Avionics makers vie for Link 2000+ customers.

“There was a time when people at the airports admired us enviously. Today, they pity us.” The candid words by a senior pilot of the state-owned Air India describe the sad plight of the airline industry in India. The high cost of operating commercial aviation in India is squeezing the lifeblood out of the airline sector, which is rated as the ninth-largest civil aviation market in the world.

Commercial, defense aerospace set to follow divergent trajectories.

A plethora of regulations, including the long-awaited TSA repair station security rule, that could affect MRO in 2013.

Weeks after North Korea's successful rocket launch, South Korea may take steps to beef up its surveillance capabilities. On Dec. 21, the Defense Security Cooperation Agency formally notified Congress that South Korea has proposed buying four RQ-4 Block-30 Global Hawks for up to $1.2 billion. The sale of Northrop Grumman's high-altitude, long-endurance UAV would help South Korea assume the lead in intelligence gathering as the U.S. plans to dissolve the Combined Forces Command in 2015, notes the agency.

The growing rivalry between AirAsia and Lion is leading each to expand aggressively.

After a tough year for most of the airfreight business in 2012, the providers have more of the same to look forward to in 2013. But that does not mean the industry will be stagnant, as its players will be adjusting to short- and long-term changes in the business.

After its unveiling of the J-20 and J-31 stealth fighters, it is not unimaginable that Beijing could pull off another technological surprise in 2013. Could it up the superpower stakes by testing an unmanned combat air vehicle, an air-launched strike weapon or even a mini-spaceplane? Speculation abounds.