THE WORLD Bombardier replaces p.12; First flight p.12; Turning to Iceland, p.13; AIR TRANSPORT Leading leasing p.20; Iberia's turnaround 22; Australia's airfine23; AirAsia X confident 24; DEFENSE Fifth set of X-478 28; Proving affordability 28; Upgrades planned 30; NASA begins 31; BUSINESS Military-services 32; SPANCE Aerospike revival, p.33; Northrop Grumman 34; EU preparing p.35; ADVANCED PROPULSION Rolls-Royce's 36; Tests to unravel p.39; Engine cycle p.40; Turbine-electric p.42; Industry gears up p.44; Dowty engaged p.44; UTILITY AIRCRAFT China's TA600 p.46; VIEWPOINT Continued need p.50