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Northrop Grumman and Kratos Win USMC MUX TACAIR Contract

Northrop Grumman and Kratos to develop USMC’s MUX TACAIR uncrewed aircraft system with Prism software and Valkyrie airframe integration.

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This article is based on an official press release from Northrop Grumman.

Northrop Grumman and Kratos Selected for USMC MUX TACAIR Program

Northrop Grumman has been competitively awarded a contracts by the U.S. Marine Corps to develop the Marine Air-Ground Task Force Uncrewed Expeditionary Tactical Aircraft (MUX TACAIR). The project, formally classified as a Collaborative Combat Aircraft (CCA) initiative, aims to field a sophisticated “loyal wingman” system capable of operating in high-threat environments alongside manned fighters.

Announced on January 8, 2026, the agreement positions Northrop Grumman as the prime contractor with Kratos Defense & Security Solutions serving as the key subcontractor. The team will integrate Northrop’s advanced mission systems into the flight-proven Kratos XQ-58A Valkyrie airframe. This “best of breed” strategy is designed to accelerate the deployment of automation systems for the Marine Corps.

According to the announcement, the initial period of performance is set for 24 months with a contract value of approximately $231.5 million. The program’s primary objective is to rapidly develop, integrate, and field an uncrewed aircraft system (UAV) that meets the Marine Corps’ unique requirements for expeditionary operations.

Integrating “Prism” with the Valkyrie Airframe

The partnerships leverages the specific strengths of both defense firms. Northrop Grumman will act as the Lead Systems Integrator, providing the “Advanced Mission Kit.” This package includes sensors, communications, and software-defined technologies driven by “Prism,” Northrop’s proprietary autonomy software.

Kratos Defense will supply the XQ-58A Valkyrie, a stealthy, high-performance uncrewed aerial system that has already demonstrated its capabilities in flight. By utilizing an existing airframe, the team aims to bypass the long lead times associated with clean-sheet aircraft designs.

The Role of Software-Defined Autonomy

Northrop Grumman’s “Prism” software is central to the program’s adaptability. Described as an open-architecture system, Prism allows for the rapid integration of third-party modules or “apps.” This plug-and-play capability ensures that the Marine Corps can swap mission profiles, switching from electronic warfare to surveillance, for example, without needing to rewrite core flight code.

In a statement regarding the award, Krys Moen, Vice President at Northrop Grumman, emphasized the speed and reduced risk of this approach:

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“This partnership offers a low risk, expedited path to mission capability. Combining a proven airframe with our proven mission systems avoids the delays inherent in a clean-sheet design.”

Strategic Capabilities for Expeditionary Warfare

The MUX TACAIR program is closely aligned with the U.S. Marine Corps’ Force Design 2030 strategy, which prioritizes dispersed operations and “Stand-in Forces” in the Indo-Pacific region. A critical requirement for this program is runway independence.

The XQ-58A Valkyrie is designed to be launched via rocket assist from a rail system, which can be mounted on trucks or ships, and recovered via parachute. This capability eliminates reliance on traditional airfields, which are viewed as vulnerable static targets in modern conflict scenarios. The aircraft boasts high-subsonic speeds of approximately Mach 0.85 and a range exceeding 3,000 nautical miles, allowing it to serve as a forward sensor node or “quarterback” that relays targeting data to F-35s and ground units.

Steve Fendley, President of Kratos Unmanned Systems, highlighted the economic and operational advantages of the platform:

“The integration results in a high-capability CCA at a price point that enables the uncrewed systems to be deployed in mass.”

Program Timeline and Future Development

The immediate 24-month contract period will focus on integrating the Northrop mission kit into the Valkyrie airframe and conducting a series of flight tests. The program is structured around a “spiral” development model, where capabilities are added incrementally. Initial operational focuses are expected to include surveillance and electronic warfare, with lethal strike capabilities planned as the autonomy software matures.

The ultimate operational goal is to field a capability that can be deployed with Marine Expeditionary Units (MEUs) before the end of the decade, providing organic air support that does not require large aircraft carriers.

AirPro News Analysis

The selection of the Kratos Valkyrie for the MUX TACAIR program underscores a significant divergence between Air Force and Marine Corps acquisition strategies for Collaborative Combat Aircraft (CCA). While the U.S. Air Force has largely focused on runway-dependent systems for its CCA increments, the Marine Corps has remained steadfast in its requirement for runway independence.

By choosing a rail-launched, parachute-recoverable system, the USMC is effectively future-proofing its air support against runway denial tactics. Furthermore, the “attritable” nature of the Valkyrie, meaning it is low-cost enough to be lost in combat without catastrophic financial or strategic impact, aligns perfectly with the need for mass in contested environments. This contract validates the industry’s shift toward separating the airframe commodity from the high-value software and sensor packages, a trend that is likely to define the next generation of uncrewed military-aircraft aviation.

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Photo Credit: Northrop Grumman

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Defense & Military

Bolivian Air Force C-130 Crashes at El Alto Airport Killing 15

A Bolivian Air Force C-130 cargo plane crashed at El Alto Airport, causing 15 deaths, 30 injuries, and scattering banknotes. Investigation ongoing.

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This article summarizes reporting by Hindustan Times.

15 Dead, 30 Injured After Bolivian Air Force C-130 Crashes in El Alto

A Bolivian Air Force Hercules C-130 cargo aircraft crashed Friday evening while attempting to land at El Alto International Airport near La Paz, resulting in significant loss of life and chaotic scenes on the ground. According to reporting by the Hindustan Times, at least 15 people have been confirmed dead and 30 others injured in the incident, which occurred on February 27, 2026.

The tragedy was compounded by the nature of the aircraft’s cargo. The plane was transporting a shipment of newly printed banknotes for the Central Bank of Bolivia. The impact caused the fuselage to break apart, scattering cash across the crash site and a neighboring avenue, leading to a rush of bystanders attempting to collect the money amidst the wreckage.

Incident Overview and Flight Path

The crash took place at approximately 6:00 PM local time. The aircraft, operated by the Fuerza Aérea Boliviana, had originated from Santa Cruz and was in its final landing phase at El Alto International Airport (LPB). Reports indicate that the plane veered off the runway, crashed through the airport’s perimeter fence, and collided with vehicles on a busy adjacent road.

According to verified details summarized in reports, inclement weather may have played a role in the pilot losing control. The aircraft struck multiple vehicles, destroying several cars and damaging trucks, which contributed to the high casualty count. Fire Chief Pavel Tovar confirmed the fatalities but noted the difficulty in distinguishing between victims who were on board the aircraft and those in vehicles struck on the ground.

Scene Chaos and Security Response

The immediate aftermath of the crash was marked by unusual complications due to the scattered cargo. As the C-130 broke apart, the shipment of banknotes intended for the Central Bank of Bolivia spilled onto the roadway. Social media footage and news reports described chaotic scenes as members of the public rushed toward the burning wreckage to gather the loose cash.

Security forces were required to intervene to secure the site for emergency responders. Police and military personnel reportedly utilized tear gas and water hoses to disperse the crowds, allowing ambulances and fire crews to reach the injured. The 30 injured individuals were subsequently transported to local hospitals for treatment.

“Authorities have confirmed at least 15 fatalities and approximately 30 injuries.”

, Summary of verified reports

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Official Statements and Context

Following the incident, Boliviana de Aviación (BoA), the national airline, issued a clarification stating that the aircraft involved was a military transport and not part of their commercial fleet. The Bolivian Ministry of Defense and the Air Force have launched an official investigation to determine the precise cause of the accident.

AirPro News Analysis: High-Altitude Operations

The following is analysis by AirPro News.

El Alto International Airport presents unique challenges for aviation operations due to its extreme elevation. Situated at approximately 4,061 meters (13,325 feet) above sea level, it is one of the highest international airports in the world. At this altitude, the air density is significantly lower than at sea level, which reduces engine performance and lift.

For heavy transport aircraft like the Lockheed C-130 Hercules, these conditions necessitate higher landing speeds and longer runway distances. When combined with inclement weather, as reported in this incident, the margin for error during the landing phase is drastically reduced. While the C-130 is a robust tactical airlifter designed for rugged environments, the specific aerodynamic limitations imposed by El Alto’s “hot and high” conditions remain a critical factor in aviation safety in the region.

Historical Safety Context

The Bolivian Air Force has suffered losses involving its C-130 fleet in previous decades. Historical data indicates a crash in 1989 in Guayaramerín that resulted in 24 fatalities, and another hull loss in Trinidad in 1994. This latest incident marks a significant tragedy for the military aviation sector in Bolivia, further complicated by the civilian casualties on the ground.

El Alto International Airport was temporarily closed following the crash, with commercial flights suspended or diverted while authorities cleared the wreckage and conducted their preliminary investigation.

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Photo Credit: X

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Defense & Military

Retired US Air Force Pilot Arrested for Training Chinese Military Aviators

Gerald Eddie Brown Jr., a retired US Air Force Major, was arrested for allegedly training Chinese military pilots without authorization, violating export laws.

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This article summarizes reporting by Fox News and official statements from the Department of Justice.

Former U.S. Air Forces Pilot Arrested for Allegedly Training Chinese Military Aviators

Federal authorities have arrested a retired U.S. Air Force Major on charges of conspiring to provide unauthorized military training to the People’s Liberation Army Air Force (PLAAF) in China. The arrest of 65-year-old Gerald Eddie Brown Jr., announced on February 25, 2026, marks the latest development in a broader federal crackdown on Western military personnel selling their expertise to foreign adversaries.

According to reporting by Fox News and unsealed court documents, Brown was taken into custody in Jeffersonville, Indiana. Prosecutors allege that Brown, a former F-35 simulator instructor, violated the Arms Export Control Act (AECA) by sharing sensitive U.S. military tactics with Chinese pilots without the required export license from the State Department.

The Department of Justice (DOJ) claims Brown’s activities were facilitated by intermediaries connected to Stephen Su Bin, a convicted Chinese hacker known for targeting U.S. defense contractors. If convicted, Brown faces significant prison time for allegedly betraying the oath he took as an American servicemember.

The Allegations: “Defense Services” for the PLAAF

The criminal complaint details a timeline of events beginning in August 2023, when Brown allegedly began communicating with Chinese contacts. According to federal prosecutors, Brown traveled to China in December 2023 and remained there until February 2026, allegedly providing instruction on combat aircraft operations.

Under the International Traffic in Arms Regulations (ITAR), providing “defense services”, which includes training foreign military personnel, requires explicit authorization. The DOJ alleges Brown neither sought nor received such a license. Upon his arrival in China, prosecutors claim Brown expressed enthusiasm for the opportunity in seized communications:

“Now… I have the chance to fly and instruct fighter pilots again!”

Alleged message from Gerald Eddie Brown Jr., cited by the Department of Justice

The government alleges that on his very first day in China, Brown spent hours answering technical questions about U.S. Air Force operations. He subsequently provided personal briefings and ongoing instruction to PLAAF personnel throughout his stay.

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The Su Bin Connection

A critical element of the government’s case is Brown’s alleged association with Stephen Su Bin. Su Bin is a Chinese national who was convicted in the United States in 2016 for conspiring to hack major defense contractors, including Boeing and Lockheed Martin, to steal designs for the F-22, F-35, and C-17 aircraft.

According to the charges, Brown negotiated his employment through a network linked to Su Bin. This connection suggests a coordinated effort by Chinese state actors to acquire U.S. military knowledge through both cyber espionage and the recruitment of human assets.

Military Background and F-35 Sensitivity

Brown, who utilized the call sign “Runner,” served 24 years in the U.S. Air Force, retiring in 1996 with the rank of Major. His service record includes commanding nuclear weapons delivery units and flying combat missions. He served as an instructor for multiple airframes, including the F-4, F-15, F-16, and A-10.

However, it is his post-military career that has likely drawn the most scrutiny from counterintelligence officials. After retiring, Brown worked as a contract simulator instructor for the F-35 Lightning II, the United States’ most advanced stealth fighter. Knowledge regarding the F-35’s operational limits, sensor fusion capabilities, and tactics is considered highly classified and extremely valuable to near-peer adversaries like China.

Official Reactions

Federal officials have condemned the alleged actions as a betrayal of national security. In a statement released following the arrest, John A. Eisenberg, Assistant Attorney General for National Security, emphasized the gravity of the charges.

“The United States Air Force trained Major Brown to be an elite fighter pilot and entrusted him with the defense of our Nation. He now stands charged with training Chinese military pilots…”

John A. Eisenberg, Assistant Attorney General for National Security

Roman Rozhavsky, Assistant Director of the FBI’s Counterintelligence Division, echoed these sentiments, noting the persistent efforts by the Chinese government to exploit U.S. military expertise.

“Gerald Brown… allegedly betrayed his country by training Chinese pilots to fight against those he swore to protect.”

Roman Rozhavsky, FBI Assistant Director

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AirPro News Analysis: A Pattern of Recruitment

The arrest of Gerald Brown is not an isolated incident but part of a documented trend where the Chinese military aggressively recruits former Western pilots to fast-track their own capabilities. By hiring experienced instructors, the PLAAF seeks to understand Western tactics and carrier operations without the decades of institutional learning usually required.

This case draws parallels to that of Daniel Duggan, a former U.S. Marine Corps pilot arrested in Australia in 2022. Duggan is currently fighting extradition to the U.S. on charges that he trained Chinese pilots to land on aircraft carriers. In response to these threats, NATO allies, including the UK and Australia, have recently issued joint warnings about Chinese headhunting firms targeting former military personnel with lucrative contracts.

The specific mention of the F-35 in Brown’s background makes this case particularly sensitive. While previous cases often involved older platforms or general carrier operations, the potential transfer of knowledge regarding fifth-generation stealth tactics represents a severe breach of operational security.

Timeline of Events

  • 1996: Brown retires from the U.S. Air Force as a Major.
  • 2016: Co-conspirator Stephen Su Bin pleads guilty to hacking U.S. defense contractors.
  • August 2023: Brown allegedly begins negotiating with Chinese contacts.
  • December 2023: Brown travels to China to begin training PLAAF pilots.
  • February 2026: Brown returns to the U.S.
  • February 25, 2026: Brown is arrested in Jeffersonville, Indiana.

Sources: Fox News, Department of Justice, Federal Bureau of Investigation

Photo Credit: Montage

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Defense Contracts

Leonardo Reports Double-Digit Growth and Halves Net Debt in FY 2025

Leonardo S.p.A. achieved double-digit growth in orders, revenues, and EBITA for FY 2025 while reducing net debt to €1.0 billion and advancing strategic initiatives.

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This article is based on an official press release from Leonardo S.p.A..

Leonardo S.p.A. Reports Double-Digit Growth in FY 2025, Halves Net Debt

On February 25, 2026, Italian defense and aerospace conglomerate Leonardo S.p.A. released its preliminary financial results for the fiscal year 2025, reporting performance that exceeded both company guidance and market expectations. The company achieved double-digit growth across all primary metrics, including new orders, revenues, and profitability, while successfully reducing its net debt by nearly 45%.

According to the official release, the company’s “One Company” transformation strategy has begun to yield significant financial efficiencies. CEO Roberto Cingolani highlighted the results as a validation of the industrial plan launched three years prior, noting that the group has strengthened its financial position ahead of potential strategic moves in 2026.

Financial Performance vs. Guidance

Leonardo reported €23.8 billion in new orders for FY 2025, a 14.5% increase over the previous year and well above the guidance range of €22.3–22.8 billion. This surge in orders has pushed the company’s total backlog to €46.6 billion, providing approximately 2.4 years of revenue visibility.

Revenues climbed to €19.5 billion, marking a 10.9% year-over-year increase. Profitability also improved significantly, with Earnings Before Interest, Taxes, and Amortization (EBITA) reaching €1.75 billion, an 18.2% rise compared to 2024. The company noted that these growth figures are “like-for-like,” excluding the contribution of the Underwater Armaments & Systems business, which was divested to Fincantieri earlier in 2025.

Perhaps the most notable metric for investors was the reduction in Group Net Debt. Leonardo lowered its debt burden to €1.0 billion, down from €1.8 billion in 2024. This reduction was driven by strong Free Operating Cash Flow (FOCF) of €1.0 billion, which beat the upper end of the company’s €980 million guidance.

“We exceeded the challenging guidance, which had been already upgraded during the year. Such a performance represents the completion of the value-accretion path launched three years ago… fully enabling the Leonardo ‘One Company’ model.”

— Roberto Cingolani, CEO of Leonardo S.p.A.

Segment Highlights

The press release detailed growth across all main business sectors, with Aeronautics emerging as a standout performer regarding order intake.

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Aeronautics and Aerostructures

The Aeronautics division secured €5.8 billion in new orders, a 55% increase year-over-year. The company attributed this spike to a major logistics support contract in Kuwait and accelerating activity in the Global Combat Air Programme (GCAP). Additionally, the Aerostructures sub-unit, historically a drag on profitability, was reported to have “narrowed its losses” amid recovering demand for commercial fuselages from Boeing and Airbus.

Electronics and Cyber Security

Electronics remains the largest segment by revenue, contributing €8.35 billion. The division maintained the highest Return on Sales (ROS) at 12.9%. Meanwhile, the Cyber & Security Solutions division recorded the sharpest improvement in profitability, with EBITA jumping 63.3% to €80 million and margins hitting 10%.

Strategic Outlook: Joint Ventures and Divestments

Looking ahead to the rest of 2026, Leonardo management outlined several key strategic initiatives. CEO Cingolani confirmed that the company is in advanced negotiations to establish a Joint Venture for its Aerostructures unit. Leonardo expects to finalize the deal by June 2026, initially retaining a 50% stake in the new entity.

Furthermore, the company is currently reviewing its 22.8% stake in German defense electronics firm Hensoldt. Management indicated that discussions are underway regarding a potential reduction in this holding to facilitate an increased position by the German government, with a decision expected before the summer.

AirPro News Analysis: Market Reaction

Despite the operational “beat” across all metrics, Leonardo’s stock (LDO.MI) closed down approximately 2.7% on the day of the announcement, trading around €58.69. In our view, this reaction reflects a classic “buy the rumor, sell the news” dynamic. The stock had rallied significantly in the months leading up to the release, trading near 52-week highs.

While the immediate market reaction was negative, the fundamental improvements in cash flow and debt reduction place Leonardo in a robust position. The reduction of net debt to €1.0 billion significantly increases the company’s firepower for potential M&A activity or increased shareholder returns, such as the potential 20% dividend increase hinted at by leadership.

Sources

Sources: Leonardo S.p.A. Press Release, Borsa Italiana Market Data

Photo Credit: Leonardo

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