant was affected by a twohour strike launched by the trade union UILM, in a conflict centred on foreign workers versus local Italian personnel. CEO Giordo later pointed to a typical ‘scissors’ around human-potential in the European high-end industry. While mentioning 125 new jobs at Venegono since 2012 and another 50 expected by the end of 2014, he explained that “the current orderbook-situation has created certain peaks in work that couldn’t be resolved by hiring and training, but required skilled workers that were ready. The agencies were only able to find these people abroad. We are highlighting Alenia’s collaboration with local associations to implement a longterm job training programme for universities and professional schools - but we also need workers now...”

Defence Industry Bulletin :: 13

Air British Royal Air Force may find place for ISR assets Angus Batey

wo Royal Air Force

surveillance capabilities which face uncertain futures as Britain’s military downsizes have found surprising new uses - in flights over flooded southern England. Both capabilities resulted from procurements designed in the wake of the Cold War, but have proven adaptable and capable in ways that go far beyond their intended remits. The Sentinel R-1 aircraft - a modified business jet fitted with a dual-mode synthetic aperture radar and ground moving target indicator system by prime contractor Raytheon UK - and the RAPTOR (Reconnaissance Airborne Pod for Tornado) were both flown to gather data on floods earlier this year. Operation Pitchpole - the UK military’s support to civilian flood response efforts led by the Environment Agency - included one flight by each system, conducted in mid-February when flooding in the Thames valley and Somerset was threatening to spread further. Imagery from RAPTOR’s UTCsupplied DB-110 electro-optical sensor, which can photograph large swathes of ground in great detail, and SAR data collected by Sentinel, were used by civilian planners to help assess which areas were most

at risk if the floods worsened. The flights come at a helpful time as the RAF seeks to preserve the significant gains its ISTAR (Intelligence, Surveillance, Target Acquisition and Reconnaissance) fleet has made during a decade of operations in Iraq and Afghanistan. Both Sentinel and RAPTOR were also used in the air campaign over Libya, while Sentinel was additionally deployed to Mali in 2013 in support of French forces. In the 2010 Strategic Defence and Security Review, the ConservativeLiberal Democrat coalition government opted to retire Sentinel after combat operations in Afghanistan end; the RAPTOR pod is specific to Tornado, which is due to be retired from service in 2019, and as yet the Ministry of Defence has not committed to transition the DB-110 sensor to another aircraft. A reprieve for Sentinel appears to be imminent, though. Speaking at Defence IQ’s Airborne ISR and C2 Battle Management conference in London in February, the RAF’s ISTAR Force Commander, Air Commodore Jeff Portlock, reported “very encouraging signs” that Sentinel would “be with us well beyond Afghanistan.” The broadened utility of both

systems is the sort of defenceequipment story that often gets lost in the concentration the media, the public and the government routinely place on programmes that suffer delays and cost overruns. Sentinel’s original job was to monitor formations of tanks moving over continental Europe, but as the industrial team has delivered capability enhancements and the operational personnel at 5(AC) [Army Co-operation] squadron have continued to use the system innovatively, it has become a key enabler to the RAF, both in cross-cueing other ISTAR assets and in helping identify insurgent supply routes in Afghanistan. RAPTOR data analysis, carried out by the Tactical Imagery Intelligence Wing at RAF Marham and in Kandahar, has morphed from a means of assessing the deployment of conventional forces into a versatile surveillance tool which can deliver information such as the height of walls in intelligence products supplied to ground troops, or determine whether a possible helicopter landing zone may be hazardous because of the presence of overhead cables.

RAF Sentinel R1 from 5(AC) Sqn at 902 EAW. Photo: UK MOD

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Air Brazil’s Pilgrim military trainer will find a saturated international market Inigo Guevara

razilian firm Novaer

presented its T-Xc Pilgrim prototype on March 31. The new piston-engine two-seat side-byside military trainer is designed to replace the ageing fleet of T-25 Universal primary trainers in the Brazilian Air Force (FAB). Novaer had been involved in FAB projects since it was hired in 2006 to develop a new landing gear for the Embraer T-27 Tucano. It began studies to develop a T-25 replacement in 2009 and in February 2010 partnered with two other Brazilian companies, Winnstal and Flight Technologies, to begin its development. Development costs have been reported at R$12.4 million ($5.6 million), of which R$10 million

($4.4. million) came from a FINEP grant from the Brazilian Ministry Science, Technology and Innovation. Novaer expects to begin production of the T-Xc Pilgrim in 2015 at a new plant in Lages, Santa Catarina state. While the domestic military market is its initial target, the T-Xc Pilgrim will become a de facto prime contender for Brazil’s growing international market presence. The largest regional programme is the Union of South American Nations (UNASUR) regional primary trainer, which so far was headed by the Argentinean IA-73 Unasur I tandem two-seat trainer being developed at FADEA. The programme aims to select a standard primary trainer for the air

forces of Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Surinam, Uruguay and Venezuela. However, the future of the UNASUR project seems bleak, as several countries have vested interests in their own indigenous projects: Colombia’s CIAC delivered the last of 25 T-90 Calima, a local development of the Lancair FG to the Colombian Air Force in 2013 and Chile’s Enaer is working on an update of its successful T-35 Pillan primary trainer. Bolivia and Peru are also understood to be developing their own primary training aircraft. Bolivia, Ecuador and Venezuela have all recently ordered a variety of primary trainers from Diamond Aircraft.

Air defence overhaul in Honduras Julio Montes

onduras has announced

the purchase of one primary radar and two secondary types from IMI for 620 million lempira ($32 million). Another $2.5 million has been allocated to the five surviving Bell 412. This is a suspect transaction since those are the same five Bell 412 overhauled in 2010 for a little less than $4 million. The government is using

the Security Tax Funds to also overhaul two police Bell 206, and now has announced plans to overhaul 9 F-5E. Indeed, Honduran officials indicated that there are four operational fighters with five others out of service. The number of available machines is interesting since 10 F-5E and two F-5F were delivered in the late 1980s. One was lost in an accident. Two others

were observed in Valparaiso, Chile in 1995. This math would suggest that the pair were indeed passed to the Chilean Air Force. In 2005, the US embassy reported that the Honduran Air Force had ordered the repair of several engines to include those used in F-5, A-37B, and C-130, in Chile, and in violation of US laws. All six surviving T-27 are in the process of being overhauled.

Brazilian Army increases its air defence capabilities Victor M.S. Barreira

s part of its Strategic Project

for Anti-Aircraft Defence, or PEE DAAe (Projeto Estratégico do Exército Defesa Antiaérea), that is scheduled to be complete in 2016, the Brazilian Army is procuring several weapon systems with the aim of protecting its national critical infrastructure and to safeguard upcoming major events such as the 2014 FIFA World Cup and the Rio de Janeiro’s 2016

Summer Olympics. The Brazilian Army’s current air defence order comprises five AntiAircraft Artillery Groups (GAAe) and 14 Anti-Aircraft Artillery Batteries (Bia AAe) spread throughout the country, plus the Coastal and Anti-Aircraft Artillery School (EsACosAAe) located in Rio de Janeiro. Prior to the acquisition of RBS 70 and Gepard 1A2 systems,

the Army’s anti-aircraft systems inventory was only composed by tripod-mounted 12.7 mm heavy machine guns, KB Machinostroyenia Igla-S very short range missiles and 24 Bofors L/70, which are coupled to Super Fledermaus (EDT-FILA) fire control systems and 83 Oerlikon GDF-001 self-propelled anti-aircraft gun systems used by GAAe and Bia AAAe units.

Defence Industry Bulletin :: 15

Air Recently, the Logistics Command (CoLog) has purchased the RBS 70 mobile very-short range air defence (VSHORAD) systems to Saab Dynamics of Sweden through the Brazilian Army Bureau in Washington (CEBW) to arm the EsACosAAe and the five GAAe units. The package should be received this year and is worth about BRL28 million, comprising 16 manportable tripod mounted launchers, about 63 Mk2 missiles, batteries, simulators, spares, documentation, night vision equipment, test set and training services. In May 2013, 34 Krauss-Maffei Wegmann (KMW) modernised Gepard 1A2 self-propeled anti-aircraft gun systems of German Army stocks were purchased from the German procurement organisation, Bundesamt für Ausrüstung, Informationstechnologie und Nutzung der Bundeswehr (BAAINBw), in a contract worth EUR37 million that also included another three vehicles for spares, ammunition, shipping, refurbishment, maintenance tools, training and spares. The last 25 vehicles are scheduled for delivery in second half of 2014. The fleet arm the EsACosAAe, and 7th Anti-

Aircraft Artillery Battery of 5th the Armored Cavalry Brigade (5ª Bda Cav Bld) of Ponta Grossa and the 11th Anti-Aircraft Artillery Battery of the 6st Armored Infantry Brigade (6ª Bda Inf Bld) of Santa Maria. The KMW Leopard 1 armoured tracked chassis based Gepard 1A2 weapon system features two twin 35 mm Oerlikon KDA automatic cannons, fire control system, smoke dischargers, S-band search radar, Ku-band auto-tracker, auxiliary power unit, fire suppressors, NBC protection system, periscopes, laser rangefinder, air condition unit and GPS. Along the weapon systems, the Brazilian Army also inducted other modern gear including RF7800V-HH tactical communication VHF handheld radios of Harris RF Communications FALCON III family, SABER M60 low-altitude search and air surveillance radar and the shelter mounted COAAe (Centro de Operações Antiaéreas) that were developed by the army’s Technological Centre (CTEx) and the local company BRADAR (of Embraer Defesa & Segurança), as well as Agrale Marruá series 4x4 high-mobility utility trucks. With funding by the Brazilian Innovation Agency FINEP

(Financiadora de Estudos e Projetos), CTEx and BRADAR with support of other organisations currently develops the SABER M200 surveillance and missile guidance radar which has a maximum range of 200 km. The acquisition of a further battery of the Igla-S is also scheduled and the upgrade of one of the two towed gun systems is being considered. A battery of Pantsir-S1 combined guns and missiles mobile air defence system from Russian firm KBP Instrument Design Bureau with associated equipment and services is expected to be inducted under a wider programme of the Brazilian Ministry of Defence with the Russian state owned trading corporation Rosoboronexport. Pantsir-S1 comprises firing, maintenance and repair, loading and power unit vehicles. The 8x8 firing vehicle is outfitted out with a turret armed with two 30 mm 2A38M automatic guns and up to twelve 57E6-E surface-toair missiles. The turret also has electro-optical sight, search radar with associated IFF antenna and multifunction tracking radar.

Upgrading the Salvadorian Air Force Julio Montes

he United States continues

to support the Salvadorian Armed Forces with military equipment. Until recently, the material consisted mainly in the delivery of naval interceptors, such as SAFE Defender and Boston Whalers, and ground equipment. However, in September 2012 the US offered to restore to service two UH-1H helicopters as a reward for Salvadorian contributions to MINUSTAH, and now confidential sources indicate that the US will be overhauling the four older MD500E in support of El Salvador

16 :: Defence Industry Bulletin

dispatching all four MDs to peacekeeping operations in Mali. In October of 2013, the US delivered three brand new MD500E to FAS, bringing the light helicopter fleet to seven. The US offer is said to include the upgrade of two UH-1H to Huey-II standards, but it could be a reference to those two already offered to in 1992. Furthermore, the US appears to have purchased a surplus C-130E under FMS funds to be delivered to the FAS once it completes its overhaul in Israel. The Salvadorian transport fleet has been reduced

to two operational IAI-202, of three acquired in 2007-2008 under some suspect arrangements. A BT-67 has been awaiting spares for over two years, and a second machine has been out of commission for another four. Ideally, the FAS would need two C-130s and four light transports, such as the mentioned BT-67, IAI-202, C-212, C-123 or similar.

Air Global Hawk pins hopes on ‘pay now, save later’ concept Angus Batey

mid the gloom over expanding uncertainties and declining budgets, it’s sometimes easy to lose sight of the defence sectors that are growing. One such is unmanned aviation, and a big winner in the otherwise downbeat February announcement of US military spending plans was Northrop Grumman, whose Global Hawk platform was retained while the venerable Lockheed U-2 was scheduled for retirement. Global Hawk had been expected to take over the U-2’s high-altitude, long-endurance ISR mission set before now, but a number of concerns had kept the manned aircraft in the US Air Force inventory. Part of the reason for the decision is in greater maturity of the new technology, but the switch also reflects a lot of work behind the scenes by the military and the prime contractor. We’ve worked very closely with the Air Force over the last two years to really work the issues, and I think everybody’s pretty comfortable with where we are now,” Northrop business development manager for unmanned air systems Walt

Krietler explained days after the budget announcement, during the Airborne ISR and C2 Battlespace Management conference. “The airplanes are performing well in theatre and doing the job they need to be doing. So we’ll keep working hard to bring the costs down.” Cost was a key concern, but Krietler argues that a new system will struggle to meet affordability targets until significant numbers of operational hours have been logged. In the early stages, total programme expenditure divided by a smaller number of flight hours, but once regular flying of longduration missions was taking place, the system began to be much more competitive in a cost-per-hour context. Maintenance also impacts on affordability. “Until you start flying a lot it looks like it’s very expensive, but when you fly 30,000 hours a year, all of a sudden the costs start to plummet,” he said. “The US Air Force is very insightful, and they have a good sense of what an older aircraft takes to maintain. And I think they’ve said, ‘These airplanes are new, they’re doing a great job, and we’ve worked closely with

Northrop Grumman to bring costs down’.” As well as continuing to deliver Block 40 Global Hawks to the USAF, Northrop’s main focus is on Triton, the US Navy variant of the air system. The test article has completed an 81-hour flighttest programme at Edwards Air Force Base, and Northrop’s nearby Palmdale facility, in California. The sensor package is being tested aboard a Gulfstream aircraft ahead of integration onto the UAV, and both programmes are running in step. Triton is also due to be the first Global Hawk to carry a full suite of capabilities required to demonstrate the capacity for full integration into unsegregated airspace. As well as a radar-based sense-and-avoid system, the aircraft will carry anti-icing, fuelvapour detection and lightningstrike protection systems, while its flight-control software will meet civil airliner certification standards. Test flights are due to move from Edwards to the Navy’s flight test centre at Patuxent River, Maryland, in the summer.

An RQ-4 Global Hawk taxies on the flightline as a U-2 makes its final approach Sept. 17, 2013, at Beale Air Force Base, California. Photo: USAF

Defence Industry Bulletin :: 17

Security West Africa needs further foreign funded naval-development Georg Mader

n attending Defence IQ’s

high-level AFSEC Conference in Casablanca in February, this author has gained a deeper look into West African security- and maritimesecurity environment, characterised by multiple proliferations within an asymmetrical crisis. This crisis is typified by the likes of drugor arms-trafficking and other kinds of illegal maritime activity. Various criminal side-effects have developed significantly over the last few years into and via Western Africa, which are posing a security challenge for societies en masse. Besides the narco-corridor from Latin-America via Cape Verde, and West Africa to Europe, in parallel the endemic poverty of parts of the population makes them easy prey to be exploited or recruited by criminal and terrorist networks such as AQIM (Al-Qaeda in the Islamic Maghreb) and Boko Haram. In encountering this complex spectrum, leading commanders of naval- and general-staffs from Senegal, Gambia, Ghana and

Togo were keen to emphasise to the author that they are not Somalia, but rather sovereign and ‘functioning’ nations with – small and partly obsolete – forces that are effectively fighting on the ‘forefront’ for the EU. Dependent of US-, EU- and recently Chinese development-aid (considering as well the provisions of Chinese OPVs to Ghana and Nigeria), these nations expect some of this aid to be directed into the renewal of their inventories and platforms. The ownership of offshore oil reserves – sometimes a target for maritime pirates – has recently convinced wealthier nations like Nigeria and Ghana in seeing value in the procurement of Corvette-size OPVs and small fast-attack craft. As the Commander of the Navy of Gambia, Commodore Madani Senghore indicated that the technical procurement strategy was all about efficiency and maintenance: “Every time you go out on patrol, you come back and need to do

Ghanaian Snake-class patrol vessels acquired from China. Photo: George Mader

18 :: Defence Industry Bulletin

some repairs and change some worn parts. Mostly it is the lack of expertise by our personnel to do the maintenance or repair work, or the lack of technical skills. But there also is a lack of spare parts. Often a certain amount is acquired with the vessels and once that initial package is exhausted, you need to import these critical parts again. Then you are told by the politicians that this year it’s the education and next year it’s the health-sector, and so on. Therefore you cannot exploit your ships to their full capabilities and you have the impression that our nations may never be able to project a strong maritime power. We know the problems, we have local solutions, but do we have the necessary resources to confront these problems? Do we have the platforms and the specialequipment ready? This remains a constant struggle. A more relaxed support- and repair-model by the manufacturing shipyards needs to be integrated in future contracts.” Counter Admiral Cheikh Bara CISSOKHO, Chief of Staff of the Senegalese Navy, confirmed that in this demanding operational environment and climate, the Senegalese and other local navies are facing limited resources every day: “We have some French-built corvettes, OPVs and lighter fastattack craft. But as this naval hardware ages, the platforms become more expensive to maintain. In the mid-term we need other capacities with integrated radars, interlinked to surveillance assets installed along the coast. We are creating modern inter-regional operational centres which broadens our maritime situation-awareness, but the developed countries and

Security international organisations could – and should – support these efforts better by helping West-African countries to acquire and operate much needed platforms under, for example, existing frameworks for aid. I believe it is also in their vital interest considering that the media always names West Africa as the ‘roundabout’ for unwanted goods, drugs, arms and terrorists.” Giving some insights into the scale involved, the Togolese Armed Forces Chief of Defence Staff Brig Gen. Abalo Kadangha explained to DIB that beside transiting “about 60 vessels and trawlers on average are at anchor off Togo every day, most related to petroleum-products which are at risk of causing accidental pollution. As there is also increasing yachttourism the ‘bad guys’ have quickly learned to mimic these yachts and speedboats. But the main branch of West African piracy today is in oil-piracy, targeting oil tankers

within the GoG. They come on board with guns, take the vessel from our EEZ to another country to reload the cargo, and then most of the time they release the empty or half-empty vessel. The pirates’ speedboats are often faster than their victims and sometimes faster than our naval-assets, with 40 or so easily overpowering a crew. This is not to mention the wide use of machetes, AK47s, HMGs and even RPGs – they certainly have enough firepower to stop and overwhelm.” Kadangha believes the best solution is to arm up. “In a few weeks we will receive our first new OPV from RAIDCO-France (RPB 33), and in September we will receive the next. These are high-sea vessels with several days fuel-endurance. They will fight alongside our older platforms: the two 90-ton Frenchbuilt OPV patrol boats ‘Kara’ and ‘Mono’ and the small but highspeed ‘Defender’-class boats. We are also creating a second base to

the east of Lomé. But the enemy is never sleeping. We all here need more and better-equipped platforms, plus industrial support. And in my personal opinion, an auto-cannon in front is always a good thing.”

Abalo Kadangha, Chief of Defence Staff for the Togolese Armed Forces, at AFSEC 14, Casablanca. Photo: George Mader

MH 370 disappearance sparks security reviews Richard de Silva

The Malaysia Airlines 370 disappearance has triggered a wave of security upgrades. Photo: Wikimedia

month after Malaysia Airlines Flight 370 went missing between Kuala Lumpur and Beijing with 239 people on board, measures surrounding inflight safety and airport security have been under heavy review amid speculation that terrorism may have been the cause of the incident. The airline has now decreed that an additional crew member

will be required to remain in the cockpit if one of a plane’s two pilots takes a break. A crew member will also be required to stand guard at the cockpit door when it is opened for food service. Meanwhile, the list of prohibited items has fallen in line with the standards of the US Transportation Security Administration and the airline is advising that passengers check in at least three hours ahead of boarding time, rather than the previous two hour recommendation. Two separate metal detector checkpoints have now been installed across the country’s airports by Malaysia Airports Holdings Bhd (MAHB). The International Air Transport Association (IATA) has stated that the incident highlights a need for improvements when it comes to tracking aircraft and screening

passengers. Governments are encouraged to step up the use of passport databases, such as the one operated by Interpol, to determine if they have been stolen. Malaysia, like most countries, has not been checking passports through this system, despite Interpol’s aim to help less wealthy countries take advantage of the resource. Limited radar and satellite data has also highlighted the need for investment in cutting-edge technology that can better assist global search and rescue efforts. The disappearance of the Boeing 777 on March 8 has seen a multinational coordination effort across South East Asia, with military and civil air and sea assets combining capabilities to hunt for the wreckage.

Defence Industry Bulletin :: 19

Quarterly Statistics – Q413

he defence industry has

been through a rough few years. The end of an era of frequent Urgent Operational Requirements (UORs) for NATO operations in Iraq and Afghanistan has been exacerbated by waning budgets across North America and Europe.

But the commercial cycles are coming around again and, helped by new strategies and plans to diversify, the defence primes are beginning to boost bottom line performance. M&A activity in the sector is sluggish although the big news for

the quarter saw EADS renamed in a brand overhaul – the newly christened Airbus is streamlining its business and focusing on its commercial business while defence finds its feet again. Here, we take a look at the performance of today’s top ten defence firms...

(US) • • • • • •

Recorded $15.4 bn of orders during the fourth quarter however net sales of $11.5bn in the quarter were down compared to $12.1bn in the fourth quarter of 2012. Generated cash from operations of $938m for the fourth quarter and $4.5bn for 2013 Recorded $15.4bn of orders during the fourth quarter with ending backlog of $82.6bn Q413 revenue $11.53bn Q413 revenue down 4.7% The company broke record for backlog, earnings and profit margin. Boosted by South Korea’s recent decision to take the F-35 as its fighter of choice, the programme will rely on continued support from other nations already signed up to the fifth generation jet. In 2014, Lockheed will continue to focus on improving operational efficiency, reducing cost structure and investing in innovations.

(US) • • • •

(UK) • • •

Sales increased by 2% to £18.2bn Order backlog of £42.7bn maintained at 2012 levels with non-UK/US order intake of £9.3bn BAE will maintain a disciplined cost management model in contracting defence markets while ramping up sales endeavours in emerging markets. Conclusion of negotiations of the UK’s Queen Elizabeth carriers and commercial issues in Saudi Arabia over the Typhoon to act as new platform for growth in 2014.

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Revenue increased to $23.8bn reflecting higher deliveries Revenue rose 6% in the full year to a record $86.6bn Q413 revenue up 6.6% The Defense, Space & Security unit overcame a tough operating environment to record expanded revenue, earnings and margins while delivering on the KC-46A tanker and developing and delivering important new capabilities such as the P-8 maritime aircraft and the Inmarsat-5 satellite. For 2014, Boeing is focused on maintaining its commercial airplanes market leadership and strengthening its defence, space and security business.

(US) • • • •

Fourth quarter 2013 net sales of $5.9bn while full-year net sales of $23.7bn, which is down 2.9% for the year Fourth quarter adjusted operating margin of 13.1% Q413 revenue down 8.8% Raytheon continued to expand its international business in 2013 while winning significant new programmes, setting it up for a positive 2014.

Quarterly Statistics – Q413 (US) • • • • •

Revenues for the quarter were $8.1bn while full year revenues were $31.2bn. In 2013, the operating margin of 11.8% reflects focus on performance improvement Fourth quarter earnings from continuing operations of $624m Q413 revenues up 0.4% General Dynamics continued to focus on operations, cost management, and cash generation, adjusting its business to reflect the realities of the current defence spending environment and derisking some operations in the organisation.

(US) • • • •

(Netherlands) • • • • •

Q4 2013 revenue at €19.29 bn. Q4 2013 revenues were flat compared to Q4 2012 (€19.22 bn). Total 2013 revenue at €59.3 bn (+5%). In January 2014, EADS (European Aeronautic Defence and Space Company) was reorganised as Airbus Group. 2014 has seen major business deals continue with China and Qatar. China to co-produce 1,000 French EC-175 helicopters and least 70 aircraft, including 43 aircraft of the A320 variety and 27 Airbus A330s. Letter of intent signed by Qatar to supply two MRTT airborne refueling tanker versions of the Airbus A330 and 22 NH90 military helicopters.

(Italy) • • • •

(US) • • • •

Q4 2013 revenue at $16.76 bn. Q4 2013 revenues were flat compared to Q4 2012 ($16.43 bn). Total 2013 revenue at $62.65 bn (+9%) Most Q4 growth was spurred by sales of aerospace parts and engines to the commercial sector. US government reductions weakened sales on UTC’s military business, with Sikorsky sales falling by nearly 13% annually to $1.9 bn. In 2014, UTC anticipates its government aerospace sales will contract but expects the decline in military aviation to be offset by continued growth from its commercial aviation business and building solutions relevant to the US and Chinese markets.

Q4 2013 revenue at $6.16 bn. Q4 2013 revenues were down 4.9% on Q4 2012 ($6.48 bn). Total 2013 revenue at $24.66 bn (-2.2%) In 2014 Northrop Grumman is hoping that the Republic of Korea will be enticed by the Global Hawk unmanned aerial system, worth a possible $848 m. Since December, Global Hawk has begun production for NATO and, with the huge upswing of interest in unmanned systems worldwide, the company could be in for further lucrative contracts.

Q4 2013 revenue at €4.69 bn. Q4 2013 revenues were down 7% on Q4 2012 (€5.03 bn). Total 2013 revenue at €16 bn (-2%). Has, in 2014, returned to profit after two years, with the company calling 2013 a “transition year”. Non defence business has seen an agreement to settle a €400 m dispute over a train contract. Defence side of business predicts a flat US and European market with stronger results in emerging countries, anticipating earnings to rise. Questions still remain over AgustaWestland helicopter programme in India.

(US) • • • •

Q4 2013 revenue at $3.26 bn. Q4 2013 revenues were flat compared to Q4 2012 ($3.56 bn). Total 2013 revenue at $12.63 bn (-1.7%) 2014 has seen several solid contracts land, including a contract to provide logistics services and materials for U.S. Navy jet trainers and a deal to design the interior and exterior communications subsystems for the Royal Canadian Navy’s new Arctic/Offshore Patrol Ships. The company purchased Big Data analytics firm Data Tactics Corp., projected to generate sales of $50 m by year end.

Defence Industry Bulletin :: 21

Quarterly Statistics â&#x20AC;&#x201C; Q413

Percentage change in year-on-year 4th quarter revenue -8.43% 2.00% -6.76% 0.36% -4.90% 0.40% -8.80% %

Q413 revenue ($bn) 11.53 23.80 5.90 8.10 6.16 26.44 4.69 16.76 3.26

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6.60% -4.70%

The Briefing Room “We’ve done the analysis.” Interview: RCAF flight training coming into land Lieutenant General Yvan Blondin, Commander of the Royal Canadian Air Force, explains how the future pilot training approach will be a system of systems. DIB: Thank you for joining us today, Lt Gen Blondin. By way of introduction could you please briefly introduce yourself and outline the RCAF’s current jet training capabilities? BLONDIN: It’s a pleasure to be with you today. I enrolled in the Canadian Armed Forces in 1980 with the intention of becoming a fighter pilot. After completing pilot training in 1982, I was assigned to VU32 Squadron in Shearwater, Nova Scotia, flying the T-33 aircraft. In 1986, following the Canadian acquisition of the CF18 fighter aircraft, I was selected for conversion and posted to the newly formed 433 Tactical Fighter Squadron in Bagotville, Québec. I’ve had a long, varied, very enjoyable career – a career that has included operational flying and command tours in North America and Europe; staff officer positions in our national defence headquarters in Ottawa, as well as in NORAD headquarters in Colorado Springs, Colorado, and in NATO ISAF Headquarters in Kabul, Afghanistan; and senior command appointments at the operational and strategic levels of the Royal Canadian Air Force (RCAF). Since my appointment as the Commander of the RCAF in the Fall of 2012, my three major priorities have been: building on our operational successes and ensuring the RCAF continues to deliver excellence in operations, both in Canada and abroad; building the Air Force of the future by capitalising on innovation; and improving services relative to the care of our members and their families. Your first question about fighter training touches on my first priority.

The past decade has been a very dynamic one for the RCAF. Though we are a small air force we realised tremendous accomplishments – at home, in crisis situations, in emergencies, and in combat. In order to retain this high level of operational excellence it is essential that we maintain – and strive to improve – our readiness and training. The current RCAF pilot training system is similar to that of most Western nations. We use a single engine piston aircraft, the Grob 120, for initial screening of candidates, and use the T-6 Harvard II for Basic Flying Training. Once selected for jets, the student pilots are given Fighter Lead-In Training on the Hawk Mk 115 before moving onto the CF-18 Hornet. The delivery of this training is done through contracted services and

the Fighter Lead-In Training is an integral component of the NATO Flying Training in Canada (NFTC) programme, which has seen participation by several allied nations.

DIB: What are the RCAF’s future plans with regards to flight training? As you shape your requirements, what will the advanced jet trainer capability look like in the future? BLONDIN: The NFTC contract comes to an end in 2021 and the RCAF has begun a deliberate effort to identify options beyond 2021. Like other air forces around the world, the RCAF sees opportunities to further download training into less expensive aircraft, offload more training into simulation, and leverage Live, Virtual and Constructive (LVC) training to optimise the benefits of all three types of training. We see very strong linkages to robust selection methods and have already begun to invest in our selection process in order to ensure that we are delivering candidates to our pilot training system that have the highest possible chances of success. We are also continuing to expand our use of electronic learning media and other modern methods of training delivery. The RCAF pilot training system of the future will be a systemof-systems, working together to ensure the RCAF continues to deliver world-class pilots. As the technology associated with simulated and constructive training continues to evolve and be refined, the RCAF’s use of these innovative training devices will also increase.

Lieutenant General Yvan Blondin, Commander of the Royal Canadian Air Force, addresses the international audience at Military Flight Training 2014, London, UK. Photo: Jason Ahluwalia

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The Briefing Room Hours spent training in live aircraft will decrease (though not disappear altogether) as we capitalise on the benefits associated with simulated and constructive training. The capability of the future advanced jet trainer will be driven by the current and emerging systems and capabilities in front line fighter aircraft. The capability will incorporate advances in avionics and displays, as well as capabilities such as embedded training, or the ability to simulate / stimulate systems carried on the modern fighter. Future fighter pilot training will take full advantage of the benefits that come from delivering training using an optimised mix of live, virtual and constructive training. The RCAF’s vision for the advanced jet trainer is have it both deliver Fighter Lead-In Training and act as a companion trainer to the future fighter of the RCAF. Designed and built to complement the capabilities of the fighter fleet, we see real potential to download training from the fighter fleet into the companion trainer to support not just initial training but also continuation training.

DIB: How valuable do you think the increased use of realistic flight simulation for training purposes is? What are the benefits? BLONDIN: The RCAF sees simulation as a critical component to achieving and maintaining readiness today and in the future. As simulation technology continues to mature and grow, so too will its use within the RCAF. We already have fleets within the RCAF that are achieving in excess of 90% of their training requirements through the use of simulation. Our newest fleets, such as the CC-130J Hercules and the CH-147F Chinook, now possess world-class training facilities and devices for aircrew and aircraft maintainers. Indeed, the technology has developed to

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the point where maintainers are achieving their qualifications to perform maintenance on these platforms without touching an actual aircraft. These world-class training facilities are the standard for the RCAF today, and we plan to go even farther in the future. The RCAF will build a common technical architecture for an integrated and interoperable virtual training world that will allow members of different Air Force communities, located at different Wings across Canada, to train together in a virtual battlespace. Crews conducting live training will also be connected to this virtual world, thus vastly expanding the kind of training conducted by the Air Force. The RCAF is also working very closely with the Canadian Army to explore joint training opportunities. The training of Forward Air Controllers (FAC), for example, is being conducted by linking FACs and the CF-18 Hornet pilots in a virtual battlespace using simulators located at different Bases and Wings. We fully expect that our CH-148 Cyclone crews will be training and exercising with their Royal Canadian Navy counterparts in simulators prior to sailing on operations. The benefits of simulation for military aviation are many. First of all, simulation will improve training. Simulators allow us to control different variables – such as weather, terrain and threats – and conduct training that is, in fact, more rigorous and varied than flying actual aircraft. As systems on operational fleets grow in complexity and capability, the most realistic environments in which to train on these systems will be simulated environments and environments that mesh together live and virtual training. We will be better able to generate the multiple stimuli required to exercise those complex systems

using simulators. We will be able to practice using systems that we would not want to turn on in a live aircraft because of security reasons. Second of all, increasing our use of simulation will save us money. Modern aircraft are extremely expensive to operate and maintain. The RCAF today relies heavily on the use of aircraft to train its personnel, which increases overall operations and maintenance costs. By transitioning, instead, to a training system that combines live and virtual training the RCAF will train its personnel more effectively and more efficiently. An increased use of training in simulators means that flying hours once devoted to training can be either reduced or turned into flying devoted to operational taskings. This, in turn, provides Canada with more flexibility and agility in operations.

DIB: How can we optimise the role of international, joint training initiatives? BLONDIN: Canada and the RCAF have always been strong advocates of international and joint training initiatives in aviation. Canada hosted RAF training during the First World War, and the RCAF operated the British Commonwealth Air Training Plan (BCATP) that trained nearly half of all aircrew employed by commonwealth air forces during the Second World War. The U.S. President, Franklin Delano Roosevelt, actually referred to the BCATP as “the aerodrome of democracy”. This tradition of participating in and leading mutually beneficial training initiatives continues today with the NFTC programme. Canada has vast amounts of airspace that is tailormade for training aircrew, and is committed to working with its friends and allies to create training opportunities that strengthen the bonds between our forces.

The Briefing Room The challenge with such initiatives is ensuring that national requirements are not compromised through involvement in international and joint initiatives. This means that a great deal of effort is required on the part of all participants to agree on the training to be conducted, the methods of delivery, and the ways in which the training will evolve as requirements change. Making international and joint training initiatives viable requires hard work and dedication by all participants and sustaining the effort can become difficult as national priorities and budgets change. Making these initiatives work requires not just an initial investment of time, money and people; it requires a long term commitment. As the RCAF moves more training into the synthetic environment, it also aspires to train alongside our allies in the virtual battlespace. We fully expect to fly coalition operations in the future with wingmen that we have never flown with before except in simulators. Creating international

and joint training initiatives that involved LCV training will require continued cooperation between the RCAF and its allies in order to develop, implement, and evolve our respective synthetic / simulated capabilities and the networks that support them. We are in the very beginning stages of exploring how simulation can be incorporated into international and joint training, and the possibilities are endless and extremely exciting.

DIB: What effect will defence budget cuts have to the procurement of flight simulators over the next decade, if any? BLONDIN: In today’s economic reality of reduced budgets, advances in technology offer the RCAF less expensive ways of training and maintaining the skills of its air crews. As more training hours are logged on simulators (and less training hours are logged in actual flying aircraft) there will be less wear and tear on aircraft, thus allowing the RCAF to extend the

life expectancy of aircraft and reduce overall per year costs of each aircraft. Aircraft availability for operations will increase and the requirement to rent costly commercial aircraft (to carry out strategic airlift, for example) will be decreased, if not eliminated. Less money will be spent on aviation fuel and, because aircraft will fly largely to support operations (vice operations and training), the RCAF’s carbon footprint will be reduced and the Air Force will become a better custodian of the environment. We’ve done the analysis. Delivering the same level of training in an aircraft without simulation will, over the long run, cost significantly more than if you make an initial investment in simulation then optimise the use of simulation. Training that combines flying aircraft and simulators will be more effective, safer, less expensive, and better for the environment. It’s a ‘win-win’ situation for all.

CT-156 Harvard II aircraft from the NATO Flying Training School at 15 Wing Moose Jaw, Saskatchewan. PHOTO: Captain Jean-Serge Bilodeau, RCAF

Defence Industry Bulletin :: 25

The Briefing Room “That is why our ‘brand’ as Swiss watchmakers is sought after...” Interview: Swiss activities in the global MRO business Former Swiss Air Force Commander and now RUAG military-aviation consultant Markus Gygax talks exclusively to DIB’s Georg Mader on Swiss activities in the global MRO-business…

Markus Gygax, former commander of the Swiss Air Force, now works with RUAG. Photo: Georg Mader

DIB: General, in our earlier conversations, when you were active Commander, you often talked of the economical ‘footprint’ of a modern air force, when – for example – arguing for the Gripen-E acquisition. Now you have gained insight into the global business model by RUAG, which of course originated in the experience builtup in decades of Swiss fast-jet operations. What work is it what RUAG is looking for, and where? It is a common fact that everywhere – at least in Europe - defencebudgets are getting tighter and thinner with every year... GYGAX: Let me first remark that as a consultant for the military markets I cannot deliver exact numbers and statistics here, but I think your readers might be interested in a few basic backgrounds. Defence-budgets are not in stagnation everywhere, but you are fully right that they continue to decline significantly in many nations. That is all but one current factor. Moreover, the market for aerospace in Switzerland - again like in many places abroad - is

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getting smaller, simply because of the shadow that remains on the number of platforms. Remember as well that in the 1980s, we Swiss once operated between 400 and 500 combat aircraft! That meant relevant contracts for the support- and maintenanceindustry. Today we are down to 54 F-5E/F Tiger and…tragically to date…32 F/A-18C/D ‘Hornets’. As we have discussed, the number of F-5s will now continuously shrink towards zero. When RUAG was founded in 1999, the Swiss military generated nine from every ten Francs (CHF) earned. Today, this is down to maybe about a third of the total turnover of approximately CHF 1.7 bn. One now hopes to compensate at least a part of this effects with the 22 ‘Gripen-E’s, but then we would be just back at 54 platforms in total - that is again down to the Tigers in the inventory today! Therefore we have to accept that the relevant Swiss high-tech industry will see lesser and lesser domestic business - and will subsequently have to re-orient itself to an increasing market abroad...

DIB: How has RUAG reacted to this considerably changed post ColdWar environment? GYGAX: RUAG had to react - and its leadership did. It therefore was subject of a deep restructure. You may know that RUAG-Aviation – which is one of five divisions – was previously integrated into the Swiss Air Force as a governmentrun ‚enterprise with 3,000 federal employees. That was halved, and from this, the 1,500-strong RUAGAviation was created. This new business-unit is now challenged to win lucrative contracts on the world-market, especially targeted

in the core-competencies of maintenance, repair and overhaul (MRO). Therefore RUAG-Aviation is officially able to offer MRO services on a 24/7 basis anywhere, as an EASA- and FAA-Part 145 certified maintenance organisation with decades of MRO experience on several aircraft types.

DIB: Which of course are the ones known from Swiss service… GYGAX: [smiling] Of course. RUAG is strong in all aspects concerning the F-5 as over 100 of these were assembled at former SF-Emmen and maintained in all systems ever since. The same with the F-5s GE J-85 engines. The same are also certified for all activities around the legacy Hornet and its GE-404 engines, which were also indigenously assembled in Emmen until 1999. Additionally, we already have the licence for the Super Hornet’s GE-414 engine, which is also powering the Gripen-E. Should the Swiss contract be confirmed in the mentioned referendum, RUAG-CEO Breitmeier already sees good chances to participate in the business of future Gripen-support anywhere, a benefit also for small and medium supplier enterprises in Switzerland. Again – high-tech jobs is also an argument in the upcoming plebiscite on May 18th… DIB: So this means, at Bern, one looks at the world map, where these two types – F-5 and F-18 – and their engines are operated. If I am right, the last annual World Air Forces Almanach still lists over 500 various F-5s as active, about 3 per cent of the world’s fleet of about 15,500 combat aircraft. And there are six Hornet operators out there, besides Switzerland and the US Navy…

The Briefing Room GYGAX: Absolutely right. Those are the key markets regarding the fast jets… DIB: …but that global involvement can sometimes create critics and media-uproar at home, right? There was an issue in March 2013, when Malaysia used in anger some of their eight F-18Ds against some Filipino intruders from the separatist Sulu-Sultanate in Lahad Datu/North Borneo. Swiss leftwings and Greens publicly cried out when it was ‘revealed’ that RUAG is servicing those Hornets… GYGAX: That is right, though we have to point to the fact that RUAG, for one or other air arm, is responsible not for the type’s overall readiness but for supplying certain components or subsystems. Whatever the particular political or military leadership is using those planes for later, such as in the case of Malaysia that you‘ve mentioned –with good intel, I must admit! – the mechanisms within that MRO business can be quite interesting and unexpected. Sometimes you get a new customer via the takeover of another enterprise. We had such a case when RUAG acquired Australian business Rosebank Engineering, known for their life-support work for the RAAF’s F-111s until those were phased out. A small business, which now wants to ‘land’ in the Australian Super-Hornet/Growlerprogramme. Well, with RUAG’s F-18 experience and certificates, they can picture this competence ‘down under’ much better. DIB: Anything else besides the jets? GYGAX: Yes, these two types would not be enough volume, as we couldn’t gain 100 per cent of that potential, of course. RUAG however also has the licence for the Super Puma helicopter and is even undertaking the current upgrade of 15 AS332 to Cougar/532standard, called TH-06. So, another

good competence that fits global [demands]…

DIB: Well, into almost 40 air-arms or services with well over 1,300 built as Puma/Super-Puma/Cougar, if I recall correctly… GYGAX: That may be quite correct, plus the licence-built ones up to Indonesia, et cetera. And camouflaged ones are not the only issue, but also these civilian police-helos and offshore rig shuttles as well. But…we are still not finished yet in explaining our profile. There is another fascinating, if often overlooked product: the German Dornier Do-228. Since 2009, this venerable surveillance- and coast-guard ‘underdog’ is built new under the RUAG brand at Oberpfaffenhofen, combining Swiss precision with German quality. This new Do-228NG (‘New Generation’) undoubtedly has a market. It is a very fuel-efficient plane that has almost no competition in running-costs at missions from 100 nm onwards. Therefore, it is especially interesting for navies and coast-guards. So we are both interested in selling the newbuilt NG-platforms – as already delivered to the German Navy and the Bangladeshi forces, and ordered by Venezuela’s FAV – but also in servicing and overhauling the globally still operating more than 100 ‘legacy’ Do-228s. Many of these are flying in either civil or military capacity, in surveillanceand liaison-roles as well as in three MPA-versions. Additionally, 120 were built in Kanpur/India as HAL228s from 1986 onwards, and from there delivered to the governments of Mauritius, Seychelles, the Maldives, and others. India operates more than 100 and HAL is again building 20 new planes as of January 2013. Kanpur also delivers structural parts for the NG to Oberpfaffenhofen.

themselves. One would think that for larger maintenance issues or overhauls, air arms would first approach or contract the original manufacturer of the plane or engine. Why should they turn to foreign service-providers from a totally different country or even region?

GYGAX: A very good and important question, which I can happily explain. A country is acquiring a fleet and within that lifecycle, the maintenance-costs are rising as the system is becoming older and older. The manufacturer is selling the system and is, in general, providing support usually until the maximum of the middle of its lifespan. Meanwhile, he has a new plane on offer or, on the contrary – often we talk about decades in between – he has vanished. Out of business. At that point, you are not interesting anymore, nobody cares for the second half of your lifespan. That is were the market for RUAG begins. DIB: It means, the technical- and logistic-officers are then looking around for help and support… GYGAX: Exactly. Who has the knowledge and competence to keep my fleet alive? For this we have created an abbreviation: ARAS. Availability, Reliability, Affordability and Sustainability. That is our ‘filet-steak’ on the markets. That is where our ‘brand’ as Swiss watchmakers is sought after. Then we are consulted to look what can be done and what makes sense… DIB: Well, then all the best in this endeavour! GYGYAX: Many thanks – best to your readers.

DIB: Here I have to ask a question many readers may be asking

Defence Industry Bulletin :: 27

The Broader Picture Ukraine crisis leaves marks on global defence industry Richard de Silva

n March, the Ukraine

government reserved an extra UAH 6.8 billion (US $697 m) for spending on defence measures in the wake of the Crimean annexation, which are to be used for troop mobilisation and rapid equipment modernisation. Ukraine parliament-appointed acting President Alexander Turchinov has said that his country is facing a strategic task in rearming its army, given its gradual dismantlement over recent years. Turchinov also insists the Ukrainian defence industry can and must sustain the full production cycle and will be in line for government orders. The crisis in Eastern Europe and the serious diplomatic row

over Crimea has already made its impressions on the rest of the world’s markets, with Russia taking the heaviest toll in response to international sanctions and mass market panic. This saw inflation rise dramatically, with the ruble hitting all-time lows. The dust is only now beginning to settle, according to Moscow, as steps towards recovery begin. As of April, Belarus has tightened its security along the Ukrainian border – thinning passenger and transport flows – but at the same time is warm to the prospect of increased cross-border defence trade. Belarus President Alexander Lukashenko told press at an aircraft repair plant in Baranovichi (April 2), that although the Ukraine was

in turmoil, he believed the country “should exploit the moment not only for ourselves but also for foreign markets and the Russian Federation.” “The defence industry there is respectable,” Lukashenko said, “including the things that interest you. Let’s try to come to terms with Ukrainians and work together to prevent the loss of intellectual and engineering centres, and designers in Ukraine. The time is as good as any.” Lukashenko raised the possibility of improving business Ukraine-based aircraft engine manufacturer Motor Sich. Today, Russia accounts for some 48% of Belarus’ external trade and the two nations remain important allies.

Unidentified gunmen seizing Simferopol airport, Crimea, Feb 2014. Photo: VOA

NATO to enhance common air picture Thomas Withington

uring 2014, Franco-

American defence firm ThalesRaytheonSystems (TRS) plan some important developments for the North Atlantic Treaty Organisation’s (NATO) Air Command and Control System (ACCS) for which it is the prime contractor. The ACCS is an integrated air operations and air sovereignty command and control system

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which will equip NATO’s continental European members. It is a scalable software architecture which can equip national and deployable air command and control centres to federate information from air surveillance radars to generate a recognised national, and Alliance-wide, air picture. ACCS also provides users with the capability to conduct and command an air campaign.

Over the past twelve months, TRS has performed a series of system and site validation tests of the ACCS architecture. This included testing the ACCS software in so-called ‘peak load’ conditions, according to Stephen du Mont, TRS’s vice president of NATO business. These peak load conditions used computer simulations to generate the type of major air operations which the

The Broader Picture ACCS software may encounter in the future. These validation tests were performed at NATO’s ACCS system test and integration facility in Glons, Belgium, along with site validation tests conducted at ACCS sites in Germany, Italy, Belgium and France (see below). In addition, the Combined Air Operations Centre (CAOC) and ARS (Air Control Centre, Recognised Air Picture Production/ RAP Centre and Sensor Fusion Post); collectively known as the CARS, a transportable ACCS-equipped command and control centre to support NATO operations around the world underwent testing.

In peacetime, the CAOC/DARS will be based at an Aeronautica Militaire (Italian Air Force) facility outside Poggio Renatico on Italy’s northeastern Mediterranean coast. Dumont says that TRS will perform the final validation tests of the ACCS architecture this year. This will include a networking test at four validation sites which are equipped with ACCS. These include the CARS; the Belgian Air Component’s Control and Reporting Centre at Glons in eastern Belgium; the CAOC at Uedem, Germany on that country’s border with the Netherlands and the French Air Force’s Air

Operations Centre at Lyon-Mont Verdun in eastern France. This will be done to ensure that all of these facilities can connect to one another and federate their RAPs together. Moreover, the sites in Germany and Italy are expected to declare an initial operating capability for their ACCS systems by the end of 2014. This will pave the way for the roll out of the ACCS architecture at eleven other air operations command and control centres, known to the company as ‘replication sites’ from early 2016 and its full introduction into service.

Major changes ahead for Italian defence industry Mark Lowe

t some point between April and May, Matteo Renzi’s government will have to choose the new top managers of the 32 companies in which it is a major shareholder. Finmeccanica will see a number of changes, well informed sources have suggested that while ‘Il Presidente’ Gianni De Gennaro will be reconfirmed, the same is not certain for Chief Executive Officer Alessandro Pansa. Despite having been selected by the previous government, the stability of De Gennaro’s position is assured by Finmeccanica’s endless judicial woes. While foreign and Italian magistrates continue their investigations, the former Chief of Police remains focused on internal restructuring; the consequence of his investigations. If sources are correct then success does not appear to be a strong enough assurance for Pansa, his position is rumoured to be at risk despite his having raised Finmeccanica’s share value by 66, 5 percent since being nominated CEO. While performance and results play very much in Pansa’s favor, other factors do quite the opposite. In addition to the Prime Minister’s

desire to place well aligned individuals in key positions, there is the issue of the Spending Review; Renzi is adamant that public sector managers are simply making far too much money. According to the Prime Minister, no public manager should receive a wage superior to that of the President of the Republic. At over one million Euros, Pansa’s financial package comes in at around four times that of Italy’s President. Of far greater international concern is another element of the Prime Minister’s Spending Review. On March 19, the same day that Finmeccanica announced that 2013 had witnessed the defence giant return to profit, Renzi declared that Italy’s planned purchase of 90 Joint Strike Fighters (JSF) was in further doubt. It is unclear how this decision is going to impact what Italian legislators already consider as an unfair workshare, Finmeccanica’s Alenia Aermacchi is scheduled to produce 800 wing sets for the JSF programme. Senior government officials have commissioned a new defence white paper aimed at reassessing Italy’s

military strategy. While unclear what recommendations the paper will hold when it is delivered, there can be no doubt as to the future of the peninsula’s defence policy being characterised by very significant cuts. Lest anyone be in any doubt, Roberta Pinotti, Italy’s recently appointed Defence Minister, told parliament earlier this month that the government “will not hesitate to review, reduce or rethink even large projects that are under way or being considered if economic or international situations show them to be inopportune.” Spending cuts are not the only issue of concern amongst the military, Prime Minister Renzi also wants to see the Ministry of Defence accelerate the sale of real estate as provided for by the specific legislative framework approved by parliament a number of years ago. It remains to be seen exactly what the results of Renzi’s ‘with one hand you take, with the other you give’ policy will be. The only certainty is that a major shakeup has begun.

Defence Industry Bulletin :: 29

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Editors: Andrew Elwell Richard de Silva Editorial contact: enquiry@defenceiq.com Correspondents: Victor Barreira Angus Batey Inigo Guevara Mark Lowe Edward Lundquist Georg Mader Julio Montes Eugenio Po Malcolm Warr Thomas Withington Chief Designer: Beau Merchant Marketing Manager: Sumit Dutta Advertising Managers: Amar Karia Richard Brookes Advertising contact: enquiry@defenceiq.com +44 (0) 20 7 368 9416 Subscriptions: enquiry@defenceiq.com Website: www.defenceiq.com IQPC, Floor 1, 129 Wilton Road, London, SW1V 1JX

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