Rolls-Royce is a brand that it synonymous with Britain, but from 2012 on, half of the engine-maker's Trent engine production capacity will be in Singapore. The manufacturer has built an assembly plant, a wide-chord hollow titanium fan-blade factory, and a training center and research laboratory at Singapore's Seletar Aerospace Park. It is the company's first such fan-blade factory outside Britain and its first engine assembly plant outside Europe.

Deals for mergers and acquisitions in global aerospace and defense hit a new high in 2011, reaching $43.7 billion, according to a new study by PricewaterhouseCoopers (PwC).

The high profile Airbus has given the A380 magnifies any of its problems in the public eye. The mega-transport's latest setback, cracks in a wing component that must be repaired in much of the fleet worldwide, may end up as little more than a footnote, however. Airbus has put in place changes to its A380 wing assembly process to address the occurrence of component cracks as it becomes apparent that most A380s already built require fixes to deal with the issue.

Once known as the home of big airplanes, the Asia-Pacific region's growth now spans so many commercial jet market segments that even manufacturers of regional aircraft are beginning to find ways to keep from being squeezed out by the big guys.

European governments have been notorious for their open or hidden subsidies to support national carriers. But tighter controls imposed by the European Commission, coupled with the effects of the sovereign debt crisis, are taking their toll on the weakest airlines—as witnessed by the recent demise of Spanair and the de facto collapse of Malev.

European Union emission allowance (EUA) prices rebounded in January, taking support from colder weather in Europe, which boosted demand for domestic heating, driving up CO2 emissions and the demand for allowances. EUAs for delivery in December 2012 rallied to €8.04 per metric ton ($10.56 per metric ton) on Jan. 31, up from an all-time low of €6.60 on Jan. 3.

Singapore Technologies Aerospace Ltd. (ST Aero) President Chang Cheow Teck spoke to AW&ST Asia Editor Leithen Francis at the company's corporate headquarters in Singapore. AW&ST: Is there a danger that demand for passenger-to-freighter (PTF) conversions will fall in 2012? I notice China's Jade Cargo has grounded its fleet.

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