The refurbishment and modernization of 18 G.222s, purchased by the United States Air Force and destined for the re-established Afghan Air Force, has begun at Alenia Aeronautica’s Capodichino plant in Naples.

On September 30, Alenia North America signed a $287 million contract to provide 18 refurbished and modernized G.222 aircraft. The aircraft were previously in service with the Italian Air Force and reacquired by Alenia Aeronautica in conjunction with the Italian Air Force’s acquisition of a new fleet of C-27J Spartans. The aircraft are to be modernized at Capodichino with state of the art avionics and general improvements according to the specific requirements of the United States Air Force. Two of these craft will be outfitted for a VIP soundproof module and equipped with seats, desks and a pantry so as to be used for the transport of Afghan leaders.

Four G.222s, sent from Pisa and Pratica di Mare air bases, have already arrived at Capodichino to begin the refurbishment and modernization process. The eighteen G.222s to be provided to the Afghan National Army Air Corps were produced between 1977 and 1985 in several avionic and cockpit configurations. As part of the modernization effort, all 18 will be upgraded to a standard avionic and system configuration, with a new autopilot system, ballistic protection and new maintenance operations. The refurbishment and modernizations are anticipated to last between 12 and 15 months per aircraft.

The first refurbished and modernized G.222 will be delivered to the Combined Security Transition Command in Afghanistan halfway through 2009 and the entire supply will be complete by 2011.

Boeing’s longest labor dispute in the past decade came to a close this past weekend as union machinists returned to work this past Sunday.  The strike cost Boeing an estimated $100 million dollars a day in deferred revenue and further delayed the production of the 787 Dreamliner aircraft.

So what was the final result of the dispute?  J. Lynn Lunsford, of the Wall Street Journal, had this to say about the situation, “Officials with International Association of Machinists and Aerospace Workers said 74% of union members voted Saturday to accept a new contract that includes a 15% increase in wages and improved job security. In a change that will guarantee Boeing a more predictable delivery timeline, the union agreed to extend the contract a year to four years in exchange for increased pay and other concessions.”

Even with the strike ending, Boeing officials predict it will take several weeks for the workforce to get fully up to speed.  Boeing CFO, James Bell, intoned that production would be delayed ‘on a day-for-day’ basis.  Despite the ambiguity, Boeing’s stock share price has climbed dramatically since October 27th, when investors became confident of an impending end to the labor dispute.  Share price has risen from $42.50 to $52.50 since the 27th.

Industry experts estimate that Boeing has missed 70 deliveries due to the 57-day strike.