Main headlines from this issue

Lockheed and Airbus fend off Blenheim’s legal campaign

Blenheim Capital Holdings has lost its appeal in a two-year case against Lockheed Martin and Airbus Defense & Space over a botched offset deal, a decision with major legal implications for offset providers operating in the US. The US Court of Appeals for the Fourth Circuit dismissed Blenheim’s appeal on the grounds that offset transactions are “exclusive to sovereigns” and therefore do not fall within US subject-matter jurisdiction. Blenheim filed a second appeal for a rehearing last week, arguing that the court has “erroneously” misunderstood the nature of offset transactions.

Brave new world: emerging trends in offset

As offset moves away from one-off transactions towards long-term alliances, offset providers must start thinking bigger-picture, according to Michael Formosa, managing partner at Renaissance Strategic Advisors. During last month's GICA conference, Formosa explained how geopolitical trends are shaping cooperation, and what this means for offset providers.

Peru tackles high turnovers and repeated delays

Peru’s management of offsets has been undermined by turnovers and changing end-user priorities, according to Colonel Armando Pomar Galdos, director of Peru’s offsets division DICISOF. Galdos explains how Peru plans to overcome these challenges.

France and Germany inch towards breakthrough on FCAS

An 18-month disagreement between Dassault and Airbus over workshare and technology transfer in the US$100bn Future Combat Air System (FCAS) is on the brink of a breakthrough, according to the programme’s leaders. CTO breaks down recent events.

KAI secures Egyptian partner for potential T-50 sale

Egypt’s Arab Organization for Industrialization (AOI) has signed a cooperation agreement with Korea Aerospace Industries (KAI) to manufacture training aircraft in Egypt. The cooperation agreement aims to meet the needs of the Egyptian Air Force (EAF) as well as third-party African and Arab countries.

Deep dive: UK selects Navantia for support ships

The British Ministry of Defence has selected Navantia UK’s offset-heavy Team Resolute to deliver three Fleet Solid Support (FSS) ships to the Royal Fleet Auxiliary (RFA) under a £1.6bn (US$1.9bn) programme. CTO investigates the deal, and outlines Britain's approach to local shipbuilding long-term.