LightSquared and the GPS industry continue their war of words over potential interference between the planned broadband wireless network and the position and timing signals from the U.S. government-owned navigation-satellite constellation.

Combat Aircraft: Growing demand for stealth technology gives Lockheed Martin's F-35 a dominant position in the global fighter market, even if the U.S. cuts the number it buys. And where the F-35 leads, new trainers will follow. See pp. 49 and 54. Commercial Transports: They face new challengers this time around, but Airbus and Boeing rake in orders in a high-stakes struggle for the narrowbody market. Their airline customers warn of higher costs and lower profits in 2012. See pp. 76, 80, 86 and 88.

Satellites play a vital role in the increasingly networked world, and satellite operators are discovering a wealth of new opportunities.

Significant defense orders, strong government subsidies and growing demand for domestically produced commercial aircraft have provided optimism regarding the Russian aircraft industry.

Michael J. McCord, the U.S. Defense Department's comptroller, warns of dire consequences if more than $1 trillion in approved cuts to military spending over 10 years are allowed to take effect. The result would be the lowest number of ships since World War I, the smallest ground force since 1940 and the smallest Air Force ever, he recently told investors.

Few times in aerospace history can have been as difficult for forecasters as recent months. Things are changing, that is certain, but there are so many conflicting signs that the direction of the industry is almost impossible to project. Debt crises, oil prices, climate change, competition for resources and many other factors inject unprecedented unpredictability into the equation.