Today's Top News

• U.S. manufacturers keep wary eye on Embraer
  As the aviation industry struggles with an extended downturn, experts say Brazil's Embraer appears poised to steal significant market share from U.S. manufacturers. Embraer recently launched its sixth business jet in four years, and "they're entering with price points, size and performance carefully selected," according to Hawker Beechcraft CEO Bill Boisture. Analyst Richard Aboulafia of the Teal Group says Embraer could eventually take 15% to 20% of the market from Hawker and other U.S. manufacturers. The Wichita Eagle (Kan.) (11/1)

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Defense

• Air Force willing to make changes on aerial refueling tanker
  The top civilian in charge of the Air Force says the armed service is open to making changes wherever necessary for the KC-X aerial refueling tanker competition. The draft request for proposals for the project was issued Sept. 24 and included 373 pass/fail threshold requirements. Aerospace Daily & Defense Report (10/30)

• Raytheon testing would-be Harpoon successor
  As the Navy begins its search for an anti-ship missile to succeed the Harpoon, Raytheon has announced the first free-flight test of a modified Joint Stand-Off Weapon. In the Oct. 1 test, Raytheon says the test vehicle was released from an F/A-18 and flew more than 260 nautical miles. With continued funding, the company believes it could deliver the weapon in four years. Aerospace Daily & Defense Report (11/2)

Commercial Aviation

• Will suppliers follow Boeing to S.C.?
  South Carolina officials believe thousands of jobs will flow to the Palmetto State following Boeing Co.'s announcement last week that it will locate a second 787 assembly line in North Charleston. But even with lower labor costs and a largely non-union workforce, South Carolina may not see the huge influx of jobs it is expecting, according to some experts, who point out that the aerospace industry already is highly diversified geographically. "Will companies in your area pack up and move? That's going to depend on their business model and what's best for their customers," says Brian McDermott of the Aerospace Industries Association. "With modern technology and transportation and infrastructure, it's not necessarily critical that [suppliers] be in the same neighborhood." American City Business Journals/Seattle (10/30)

• Technology, regulation weighed to keep pilots alert
  As technological advances allow aircraft to fly themselves for long periods of time, airlines and regulators are looking for ways to ensure that bored pilots don't doze off or lose their focus. Some carriers have protocols that require pilots to perform certain inputs every 15 minutes; failure to do so sets off an alarm in the cockpit. Meanwhile, regulators are discussing a federal ban on personal electronic devices for pilots, along with cockpit cameras to detect violations of the policy. But Bill Voss, CEO of the Flight Safety Foundation, says such steps could be more symbolic than substantive. "If regulation solved all the problems in aviation, we'd just have to outlaw crashes," he notes. The New York Times (10/31) , Newsweek (10/30)

• Southwest starts Milwaukee service as Midwest changes planes
  Southwest Airlines on Sunday started service to Milwaukee, while the city's longtime airline leader prepared for a major change. Southwest will operate 12 nonstop flights from Milwaukee on its Boeing 737 aircraft. Meanwhile, Midwest Airlines said Monday would mark its final Milwaukee flights with Boeing 717 aircraft operated by original Midwest crews. Parent company Republic Airways plans to serve Milwaukee with more fuel-efficient planes such as the Embraer 190 and Airbus 319. WTMJ-TV (Milwaukee) (11/1) , Milwaukee Journal Sentinel (10/31)

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Featured Content

Space

• Weapons in space inevitable, Chinese commander says
  After years of pushing for the peaceful use of outer space, China appeared to signal a shift on Monday when a top air force commander said the militarization of space is probably inevitable. Xu Qiliang said the People's Liberation Army must develop both offensive and defensive capabilities in space. "As far as the revolution in military affairs is concerned, the competition between military forces is moving towards outer space ... this is a historical inevitability and a development that cannot be turned back," he told an army newspaper. Google/Agence France-Presse (11/2)

Hot Topics

Top five news stories selected by AIA dailyLead readers in the past week.

• South Carolina wins contest for Boeing 787 assembly line (Chicago Tribune)

• Today marks final Boeing 737 flight at United (USA TODAY)

• Despite passenger popularity, A380 remains a problem for Airbus (Bloomberg)

• A reporter tags along on United's final 737 flight (Chicago Tribune)

• Obama to sign defense bill with call for further cuts (Reuters)

• Results based on number of times each story was clicked by readers.

Homeland Security

• Report: N.Y. airspace initiatives showing few results
  Two years after an advisory board recommended 77 changes to ease congestion in New York airspace, only 30 of those initiatives have been completed, according to a report from the Transportation Department's Inspector General. Of the 30 "completed" items, nine are used only infrequently, three have been discontinued and 13 need additional work. Only five of the completed items were found to create the expected benefits, and the 47 unaddressed issues "face a number of challenges" before they can be implemented. AviationWeek.com (10/30)

Quality Manager TECT Aerospace Wellington/Wichita Kansas Manager Government Compliance General Dynamics Sterling Heights, MI

AIA News

• AIA Support at the Dubai Airshow
  In the 2009 Dubai Airshow, AIA members can take advantage of an American Chamber of Commerce breakfast, ambassador's reception, DoD static aircraft tour, watch the flyover from the Northrop Grumman Chalet, and several discounts. More information here.

AIA Aero Webinars

• Testing in "real" environment speeds cybersecurity innovation
  Nov. 5, 2 p.m. ET: With expert guest speakers retired Air Force Gen. Charles "Charlie" Croom, vice president of Cyber Security Solutions, Lockheed Martin Information Systems & Global Services, and Curt Aubley, chief technology officer, Lockheed Martin Operations & Next Generation Solutions. Read more.

Editor's Note

• Poll: With the consolidation of the industry and the uncertain financial environment, how is the supplier community responding?
  Look for the AIA DailyLead Year-End Report on Dec. 8 and 15. The results of this poll will appear in Part 2 on Dec. 15.

	Responding well-- this is nothing new.
	Becoming more fragile especially as credit is harder to find.
	Aggressively looking for new markets across the globe.
	Investing in new technologies and looking for acquisitions to become stronger.

SmartQuote

Accept the challenges so that you may feel the exhilaration of victory." --George S. Patton Jr., World War II general