The Air Force's consistent preference for tactical combat aircraft continues to weigh against the entire concept of the manned strategic bomber. New bomber development programs are nowhere in sight, and even the existing fleet is under budgetary pressure. Nevertheless, the U.S. bomber fleet's continuing strong performance in recent overseas operations will go a long way toward strengthening the case for maintaining this capability.

Despite hopes for an imminent recovery, the world's air transport industry remains hobbled by slack demand and a changing business environment. Airline uncertainties and a difficult economic outlook also are complicating manufacturers' efforts to position themselves for the next market upturn. Traffic and yields remain below 2001 levels. The inactive jetliner fleet still hovers near 2,000 airplanes, more than 13% of the total fleet.

There are signs that the trainer market, long considered dormant, may again come to life. Fleets are aging, and despite several trends mitigating against market growth, requirements are still in place. Several important trainer competitions have been announced, most notably in Turkey.