Defense & Aerospace Report

Byron Callan, a senior analyst at Capital Alpha Partners, provides insightful commentary on defense spending and acquisition trends. He discusses the aftermath of the US government shutdown and its impact on the National Defense Authorization Act. Callan critiques Army Secretary Driscoll’s push for commercial sourcing and explains the implications of NATO's shift toward European defense solutions. He also highlights Germany's expanding military budget and the potential for US action in Venezuela, painting a complex picture of global defense dynamics.

Dr. "Rocket" Ron Epstein, a senior equity analyst at Bank of America Securities, joins Sash Tusa, an independent analyst focused on European defense, and Richard Aboulafia from AeroDynamic Advisory. They delve into Wall Street’s mixed signals amid Federal Reserve uncertainties and the implications of the U.S. government shutdown's end. Discussion highlights include NATO's shift from E-7 concepts, Colombia's Gripen jet purchase, and insights into defense procurement reform. The trio also tackles the ongoing tensions between Dassault and Airbus over future air systems.

This week features Michael Herson, a former Capitol Hill staffer; Dr. Dov Zakheim, a former Pentagon comptroller; Jim Townsend, a transatlantic security expert; and Dr. Patrick Cronin, an Asia-Pacific strategy authority. They dive into the implications of the US government shutdown and upcoming appropriations, while also analyzing the complexities of designating 'Antifa' as terrorist organizations. The guests discuss rising tensions over Taiwan, the evolving battlefield in Ukraine, and the significance of the new Australia-Indonesia defense treaty.

Mark Gunzinger, a director at the Mitchell Institute and former B-52 pilot with over 3,000 flight hours, dives into the future of bomber missions. He critiques the single-pilot concept for long-range missions, emphasizing the need for two pilots to handle emergencies and complex mission systems. Gunzinger highlights the risks of relying on automation, arguing it could compromise mission safety. He also discusses the challenges of pilot shortages versus flying capacity, urging investment in crew ratios to maintain effectiveness in operations.

Todd Harrison, a defense budget expert at the American Enterprise Institute, joins to dissect the recent government shutdown's lingering impacts on military readiness and workforce morale. He highlights the protective measures for Boeing's E-7 radar program and discusses the need for acquisition reforms spearheaded by Defense Secretary Pete Hegseth. Harrison elaborates on the shift from airborne to space-based systems and the complexities of tracking reconciliation funding in defense. His insights underscore the intricate relationship between politics and defense procurement.

Lt. Gen. Dave Bassett, USA Ret., a seasoned former Defense Contract Management Agency director; Dr. Jerry McGinn, a specialist in industrial mobilization at CSIS; and Steve Grundman, former Pentagon industrial base chief, discuss ambitious acquisition reforms by Secretary Hegseth. They explore accelerating military capabilities, incorporating commercial products, and enhancing second sourcing. The panel also debates the challenges of right to repair, workforce dynamics, and incentivizing industry investments while gauging the future of U.S. arms exports.

Byron Callan, an expert in defense finance from Capital Alpha Partners, and Chris Servello, a retired U.S. Navy public affairs officer, dive into the impact of the U.S. government shutdown on contractors. They analyze Secretary Hegseth's procurement reforms and discuss what needs to happen for success. The duo covers Russia's evolving strategies in Ukraine, the implications for U.S. naval posture, and the potential effects of ongoing conflicts on defense reforms. They also highlight positive trends in defense spending amid broader industry challenges.

Joining the discussion are Dr. "Rocket" Ron Epstein, a senior aerospace analyst at Bank of America, Sash Tusa, a London-based equity research specialist, and Richard Aboulafia, an aviation consultant known for his geopolitical insights. They unpack Wall Street's tech sell-off, explore defense spending prospects for FY 2026, and examine Germany's significant rearmament. The trio also dives into the potential sale of F-35s to Saudi Arabia, critiques of the eVTOL hype, and the implications of the Supreme Court's review of presidential tariff authority.

Michael Herson, President of American Defense International, shares insights on the recent election dynamics influencing the longest U.S. government shutdown. Dr. Dov Zakheim highlights the Pentagon's budgeting challenges amid the shutdown and discusses potential military actions in Venezuela and Nigeria. Dr. Patrick Cronin analyzes Defense Secretary Hegseth's impactful Asia trip and its implications on U.S. defense diplomacy. Jim Townsend provides an update on Russian advances in Ukraine and European security concerns, emphasizing NATO's strategic posture.

Kari Erickson and John Kusnierek, both Senior VPs at Rolls-Royce, dive into the world of advanced propulsion technologies. They discuss the notable B-52 re-engining efforts and the innovative F-35B lift system's engineering intricacies. The conversation also explores the evolution of tilt-rotor engines, the smart adaptation of civil engines for military use, and the ambitious future of hypersonics. With a rich history guiding them, they emphasize the role of AI and advanced materials in shaping the future of aviation.