The Pentagon is bracing for an economic reality check as the AI bubble may burst in 2026. Experts warn of potential consequences, including bargain prices and widespread ripple effects.

Breaking Defense reports that the Air Force has made significant progress in its drone wingman program, with first flights completed for prototype drones. The Collaborative Combat Aircraft program aims to develop unmanned systems capable of augmenting military forces.

France has finalized a $1.3 billion USD contract with Saab to purchase two GlobalEye radar planes. The deal marks the second export customer for the aircraft, following the UAE's fleet of five.

Breaking Defense reports on the prospects for fighter jet deals, missile defenses, and peace talks in the Middle East and North Africa in 2026. The US has allowed Saudi Arabia to purchase F-35s, while Turkey may rejoin the program after removing sanctions.

The US Federal Aviation Administration (FAA) is preparing to roll out a nationwide system allowing pilots to give feedback on designated pilot examiners (DPEs) after check rides. The agency seeks approval from the Office of Management and Budget to introduce a voluntary 'post-activity survey' for pilots who complete practical tests conducted by DPEs.

Air China has signed an agreement with Airbus to purchase 60 A320neo family aircraft valued at approximately $9.5 billion. The order supports fleet renewal and capacity growth while reducing fuel consumption and emissions.

Airbus has secured a firm order for 30 A320neo aircraft from long-time partner China Aircraft Leasing Group Holdings Limited (CALC). The deal includes a conversion clause, allowing CALC to switch to other variants of the Airbus A320 family aircraft.

The Spanish Air and Space Force has selected Turkish Aerospace Industries to purchase 30 Hürjet advanced jet trainers, worth $3 billion (€2.6 billion). Airbus will lead the development and implementation of the new combat Integrated Training System (ITS-C), replacing the current F-5 aircraft fleet.

Boeing has secured an $8.6 billion contract to supply Israel with 25 new F-15IA fighter jets, with an option for 25 more aircraft in the future. The deal, announced by the US Department of War on December 29, 2025, follows talks between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu at Mar-a-Lago in Florida.

China's Spring Airlines and Juneyao Airlines have announced plans to acquire over $8 billion worth of Airbus A320-family aircraft, with deliveries expected between 2028 and 2032. The deals come amid renewed efforts by Airbus to expand its footprint in China, following several years of uneven order activity.

Two experienced pilots lost their lives in a midair helicopter collision near Hammonton Municipal Airport on December 28, 2025. According to local officials, preliminary information suggests that both aircraft were flying close together shortly after takeoff and may have been traveling together at the time of the accident.

The US Army is undergoing significant changes to its acquisition process, including a new reporting structure and a focus on commercialization. The Army plans to buy commercial engines for the M1E3 tank and set up a marketplace for drones and counter-drone capabilities.

Israel's Iron Beam laser air defense system has been officially activated by the Israeli Ministry of Defense and Rafael Advanced Defense Systems. According to a joint press release, the system was successfully tested against various threats and will be integrated into the Israeli Air Force as part of its multi-layered aerial defense array.

The Federal Air Transport Agency has approved a modified Tu-214 with domestic-made systems and components, which will enable serial production and delivery to Russian airlines. Eight planes will be built in 2026, followed by 12 in 2027, and then from 2028 production will rise to 20 per year.

The US Army has selected Bell, Boeing, and Sikorsky to compete for a new rotary-wing training program worth up to $500 million. Training will cover 1,200 pilots annually starting in 2027, representing a significant expansion of Army aviation training capacity.

JALCARGO and the JR East Group have announced a new transportation service that combines Japan's Shinkansen high-speed rail network with Japan Airline's global air cargo operations. The 'JAL de Hako-byun' service, set to launch on January 13, 2026, aims to connect local Japanese producers with international markets through a streamlined one-stop logistics solution.

Air Tahiti Nui and Air Tahiti have signed a codeshare agreement that will simplify travel to popular destinations in French Polynesia, starting June 2, 2026. The arrangement enables international passengers to book single tickets to Bora Bora Airport (BOB) and Rarotonga International Airport (RAR).

South Korea has marked the one-year anniversary of the Jeju Air crash that killed 179 people on December 29, 2024. The ceremony featured a memorial service at Muan International Airport, where President Lee Jae Myung offered his deepest apology and pledged a credible probe into the cause of the crash.

Breaking Defense reports on China's military parade showcasing its nuclear triad and new missiles, including the HQ-29 anti-satellite interceptor. This event highlights China's growing belligerent behavior in the Indo-Pacific region, with implications for regional security.

Blue Origin has appointed Tory Bruno as president of a new National Security Group, reporting directly to CEO Dave Limp. This move comes after nearly a decade at United Launch Alliance, where Bruno previously served as president and CEO.