Aerospace & Defense News - Defense Europe.

New York, Geneva (AirGuideBusiness - Aerospace & Defense News - Defense Europe) Feb 19, 2012

EADS EADS chief plans streamlining effort to save $462M. By unifying procurement, personnel and other functions, EADS CEO Louis Gallois expects to save $462 million this year, he said in a recent interview. Gallois, who plans to step down in May and hand the reins to Airbus chief Tom Enders, also said the company should consider launching an aircraft plant in the U.S. Feb 13, 2012

Lockheed Martin Italy Slashes Lockheed Martin F-35 Order in Defense Shakeup. Italy will reduce its planned order for Lockheed Martin F-35 fighter jets by about 40 and trim the size of the military as part of a program to reduce defense spending, Defense Minister Giampaolo Di Paola said today. Italy will purchase 90 F-35s rather than the planned 131, Di Paola said in Rome before a joint defense committee of both houses of parliament. The nation will also slash military manpower by about 30,000 soldiers and 10,000 civilians, he said. The cuts come amid a drive by Prime Minister Mario Monti to tame ItalyOs public finances after contagion from the sovereign debt crisis drove borrowing costs to record highs, and are a blow for the F-35, the worldOs costliest defense project. The Pentagon will cut $1.6 billion from the program, canceling 13 jets next year, under proposals sent to Congress Feb. 13, while customers including Australia are reviewing their requirements. OItalyOs decision wonOt have a huge impact on the program, but itOs probably symptomatic of lower F-35 sales overall,O said Paul Brant, a defense analyst at Collins Stewart in London, who predicts that production may drop by 15 percent. OI imagine most nations will bring down their numbers. The U.S. will probably cut the total it orders by about 500 from the original 2,400.O Delays The Pentagon is the largest customer for the F-35, which is five years late and will cost an estimated $382 billion for development and purchases. Three variants are being built: a conventional fighter, one to operate from aircraft carriers, and another capable of short takeoffs and vertical landings. Before today, Lockheed also had about 700 orders from eight partner nations, the U.K., Australia, Italy, the Netherlands, Turkey, Norway, Denmark and Canada. Israel and Singapore also have a lower-level involvement in the plane. The plane won its first competitive tender, from Japan, in December, overcoming the Boeing Co. (BA) F-18 Super...

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