New F-35 Fighter Jet Designs Nearly Stolen by China National

 

New F-35 Fighter Jet Designs Nearly Stolen by China National

The Chinese regime nearly got its hands on new designs for America’s latest fighter jet. New designs that could cut costs in producing the F-35 advanced fighter jet were found in the luggage of a Chinese national who was traveling from New York to China. Read more of this post

Fake Chinese parts in US-made arms leave India at risk

New York: India, a big buyer of American arms, is understandably concerned by a key US senate committee report that finds vast numbers of counterfeit Chinese electronic parts are being used in US military equipment. Where does it leave India if suspect parts have crept into US-built aircrafts and missiles it has bought or put on its shopping list? The failure of a single electronic component could put an Indian airman or soldier at risk.

Over a 14-month investigation, the Senate committee’s investigative staff amassed a database with 1,800 cases of counterfeiting involving about 1 million parts. It found that 70 percent of the suspect parts were traced to fly-by-night, unscrupulous Chinese companies who supplied electronics and other computer chips to large US defence manufacturers.

Picture courtesy Boeing
India will acquire ten C-17 Globemaster-III aircrafts from Boeing for $4.1 billion, which will be delivered in 2013.

Defence Minister AK Antony told the Rajya Sabha in a written reply on Wednesday that India was verifying if “faulty spare parts made in China” were used in defence equipment being sold by the US to India.

“There have been media reports in this regard, which are being verified,” Antony said this week.

According to Bloomberg, the US Air Force had in January this year suspended a company called Hong Dark Electronic Trade Co., in Shenzhen (in southern China), from supplying parts to US contractors after it supplied about 84,000 fake components to a middleman, who then sold the suspect electronic parts to Boeing, Lockheed Martin, Raytheon, L-3 Communications, among others.

Bloomberg quoted Air Force Deputy General Counsel Steven Shaw’s memo saying; œMany of the 84,000 electronic parts from Hong Dark have been installed on aircraft such the C-17 transport and helicopters such as the AH-64 Apache and CH-46.”

Given Shaw’s memo, India should double-check what it is paying for when it receives new aircraft. The first of the 10 Boeing C-17 Globemaster III aircraft ordered last year will be delivered to the Indian Air Force in June next year. India is forking over $4.1 billion (Rs 22,960 crore) to buy the US Air Force’s workhorse used extensively in Iraq and Afghanistan, making it the largest defence contract to have been signed by the two governments.

Antony listed some of the other US military equipment India had bought in the last five years. Last year, India purchased an amphibious transport vessel, the USS Trenton (re-christened INS Jalashwa), for nearly $50 million with six-UH-3H helicopters to operate alongside, costing another $49 million.

It also bought Harpoon anti-submarine missiles under a package worth $200 million, and long-range acoustic devices, modern hull penetrating periscopes, side scan sonar, C-130J transport aircraft, sensor-fused weapons, P-8I long range maritime reconnaissance aircraft and quick reaction team boats from the US.

One reason India is beefing up its arsenal is China, which has been expanding its military and modernising its equipment at a tear. This has triggered a simultaneous build-up of advanced weaponry in the Asia-Pacific region on a scale and at a speed not seen since the Cold War arms race between America and the Soviet Union.

India has purchased some $12.7 billion in arms, 80 percent of them from Russia, during 2007-2011, according to the Stockholm International Peace Research Institute (SIPRI). India and the US want to eventually move beyond a seller-buyer relationship to substantial co-production and eventually, high-technology joint research and development of weapons.

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Original Post: http://www.firstpost.com/world/fake-chinese-parts-in-made-in-usa-arms-leave-india-at-risk-414524.html

Boeing Posts $1.56 Billion Loss

The Wall Street Journal

By JOAN E. SOLSMAN

Boeing Co. swung to a third-quarter loss on $3.5 billion of previously disclosed charges caused by the delay-plagued programs for the 747-8 Freighter and the 787 Dreamliner.

The commercial-aircraft manufacturer and defense contractor lowered its forecast for 2009 earnings to between $1.35 and 1.55 a share, down more than $4 from its July forecast. The Chicago-based company stuck with its outlook of $68 billion to $69 billion in revenue for the year.

Monday, rival Lockheed Martin Corp. posted a slight increase in profit but gave a grim view of next year because of belt-tightening at the U.S. Defense Department.

Boeing, which is the nation’s No. 2 government defense contractor, behind Lockheed, has leaned on strength in that business to offset weakness from commercial aircraft as airlines have put purchases on hold as they reduce capacity. Boeing also has tarnished its reputation with delays to both its Dreamliner and 747-8 programs, which resulted in the charges in the most recent period. Boeing last week reiterated that the Dreamliner is set to take its first flight by year-end.

Boeing didn’t say Wednesday that the Dreamliner has moved into a so-called forward-loss position, essentially meaning it is unprofitable, unlike the 747 program.

Chief Executive Jim McNerney said the company looks forward to getting the 747-8 in the air soon.

“The 787 cost reclassification and the 747 charge for increased costs and difficult market conditions clearly overshadowed what continues to be otherwise solid performance across our commercial production programs and defense business,” Mr. McNerney said in a prepared statement.

Boeing posted a loss of $1.56 billion, or $2.23 a share, compared with a year-earlier profit of $695 million, or 96 cents a share. The combined $3.5 billion in charges on the 747 and Dreamliner, the most Boeing has recorded in a single quarter, amounted to $3.59 a share.

Revenue increased 9.1% to $16.69 billion. A machinists strike damped revenue in the year-earlier period.

The commercial-aircraft segment swung to a loss. Sales rose 13% as higher deliveries offset lower services volume. Boeing received 96 gross orders for commercial planes, though 17 others were rescinded. Backlog fell 8% to $254 billion.

Defense-business revenue rose 3% as earnings increased 4%.

Write to Joan E. Solsman at joan.solsman@dowjones.com

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