Philippines, USA and ASEAN 5 day Naval WAR Drill kicked off August 29

USS Safeguard (ARS-50) is a Safeguard-class salvage ship, the second United States Navy ship of that name. Safeguard was laid down on 8 November 1982 by Peterson Builders, Sturgeon Bay, Wisconsin; launched on 12 November 1983; and commissioned on 17 August 1985. Photo from Wikimedia

Navy units from the Philippines, the United States and five other Southeast Asian countries on Tuesday commenced a fleet training exercise at the Malacca Strait, Sulu Sea and Subic Bay.

Four ships and one islander aircraft from the Philippine Navy will participate in this year's exercise. As in the previous Seacat exercises, several ships from each participating country will join the training with one US Navy ship, USS Safeguard, designated as the COI for the participating Southeast Asian Navies

With the Philippines; Brunei, Indonesia, Singapore, Malaysia and Thailand also joined SEACAT 2012 with the United States of the Philippines, which will be held August 29 until September 2, 2012.

The exercises are being held two months after the nuclear-powered US submarine USS Louisville made a port call at Subic.

Louisville is the second US attack submarine that visited the Philippines since Washington bared plans to enhance its presence in the Asia Pacific. The first was USS North Carolina which docked in Subic Bay last May.

Another US vessel, the hospital ship USNS Mercy, also docked in Subic last month to replenish its supplies.

Navy spokesman Col. Omar Tonsay said the five-day training exercise, called the Southeast Asia Cooperation and Training (SEACAT), will involve surface, air and special operations units from the participating countries.

"They [Southeast Asian countries] will participate with the US Navy in a scenario-driven fleet training exercise against terrorism, transnational crimes and other maritime threats which focus on real time information exchange, coordinated surveillance operations, tracking and eventual conduct of Visit, Board, Search and Seizure to the maritime Contact of Interest or the designated target vessel," said Tonsay.

 Tonsay added the U.S. is deploying the USS Safeguard for the exercise, a rescue and salvage ship which will be serving as the Contact of Interest. The Philippine Navy has earmarked 200 personnel, four ships and an aircraft for SEACAT.

"They will participate together with the US Navy in a scenario-driven fleet training exercise against terrorism, transnational crimes and other maritime threats," Tonsay said in a statement.

The exercises focus on real-time information exchange, coordinated surveillance operations, tracking, and visit, board, search and seizure of target vessels.

"This activity will involve surface, air, and special operations units in the conduct of surveillance, tracking, and boarding of the COI (contact of interest) from the different participating navies within their respective maritime territories." Navy chief Vice Adm. Alexander Pama said.

A maritime interdiction operations scenario will be conducted at the Subic Bay and at the Sulu Sea.

Coast Watch stations of the participating countries will also be used to exercise their capabilities in surveillance, tracking, communications, and operations.

"With this training, the Philippine Navy will be able to enhance regional coordination, information sharing, and combined inter-operability capability with participating navies in the region," Tonsay said.

He claimed the activity would also improve the maritime security capability of the military.

Tonsay could not say what personnel and assets the other Southeast Asian countries have committed to SEACAT, but these units will not enter Philippine waters

 Tonsay said maritime interdiction operation scenarios with boarding opportunities will be conducted at Subic Bay and at the Sulu Sea.

 "At the same time, Coast Watch stations in the different participating Naval Forces AORs [areas of responsibility] will be utilized to exercise their capabilities in surveillance, tracking, communications, and operations," he added

 SEACAT is an annual exercise conducted at vital sea lanes in Southeast Asia to secure the area from terrorists, poachers, and transnational lawless elements.

"With this training, the Philippine Navy will be able to enhance regional coordination, information sharing, and combined inter-operability capability with participating navies in the region, test its personnel and naval assets operational readiness and ultimately, improve the maritime security capability of the Armed Forces of the Philippines," he explained.

Singapore will serve as the war games' command and control center.

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54 Jets China Made Airbus of $7 Billion USD Ordered by Philippine Airlines

Philippine Airlines, the country's flag carrier, has ordered 54 jets from Airbus, company president Ramon Ang said on Tuesday.

The airline has ordered 10 long-haul A330-300s, and 44 jets from the 321 family, with delivery starting in 2013, it said in a statement. EADS [EAD.PA  29.80     0.17  (+0.57%)] unit Airbus was expected to have offered hefty discounts as  lobbying adds fuel to an ongoing price war with Boeing.

Mr. Ang did not immediately give the value of the deal.

Some industry sources said Tuesday's anticipated deal may not be the last word on PAL's fleet renewal, with potential demand for longer-range, wider-bodied jets up for grabs.

The airline has not yet decided its needs but Boeing could start with the advantage of an existing presence, whereas Airbus dominates smaller and medium parts of PAL's fleet, they added.

Airbus Eyes Big Order from China

Airbus hopes to win orders to sell up to 100 A320 planes to China when German Chancellor Angela Merkel visits the country this week, industry sources said on Monday.

The order, potentially worth around $9 billion, would be the first significant Airbus deal with China since a row between Beijing and the European Union over emissions trading interrupted earlier deals worth up to $14 billion.

However, such an order would not by itself signal an end to the dispute.

"There is already a framework agreement for utilization of the existing assembly line in the Chinese city of Tianjin which must now be supported with concrete orders," an industry source told Reuters.

Merkel heads to China on Wednesday accompanied by a large business delegation including Tom Enders, CEO of Airbus' parent company EADS .

During the trip she is due to visit the plant at Tianjin with Chinese Premier Wen Jiabao, a native of the city.

Small Airbus aircraft, partially built in China for the world's fastest growing aviation market, have been spared any fallout from the emissions row since hitting those deliveries would not be in Beijing's interests as domestic travel expands.

China continues to block the purchase of some 35 larger A330 aircraft to protest against the EU's plans to enforce a carbon reduction scheme that opposing nations deem unfair.

China has continued to take delivery of workhorse Airbus A320 short-haul jets, some of which are assembled on its soil, even while the dispute hampers larger jets.

Beijing regularly buys small models like the Airbus A320 family and competing Boeing 737 in three-figure batches coinciding with European or U.S. state visits.

Merkel's visit to China, her second this year, aims to further strengthen booming trade ties between the world's two biggest exporting nations.

Premier Wen, who is due to stand down soon as part of China's transfer of power to a younger generation of leaders, visited the annual trade fair in the German city of Hanover earlier this year.

CNBC

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