* Canada has signed a C$177 million ($143 million) contract with Boeing to launch the second phase of its CF-18 fleet modernisation programme, to add a helmet-mounted sight, Link 16 datalink and new countermeasures equipment by 2009. So far, 43 of 80 aircraft have been delivered to Canadian squadrons following a phase one upgrade.

* Rolls-Royce has received a £65 million ($125 million) contract extension to provide support services for the Spey engines which power the UK Royal Air Force's BAe Nimrod MR2 and Nimrod R1 surveillance aircraft until 2011.

* Northrop Grumman is to provide continued systems engineering, technical and logistics support for the US Missile Defense Agency's YAL-1 Airborne Laser programme under a $142 million contract.

Source: Flight International