Northwest Aerospace News October | November — Issue No. 17 | Page 30

Transatlantic Industry
In this environment , it is not surprising that U . S . defense exports to Europe have remained robust . Over the past three years , Defense Security Cooperation Agency ( DSCA ) arms sales notifications to Europe — representing intent to export items but not actual sales — have trended from 10.6 billion dollars in 2017 to 37.3 billion dollars in 2018 and 19.8 billion dollars in 2019 . Foreign Military Sales ( FMS ) facilitated by the U . S . government remain popular among NATO countries , given the high capability and ensured interoperability with U . S . forces . The transatlantic defense market , however , has increasingly become a two-way street .
Many European suppliers , seeking to participate in the large U . S . defense market , established and grew U . S . subsidiaries in the early 2000s through the past decade . European governments , having acquired U . S . export hardware for decades , began to expect the U . S . to import equipment in kind or at least provide substantial workshare on export programs . And U . S . customers have increasingly warmed to best-in-class , readily available systems developed outside the U . S .
In response to these trends , European companies such as BAE Systems and Leonardo have large , well-established U . S . businesses built through acquisitions and subsequent growth ( including BAE ’ s recent large acquisitions of Rockwell Collins ’ GPS receiver business and Raytheon airborne tactical radios ). Other suppliers such as Thales or Saab have likewise built and continue to grow U . S . operations . Meanwhile leading U . S . defense contractors — including Lockheed Martin , Raytheon Technologies , and General Dynamics — have significant presence in Europe and exposure to local markets .
As a result , several more fully transatlantic defense programs have emerged . The F-35 program , with its broad multi-national partnership , represents the most prominent example of this trend .
Other programs that similarly illustrate growing collaboration include the U . S . Navy ’ s award of its new frigate to Fincantieri based on the Italian FREMM design and several non-U . S . entrants for the Army ’ s Next-Generation Combat Vehicle . The defense aircraft market has also seen transatlantic partnering emerge in addition to continued export opportunities for suppliers .
Aerospace Export Market
Boeing and its suppliers in the Pacific Northwest are experiencing the impacts of ongoing U . S . -European cooperation firsthand , with the U . K . and Norway recently joining programs based on derivatives of the 737 . The Royal Air Force ( RAF ) joined the U . S . Navy , Australia , and India as customers for the P-8A maritime surveillance aircraft with a 3.9 billion dollar order for nine aircraft in 2016 . Norway soon followed with a 1.2 billion dollar order for five aircraft in 2017 . Commonality in these allies ’ airborne anti-submarine warfare fleets will further strengthen cooperation in this area . The RAF then followed with a 1.9 billion dollar order for 5 E-7 airborne early warning and control aircraft also based on the 737 airframe , joining Australia , South Korea , and Turkey on this program .
Beyond these special mission variants , Boeing continues to pursue transatlantic opportunities for its tactical aircraft programs . Germany recently announced its intent to acquire up to 45 F / A-18E / F Super Hornet and EA-18G Growler aircraft to replace its retiring Tornado fighter fleet , in part driven by NATO requirements . The Super Hornet is also in contention for Finnish and Swiss requirements to replace several dozen aging F / A-18C aircraft .
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