Mr. Gallagher: Divided neatly in two. For many years, both sectors were covered together. In fact, many analysts 20 years ago covered both aerospace and defense because the companies were so bound up in each other, but they've really diverged. The defense industry is a talisman for our era. We live in an era of guns and Lipitor. It's hard to have a lot of confidence in markets if they are not involved in health care or defense, or government services. So on balance, I am fairly optimistic about the defense industry and the government services sector, which is a related sector. In fact, the latter has been performing fairly well in the last 12 months. The major defense companies are facing significant cutback of their platforms, and they are very quickly repositioning themselves to take advantage of non-platform-style government investment. That's the mildly optimistic view.
The commercial aerospace sector is still a very difficult business. One of the principal reasons is that aerospace customers are in such a state of uncertainty. When your major customers are losing billions of dollars, it's difficult to have an optimistic view of their long-term capital spending. Periodically, they are required to upgrade their equipment, and you can see in the United Airlines order for new aircraft, which represents the first order that United has placed in a decade, it's a major new equipment order. The planes are wearing out, they've got to be replaced. There are tremendous incentives to replace them with higher-efficiency aircraft to take advantage of the progress that's been made in engine design and fuel efficiency, and also in airfoil design and lightweight materials. So the good news for aerospace is everybody must turn their fleets over eventually. The question is: When will happen and what will be the availability of financing to enable the fleet turnover?
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