RUSSIA: 2013 Opportunities in the Helicopter Market

Despite stable and positive growth dynamics in global markets, Russian Helicopters Holding has not sufficiently diversified its model range towards more light and medium helicopters. According to 2009 market data, the domestic Russian market is dominated by 70% heavy helicopters, 22% medium and 8% light helicopters. As newly developed and tested Russian light and medium helicopters are not yet in serial production, opportunities are available for suppliers of Western made helicopters. Russian helicopter operators are actively buying Eurocopter, Augusta Westland, Bell and Robinson. Sikorsky Aircraft has shown interest towards entry into the Russian market, but their market niche is still to be determined. The total domestic market for both Russian and Western rotorcraft, according to the private company Neftegaz-Leasing, is estimated at $3.37 billion.

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RUSSIA: 2013 Opportunities in the Commercial Aircraft Market

Despite Russia’s ambitious aviation development program, the industry is not able to deliver civilian aircraft in the required quantities to meet growing air traffic demand. The production of new civil aircraft in recent years has not exceeded 7-9 units per year, while pre-existing Soviet aircraft have become too inefficient to operate in terms of fuel efficiency and flight safety. Many airlines have embarked on comprehensive aircraft replacement programs. Major international manufacturers - Boeing, Airbus, Bombardier and Embraer – are currently filling this niche. The predominance of Western aircraft fleets in Russia also provides impetus for the growth of related aviation segments including air components, spare parts, MRO operations and airport ground support equipment, representing additional business opportunities for U.S. suppliers.

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FRANCE: 2012 Defense Business Overview

France is characterized by an extremely sophisticated and competitive defense industry, which includes global players such as Thales, EADS, Dassault, the Safran Group, DCNS and Nexter. Politically, France and the U.S. are long-standing, close allies. Despite occasional differences of views, the U.S. and France work together on a broad range of trade, security and geopolitical issues. Under President Sarkozy’s leadership in 2009, France made the decision to rejoin NATO’s military command, once again becoming a fully integrated member of the Alliance.

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Aerospace and Aviation: A Top Export Prospect for Canada

Canada has the world’s fifth largest aerospace market. In 2011, Canada generated roughly $22 billion in revenues, over 80% of which were from Quebec and Ontario. Canada is home to large OEMS such as Bombardier, Pratt & Whitney Canada, Rolls Royce Canada, Bell Helicopter Textron Canada, Boeing Canada, CAE and L-3. Approximately 83 percent of the industry is in civil aircraft manufacturing, while 17 percent is in military aircraft manufacturing. Over 80% of production is exported; over 50% of imports are from the United States.

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European Union: Defense Procurement Directive (Updated 2012)

The time has come when ministries of defense were purchasing defense equipment according to their own national rules to an end. The new law, the “EU Defence Procurement Directive”, governs the procurement procedures for defense and non-military security supply, services and works contracts. This law is applicable in all EU Member States. EU Directive 2009/81/EC must be transposed in each Member State’s body of legislation by August 2011. The aim of this Directive is to harmonize acquisition procedures throughout the EU: first by increasing competition and encouraging cross-border bidding among European bidders, so as to prevent systematic sole-source procurement or non-competitive procurement from national suppliers; second, by increasing transparency through the obligation to advertise defense contracts in the EU Official Journal. Various contract performance conditions will make indirect offsets in defense contracts illegal (see our separate report on: “EU Policy on Offsets”).

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Military Equipment: A Top Export Prospect for Colombia

Colombia’s internal and external defense and security structure includes the Army, Navy (Marines and Coast Guard), Air Force, and the National Police. Real military spending increased from USD 2.6 billion in 2001 to USD 9 billion in 2009. On average, the total military spending is 5 percent of Colombia’s total GDP. Under Plan Colombia, significant U.S. funding, technical assistance, and equipment support has been provided to Colombian-led counter narcotic programs for drug eradication and interdiction, and expansion of the capacity of Colombian military and police. The current format of Plan Colombia is due to expire in 2012, with the consequent nationalization of military programs by the Colombian government. Significant cuts on spending and a shift to mainly drug eradication are expected. However, the Colombian government will intensify military actions and spending to fight narco terrorism, and insure security gains through its police force, especially to develop security surveillance and enforcement in remote and isolated regions of the country.

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