THE WORLD Suborbital space p.13; Air France pilot p.14; SPACE Virgin Galatic�s bid p.24; Busek test-fires p.26; Pan European p.54; DEFENSE Pentagon likely will p.28; RAF commanders p.30; Raytheon's investments p.31; AIR TRANSPORT Virgin Atlantic's p.32; Etihad stepping up p.33; Boeing and Airbus p.34; Boeing ramping-up p.35; Moscow ensures p.37; Pratt & Whitney p.38; Mitsubishi performing p.38; PROPULSION Next-generation CFM p.40; As CFM prepares p.42; Capacity to meet p.43; Insitu taps p.44; ARMY AVIATION U.S. Army Apache p.46; Battle-proven p.48; Narrowing of p.49; BUSINESS Bottom-line boosts p.50; UNMANNED SYSTEMS JAXA proposes p.52; EDITORIALS JetBlue CEO p.58; Texas airline p.58