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A BRIEF ACCOUNT OF THE PERUVIAN MoD

The Peruvian Ministry of Defence (Ministerio de Defensa) is comprised of the following military branches:

  • Peruvian Army (Ejército del Perú)
  • Peruvian Navy (Marina de Guerra del Perú)
  • Peruvian Air Force (Fuerza Aérea del Perú)

Peru faces a number of internal and external concerns which drive its defence budget such as ageing equipment, threats from the Shining Path guerrilla group, narco-terrorists, drugs, weapons, and human traffickers, international peacekeeping missions, natural disaster assistance (humanitarian aid), and tense relations with its neighbours, Chile for example. Future purchases will more than likely be made on multi-role, training, and transport aircraft, frigates, and main battle tanks. For fiscal year 2018, the defence sector will see a budget allocation of more than $2.300 million, an increase from 2017.

MILITARY EXPENDITURE (% OF GDP)

PERUVIAN MILITARY SPENDING (IN US DOLLARS)

Modernizing equipment and acquiring new and used equipment is high on Peru’s defence agenda despite procurement hiccups. An example of this is the acquisition of SIGINT equipment for two Fokker 50 aircraft (previously belonging to the Royal Netherlands Air Force), which fell through due to compliance issues involving documentation to be submitted by bidders. The government is looking to spend around $24.9 million and has asked interested companies to submit their proposals by December 26, 2017.

 

The Peruvian Navy plays an important role in the Pacific Ocean, which is why the Peruvian Coast Guard recently selected the Israeli-made Typhoon Mk-30c gun from Rafael Advanced Defense Systems for it Rio Pativilca class. The Typhoon Mk-30c is equipped with a 30mm Mk44 with a firing rate of up to 200 rounds per minute. With its multi-mission capability, the gun can be used against drone threats and can operate over a 24-hour period in surveillance mode.

ARMS EXPORTS TO PERU – 2014-2016 (in $ million)

COUNTRIES EXPORTING TO PERU – 2014-2016 (in $ million)  

Written by Sylvia Caravotas (Satovarac Consulting) for OIDA

TECNAM – RELIABLE GENERAL AVIATION WITH STURDY ROOTS

Tecnam, based in Capua, Italy, is the world’s second-largest General Aviation aircraft manufacturer and has been in business since 1948 offering more than 33 models and variants of single and twin engine, and Light Sport Aircraft (LSA). The company is well known worldwide and recently announced that they are establishing a corporate subsidiary in Australia. In March 2017, Tecnam lost their founder, president, chief preliminary design officer, and indeed an aviation pioneer Luigi “Gino” Pascale, at the age of 93.

The two-seater Tecnam P92 has been the company’s most popular design with more than 2,500 taking to the skies worldwide. In the first three quarters of 2017, Tecnam shipped 132 aircraft worth $31.5 million, with light sport models and the P2006T being the popular choice. In October and November 2017, Tecnam U.S. completed delivery of three out of 30 P2006T twin-engine aircraft with Special Mission Platform (SMP) configuration. The aircraft are part of an order (24 month delivery contract) for a geospatial data acquisition company that is modernizing its fleet. There is an option for 24 additional P2006T (SMP) following delivery of the first 30. Tecnam CEO Paolo Pascale, stated that the P2006T is the right platform to bring geospatial data sensing up to date.

The P2006T is also assisting NASA in an experimental electric plane concept – the X-57. The X-57 is a modified P2006T powered by an electric propulsion system. An existing aircraft design is used so that data from the baseline model, powered by traditional combustion engines, can be compared to data produced by the same model powered by electric propulsion. NASA engineers are then able to measure precisely the increase in efficiency through the electric system.

In April 2017, Tecnam announced upgrades to three of its aircraft – the P2010, P2006T Twin, and P2002 Sierra. The P2010 will now come with a Lycoming IO-390 engine and a VP prop as well as Automated Dependent Surveillance-Broadcast (ADS-B) Out and the G1000 Nxi flight deck (optional). As of 2015, only ADS-B Out is mandated by the FAA, which states that all aircraft operating in designated airspace must be equipped with ADS-B Out by January 1, 2020. The P2006T twin, the company’s top-selling aircraft, now comes with the Garmin G1000 Nxi next-generation flight deck, ADS-B Out, and a new seat design. The latest version of the P2002 LSA will feature the Rotax 915 iS/iSC 135-HP engine, which offers full take-off power of up to at least 15,000 feet and a service ceiling of 23,000 feet.

Other deliveries on the cards are the Tecnam P2010 for the Government Flying Training School (GFTS) in Jakkur, Bangalore, India, which is set to arrive in mid-January 2018. The P2010 is a four-seat, single engine light aircraft of mixed metal and carbon-fibre construction with a range of 600 nautical miles and a cruising speed of around 250km/h. In September 2017, Cape Air, based in Massachusetts, U.S., and Tecnam announced an agreement for the delivery of the first 20 out of an order of 100 P2012 Traveller aircraft. The P2012 Travellers are expected to enter service in early 2019 and will replace the Cessna 402. The P2012 Traveller was Luigi Pascale’s final design.

 

 

 

Written by Sylvia Caravotas (Satovarac Consulting) for OIDA

 

AIRBUS RESCUES THE C SERIES

October was an interesting month for Canadian C Series manufacturer Bombardier, when it announced that European company Airbus is set to acquire a 50.01% interest in the C Series Aircraft Limited Partnership (CSALP) with no upfront cash investment. Bombardier will own 31% and Investissement Québec (IQ) approximately 19%. The C Series is a single-aisle aircraft designed for the 100 to 150-seat market segment. The agreement will see Airbus supporting the C Series with sales and marketing support, managing procurement (such as leading negotiations to improve CSALP level supplier agreements), and offering customer support.

The Boards of Directors of Airbus and Bombardier have approved the transaction together with the Government of Québec. Like any transaction of this kind, it is subject to regulatory approvals and conditions with no guarantees that the transaction will be completed and the conditions will be met. The transaction (expected to be finalized in the second half of 2018) is a lifeline for the C Series, which has been plagued with a number of issues such as delays and cost overruns.

Airbus has an extensive global reach and it should come as no surprise that this partnership will stimulate confidence in the C Series. At the Dubai Airshow this month, EgyptAir signed a letter of intent to purchase up to 24 CS300 aircraft – 12 CS300 with purchase rights for an additional 12 aircraft, which if exercised could see a deal valued at US$2.2 billion. According to various media sources, earlier this month Bombardier stated that an unidentified European customer planned to purchase 31 C Series aircraft with options for an additional 30. With Bombardier failing to close on a major deal since Delta Airlines C Series order in April 2016, these two new potential deals foretell a positive turnaround.

The C Series has had a rough ride in the U.S. due to Boeing’s trade complaint, which has resulted in a 300 per cent import duty tariff. Bombardier’s decision to hand over control of the C Series to Airbus is a smart move and a financial respite. Québec’s Deputy Prime Minister, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy, Dominique Anglade, stated that the arrival of Airbus as a strategic partner would ensure the sustainability and growth of the C Series programme.

Those in the aviation industry and analysts alike are watching closely as to what move competitor Boeing will make. Boeing’s, (the largest aerospace company in the world), attempt to block the C Series from the U.S. market may have been a misstep. The tables could turn with the Airbus deal ultimately damaging Boeing in the long run especially if the C Series is assembled within U.S. borders in Alabama. Analysts predict that the deal could prompt Boeing to form a stronger alliance with Brazilian aerospace company Embraer.

 

Written by Sylvia Caravotas (Satovarac Consulting) for OIDA

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