Sunday, November 01, 2009

DTN News: NATO 'Making UK Attack More Likely'

DTN News: NATO 'Making UK Attack More Likely' *Source: DTN News / Int'l Media (NSI News Source Info) BRUSSELS, Belgium - November 2, 2009: Nato's strategy in Afghanistan is increasing the likelihood of terrorist attacks in Britain, a Tory MP has claimed. Adam Holloway, a former Grenadier Guard, called for a new focus on reconciliation with Afghan insurgents rather than more intense fighting.Tory MP warned Nato's strategy in Afghanistan is making terror attacks in UK more likely ~ An RAF Chinook helicopter lands during a re-supply of ground forces during operation "Panther�s Claw", in Helmand province in Afghanistan in this July 13, 2009 handout photograph received in London on July 16, 2009. President Hamid Karzai has promised to provide extra Afghan security forces to reinforce British soldiers battling Taliban insurgents, British Prime Minister Gordon Brown said on Wednesday. The troop surge proposed by top US commander General Stanley McChrystal would only fuel the difficulties facing Nato troops, he warned. Mr Holloway, a member of the Commons Defence Select Committee, said Nato was "on the brink of failure" as Afghan support for its work nose-dived amid deteriorating conditions. His comments came in a wide-ranging paper on Afghanistan, published by the Centre for Policy Studies, which also addressed resources provision for British troops. It included the disclosure that Lieutenant Colonel Rupert Thorneloe sent a memo less than a month before his death complaining about the lack of helicopters. In the paper, Mr Holloway insisted that Al Qaeda could be prevented from regaining its foothold in the country without the presence of tens of thousands of foreign troops. "Put starkly, our current situation is working against the West's security interest and is making attacks on the streets of Britain more, not less, likely," he wrote. He said that the war in Afghanistan was playing into the hands of Al Qaeda propaganda. "Al Qaeda needs Nato in Afghanistan, more now when western troops are out of Iraq," he wrote in the Centre for Policy Studies paper. "Before 2006 who had heard of Musa Qala, Sangin or Kajaki? Today they are global rallying cries across the websites of global jihad. Places like Helmand are, for Al Qaeda, a gigantic film studio. "For them, Afghanistan is the best place in the world to generate video footage of 'Mujahadeen' attacks on 'infidel forces', which in turn supports both fundraising and recruiting. Al Qaeda needs pictures of 'heroic martyrdom operations' and mutilated children."

DTN News: Pakistan TODAY November 2, 2009 ~ Pakistan's Capital Now Resembles Besieged City

DTN News: Pakistan TODAY November 2, 2009 ~ Pakistan's Capital Now Resembles Besieged City *Source: DTN News / Int'l Media (NSI News Source Info) ISLAMABAD, Pakistan - November 2, 2009: An onslaught of militant violence has transformed Pakistan's capital from a sleepy oasis to something of a city under siege, with its tree-lined streets barricaded, schools shuttered and jittery residents wondering when the next attack will come.Abshin Pegam, 8, center left, helps her father, a street vendor, in a market in Islamabad, Pakistan, Sunday, Nov. 1, 2009. An onslaught of insurgent violence has transformed Pakistan's capital from a sleepy oasis of calm to something of a city under siege, with its tree-lined streets barricaded, schools shuttered and jittery residents wondering when the next attack will come. The fear shows how Taliban and al-Qaida-led insurgents based along the Afghan border have brought the war into Pakistan's political and diplomatic heart, something they hope will force the government to halt a new army offensive into their stronghold. The unease has been heightened by the range of targets attacked despite a nationwide security clampdown. Suicide bombers hit the International Islamic University and a U.N. office in Islamabad; militants took officers hostage for 22 hours at army headquarters in the neighboring city of Rawalpindi; commando-style raids paralyzed the eastern city of Lahore; and bombs have ripped through markets in the northwest. More than 300 people have been killed, most of them Pakistani civilians. And no one expects the attacks to end soon. "The feeling is that things have degenerated terribly," said Javeed Akhtar, a corporate lawyer. "The university bombing (on Oct. 20) sent a chill through everyone. There is now a realization that targets are unrestricted. It is no holds barred." Islamabad once was sheltered from the militant, separatist and gang violence that was a feature of life in other cities in Pakistan. Visitors were typically amazed at how quiet, well-ordered and wealthy it was compared with other South Asian cities. That began changing in mid-2007, when the army besieged and then stormed the city's Red Mosque after militants inside refused to surrender. Gunshots and explosions rang out for days across the most exclusive suburbs, and around 100 people were killed.Men, who were fleeing a military offensive in South Waziristan, walk in a queue at a distribution point for internally displaced persons (IDPs) in Dera Ismail Khan, located in Pakistan's restive North West Frontier Province November 1, 2009. Tens of thousands of people have been displaced by an army offensive against Taliban militants in South Waziristan. The siege is now widely considered to be the starting point of the insurgency. Vowing vengeance, militants based in the lawless, tribally controlled region along the Afghan border began a vicious campaign against targets associated with the government, security forces and Western interests. While Islamabad was occasionally hit, its 900,000 people and several thousand foreign residents still considered themselves largely untouched by the war. But just over a year ago, a truck bombing devastated the J.W. Marriott Hotel and showed the city was well and truly in the militant cross hairs. "Every morning as we leave our houses we pray, and we ask our family members to pray that we get back safe and sound," said Mohammad Rahim, who runs an electronics business in the city center. "That is what every Pakistani does." With many people choosing to stay at home, owners of restaurants and shops popular with foreigners and wealthy Pakistanis say their earnings have dropped by 50 percent in the two weeks since the start of the latest government offensive. Many schools remain closed following the university attack, while principals try to secure them against possible future attacks. Workers are busy building thick concrete barriers to stop suicide car bombers. Many parents have chosen to keep children at home even when their schools reopened. "As soon as there is an explosion, things come to a standstill for a day or two, but life must go on," said Najmi Rizvi, the head of a preschool where attendance was down 50 percent. "We have to live in this situation," she said, as toddlers in Halloween costumes ran around the yard. The city's foreigners are especially at risk, given popular anger at the U.S.-led war in neighboring Afghanistan and the government's close ties with Washington. Fears have risen further amid hostile media reporting of the major expansion of the U.S. embassy, and reports — denied by American officials — that members of the tarnished security company once called Blackwater are present in the city. Islamabad's main diplomatic enclave, which is fenced off from the rest of the city, has become a neighborhood of fortresses, with compounds sealed off behind concentric rings of barbed wire, blast walls and heavy metal gates. Armed men — whether from government security forces or the small armies of private guards at each compound — are everywhere. In the face of the attacks, the resolve of the country's politicians, army generals and people to take the fight to the militants in their border sanctuary of South Waziristan appears to be holding. But unqualified support for the offensive is complicated by the unpopularity of the government and a belief that the violence would stop if America pulled out of Afghanistan. In more than a dozen interviews Thursday and Friday, conspiracy theories alleging the involvement of neighboring India or the United States in the attacks were frequently aired. "We want to see a normal life, so for God's sake, listen to what the (militants) are saying. They are against American forces in Afghanistan," said Imran Ali, a 32-year-old carpet dealer. "What America is doing is illegal, and that is the root cause of all evils."

DTN News: International Forces Train Afghans In Critical Care

DTN News: International Forces Train Afghans In Critical Care *Source: DTN News / Int'l Media (NSI News Source Info) KANDAHAR, Afghanistan, - November 2, 2009: U.S. and other international troops in Afghanistan recently provided training in critical patient care and blood processing to Afghan doctors that they hope will spread throughout the country. An Afghan doctor with the National Military Hospital in Kabul preps an Afghan soldier to donate blood at the Kandahar Regional Military Hospital in Afghanistan, Oct. 21, 2009. U.S. Air Force photo by Staff Sgt. Tyrona Pearsall Afghan and coalition mentors from the National Military Hospital in Kabul provided the first-of-its-kind training here Oct. 19-22. The two courses were designed to fill shortfalls in health care provider training, as well as strengthen the Afghans’ ability to provide quality care within the critical moments after an incident occurs. “It’s very important to have this kind of training because of the sustainment aspect,” said U.S. Air Force Col. Lorn Heyne, chief of the medical embedded training team at Kandahar Regional Military Hospital. “As these young providers grow in their ability to provide care to the wounded soldiers here, they will eventually move on. They will have the opportunity to train other providers and they will go on and they will treat civilians. Having this basic critical care knowledge is invaluable to the sustainment of the medical care system in all of Afghanistan.” The importance of the training also was underscored by the Kandahar hospital’s commander. "This training is very important for us,” said Col. Abdul Baseer. “About two years ago when we started our hospital here, our doctors were not as strong in their practice as they could have been. Since then, mentors and doctors came from the capital, from other provinces, to help train our hospital staff, and the staff’s [capability] kept growing better … it’s very good." In addition to the critical combat care, hospital staff were trained on blood component processes, as well. "Basically, what we did was work on some blood component production, which is essentially the collection of whole blood, the centrifugation and splitting of the plasma and red cell portions into separate components," said U.S. Navy Cmdr. Leslie Riggs, medical embedded team mentor for the National Military Hospital. "Essentially what that does is it allows for better transfusion therapy for the patient.” Another benefit of the training was to implement an Afghanistan-wide standardization of how to treat and store blood and associated components. "We want to organize all regional hospital blood banks to work the same way," said Dr. Mohammad Sakhi, blood bank supervisor and quality control manager for the National Medical Hospital. Although the success of most training is not measurable until a crisis occurs, the training did have some tangible results. "I think, so far, the training is a success. The proof of that is in the refrigerator and in the freezer right now," Riggs said. "The blood units and the plasma are ready when needed. We don't like to have to use those products, but they're there if needed." Riggs also commented on one aspect of the training he finds most important. "The important thing I think that we've seen from this visit is Afghans teaching Afghans, which has been one of the most important things," Riggs said. "I've come down to help arrange the visit, provided some background knowledge, but my mentee was able to sit this morning and teach one-on-one with his Afghan counterparts here in Kandahar how to do the job … essentially they did it themselves."

DTN News: Force Protection To Announce Third Quarter Fiscal 2009 Results

DTN News: Force Protection To Announce Third Quarter Fiscal 2009 Results *Source: DTN News / Force Protection (NSI News Source Info) LADSON, South Carolina - November 2, 2009: Force Protection, Inc. (NASDAQ: FRPT) today announced that it will release financial results for its third quarter ended September 30, 2009 on Monday, November 9, 2009 after the market close. A conference call to discuss those results will be held at 4:30 p.m. Eastern Time that same day and will include comments from Michael Moody, Chairman and Chief Executive Officer, Charles Mathis, Chief Financial Officer and Randy Hutcherson, Executive Vice President, Programs, Global Sales and Business Development.

The Buffalo MPCV is the most advanced mine resistant vehicle in the world. It can be configured for multiple missions and is specifically designed to be repaired in the field. Cutting-edge technology combined with the best American automotive components give this vehicle the maximum visibility, load carrying capacity, interior space and parts availability of any vehicle in its class. While the question-and-answer session of the call will be limited to institutional analysts and investors, retail brokers and individual investors are invited to listen to a live webcast. The webcast can be accessed via the home page of the Company’s website at www.forceprotection.net. Please visit the website at least 15 minutes prior to the call to register for the webcast and download any necessary software. The replay of the call will be available on the Company’s website for approximately one year. About Force Protection, Inc. Force Protection, Inc. is a leading American designer, developer and manufacturer of survivability solutions, predominantly blast- and ballistic-protected wheeled vehicles currently deployed by the U.S. military and its allies to support armed forces and security personnel in conflict zones. The Company’s specialty vehicles, the Cougar, the Buffalo,the Cheetah and the Ocelot, are designed specifically for reconnaissance and urban operations and to protect their occupants from landmines, hostile fire, and improvised explosive devices (IEDs, commonly referred to as roadside bombs). The Company also is the developer and manufacturer of ForceArmor™, an armor package providing superior protection against explosively formed projectiles (EFPs), now available for a wide range of tactical-wheeled vehicles. The Company is one of the original developers and primary providers of vehicles for the U.S. military’s Mine Resistant Ambush Protected, or MRAP, vehicle program. For more information on Force Protection and its vehicles, visit www.forceprotection.net. Force Protection, Inc. Safe Harbor Language This press release contains forward looking statements that are not historical facts, including statements about its beliefs and expectations. These statements are based on beliefs and assumptions of Force Protection’s management, and on information currently available to management. These forward looking statements include, among other things: the ability of Force Protection to implement the Cost Reduction Program and realize the anticipated cost savings, increasing growth and demand for the Company’s Total Life Cycle services, increasing capability and opportunities for the Kuwait facility growth and demand for Force Protection’s vehicles, including the Buffalo vehicle and related deliveries of the Buffalo vehicle; the rate at which the Company will be able to produce these vehicles; its expected work completion dates for the vehicles and the Company’s ability to meet current and future contract requirements; and the Company’s expected financial and operating results, including its revenues and cash flow, for future periods. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Examples of these factors include, but are not limited to, the ability to effectively manage the risks in the Company’s business; the ability to develop new technologies and products and the acceptance of these technologies and products; the ability to obtain and complete new orders for its vehicles and products; the Company’s ability to identify and remedy its internal control weaknesses and deficiencies; and other risk factors and cautionary statements listed in the Company’s periodic reports filed with the Securities and Exchange Commission, including the risks set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, as updated in the Quarterly Report on Form 10-Q for the period ended June 30, 2009.

DTN News: BAE Systems Acquires VT Group’s Stake In BVT - BAE Systems

DTN News: BAE Systems Acquires VT Group’s Stake In BVT - BAE Systems *Source: DTN News / BAE Systems (NSI News Source Info) LONDON, UK - November 2, 2009: BAE Systems has announced on October 30., that it has acquired VT Group's 45% shareholding in BVT Surface Fleet Limited (BVT). BVT is now wholly owned by BAE Systems and will be renamed BAE Systems Surface Ships Limited. Nigel Whitehead, BAE Systems' Group Managing Director, Programmes & Support, said: 'Bringing BVT into full ownership of BAE Systems further strengthens our global maritime business and is consistent with our strategy to establish a sustainable and profitable through life business in air, land and sea. 'Surface Ships has a solid order book, a clear strategy to transform the UK maritime sector and a commitment to deliver existing and future programmes. 'Our 15 year Terms of Business Agreement with the UK Ministry of Defence will sustain key industry capabilities in the UK and provides a strong platform on which to build future domestic and international business.' About BAE Systems BAE Systems is the premier global defence, security and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. With approximately 105,000 employees worldwide, BAE Systems' sales exceeded £18.5 billion (US $34.4 billion) in 2008. For further information please contact: John Neilson, BAE Systems Tel: +44 (0)1252 384795 Mob: +44 (0)780 2 337704 john.neilson@baesystems.com
Lindsay Walls, BAE Systems Tel: + 44 (0) 1252 383074 Mob: 44 (0) 7793 427582 lindsay.walls@baesystems.com Issued by: BAE Systems, Farnborough, Hampshire GU14 6YU, UK Tel: +44 (0) 1252 384710 Fax: +44 (0) 1252 383947 24hr media hotline: + 44 (0) 7801 717739 www.baesystems.com

DTN News: General Dynamics Awarded $13 Million By U.S. Army To Produce MK19 Grenade Machine Guns

DTN News: General Dynamics Awarded $13 Million By U.S. Army To Produce MK19 Grenade Machine Guns *Source: DTN News / General Dynamics (NSI News Source Info) CHARLOTTE, N.C. - November 2, 2009: General Dynamics Armament and Technical Products has been awarded a $13 million order by U.S. Army TACOM-ARDEC for the production of MK19 grenade machine guns. Deliveries are expected to begin in June 2010 and will be completed by late 2011. The order was made under a contract initially awarded in September 2008, and brings the total contract value to date to approximately $81 million. General Dynamics Armament and Technical Products is a business unit of General Dynamics (NYSE: GD).The MK19 Mod3 40mm Grenade Machine Gun was first developed by the Navy in the early 1960's. TACOM-ARDEC has since suggested modifications to this system which has enabled the Army to deploy the MK19 in the harsh environments encountered during world-wide operations and has therefore enhanced its performance. The MK19 firing rate is over 350 grenades per minute and it is effective to ranges of over 2200 meters. The system was deployed in Southwest Asia during Operation Desert Storm and devastated enemy infantry. According to General Dynamics Armament and Technical Products gun systems program manager, Jeffrey Gramse, “The MK19 has been in service for over 20 years, providing lethal fire against a variety of targets. The weapon’s accuracy and versatility provides the U.S. Armed Forces options for use in both offensive and defensive operations.” Production work will be performed at General Dynamics Armament and Technical Products’ Saco, Maine, facility using its existing workforce. Program management will be performed in Saco with support from the company’s Burlington, Vt.-based Technology Center. The General Dynamics facility in Saco is the company's production site for single- and multi-barrel aircraft and crew-served weapon systems. The site provides complete production capabilities, from design and development to manufacturing, testing and integration. General Dynamics, headquartered in Falls Church, Va., employs approximately 92,300 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about General Dynamics is available online at www.generaldynamics.com.

DTN News: Former U.S. President George Bush Backs India's Nuclear Role In Last Week Visit To New Delhi

DTN News: Former U.S. President George Bush Backs India's Nuclear Role In Last Week Visit To New Delhi *Source: DTN News / Int'l Media (NSI News Source Info) NEW DELHI, India - November 2, 2009: Former U.S. President George Bush said Oct. 31 that the Indo-U.S. nuclear civil cooperation agreement is "India's passport to the world." Former U.S. President George W. Bush delivers a speech Oct. 31 during a leadership summit in New Delhi. Speaking in New Delhi as chief guest at the Hindustan Times Leadership Summit, Bush said, "[By signing the deal] the U.S. recognized India's nuclear weapons program. "It is India's passport to the world, a sign that India has taken its rightful place as a great nation on the global stage." Bush's statement comes as the Obama administration wants India to sign the Nuclear Non-Proliferation Treaty, a senior official of the Indian Foreign Ministry said. The Indo-U.S. civil nuclear cooperation deal was finally concluded between Bush and Prime Minister Dr. Manmohan Singh shortly before Bush's term ended. The countries agreed to the framework of the accord in 2005, and it went through a politically arduous route in India before it was passed in 2008. In the process, India's Communist Party pulled support to Singh's government, which barely survived a vote of confidence. To resounding applause, Bush also said he wants a seat for India at the United Nations Security Council. On Afghanistan, Bush warned that Afghanistan should not be allowed to go back in the hands of Taliban and the al-Qaida, otherwise "the world would face serious threats," he said. "If the Taliban, al-Qaida and their extremist allies were allowed to take over Afghanistan again, they would have a safe haven and the Afghan people, particularly the Afghan women, would face a return to a brutal tyranny," Bush said.

DTN News: Indian Navy Mulls Induction Of 5 Midget Submarines

DTN News: Indian Navy Mulls Induction Of 5 Midget Submarines *Source: DTN News / Int'l Media (NSI News Source Info) NEW DELHI, India - November 2, 2009: The Indian Navy is mulling the procurement and induction of five midget submarines into its force in a bid to bolster its underwater capabilities, Defense Ministry sources said on Sunday. "The plans to procure the midget submarines, which weigh less than 150 tons, came in the aftermath of the Mumbai terror attacks last November, in which the militants used sea route to enter India. The vessels will be inducted into the Marine Commandos force to carry out surveillance as well as attack operations," the sources said. The Indian Navy currently maintains a fleet of diesel-electric submarines. India signed a deal for six Scorpene submarines which will join the Indian Navy from 2012 onwards. The country's indigenously designed and built nuclear-powered submarines of the Arihant class are expected to be commissioned starting in 2011. India is purchasing from Russia the Kiev class aircraft carrier Admiral Gorshkov which will be delivered to India by 2012. The force is also negotiating with Russia for the acquisition of further Advanced Talwar class frigates, and six conventional submarines. India is also said to have paid two billion U.S. dollars for the completion of two Akula II class submarines. Three hundred Indian Navy personnel are being trained in Russia for the operation of these submarines. India has finalized a deal with Russia, in which at the end of the lease of these submarines, it has an option to buy them.

DTN News: Afghanistan TODAY November 1, 2009 ~ How U.S. President Barack Obama's Afghan Strategy Is Shaping Up

DTN News: Afghanistan TODAY November 1, 2009 ~ How U.S. President Barack Obama's Afghan Strategy Is Shaping Up *Source: DTN News / Int'l Media (NSI News Source Info) WASHINGTON, DC /KABUL, Afghanistan - November 1, 2009: U.S. President Barack Obama's advisers appear to be laying the ground for a hybrid war strategy combining both counterinsurgency with counterterrorism in Afghanistan that would entail a troop increase next year.Two men pull a carriage down a street in the old city of Kabul on November 1, 2009. Abdullah announced on November 1 that he was pulling out of this week's run-off presidential election in Afghanistan.'The decision which I am going to announce was not an easy one. It was a decision that I have taken after wide-ranging consultations, with the people of Afghanistan, my supporters and influential leaders,' Abdullah told supporters.'In protest against the misconduct of the government and the Independent Election Commission (IEC), I will not participate in the election,' he added. The biggest question, officials say, is how many more troops and trainers Obama will decide to deploy. STRATEGY Support within the administration is growing for continuing a counterinsurgency strategy with a greater focus on protecting major Afghan population centers. Counterinsurgency advocates include Defense Secretary Robert Gates and military leaders, including General Stanley McChrystal, commander of U.S. and NATO forces in Afghanistan. An Afghan policeman searches a man on a street in Kandahar on November 1, 2009. Challenger Abdullah Abdullah on November 1 pulled out of Afghanistan's run-off election, plunging the war-torn country into fresh political chaos less than a week before the scheduled contest. After President Hamid Karzai snubbed a series of demands promoted as a bid to avoid a repeat of massive first-round fraud, Abdullah said he saw no point in standing in the second round, but stopped short of calling for a boycott. Officials said this strategy could be combined with a stepped up counterterrorism campaign, advocated by Vice President Joe Biden, using unmanned aerial drones and special operations forces to combat Taliban and al Qaeda fighters in the Afghan countryside and near the border with Pakistan. TROOPS Officials say Obama has ruled out a troop reduction and will, at a minimum, need to send large numbers of military trainers to Afghanistan if he hopes to accelerate the expansion of the Afghan army, a top priority for his Democratic allies in Congress. McChrystal has recommended deploying an additional 40,000 troops next year, a figure that includes trainers. Another option, and one that may be more politically palatable for Obama and his allies, would add about 10,000 to 15,000 troops, a large portion of whom would be dedicated to training. But officials said Obama may opt for a number in between 15,000 and 40,000. Military commanders and lawmakers have said discussions were focused on sending two additional brigades, totaling between 10,000 to 15,000 troops, to southern Afghanistan, a key Taliban stronghold. Another brigade also may be added in eastern Afghanistan near the border with Pakistan. Brigades range in size but generally include 3,500 to 4,000 troops. They can swell to over 5,000 troops if other units are attached to them. Marine brigades can be larger. Currently, there are about 67,000 U.S. troops and 42,000 allied forces in Afghanistan. TALIBAN U.S. intelligence agencies believe the Taliban-led insurgency includes an estimated 25,000 full-time fighters, up from 7,000 in 2006. That would suggest that international troops currently outnumber insurgents 4-to-1. The Afghan army has about 100,000 troops. A U.S. troop increase could give Western forces a greater numerical advantage, provided Taliban growth slows. But U.S. officials and experts said such comparisons were suspect in guerrilla warfare since the Taliban mainly operate in small units using hit-and-run tactics.

DTN News: A380 Still A Big Headache For Airbus

DTN News: A380 Still A Big Headache For Airbus ~Analysis by: GLG Expert Contributor ~Analysis of: Airbus may delay A380 deliveries ~Published at: www.reuters.com *Source: DTN News / Int'l Media (NSI News Source Info) WASHINGTON, USA - November 1, 2009: Analyses are solely the work of the authors and have not been edited or endorsed by GLG. Summary There’s no question that the A380 is an engineering feat. However, its market prospects have been diminishing all the time, and the concerns at Airbus continue to grow, particularly financially. Analysis The A380 has had a challenging 2009. 2010 looks just a difficult, if not worse. With over half the backlog from over half the customer base deferring deliveries against a backdrop of devastating traffic and yield evaporation, it is of little surprise that Lufthansa is now going to push back its A380 deliveries. This lands Airbus with an almighty headache as to what its FY10 output should be on the big, unloved quadjet.Aside from the traffic issues and the reality that no A380 can break-even at 65% (as Airbus would have some believe), getting credit to pay for the big airplane has proved equally difficult. Critics have been quick to predict production rate cuts on the Boeing 737, ranging from a single unit adjustment to ridiculous “analyses” of 40% or more being lopped off of current rates. Of course that hasn’t happened, largely because the double-booked slots have meant where one customer defers, another is waiting in the wings to take up an earlier delivery position. The same rings true on the A320 lines in Toulouse and Hamburg too. In contrast, Boeing’s low rate, coupled with the (relative) ease of finance for a sub-$90m airplane is far simpler to arrange in contrast to an A380 (not least because of the variable discounting Airbus provided to entice orders in the first place). The engineering challenges have also hampered Airbus’ ability to stabilise production. Based on the original plan, Airbus had hoped to produce 45 A380s by 2010. In a way, the deferrals have certainly aided longevity into the A380 because had Airbus managed to get to that goal, the backlog would have been completed in a record five years or so. As it is, deferrals have added significant costs to that longevity. Battling with wiring redesigns, cabin customisation costs through lack of standardised features alongside performance enhancements and tackling the additional several ton weight excess has proved more costly than envisaged. The business proposition for the A380 was never a good one when the idea was first drummed up in the mid-1990’s. It’s even worse today. There is a low prospect of break-even (some bizarrely suggest), no chance of profitability and now lacks new orders while entering its third year without a new customer. Boeing’s 747-8 family hasn’t had much luck either, but thus far aside from one VIP cancellation, the program has not seen wide-scale deferrals, despite 78 of the firm orders being for the 747-8F in a freight market that is worse than passenger traffic. Of course, it’s very easy to shout out about cancelling the 747-8 program just because it’s entered a forward loss position when the A380 has been sat in that quagmire since day one! The financial drain across EADS is also a big concern. Significant cost overruns on the A330MRTT and A400M, a multi-billion dollar black hole in the A350XWB and penalty payments to consider for a range of delays across the EADS businesses – the pressure next year will be to maintain delivery rates and thereby maintain revenue. The A320 production rate is all but a certainty to come down next near from its current inflated rates – big customers like AirAsia seem to be deferring swathes of airplanes every few months and that trend will continue until a rebound occurs. The A330 too is on a knife-edge despite its brief sales surge in the wake of the 787 delays. Critically, Airbus has adjusted rates four times in 2009. What does that tell you about the business proposition of this airplane? It certainly puts the delays of the 787 into a bit of perspective when that is the much sought-after airplane, not the A380. From a planned 18 deliveries at the start of 2009, it now concedes that “one or two” will slip into next year. Only seven deliveries have been made in ten months thus far this year. If Airbus delivers just twelve units next year it will be nothing short of a miracle. 2010 is the year of pain, waiting to hit airlines, passengers and airplane manufacturers. Credit will be hard to come by, passenger traffic will continue to wane and oil price volatility will continue to erode the business model of every customer that has signed the dotted line for the inflexibility of the A380. Further deferrals of the A380 are probably more of a certainty than deliveries are for next year and that has to be of paramount concern – because its upon delivery when money changes hands and EADS/Airbus need every centime they can get a hold of to plug the financial hole that is getting bigger, not smaller.