U.S. House and Senate lawmakers completed the conference markup of the FY19 defense authorization bill on July 23. The defense policy bill adheres to the spending levels agreed upon in the bipartisan budget act, providing a defense base budget of $639.1 billion. That figure comprises $616.9 billion in discretionary funding for the Department of Defense, $21.9 billion for nuclear programs in the Department of Energy, and around $300 million for defense-related activities outside the DoD. Another $69 billion is provided for Overseas Contingency Operations, for a total of $708.1 billion in discretionary defense spending. When including $8.9 billion in mandatory spending, the FY19 topline authorized in the legislation totals $717 billion. The separate congressional appropriations process will finalize how much money the military actually has available to spend in FY19.
U.S. President Donald Trump wants to relinquish America’s air traffic control (ATC) system to a private, nonprofit entity with its own board comprising airlines, unions, airports, and federal officials, according to Wired. In essence, Mr. Trump wants to privatize ATC to look something like a corporation. This would be similar to Canada’s ATC system. Continue reading
The recently concluded Farnborough International Airshow generated an impressive number of orders and other purchase commitments (options, letters of intent, Memoranda of Understanding, etc.) for the world’s commercial aircraft manufacturers. Aircraft orders and commitments totaled more than 1,400, outpacing recent Farnborough shows and even the last two Paris Air Shows (2017 and 2015). One would have to go back to the 2013 Paris show to find a bigger sales haul at an international air show. Continue reading
According to The Guardian, President Donald Trump’s call for a major boost in U.S. military spending has been met with an uproar from opponents warning that such a policy would waste millions of taxpayer dollars. To lend perspective on the issue, in fiscal year 2015, military spending in the United States accounted for 54 percent of all federal discretionary spending, according to the Institute for Policy Studies. Right now the U.S. military has the ability to fight just under two world wars simultaneously. The International Institute for Strategic Studies says the U.S. accounts for more than a third of the world’s military spending. Continue reading
Annual deliveries of remote sensing satellites are increasing at high rates. Only 18 remote sensing satellites launched in 2013, but 177 were launched in 2017.
This trend can be expected to continue. During the 2018-2032 forecast period, civil and commercial satellite operators will take delivery of 3,979 satellites, representing an estimated $39 billion in value of production. Continue reading
Data from Forecast International’s Platinum Forecast System 4.0 indicate that 29,407 large commercial jet transports will be produced in the 15-year period from 2018 through 2032. The value of this production is estimated at $4.73 trillion in constant 2018 U.S. dollars. Continue reading
Both Companies Report Solid Order Haul Ahead of Farnborough IAS 2018
by J. Kasper Oestergaard, European Correspondent.
Boeing and Airbus delivered 82 and 80 commercial jets in June 2018, respectively, compared to 75 and 64 deliveries during the same month last year. June is traditionally a busy month for deliveries. Of key importance for Airbus, its persistent troubles with insufficient engine deliveries appear to be easing. In 2017, Boeing delivered 763 jets (748 in 2016), in line with company expectations, while Airbus surpassed its delivery target of 700 jets by handing over 718 aircraft during 2017 (688 in 2016).
Airbus announced large orders for the very popular A320neo narrowbody airliner at the Farnborough Air Show along with new orders for the larger A350 XWB widebody and a commitment for the A220. We don’t expect to see any orders for the A380 at the show.
As usual, the order contest between Airbus and Boeing will take center stage at this year’s Farnborough International Airshow in the U.K. Through the end of June 2018, orders for the two giant manufacturers were somewhat ahead of the pace set in the first six months of 2017. With few or no signs evident of an immediate sales slowdown, the stage is set for another big order haul at the show for Airbus and Boeing. It should be kept in mind, though, that the Farnborough show tends to generate a lower number of order announcements than does the rival Paris Air Show. Continue reading