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The Aerospace Industries Association has urged the Trump administration to continue policy changes that will speed up the acquisition process. In a letter to the Office of Management and Budget, AIA highlights the need to streamline requirements for submitting cost and pricing data and to revise the framework for allowable costs. "We think that they've done some really, really great things in there. But again, this is a really rare opportunity to attack some of those requirements that are most burdensome," said AIA's Margaret Boatner.
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Global military spending reached a record-setting $2.7 trillion last year, driven by conflicts such as Russia's invasion of Ukraine and the war in Gaza. European defense spending rose 17%, while Middle Eastern nations increased spending by 15%, with US firms dominating sales. China's arms revenue declined due to corruption allegations.
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AeroVironment will provide drones and counter-drone systems for international buyers under terms of an $874 million US Army contract. Allies and partner forces will be able to purchase Group 1-3 drones, anti-drone systems, training, and logistics support through Program Executive Office Aviation under the Foreign Military Sales program. AeroVironment Vice President of International Business Development Justin McFarlin touts the company's "battle-proven" systems.
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The Air Force has awarded a $100 million contract to Northrop Grumman for the Stand-In Attack Weapon and Advanced Anti-Radiation Guided Missile-Extended Range programs. The contract includes design, engineering, research and testing through 2034.
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GKN Aerospace, Anduril Industries and Archer Aviation have formed a partnership to develop military drones for the UK armed forces, targeting the Land Autonomous Collaborative Platform and Project NYX contracts. GKN will lead structural design and integration, Anduril will contribute defense technologies, and Archer will provide expertise in electric vertical takeoff and landing aircraft and hybrid propulsion. The collaboration could create 100-plus jobs at GKN's Cowes site.
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General Dynamics is enhancing tech development through collaboration, with General Dynamics Information Technology opening the Mission Emerge Center near Fort Belvoir, Va., to work with other companies on military technology. General Dynamics Land Systems has joined the Detroit co-working space Newlab to engage with startups and investors to address challenges faced by ground troops.
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Airbus CEO Guillaume Faury touts the potential of blended-wing body aircraft, resembling the B-2 bomber for future commercial aircraft. This design could improve fuel efficiency and capacity, but it might require eliminating windows, raising concerns about passenger comfort and emergency evacuations. Airbus has been exploring this concept as part of its ZEROe initiative.
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The International Air Transport Association reports that aircraft availability continues to be a significant constraint for industry growth despite a pickup in new aircraft deliveries. The 17,000 aircraft order backlog represents 12 years of current production capacity. IATA estimates that supply chain bottlenecks will cost the airline industry more than $11 billion this year, driven by excess fuel costs, additional maintenance, increased engine leasing and surplus inventory holding costs.
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