Contents:

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS Study Reliability and Reporting Limitations I-1 Disclaimers I-2 Data Interpretation & Reporting Level I-2 Quantitative Techniques & Analytics I-3 Product Definitions and Scope of Study I-3 Industrial Sectors I-3 Definitions I-4 Aircraft Products & Services I-4 Airframe I-4 Aircraft Engine I-4 Aircraft Components I-4 Commercial Avionics I-5 Military Avionics I-5 In-flight Entertainment I-5 MRO I-5 Missiles I-5 Air-to-Air Missile I-5 Air-to-Surface Missile I-5 Air Defense Missile I-5 Surface-to-Surface I-5 Antiship I-5 Antitank I-6 Bombs (Guided) I-6 Intelligent Munitions I-6 Others I-6 Modeling, Simulation and Training I-6 CBT & E-Learning I-6 Military Training & Simulation I-6 Commercial & Military Visual Simulation I-6 Commercial & Military Flight Simulation I-6 C4ISR & Related I-6 Unmanned Aerial Vehicle I-6 Electronic Warfare I-7 Mine Countermeasures I-7 Naval Radar and Sonar I-7 Chemical & Biological Agent Detectors I-7 Infrared Imaging Systems and Components I-7 Military Ground Communications I-7 Land-Based Surveillance Radar I-7 Others I-7 Space Equipment I-7 Launch Vehicles I-7 Communications Satellites I-7 Earth Observation Satellites I-8 GPS (Geotechnologies) I-8 Commercial Satellite Imaging I-8 Commercial Aerial Imaging I-8 GIS Software. I-8 Commercial SAR Data I-8 Commercial SAR Software I-8 II. Executive Summary 1. Industry Overview & Outlook II-1 Market Snapshots II-1 Commercial Aerospace II-1 Freighter II-2 Defense II-2 Strategic Trends: 2007-2008 II-3 Current Scenario: Tough Times Ahead? II-3 Challenges & Opportunities II-3 Changes in Effect II-3 Cost Management II-3 Air Traffic Growth II-3 Industry Witnesses Heavy Flow of Orders II-4 Uncertainty in Global Economy II-4 Single-Aisles to Account for Majority of Future Deliveries II-4 Table 1: Global Aviation Market (2007): Number of Passenger Aircraft in Service by Type for Single-Aisle, Regional Jets, Twin-Aisle and 747 & Larger (includes corresponding Graph/Chart) II-5 Industry Witnesses Renewed M&A Activity II-5 Emerging Economies Propel Market Expansion II-5 Developing Markets to Drive Demand for MRO II-5 Satellite Services to Expand in Business Jet and Commercial Aircraft Markets II-6 Market for Copters to Remain Robust II-6 Outsourcing - Emerging Growth Driver II-6 Market for Business Jet Engines to Remain Firm II-7 Global Airlines Show Robust Performance II-7 The Asian Influence II-7 US-EU Open Skies Agreement - Towards an Unfettered Aviation Industry II-8 US Enjoys Undisputed Dominance in World UAV Market II-8 Market for Air-to-Air Missiles to Expand II-8 Efficient Military Simulation Displays to Extend Great Advantage II-9 Joint Military Exercises Propel Simulation and Training Markets II-9 Strong Demand Counters Rise in Fuel Prices II-9 Raw Material Shortage Grips Aerospace Industry II-10 Environmental Concerns: Top Priority II-10 Initiatives by Airlines to Counter Global Warming II-10 Industry Structure II-11 Global Aerospace & Defense Industry Structure II-12 Military Aircraft II-12 Civil Avionics II-12 Maintenance, Repair and Overhaul II-13 Jet Engines II-13 Competitive Scenario II-13 Commercial Aircraft II-13 Table 2: Global Large Commercial Aircraft Market (2008-2011): Deliveries by Company for Boeing and Airbus (includes corresponding Graph/Chart) II-13 A Comparison Between Two Giants of the Aerospace and Defense Industry - Boeing & EADS II-14 Airbus Vs Boeing - A Strategic Insight Into The Latest Dispute II-14 Airbus and Boeing- Battle of Skies Spills Over to W.T.O II-14 Implications Of Case II-15 Dispute - At Its Grassroots Level II-15 Can W.T.O Find a Way Out? II-15 Out of Court Settlement - A Possible Alternative? II-16 Business Jet Market II-16 Table 3: Leading Players in the Global Business Aircraft Market (2007): Percentage Breakdown of Delivery Value for Bombardier, Gulfstream, Cessna, Dassault, Hawker, Embraer and Others (includes corresponding Graph/Chart) II-16 Table 4: Leading Manufacturers in the Global Business Jets Market (2005): Percentage Breakdown of Unit Deliveries for Cessna (Textron), Bombardier, Raytheon, Gulfstream, Dassault, Embraer, Boeing and Others (includes corresponding Graph/Chart) II-17 Military Aircraft Market II-17 Table 5: Leading Players in the Global Fighter Jets Market (2008E): Percentage Breakdown of Number of Aircraft for Lockheed Martin, Eurofighter, Chengdu Aircraft, Boeing, Sukhoi and Others (includes corresponding Graph/Chart) II-17 Table 6: Global Fighter Jets Market (2008E): Production (in Units) for Eurofighter, Boeing, Chengdu Aircraft, Sukhoi and Lockheed Martin (includes corresponding Graph/Chart) II-17 Table 7: Worldwide Active Military Aircraft Fleet (2007): Percentage Breakdown by Mission Type for Rotary Wing-Transport/Utility, Fighter/Attack, Trainer/Light Attack, Transport-Lt/Med, Rotary Wing-Attack, GA/Utility, Special Mission and Others (includes corresponding Graph/Chart) II-18 Table 8: Worldwide Active Military Aircraft Fleet (2007): Percentage Breakdown by Region for North America, Europe, Asia-Pacific, Middle East, Latin America and Africa (includes corresponding Graph/Chart) II-18 Table 9: Worldwide Active Military Aircraft Fleet (2007): Percentage Breakdown by OEM for GE, Rolls Royce, Pratt & Whitney, Honeywell, Turbomeca, and Others (includes corresponding Graph/Chart) II-18 Missiles Market II-19 Table 10: Leading Defense Contractors in the Global Missiles Market (2005 & 2006): Percentage Breakdown of Value Sales for Lockheed Martin, Raytheon, Northrop Grumman, General Dynamics, Motorola, and Others (includes corresponding Graph/Chart) II-19 Table 11: Leading Players in the Global Missiles Market (2006-2010E): Percentage Breakdown of Production Value for Lockheed Martin, Raytheon, EADS, Makeyev, MBDA and Others (includes corresponding Graph/Chart) II-19 Table 12: Leading Players in the Global Missiles Market (2006-2010E): Percentage Breakdown of Production Volume for Raytheon, NORINCO, MBDA, CNPMIEC, Javelin JV, and Others (includes corresponding Graph/Chart) II-20 Helicopter Market II-20 Table 13: Worldwide Commercial Rotorcraft Market (2008-2017): Percentage Breakdown of Unit Production for Robinson, Eurocopter, Bell Helicopter, Sikorsky, Agusta Westland, MD Helicopters, and Others (includes corresponding Graph/Chart) II-20 Table 14: Leading Players in the Global Helicopter Market (2004-2006): Percentage Breakdown of Volume Sales for Eurocopter, Sikorsky, Boeing, Bell, and Others (includes corresponding Graph/Chart) II-21 Space Market II-21 Aerospace and Defense Industry - A Glance into the Recent Past II-21 “9/11” and the Aftermath II-21 Defense Procurements - The Thin Wire of Survival II-21 Aircraft & Engine MRO Sector II-22 2. Global Aviation Industry - A Perspective II-23 Economic Development Influences Aviation Demand II-23 Developing Economies Hold the Key to Future Aviation Market Growth II-23 Urbanization Fuels Aviation Sector Growth II-23 Price - The Key Factor Influencing Air Travel Demand II-24 Table 15: Global Aviation Market (2007): Percentage Breakdown of Airline Traffic for Global Network, Major Network, Small Network, LCC, Charter and Regional & Affiliates (includes corresponding Graph/Chart) II-24 Burgeoning Demand for Air Travel II-24 Table 16: Global Airlines Market by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific, (excluding Japan), Middle East & Africa, and Latin America Markets Independently Analyzed by Passenger Traffic for the Years 2008, 2010 & 2015 in RPKs (Revenue Passenger Kilometers) Billion (includes corresponding Graph/Chart) II-25 Emerging Regions to Gain Increased Share of Global Air Traffic II-25 Liberalization Wave Promises New Horizons for Air Travel Growth II-25 Rising Air Travel Demand Creating New International Routes II-26 Factors Influencing Civil Aerospace Industry II-26 Passenger Jets Market - An Overview II-27 Table 17: Global Aviation Market (2007-2017): Fleet Size by Segment II-27 Table 18: Global Aviation Market (2007): Fleet Size by Region for North America, Europe, Asia-Pacific, Middle East, Latin America, and Africa (includes corresponding Graph/Chart) II-28 Table 19: Global Aviation Market (2007): Fleet Size by Type for Single-Aisle, Twin-Aisle, Regional Jets and 747 & Larger (includes corresponding Graph/Chart) II-28 Table 20: Global Aerospace Market (2000-2005): Aircraft Production by Type - Regional Jets, Commercial Jets, and Business Jets (includes corresponding Graph/Chart) II-28 Regional Jets II-29 Regional Jet Fleet (30-60 Seat Category) II-29 Regional Jet Fleet (61-120 Seat Category) II-29 Global Freighter Aircraft Market II-29 Hi-Tech Exports Fuel Global Air Freight Growth II-30 Dedicated Freighters to Gain More Market Appeal II-30 Number of Freighter Aircraft to Grow Two Times II-30 Table 21: Global Aviation Market (2007): Percentage Breakdown of Passenger and Freighter Aircraft in Service II-30 Table 22: Global Air Cargo Traffic (2000, 2005, 2010 & 2015): Percentage Breakdown of RTKs (Revenue Ton Kilometers) by Segment - Freight and Mail (includes corresponding Graph/Chart) II-31 Table 23: Global Air Cargo Traffic (2007): Percentage Breakdown of FTKs (Freight Ton Kilometers) by Airline Domicile - Non-US Scheduled, US Scheduled, Non-US Charter, US Charter, US Mail and Non-US Mail (includes corresponding Graph/Chart) II-31 Table 24: World Airlines Market by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific, (excluding Japan), Middle East & Africa, and Latin America Markets Independently Analyzed by Freight Traffic for the Years 2008, 2010 & 2015 in FTKs (Freight Ton Kilometers) Billion (includes corresponding Graph/Chart) II-32 3. Industry Trends and Issues II-33 Introduction II-33 Globalization Drives Defense Related Sectors II-33 Spike in Military Expenditure Worldwide II-34 Low Cost Carriers Increase Penetration II-34 Need for Cost Efficiencies Push Airlines into Fleet Modernization II-34 Replacing Old with New: Gaining Momentum II-34 Increasing Conversion of Passenger Aircraft into Freighter Planes II-35 Boeing’s Partners in Physical Conversion of Aged Passenger Aircraft II-36 Joint Design Manufacturing Gaining Ground II-36 Network Development - A Key Part of Airlines Long Term Growth Strategies II-36 Doing Business the Internet Way II-36 Airline Carriers Embrace Business Model Convergence Strategies II-36 “Availability Contracting” Commanding Increased Preference II-37 OEMs Refocus on Core Competencies to Stay Afloat in the Market II-37 Growing International Mobility Boosts Demand for New Aircraft II-37 Market Invasion by New Players in Latin America and Asia II-37 Non-Stop Services Growing in Demand II-38 Lessors Business on Boom II-38 In-Flight Entertainment: Market Poised for a Giant Leap II-38 A Glimpse of Current/Emerging IFE Services II-39 Promising Outlook for Flight/Visual Simulation Sectors II-39 Silence: The Buzz Word II-39 American and European R&D Funding in the Commercial Aircraft Industry II-40 Europe II-40 The United States II-40 Surge in Demand for Avionics Systems II-41 Avionics Market Spurred by New Air Space Corridors II-41 Military Avionics - Glorious Days Yet to be II-41 Military Avionics Market Buoyed by Increasing Air Force Utilization II-42 Commercial-off-the-Shelf Components in Military Aircraft II-42 Insecurity Breeds Demand for Effective Detectors II-42 Cost Factor Hampers Market for Chemical & Biological Agent Detectors II-43 New Avenues for GIS and Satellite Imaging II-43 Global MRO Sector - A Review II-43 Growing Sophistication of Aircraft Systems Augurs Well for MRO Market Growth II-43 Outsourcing Perks Up Independent MRO Segment II-43 Long-Term Outlook for MRO Market Encouraging II-44 Retention of Skillful Workforce - A Major Concern for MRO Industry II-44 Supply Chain Management - A Key Tool II-44 Changing Trends Down the Supply Chain II-45 Table 25: Global Aircraft Leasing Market (2005): Percentage Breakdown of Lease Values by Region - North America, Europe, Asia-Pacific, Latin America, and Others (includes corresponding Graph/Chart) II-45 Lean Enterprise System - Becoming Key Part of Aerospace Supply Chain II-46 Emerging Trends in Training and Simulation Systems II-46 Security Concerns Bolster Market for Electronic Warfare Systems II-46 Global Missiles Market to Grow Steadily II-46 Air-to-Air Missile Sector: Striking it Rich II-47 Space Industry to Witness Growth II-47 Reusable Launch Vehicles Demand Goes Sky High II-47 A Glimpse of RLV Programs in the US II-48 Commercialization of High-Resolution Imagery: Still in its Infancy II-48 Discovery of New Application Areas Bolster Communications Satellite Market II-48 Unmanned Aerial Vehicle - A High Potential Segment II-49 Military Cooperation: A Double-Edged Sword II-49 4. Technological Trends & Issues II-50 Nanotechnology Promises New Horizons for the Aerospace Industry II-50 High-Speed Data Link Communications Systems to Spell Doom for Radars II-50 LiDAR Technology Gaining Wide Acceptance Globally II-50 5. Product Overview II-52 Aircraft Products & Services II-52 Airframe II-52 Aircraft Engine II-52 Aircraft Components II-52 Commercial Avionics II-52 Military Avionics II-52 In-flight Entertainment II-52 MRO II-52 Missiles II-53 Air-to-Air Missile II-53 Air-to-Surface Missile II-53 Air Defense Missile II-53 Surface-to-Surface II-53 Antiship II-53 Antitank II-53 Bombs (Guided) II-53 Intelligent Munitions II-53 Others II-53 Specific Missiles II-53 Air-Launched Surface-attack Guided Missile (AGM) II-53 AGM-154 Joint Standoff Weapon (JSOW) II-54 Airborne Tactical and Defense Missiles II-54 Air-Launched Intercept-Aerial Guided Missile (AIM) II-54 Cluster Bomb Unit (CBU) II-54 Enhanced Guided Bomb Unit (EGBU) II-54 Guided Bomb Units (GBU) II-55 Mark (General Purpose Bomb) II-55 LGM - Silo-Launched Surface Attack Guided Missile II-55 Air-to-Air Booster Cylinder II-56 Tube Launched, Optically Tracked, and Wire Guided (TOW) Missile System II-56 JDAM II-56 Major Technologies in Air-To-Air Missiles Segment II-57 Advanced Propulsion Technology II-57 Ramjet II-57 Solid-Fuel Ramjet II-57 Integral Rocket Ramjet II-57 Ducted Rocket Ramjet II-57 Advanced Guidance/Seeker Technology II-57 Active Radar II-58 Imaging Infrared Focal Plane Array II-58 Command-Inertial Guidance II-58 Dual-Mode Seekers II-58 Other Missile Technologies II-58 Modeling, Simulation and Training II-59 CBT & e-Learning II-59 Military Training & Simulation II-59 Commercial & Military Visual Simulation II-59 Commercial & Military Flight Simulation II-59 Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) & Related Systems II-59 Unmanned Aerial Vehicles II-59 UAV Tier Classification II-60 Video Information Capability Enhancement System (VICE) II-60 Electronic Warfare II-60 Mine Countermeasures II-60 Naval Radar and Sonar II-61 Chemical & Biological Agent Detectors II-61 An Overview of Select Biological Agents II-61 Sensitivity and Selectivity - Key for Agent Detection II-61 Major Biological and Chemical Detectors II-62 Infrared Imaging Systems and Components II-62 Military Ground Communications II-62 Land-Based Surveillance Radar II-62 Others II-62 Space Equipment II-63 Launch Vehicles II-63 Communications Satellites II-63 Earth Observation Satellites II-63 A-to-Z of Satellite II-63 Satellite II-63 Orbit II-63 Low Earth Orbit (LEO) II-63 Medium Earth Orbit (MEO) II-63 Geostationary Earth Orbit (GEO) II-64 Satellite’s Footprint II-64 Burn II-64 The Interior of a Satellite II-64 The Propulsion Subsystem II-64 The Power Subsystem II-64 The Communications Subsystem II-64 The Structures Subsystem II-64 The Thermal Control Subsystem II-64 The Attitude Control Subsystem II-64 The Telemetry and Command Subsystem II-65 Satellite Sector: An Overview of Applications/Services II-65 The Launch of a Satellite II-65 GPS (Geotechnologies) II-66 Commercial Satellite Imaging II-66 Commercial Aerial Imaging II-66 GIS Software II-66 Commercial SAR Data II-66 Commercial SAR Software II-66 Overview of Global Positioning Systems (GPS) II-66 Application Areas II-67 Space-Based Earth Observation Systems II-67 Major Remote Sensing Instruments and Satellites II-68 Satellite Navigation System II-69 The Galileo System II-69 EGNOS - The Precursor for Galileo II-69 Focus on Select Aircraft Types II-70 Commercial Jets II-70 Business Jets II-70 Helicopters II-70 Regional Jets II-70 Aircraft - A Sneak Preview II-71 Commercial/Military Aircraft Models II-72 Aircraft Categories II-73 Military Aircraft II-75 Table 26: Global Military Aircraft Market (2004-2006): Percentage Breakdown of Value Sales by End-Use Application - Fighter Attack, Special Mission, Strategic Airlift, Mobility, and Others (includes corresponding Graph/Chart) II-75 6. Product Innovations/Introductions II-76 Arianespace Launches New Satellites into GTO II-76 BAE Systems to Unveil New Hawk Advanced Jet Trainers II-76 AgustaWestland and Versace Introduce New Interiors for AW139 Helicopters II-76 Alenia Aermacchi Introduces New M-346 Advanced Trainer Aircraft II-76 Arianespace Launches Automated Transfer Vehicle to the International Space Station II-76 Al Yah Satellite Communications Selects Arianespace to Launch Yahsat 1A Satellite II-76 Arianespace to Launch BSAT-3b Satellite II-77 Embraer Introduces New Embraer MLJ and MSJ Executive Jet Programs II-77 Embraer Introduces Phenom 300 Jet II-77 IAI Tamam Unveils New RNAV-IPON II-77 Park Air Launches New DVOR II-78 Sikorsky Launches S-434Ô Commercial Helicopter II-78 Star One Takes Control of C2 Satellite II-78 Thales Delivers Turksat 3A for Launch II-78 BAE to Develop Secure Mobile Communications Network II-78 BAE Systems Develops Immune GPS Receivers II-79 Bell Helicopter to Upgrade 407, 206L, and 412 EP Models II-79 Jet Solutions and Bombardier Flexjet Introduce Challenger 300 and Learjet 40 Aircraft to the Flexjet 25 Fleet II-79 Bombardier Flexjet Launches Challenger 605 Jets II-79 Grob Aerospace to Develop All-Composite Structured Learjet 85 for Bombardier Aerospace II-80 Cessna Aircraft Plans to Expand its Citation Business Jets Line II-80 Dassault Falcon to Launch Falcon 900LX Business Jet II-80 Israel Aerospace Industries Launches New Communication Satellite, AMOS 3 II-80 Eurocopter Unveils New Helicopter, EC175 at Heli-Expo 2008 II-80 ELTA Unveils New PGSR II-81 Raytheon Announces Capability Addition to SL-AMRAAM II-81 Star One Launches Star One C1 II-81 BLS Launches COSMO-SkyMed Spacecraft II-81 SES SIRIUS Launches SIRIUS 4 II-82 Bearing Point Unveils New MRO Workbench Solution II-82 Goodrich Unveils New Generator Brush II-82 Orbital Test Fires Minotaur II Rocket II-82 IAI Unveils New Spy Drone II-82 Bombardier Aerospace Launches Next Generation Line of its CRJ Regional Aircraft II-83 Bombardier Aerospace Introduces New Regional Jet, CRJ1000 II-83 Infoterra Launches TerraSAR-X Satellite II-83 Bombardier Aerospace to Introduce Learjet NXT Aircraft II-83 Dassault Announces the Introduction of the New Falcon 2000LX Aircraft II-83 Boeing Business Jets Launches BBJ-3 II-84 Boeing Launches 737-700ER II-84 Boeing Announces Plans for New SIGINT Aircraft II-84 BBJ Secures Launch Customers for VIP Versions of 747-8 and 787 Dreamliner II-84 Bell Helicopter Introduces Bell 417 II-84 Eurocopter Launches NH90 Helicopter II-85 Goodrich Launches SXI Telescope Mirror Assembly II-85 Honeywell Introduces Integrated Flight Data Management Service II-85 7. Recent Industry Activity II-86 DAE Expands Wide Body Aircraft Portfolio II-86 Government of Italy to Acquire Stake in Finmeccanica II-86 CFIUS Approves DRS Acquisition II-86 ANA to Purchase New Regional Jets II-86 Lockheed Martin to Acquire Eagle Group II-86 Finmeccanica to Take Over DRS Technologies II-86 Rolls-Royce Enters into JV Agreement with GKN Aerospace II-86 Boeing Enters into Agreement with Tata Industries II-87 Pratt & Whitney Signs Contract with Northrop Grumman II-87 Canadian and Russian Companies Enter into Agreement II-87 The Tata Group to Form Alliance with Embraer II-87 Boeing Inks an Agreement with Alenia Aermacchi II-87 Russia and Ukraine to Re-Start Production of Ruslan Aircraft II-87 UGMK Acquires Majority Stake in Aircraft Industries II-88 Halcyon Acquires Majority Stake in A-List Jets II-88 Zodiac to Acquire Driessen Aerospace II-88 TransDigm Acquires CEF Industries II-88 Dynamatic Technologies to Acquire Aerospace Tools Manufacturer II-88 Cavotec Acquires Dabico Group II-88 Butler National Acquires JET Autopilot Product Range II-89 Carlisle to Acquire Carlyle Incorporated II-89 Park Aerospace Structures Acquires Nova Composites II-89 Boeing to Acquire Global Aeronautica II-89 Alcoa Acquires Van Petty and Republic Fastener II-89 AAR Acquires Avborne II-90 Goodrich to Take Over TEAC Aerospace Holdings II-90 Arrow to Acquire ACI Electronics II-90 Boeing to Take Over Insitu II-90 Vector Aerospace International Takes Over DARA Rotary Wing II-91 QinetiQ to Take Over AeroStructures’ Engineering Business II-91 IAHL to Take Over Thrush Aircraft II-91 ATK to Acquire MDA Businesses II-91 Sentient Takes Over The Air Group II-92 BAE Systems Enters into Joint Venture with VT Group II-92 BAE Systems Acquires MTC II-92 BAE to Acquire IST Dynamics II-92 BAE Signs Cooperative Agreement with ESC II-92 BAE Hägglunds Announces Plans to Restructure II-93 BAE Agrees to Divest Flight Systems Business II-93 BAE Announces Plans to Cease Pinzgauer-1 Production II-93 BAE to Acquire Assets from Petards II-93 Ball Aerospace Agrees to Divest Ball Solutions Group II-93 Bell Helicopter Acquires AI’s SkyBOOKS II-94 Goodrich Acquires Skyline II-94 BAE Agrees to Acquire Pitch Technologies II-94 BAE Acquires Armor Holdings II-94 Cessna Acquires CAMC Assets II-94 Gulfstream Aerospace Acquires WECO Aerospace Systems II-95 Honeywell Enters into an Agreement to Acquire Dimensions International II-95 Lockheed Martin to Take Over PercepTek II-95 Lockheed Martin Acquires RLM Systems’ Defense and Intelligence Business II-95 Northrop Grumman Takes Over Scaled Composites II-95 Northrop Grumman Acquires Essex Corporation II-96 Raytheon Sells Aircraft Subsidiary to Hawker Beechcraft II-96 Boeing Inks Co-Operative Agreement with United Aircraft II-96 Sikorsky Aircraft Acquires PZL Mielec II-96 Boeing Forms an Alliance with Lockheed Martin II-96 Alenia Aeronautica and Sukhoi Establishes New JV Company II-96 AAR Takes Over Brown International II-97 AAR Takes Over Reebaire II-97 Radyne Acquires AeroAstro II-97 Metalmark Acquires Hunter Defense Technologies II-98 GKN Acquires TAMG Operations from Teleflex II-98 Ametek Acquires Advanced Industries and B&S Aircraft II-98 J.F. Lehman Acquires Inertial Products Division of BAE Systems II-98 L-3 Communications Acquires Geneva Aerospace II-99 Boeing to Take Over Sisu Services II-99 Fokker Services Takes Over Aerotron AirPower II-99 Eaton Acquires AT Holdings II-99 Eurocopter Acquires McAlpine II-99 GE Acquires Smiths Aerospace II-100 Donaldson Takes Over Aerospace Filtration Systems II-100 BBA Takes Over Commercial Aircraft Products II-100 Esterline Propose to Take Over CMC Electronics II-100 AAR Takes Over Reebaire Aircraft II-101 Ranger Aerospace Take Over Platinum Aviation and Integrated Flight Systems II-101 Dubai Aerospace Acquires Standard Aero and Landmark Aviation II-101 Alliant Techsystems Acquires Swales Aerospace II-101 Ranger Aerospace Takes Over Texas Aviation Services II-101 Boeing Acquires Aviall II-101 Raytheon Takes Over Virtual Technology Corporation II-102 Raytheon Completes Acquisition of Houston Associates II-102 BEA Acquires NYF II-102 BEA Acquires Draeger II-102 Bombardier Relocates Headquarters to Dubai and Farnborough II-102 Sagem Agrees to Acquire Assets of EADS II-102 Reliance Aerotech Acquires Navhouse Global Avionics II-103 Westar Takes Over SimAuthor II-103 AMETEK Takes Over Southern Aeroparts II-103 Bristow Divests Aircraft Engine Overhaul Business to Timken Alcor Aerospace II-103 Wall Colmonoy Acquires HTG Cincinnati II-103 Triumph Group Takes Over Allied Aerospace Industries II-104 Cinven Acquires Avio II-104 AAI Takes Over Aerosonde II-104 Rockwell Collins Closes Evans & Sutherland’s Assets Acquisition Deal II-104 Jet Aviation Closes Midcoast Aviation Deal II-104 AAI Purchases Certain Assets from Allied Aerospace Industries II-104 Jet Airways Takes Over Air Sahara II-105 Ducommun Takes Over Miltec II-105 B/E Aerospace Closes the New York Fasteners Corp. Acquisition Deal II-105 Saab Aviotronics Acquires AMS II-105 Alliance Spacesystems to Merge with Vision Composites II-105 Air Force Association Merges with Aerospace Education Foundation II-106 Lockheed Martin Acquires ISX Corporation II-106 EADS Astrium to Acquire Stake in Equatorial Sistemas II-106 Spirit Aerosystems Acquires Aerostructures II-106 Velocity Aerospace to Acquire Approach Systems II-106 Gridiron Capital to Acquire Praxair Aviation Services II-106 L-3 Communications Holdings Plans to Acquire Crestview Aerospace II-106 AerCap Buys AeroTurbine II-107 Thielert Purchases Superior Air Parts II-107 K&F Industries Holdings Acquires Nasco Aircraft Brake II-107 Esterline Technologies Purchases FR Countermeasures II-107 BBA Group Purchases Ontic Engineering & Manufacturing II-107 L-3 Communications Acquires Advanced Systems Architecture II-107 L-3 Communications Integrated Systems Acquires Paragon Systems II-107 TransDigm Group Acquires Electra-Motion Industries II-108 American Securities Acquires Robertson Aviation II-108 Oak Hill Acquires Major Stake in Primus International II-108 Triumph Group Acquires Assets of Air Excellence International II-108 Precision Castparts Acquires Shur-Lok II-108 EADS Test & Services Purchases Get Electronique II-108 8. Focus on Select Global Players II-109 Arianespace SA (France) II-109 ATR (France) II-109 B/E Aerospace, Inc. (USA) II-109 BAE Systems Plc (United Kingdom) II-109 Ball Aerospace & Technologies Corporation (USA) II-110 Bell Helicopter Textron, Inc (USA) II-110 Bombardier, Inc. (Canada) II-110 CFM International Inc. (USA) II-111 European Aeronautic Defense and Space Company (EADS) (France) II-111 Airbus S.A.S (France) II-111 EADS Socata (France) II-112 Eurocopter Group (France) II-112 Embraer -Empresa Brasileira de Aeronáutica S.A. (Brazil) II-112 Finmeccanica S.p.A. (Italy) II-113 AgustaWestland S.p.A (Italy) II-113 GE Aviation (USA) II-113 Goodrich Corporation (USA) II-114 Gulfstream Aerospace Corporation (USA) II-114 Hawker Beechcraft Corporation (USA) II-115 Honeywell International, Inc. (USA) II-115 Ilyushin Aviation Complex JSC (Russia) II-115 IRKUT Corporation (Russia) II-116 Israel Aircraft Industries (Israel) II-116 Kaman Corporation (USA) II-116 Lockheed Martin Corporation (USA) II-117 Northrop Grumman Corporation (USA) II-117 Pratt & Whitney (USA) II-118 Raytheon Company (USA) II-118 Rolls-Royce Plc (United Kingdom) II-119 RUAG Aerospace (Switzerland) II-119 Snecma SA (France) II-119 Sikorsky Aircraft Corporation (USA) II-120 Thales Group (France) II-120 The Boeing Company (USA) II-121 Turbomeca (France) II-121 9. Global Market Perspective II-123 Table 27: World Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-123 Table 28: World Long-term Projections for Aerospace and Defense Industry by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-124 Table 29: World 10-Year Perspective for Aerospace and Defense Industry by Geographic Region - Percentage Breakdown of Dollar Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets for Years 2003, 2008& 2012 (includes corresponding Graph/Chart) II-125 Aerospace and Defense Industry by Sector. II-126 Table 30: World Recent Past, Current & Future Analysis for Aircraft Products & Services by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-126 Table 31: World Long-term Projections for Aircraft Products & Services by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-127 Table 32: World Recent Past, Current & Future Analysis for Aircraft Products & Services by Product Segment - Airframe, Aircraft Engines, Aircraft Components, Commercial Avionics, Military Avionics, In-flight Entertainment, and MRO Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-128 Table 33: World Long-term Projections for Aircraft Products & Services by Product Segment - Airframe, Aircraft Engines, Aircraft Components, Commercial Avionics, Military Avionics, In-flight Entertainment, and MRO Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-129 Table 34: World 10-Year Perspective for Aircraft Products & Services by Geographic Region - Percentage Breakdown of Dollar Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-130 Table 35: World 10-Year Perspective for Aircraft Products & Services by Product Segment - Percentage Breakdown of Dollar Sales for Airframe, Aircraft Engines, Aircraft Components, Commercial Avionics, Military Avionics, In-flight Entertainment, and MRO for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-131 Table 36: World Recent Past, Current & Future Analysis for Missiles by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-132 Table 37: World Long-term Projections for Missiles by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-133 Table 38: World Recent Past, Current & Future Analysis for Missiles by Product Segment - Air-to Air, Air-to-Surface, Air Defense, Surface-to-Surface, Antiship, Antitank, Bombs (Guided), Intelligent Munitions, and Others Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-134 Table 39: World Long-term Projections for Missiles by Product Segment -Air-to Air, Air-to-Surface, Air Defense, Surface-to-Surface, Antiship, Antitank, Bombs (Guided), Intelligent Munitions, and Others Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-135 Table 40: World 10-Year Perspective for Missiles by Geographic Region - Percentage Breakdown of Dollar Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-136 Table 41: World 10-Year Perspective for Missiles by Product Segment - Percentage Breakdown of Dollar Sales for Air-to Air, Air-to-Surface, Air Defense, Surface-to-Surface, Antiship, Antitank, Bombs (Guided), Intelligent Munitions, and Others for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-137 Table 42: World Recent Past, Current & Future Analysis for Modeling, Simulation & Training by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-138 Table 43: World Long-term Projections for Modeling, Simulation & Training by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-139 Table 44: World Recent Past, Current & Future Analysis for Modeling, Simulation & Training by Product Segment - CBT & E-Learning, Military Training & Simulation, Commercial & Military Visual Simulation, and Commercial and Military Flight Simulation Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-140 Table 45: World Long-term Projections for Modeling, Simulation & Training by Product Segment - CBT & E-Learning, Military Training & Simulation, Commercial & Military Visual Simulation, and Commercial and Military Flight Simulation Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-141 Table 46: World 10-Year Perspective for Modeling, Simulation & Training by Geographic Region - Percentage Breakdown of Dollar Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-142 Table 47: World 10-Year Perspective for Modeling, Simulation & Training by Product Segment - Percentage Breakdown of Dollar Sales for CBT & E-Learning, Military Training & Simulation, Commercial & Military Visual Simulation, and Commercial and Military Flight Simulation for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-143 Table 48: World Recent Past, Current & Future Analysis for C4ISR & Related Systems by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-144 Table 49: World Long-term Projections for C4ISR & Related Systems by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-145 Table 50: World Recent Past, Current & Future Analysis for C4ISR & Related Systems by Product Segment - Unmanned Aerial Vehicle, Electronic Warfare, Mine Countermeasures, Naval Radar and Sonar, Chemical & Biological Agent Detectors, Infrared Imaging Systems and Components, Military Ground Communications, Land-Based Surveillance Radar, and Others Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-146 Table 51: World Long-term Projections for C4ISR & Related Systems by Product Segment - Unmanned Aerial Vehicle, Electronic Warfare, Mine Countermeasures, Naval Radar and Sonar, Chemical & Biological Agent Detectors, Infrared Imaging Systems and Components, Military Ground Communications, Land-Based Surveillance Radar, and Others Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-147 Table 52: World 10-Year Perspective for C4ISR & Related Systems by Geographic Region - Percentage Breakdown of Dollar Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-148 Table 53: World 10-Year Perspective for C4ISR & Related Systems by Product Segment - Percentage Breakdown of Dollar Sales for Unmanned Aerial Vehicle, Electronic Warfare, Mine Countermeasures, Naval Radar and Sonar, Chemical & Biological Agent Detectors, Infrared Imaging Systems and Components, Military Ground Communications, Land-Based Surveillance Radar, and Others for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-149 Table 54: World Recent Past, Current & Future Analysis for Space Equipment by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-150 Table 55: World Long-term Projections for Space Equipment by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-151 Table 56: World Recent Past, Current & Future Analysis for Space Equipment by Product Segment - Launch Vehicles, Communications Satellites, and Earth Observation Satellites Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-152 Table 57: World Long-term Projections for Space Equipment by Product Segment - Launch Vehicles, Communications Satellites, and Earth Observation Satellites Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-153 Table 58: World 10-Year Perspective for Space Equipment by Geographic Region - Percentage Breakdown of Dollar Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-154 Table 59: World 10-Year Perspective for Space Equipment by Product Segment - Percentage Breakdown of Dollar Sales for Launch Vehicles, Communications Satellites, and Earth Observation Satellites for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-155 Table 60: World Recent Past, Current & Future Analysis for GPS (Geotechnologies) by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-156 Table 61: World Long-term Projections for GPS (Geotechnologies) by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-157 Table 62: World Recent Past, Current & Future Analysis for GPS (Geotechnologies) by Product Segment - Commercial Satellite Imaging, Commercial Aerial Imaging, GIS Software, Commercial SAR Data, and Commercial SAR Software Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) II-158 Table 63: World Long-term Projections for GPS (Geotechnologies) by Product Segment - Commercial Satellite Imaging, Commercial Aerial Imaging, GIS Software, Commercial SAR Data, and Commercial SAR Software Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) II-159 Table 64: World 10-Year Perspective for GPS (Geotechnologies) by Geographic Region - Percentage Breakdown of Dollar Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America Markets for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-160 Table 65: World 10-Year Perspective for GPS (Geotechnologies) by Product Segment - Percentage Breakdown of Dollar Sales for Commercial Satellite Imaging, Commercial Aerial Imaging, GIS Software, Commercial SAR Data, and Commercial SAR Software for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) II-161 Aircraft Industry by Product Segment II-162 Table 66: World Recent Past, Current & Future Analysis for New Commercial Aircraft by Geographic Region - North America, Europe, Asia-Pacific, Latin America, Middle East, and African Markets Independently Analyzed with Annual New Aircraft Deliveries in Units for the Years 2000 through 2010 (includes corresponding Graph/Chart) II-162 Table 67: World Long-term Projections for New Commercial Aircraft by Geographic Region - North America, Europe, Asia-Pacific, Latin America, Middle East, and African Markets Independently Analyzed with Annual New Aircraft Deliveries in Units for the Years 2011 through 2015 (includes corresponding Graph/Chart) II-163 Table 68: World 10-Year Perspective for New Commercial Aircraft by Geographic Region - Percentage Breakdown of Unit Deliveries for North America, Europe, Asia-Pacific, Latin America, Middle East, and African Markets for the Years 2003, 2008, and 2012 (includes corresponding Graph/Chart) II-164 Table 69: World Recent Past, Current & Future Analysis for New Commercial Aircraft by Product Group/Segment - Passenger Aircraft (70& 85 seaters, 100-175 seaters, 210 & 250 seaters, 300, 350 & 400 seaters, and > 400 seaters), Cargo Aircraft ( 80 Tons) Markets Independently Analyzed with Annual New Aircraft Deliveries in Units for the Years 2000 through 2010 (includes corresponding Graph/Chart) II-165 Table 70: World Long-term Projections for New Commercial Aircraft by Product Group/Segment - Passenger Aircraft (70& 85 seaters, 100-175 seaters, 210 & 250 seaters, 300, 350 & 400 seaters, and > 400 seaters), Cargo Aircraft ( 80 Tons) Markets Independently Analyzed with Annual New Aircraft Deliveries in Units for the Years 2011 through 2015 (includes corresponding Graph/Chart) II-166 Table 71: World 10-Year Perspective for New Commercial Aircraft by Product Group/ Segment - Percentage Breakdown of Unit Deliveries for Passenger Aircraft (70& 85 seaters, 100-175 seaters, 210 & 250 seaters, 300, 350 & 400 seaters, and > 400 seaters), Cargo Aircraft ( 80 Tons) Markets for the Years 2003, 2008, and 2012 (includes corresponding Graph/Chart) II-167 Table 72: World Recent Past, Current & Future Analysis for New Commercial Passenger Aircraft by Geographic Region - North America, Europe, Asia-Pacific, Latin America, Middle East, and African Markets Independently Analyzed with Annual New Aircraft Deliveries in Units for the Years 2000 through 2010 (includes corresponding Graph/Chart) II-168 Table 73: World Long-term Projections for New Commercial Passenger Aircraft by Geographic Region - North America, Europe, Asia-Pacific, Latin America, Middle East, and African Markets Independently Analyzed with Annual New Aircraft Deliveries in Units for the Years 2011 through 2015 (includes corresponding Graph/Chart) II-169 Table 74: World 10-Year Perspective for New Commercial Passenger Aircraft by Geographic Region - Percentage Breakdown of Unit Deliveries for North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa Markets for the Years 2003, 2008, and 2012 (includes corresponding Graph/Chart) II-170 III. MARKET 1. The United States. III-1 A.Market Analysis. III-1 Current & Future Analysis - Snapshots III-1 Strategic Trends: 2007-2008 III-1 Financial Market Crisis to Test Industry III-1 Demand for Regional Jets Fades III-2 Orders Reach Record Highs III-2 Table 75: US Aerospace Industry (1997-2007): Orders, Backlogs, and Shipments in US$ Billion (includes corresponding Graph/Chart) III-2 Fuel Prices Threaten Industry Profitability III-3 Table 76: US Airlines Market by Service Segment - Passenger Traffic (in Revenue Passenger Kilometer Billion) and Freight Traffic (in Freight Ton Kilometers Billion) for the Years 2008, 2010 & 2015 III-3 Industry Overview III-3 Industry Structure III-4 Industry Dynamics III-4 High Entry Barriers III-4 Rising Production Costs III-4 Industry Structure Undergoing Transformation III-4 Increasing Competition III-5 Competitive Landscape III-5 The European Onslaught III-5 A Focus on Major US and European Players by Competitive Area III-5 Market Trends and Issues III-5 Consolidation Reshapes US Aerospace and Defense Industry III-5 A Portrait of the US Aerospace and Defense Industry Consolidation III-6 Soaring Fuel Prices Dampen Airlines’ Cost Reduction III-7 Efforts III-7 Search, Detection, and Navigation Instruments to Witness Rapid Growth III-7 Aeronautics Market Offers Bright Prospects III-7 Unmanned Aerial Vehicles - New Programs Perk Up Sector III-7 Absence of Regulatory Body: Major Bottleneck in Commercial UAV Missions III-7 Flight Simulation Technology in Vogue III-8 Increasing Safety-Awareness Boosts Flight Simulation Market III-8 “Availability Contracting” Commanding Increased Preference III-8 Outsourcing - Looming Large Over the Aerospace Industry III-9 Federal Control Topples US Aerospace and Defense Sales III-9 Risk Elements for the US Commercial Remote Sensing Satellite Companies III-9 US Commercial Aviation Industry III-10 Structure III-10 Table 77: North American Aviation Market (2007): Fleet Size by Airplane Type for Single-Aisle, Twin- Aisle, Regional Jets and 747 & Larger (includes corresponding Graph/Chart) III-10 Table 78: North American Aviation Market (2007-2015): Aircraft Deliveries by Type - 100-175 Seaters, 210 & 250 Seaters, 300, 350 & 400 Seaters and > 400 Seaters (includes corresponding Graph/Chart) III-10 Industry Outlook III-10 Hub Congestion: The Risk Factor III-11 US Commercial Space Transportation Sector - An Overview III-11 Orbital Commercial Launches III-12 Table 79: Commercial Space Transportation Market (2004-2010): Number of Orbital Launches (includes corresponding Graph/Chart) III-13 US Helicopter Market III-13 Move Towards New Builds based on Older Platforms III-13 US Defense Market - A Perspective III-13 Defense Spending III-13 Shift Towards Net-centric Platforms Warrant Increased Need for Data Security III-13 Defense Contracting III-14 Military Helicopter Market III-14 U.S. Defense Logistics and Support Service Market III-14 An Overview III-14 Asset Tracking Systems Market Poised to Gain Rich Ground III-15 RFID Asset Tracking Technology - A Cut Above the Rest III-15 US Leads in RFID Technology Adoption III-16 Changes in Defense Logistics Policy to Suit New Combat Conditions III-16 Interoperability - The New Focus of Defense Logistics Policy III-16 Integrated Logistic Systems - A Highly Sought After Technology Platform III-16 Characteristics of an Ideal Integrated Logistic System III-17 Defense Support Services Market Going Strong III-17 Major Aerospace and Defense Federal Departments III-17 National Aeronautics and Space Administration (NASA) III-17 Department of Defense (DoD) III-18 Federal Aviation Administration (FAA) III-18 Department of Homeland Security (DHS) III-18 Regulatory Environment III-18 Environmental Regulations III-18 Regulatory Framework for Defense Related Exports III-19 Select Regulatory Bodies III-19 The Office of Defense Trade Controls III-19 The Bureau of Export Administration III-19 Product Launches/Developments III-19 Strategic Corporate Developments III-22 Key Players III-48 B.Market Analytics III-57 Table 80: US Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-57 Table 81: US Long Term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-58 Table 82: US 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-59 Table 83: North American Recent Past, Current & Future Analysis for New Commercial Passenger Aircraft by Product Group/Segment - 70& 85 seaters, 100-175 seaters, 210 & 250 seaters, 300, 350 & 400 seaters, and > 400 Seater Markets Independently Analyzed with Annual Deliveries in Units for the Years 2000 through 2010 (includes corresponding Graph/Chart) III-60 Table 84: North American Long-term Projections for New Commercial Passenger Aircraft by Product Group/Segment - 70& 85 seaters, 100-175 seaters, 210 & 250 seaters, 300, 350 & 400 seaters, and > 400 Seater Markets Independently Analyzed with Annual Deliveries in Units for the Years 2011 through 2015 (includes corresponding Graph/Chart) III-60 Table 85: North American 10-Year Perspective for New Commercial Passenger Aircraft by Product Segment - Percentage Breakdown of Volume Sales for Product Group/Segment - 70& 85 seaters, 100-175 seaters, 210 & 250 seaters, 300, 350 & 400 seaters, and > 400 Seaters for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-61 2. Canada III-62 A.Market Analysis III-62 Current & Future Analysis - Snapshots III-62 Government Funding to Rise III-62 Profile of the Canadian Aerospace and Defense Industry III-62 A Well Structured Industry III-63 Competitive Scenario III-63 Industry Counts on Government for Market Success III-63 Government’s Positive Move III-63 Planning the Future III-63 Strategic Corporate Developments III-64 Key Player III-66 B.Market Analytics III-67 Table 86: Canadian Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-67 Table 87: Canadian Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-68 Table 88: Canadian 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-69 3. Japan III-70 A.Market Analysis III-70 Current & Future Analysis III-70 Aerospace: An Overview III-70 Projects on Stream III-70 Defense Procurement Programs III-71 Business Aviation: An Overview III-71 Regulatory Barriers Faced by Business Aviation III-71 Japanese Helicopter Market: A Snapshot III-71 Industry Overview III-72 Evolution of the Japanese Aerospace Industry III-72 Increasing Role of Joint Ventures in Industry Development III-72 Progress of the Aeroengines Sector III-72 Japan’s Journey Through Space III-73 Satellite Launches III-73 Key Players III-74 Strategic Corporate Development III-76 B.Market Analytics III-77 Table 89: Japanese Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-77 Table 90: Japanese Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-78 Table 91: Japanese 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-79 4. Europe III-80 A.Market Analysis III-80 Current & Future Analysis III-80 Strategic Trends: 2007-2008 III-80 Weak Dollar and the European Aerospace Industry III-80 From Competing to Collaborating - The Changing Face of European Aerospace Industry III-80 Low Cost Carriers to Shape Future Air Travel Demand III-81 Key Statistics III-81 Table 92: European Airlines Market by Geographic Region - France, Germany, Italy, United Kingdom, Spain, Russia and Rest of Europe Markets Independently Analyzed by Passenger Traffic for the Years 2008, 2010 & 2015 in RPK (Revenue Passenger Kilometer) Billion (includes corresponding Graph/Chart) III-82 Table 93: European Airlines Market by Geographic Region - France, Germany, Italy, United Kingdom, Spain, Russia and Rest of Europe Markets Independently Analyzed by Freight Traffic for the Years 2008, 2010 & 2015 in FTK (Freight Ton Kilometer) Billion (includes corresponding Graph/Chart) III-82 Table 94: European Airlines Market by Service Segment - Passenger Traffic (in Revenue Passenger Kilometer Billion) and Freight Traffic (in Freight Ton Kilometers Billion) for the Years 2008, 2010 & 2015 III-83 Table 95: European Aviation Market (2007): Fleet Size by Airplane Type for Single-Aisle, Twin-Aisle, Regional Jets and 747 & Larger (includes corresponding Graph/Chart) III-83 Table 96: European Aviation Market (2007-2015): Aircraft Deliveries by Type - 100-175 Seaters, 210 & 250 Seaters, 300, 350 & 400 Seaters and > 400 Seaters (includes corresponding Graph/Chart) III-83 Industry Characteristics III-83 Civil and Defense Relationships III-83 Cyclical Nature of the Industry III-84 A Capital-Intensive Industry III-84 The ‘Consolidation’ Episode III-84 Privatization III-86 Relationship between the EU and the US III-86 EU Lends Massive Push to R&D Funding III-86 Widening Technological Divide between Europe and the US III-86 Bridging the Technology Gap: Vital for European Aerospace & Defense Companies III-87 Technology Transfer - A Key Issue III-87 European Companies Gain Foothold III-87 European Aerospace Companies Head Eastwards III-88 Destination China III-88 India - Another Potential Market in Sight III-88 Who’s Who of the European Aerospace and Defense Industry III-88 Aviation Regulator Body III-90 European Aviation Safety Agency (EASA) III-90 Strategic Corporate Developments III-90 B.Market Analytics III-92 Table 97: European Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Geographic Region - France, Germany, UK, Italy, Spain, Russia and Rest of Europe Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-92 Table 98: European Long-term Projections for Aerospace and Defense Industry by Geographic Region - France, Germany, UK, Italy, Spain, Russia and Rest of Europe Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-93 Table 99: European Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-94 Table 100: European Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-95 Table 101: European 10-Year Perspective for Aerospace and Defense Industry by Geographic Region - Percentage Breakdown of Dollar Sales for France, Germany, UK, Italy, Spain, Russia, and Rest of Europe Markets for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-96 Table 102: European 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-97 Table 103: European Recent Past, Current & Future Analysis for New Commercial Passenger Aircraft by Product Group/Segment - 70& 85 seaters, 100-175 seaters, 210 & 250 seaters, 300, 350 & 400 seaters, and > 400 Seaters Markets Independently Analyzed with Annual Deliveries in Units for the Years 2000 through 2010 (includes corresponding Graph/Chart) III-98 Table 104: European Long-term Projections for New Commercial Passenger Aircraft by Product Group / Segment - 70& 85 seaters, 100-175 seaters, 210 & 250 seaters, 300, 350 & 400 seaters, and > 400 Seaters Markets Independently Analyzed with Annual Deliveries in Units for the Years 2011 through 2015 (includes corresponding Graph/Chart) III-98 Table 105: European 10-Year Perspective for New Commercial Passenger Aircraft by Product Segment - Percentage Breakdown of Volume Sales by Product Segment for 70& 85 seaters, 100-175 seaters, 210 & 250 seaters, 300, 350 & 400 seaters, and > 400 Seaters for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-99 4a. France III-100 A.Market Analysis III-100 Current & Future Analysis III-100 Civil Aviation Industry III-100 Defense-Related Sector: An Overview III-100 OCCAR to Play a Key Role in Future Procurement Programs III-100 DGA - Direction General de lArmement III-101 Product Launches/Developments III-101 Strategic Corporate Developments III-102 Key Players III-103 B.Market Analytics III-108 Table 106: French Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-108 Table 107: French Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-109 Table 108: French 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-110 4b. Germany III-111 A.Market Analysis III-111 Current & Future Analysis III-111 A Take on the Competitive Profile of the Industry III-111 Strategic Corporate Developments III-112 Key Players III-113 B.Market Analytics III-114 Table 109: German Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-114 Table 110: German Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-115 Table 111: German 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-116 4c. The United Kingdom III-117 A.Market Analysis III-117 Current & Future Analysis III-117 Industry Overview III-117 A Traditional Player III-117 UK’s South East Region - The Hub of Domestic Aerospace Industry III-117 Government Support: The Crucial Component III-118 Who’s Who of the UK Aerospace and Defense Industry III-118 Strategic Corporate Developments III-120 Key Players III-122 B.Market Analytics III-124 Table 112: UK Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-124 Table 113: UK Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-125 Table 114: UK 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-126 4d. Italy III-127 A.Market Analysis III-127 Current & Future Analysis III-127 Industry Overview and Issues III-127 Major Investments Plans III-128 Industry Structure III-128 Product Launch III-129 Key Players III-129 B.Market Analytics III-131 Table 115: Italian Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-131 Table 116: Italian Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-132 Table 117: Italian 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-133 4e. Spain III-134 A.Market Analysis III-134 Current & Future Analysis III-134 Overview III-134 Who’s Who of the Spanish Aerospace and Defense Industry III-134 B.Market Analytics III-135 Table 118: Spanish Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-135 Table 119: Spanish Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-136 Table 120: Spanish 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-137 4f. Russia III-138 A.Market Analysis III-138 Current & Future Analysis III-138 Overview, Trends and Issues III-138 Significant Demand for Commercial Airplanes III-138 Aerospace & Defense Flourishes in Russia III-138 Table 121: Aviation Market in Russia and Central Asia (2007): Fleet Size by Airplane Type for Single-Aisle, Twin-Aisle, Regional Jets and 747 & Larger (includes corresponding Graph/Chart) III-139 Outlook III-139 Rejuvenation of the Russian Aerospace Industry III-140 Consolidation to Pool Resources III-140 Challenges III-140 Partnerships between Russian and Foreign Partners III-141 Key Players III-142 Strategic Corporate Development III-143 B.Market Analytics III-144 Table 122: Russian Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-144 Table 123: Russian Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-145 Table 124: Russian 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-146 4g. Rest of Europe III-147 A.Market Analysis III-147 Current & Future Analysis III-147 Belgium III-147 Key Players III-147 Strategic Corporate Developments III-149 B.Market Analytics III-152 Table 125: Rest of Europe Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-152 Table 126: Rest of Europe Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-153 Table 127: Rest of Europe 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-154 5. Asia-Pacific III-155 A.Market Analysis III-155 Current & Future Analysis III-155 Asia-Pacific: In a Nutshell III-155 Industry Overview III-155 India-China: An Uncharted Route III-155 Southeast Asia: Positioned as a Tourist Destination III-156 Aircraft Leasing: Mainstay for Emerging Asian Aviation III-156 Industry III-156 Finance or Capital Lease III-156 Operating Lease III-156 A Huge Middle Class to Prop up Future Demand III-156 Partnerships to Drive the Asian Aerospace & Defense Industry III-157 Deregulation of Airline Industry Sounds Positive for MRO Market III-157 MRO Market Takes Off III-157 Asia-Pacific Aviation Industry - A Profile III-157 Table 128: Asia-Pacific Aviation Industry (2005): Number of Airports, Number of Aircraft, and Commercial Aircraft by Select Country - China, Australia, South Korea, India, Singapore, and New Zealand (includes corresponding Graph/Chart) III-158 Table 129: Asia-Pacific Aviation Market (2007): Fleet Size by Airplane Type for Single-Aisle, Twin-Aisle, Regional Jets and 747 & Larger (includes corresponding Graph/Chart) III-159 Table 130: Asia-Pacific Airlines Market by Service Segment - Passenger Traffic (in Revenue Passenger Kilometer Billion) and Freight Traffic (in Freight Ton Kilometers Billion) for the Years 2008, 2010 & 2015 (includes corresponding Graph/Chart) III-159 Focus on Defense Industry in Asia-Pacific III-159 Defense Spending on the Rise III-159 Center Stage of Future Defense Market Growth III-160 Focus on Select Regional Markets III-160 Australia III-160 China III-161 Current Scenario III-161 Industry Structure III-161 AVIC I & II Enterprises III-161 Key Manufacturing Companies III-161 Major Companies and Organizations in China’s Civil Aviation Sector III-162 Industry Overview and Trends III-163 The Dragon Gets off to Flying Start III-163 Table 131: Chinese Aircraft Fleet (2007): Breakdown of Number of Aircraft Owned by Airline Operators (includes corresponding Graph/Chart) III-164 An Aircraft Hub in the Making III-164 Future Holds Immense Potential III-164 Increasing Outbound Air Travel Boosts Chinese Aviation Market III-165 Beijing, Shanghai, and Guangzhou: The Hub of Chinese Air Travel Demand III-165 Extensive Development on Cards III-165 Continuing Liberalization in the Chinese Aviation Industry III-166 What’s in Store? III-166 China to Dominate the Global Aircraft Market in Next 20 Years III-167 China Well Poised to Lead Global Helicopter Market III-167 A Rapidly Growing Air Traffic Control Equipment Market III-167 Exhibits Significant Progress in Remote Sensing Technology III-167 Regional Jet Market Potential in China III-168 Leading International Companies in the Chinese Aerospace Market III-168 Airbus III-168 Boeing III-168 Rolls-Royce III-168 Competition III-168 Aircraft Parts Distributors III-169 Chinese and Foreign Aerospace Players - A Focus on Mutual Relationships III-169 Foreign Companies: Tracing Out New Opportunities in China III-169 Turning Over a New Leaf in the Relationship III-169 Chinese Aircraft Parts & Components Industry III-169 Chinese Defense Industry III-170 A Historical Perspective III-170 Industry Drawing Leverage from China’s Growing Technology Pool III-170 Defense Industry Draws Significant Government Funding III-171 Ambiguity Surrounds China’s Technological Innovation Capability III-171 Despite Substantial Growth Inadequacies Remain III-171 Chinese Maintenance, Repair and Overhaul (MRO) Industry III-172 MRO Market Making Rapid Moves III-172 Regulatory Environment III-172 Hong Kong III-173 India III-173 Current Scenario III-173 Strategic Trends: 2007-2008 III-173 Indian Aviation Sector: On an Upward Trajectory III-173 Indian Helicopter Market III-174 India to Expand Cruise Missile Production III-174 Air Freight Market Gathers Momentum III-175 Industry Overview III-175 Table 132: Indian Aerospace Market: Market Size (in US$ Million) by Key Industry Sector for 2010 III-176 Trends and Issues III-176 Growing Transformation in Indian Aerospace and Defense Sector III-176 Bangalore: Home for Aircraft Research and Manufacturing Companies III-176 Indian Aerospace Industry: Hotspot for Foreign Companies III-176 Massive Growth in Civil Aviation Sector III-177 India is Rapidly Becoming the Global Center for Aircraft Engineering Design III-177 MRO Market: Modest Growth Path III-178 Issues Restricting the Modernization of Indian Defense Industry III-178 ISRO Plays a Vital Role in the ‘Indigenous’ Indian Space Sector III-178 Malaysia III-178 Industry Overview III-178 Country Pursues Defense Upgradation Program III-179 Singapore III-179 South Korea III-179 Aerospace and Defense Industry - A Review III-179 On Going Modernization III-180 Strengthening Self-Defense III-180 Marching Ahead III-180 Defense Industry III-181 Korea Government Gives Green Signal to KHP Helicopter Development Program III-181 Taiwan III-181 Aerospace Industry - An Overview III-181 Table 133: Taiwanese Air Traffic (2006): Breakdown by Number of Flights, Passengers and, Cargo (in tons) (includes corresponding Graph/Chart) III-182 Table 134: Taiwanese Export of Aerospace Products & Components to the US (2006): Percentage Breakdown of Revenues by Product Category (includes corresponding Graph/Chart) III-182 Table 135: Taiwanese Import of Aerospace Products & Components from the US (2006): Percentage Breakdown of Revenues by Product Category (includes corresponding Graph/Chart) III-182 Thailand III-182 Aerospace Industry - An Overview III-182 Vietnam III-183 Major Challenges Faced by Vietnam Aviation Sector III-183 New Strategies to Tap Opportunities III-183 Vietnam Open to New Suppliers III-183 Philippines III-183 Overview of the Aviation and Defense Industry III-183 Strategic Corporate Developments III-184 B.Market Analytics III-186 Table 136: Asia-Pacific Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-186 Table 137: Asia-Pacific Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-187 Table 138: Asia-Pacific 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-188 6. The Middle East & Africa III-189 A.Market Analysis III-189 Current & Future Analysis III-189 Strategic Trends: 2007-2008 III-189 Gulf Aviation Industry Growing III-189 Table 139: Middle East Aviation Market (2007): Fleet Size by Airplane Type for Single-Aisle, Twin-Aisle, Regional Jets and 747 & Larger (includes corresponding Graph/Chart) III-190 Table 140: Middle Eastern Aircraft Fleet (2007): Breakdown of Number of Aircraft Owned by Airline operators (includes corresponding Graph/Chart) III-190 International Operations - The Mainstay of Middle East LCCs III-191 Europe- Africa’s Principal Trade Partner III-191 Table 141: Middle East & African Airlines Market by Service Segment - Passenger Traffic (in Revenue Passenger Kilometer Billion) and Freight Traffic (in Freight Ton Kilometers Billion) for the Years 2008, 2010 & 2015 (includes corresponding Graph/Chart) III-191 African Aerospace Market III-192 A Prolific Market for Regional Jets III-192 Table 142: African Aviation Market (2007): Fleet Size by Airplane Type for Single-Aisle, Twin-Aisle, Regional Jets and 747 & Larger (includes corresponding Graph/Chart) III-192 Focus on Select Markets III-192 Saudi Arabia III-192 United Arab Emirates III-192 UAE Venturing into Aircraft Leasing and Financing Business III-193 Product Launches III-193 Strategic Corporate Developments III-194 Key Player III-195 B.Market Analytics III-196 Table 143: Middle East Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-196 Table 144: Middle-East Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-197 Table 145: Middle East 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-198 7. Latin America III-199 A.Market Analysis III-199 Current & Future Analysis - Snapshots III-199 Latin American Aviation Industry Elicits Rosy Future III-199 Table 146: Latin American Airlines Market by Service Segment - Passenger Traffic (in Revenue Passenger Kilometer Billion) and Freight Traffic (in Freight Ton Kilometers Billion) for the Years 2008, 2010 & 2015 (includes corresponding Graph/Chart) III-199 Focus on Cost Optimization Spur Single-Aisle and Regional Jets Demand III-200 Table 147: Latin American Aviation Market (2007): Fleet Size by Airplane Type for Single-Aisle, Twin-Aisle, Regional Jets and 747 & Larger (includes corresponding Graph/Chart) III-200 Focus on Select Market III-200 Mexico III-200 Current Scenario III-200 Ongoing Projects in the Mexican Aerospace Industry III-201 Brazil III-201 Commercial Aviation Sector III-201 Aeronautic Maintenance Sector III-201 Chile III-201 Strategic Corporate Developments III-202 Key Player III-202 B.Market Analytics III-204 Table 148: Latin American Recent Past, Current & Future Analysis for Aerospace and Defense Industry by Industrial Sector - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2000 through 2010 (includes corresponding Graph/Chart) III-204 Table 149: Latin American Long-term Projections for Aerospace and Defense Industry by Industrial Sector/Segment - Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) Independently Analyzed with Annual Sales Figures in US$ Million for Years 2011 through 2015 (includes corresponding Graph/Chart) III-205 Table 150: Latin American 10-Year Perspective for Aerospace and Defense Industry by Industrial Sector - Percentage Breakdown of Dollar Sales for Aircraft Products & Services Missiles Modeling, Simulation & Training C4ISR & Related Space Equipment and GPS (Geotechnologies) for Years 2003, 2008 & 2012 (includes corresponding Graph/Chart) III-206 IV. COMPETITIVE LANDSCAPE

Companies Mentioned

- Arianespace SA - ATR - B/E Aerospace Inc. - BAE Systems Plc - Ball Aerospace & Technologies Corporation - Bell Helicopter Textron Inc. - Bombardier - Inc. CFM International Inc. - European Aeronautic Defense and Space Company - Airbus S.A.S - EADS Socata - Eurocopter Group - Embraer -Empresa Brasileira de Aeronáutica S.A - Finmeccanica S.p.A. - AgustaWestland S.p.A - GE Aviation - Goodrich Corporation - Gulfstream Aerospace Corporation - Hawker Beechcraft Corporation - Honeywell International Inc. - Ilyushin Aviation Complex JSC - IRKUT Corporation - Israel Aircraft Industries - Kaman Corporation - Lockheed Martin Corporation - Northrop Grumman Corporation - Pratt & Whitney - Raytheon Company - Rolls-Royce Plc - RUAG Aerospace - Snecma SA - Sikorsky Aircraft Corporation - Thales Group - The Boeing Company - Turbomeca