The turbine engine market is slowly rebounding from the worst recession in over a decade. Competition between engine makers is threatening profitability, and in the recent past led to the development of new products for any emerging application, no matter how dubious. Still, promising new engines are entering the market, which is already returning to health in several key sectors. And manufacturers are forging unprecedented new alliances, hoping to cut costs while increasing sales. BIG FAN MAKERS FACE REALITY

Trainer and light attack aircraft are the easiest military aircraft to build. There are few barriers to market entry. Many countries have their own trainer design. Trainers are to fighters as regional transports are to large jet transports. Almost any company can design, build and lose money on trainers or regional aircraft; it's much harder to make the jump to more capable (and profitable) fighters and jet transports.

The specter of the Joint Strike Fighter haunts the fighter market. The Pentagon's November, 1996, JSF concept demonstration contract awards to Lockheed Martin and Boeing has virtually eliminated McDonnell Douglas as a builder of fighter aircraft once its current aircraft cease production.