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.

In the past decade, the world rotorcraft market has been hit by the downturn in military spending. The military side makes up the overwhelming majority of this market, and like other military segments, procurement has fallen as new systems are delayed and armed forces coast on existing inventories.