December 17, 2018 | International, Aerospace

Budget watchdog warns this fighter could cost three times that of the F-35

WASHINGTON — A next-generation air superiority jet for the U.S. Air Force, known by the service as Penetrating Counter Air, could cost about $300 million in 2018 dollars per plane, the Congressional Budget Office states in a new study.

At that price, PCA would be more than three times that of the average F-35A jet, which is set at about $94 million to capture both the expense of early production lots and the decline in cost as the production rate increases, according the report, which predicts the cost of replacing the Air Force's aircraft inventory from now until 2050.

This sum, while not an official cost estimate from the Pentagon, represents the first time a government entity has weighed in on the potential price tag for PCA.

The CBO estimates the Air Force will need 414 PCA aircraft to replace existing F-15C/Ds and F-22s, the Air Force's current fighters geared toward air-to-air combat. It also surmises that the first aircraft will enter service in 2030, based on the service's stated desire to begin fielding PCA around that time frame.

The reason for the whopping price tag?

Part of it comes down to the cost of new technology.

“The PCA aircraft would probably have a greater range and payload, as well as improved stealth and sensor capabilities, than today's F-22; those characteristics would help it operate in the presence of the high-end air defenses that DoD believes China, Russia, and other potential adversaries may have in the future,” the CBO states.

The other reason comes down to history.

The Air Force doesn't have a great track record when it comes to producing stealth aircraft at the low costs initially envisioned by leadership. Both the B-2 and F-22 programs were truncated in part due to the high price per plane — which in turn contributed to the production rate never accelerating to the point where unit costs begin to decrease. The early years of the F-35 program were also marred by a series of cost overruns that eventually prompted the Pentagon to restructure it.

“Containing costs for the PCA aircraft may be similarly difficult,” the report states.

The Air Force has said little about PCA since the release of the Air Superiority 2030 flight plan in 2016, which stated a need for a new fighter jet that would be networked into a family of systems of other air, space, cyber and electronic warfare technologies.

“The replacement may not be a single platform,” Gen. Dave Goldfein, the Air Force's chief of staff, told Defense News earlier this year. “It may be two or three different kinds of capabilities and systems. And so as we look at air superiority in the future, ensuring that we're advancing to stay ahead of the adversary, we're looking at all those options.”

Although Air Force leadership won't say exactly what it's doing to develop PCA or when a new jet may be coming online, it's clearly making investments. In the fiscal 2019 budget, the service requested $504 million for “next-generation air dominance,” its portfolio of future fighter technologies and weapons. The Air Force expects to ramp up funding to $1.4 billion in FY20, hitting a high in FY22 with a projected $3.1 billion in spending.

According to the CBO's analysis, Air Force procurement of new aircraft could peak at about $26 billion in 2033, as the service buys both the F-35 and PCA. Those two fighters, together with the B-21 bomber, are set to be the largest drivers of cost as procurement reaches its height in the mid-2030s.

“Although the Air Force could probably modify both retirement plans and replacement schedules to smooth out the 2033 peak, the average annual costs of procuring new aircraft would still be higher than in the recent past: $15 billion in the 2020s, $23 billion in the 2030s, and $15 billion in the 2040s,” the report states.

Dealing with an upcoming bow wave

CBO's estimates included 35 platforms that will be replacing legacy systems, with six programs making up more than 85 percent of the projected procurement costs cited throughout the report: the F-35, PCA, the KC-46A, the B-21, the C-130J cargo plane as well as the yet-unannounced C-17 replacement.

The report envisions a future where the Air Force is allowed to retire all of its legacy fighter and attack aircraft — the A-10, the F-15, the F-16 and even the F-22 — in favor of three aircraft: the F-35, PCA and a light attack aircraft configured to take on low-threat missions.

The Air Force has yet to decide whether to buy a light-attack aircraft or how extensive its purchase may be, although the service is expected to put out a request for proposals by the end of the month.

“Funding for new fighter aircraft makes up about half of the total projected costs of procuring new aircraft,” the CBO states, with the F-35 set to be the most expensive program through the 2020s until PCA takes its place in the early 2030s.

The Air Force could decrease costs in a couple of ways, although all of them come with significant drawbacks.

For one, it could extend the lives of its legacy fighter and attack aircraft, and delay programs like PCA. However, the CBO notes that “obtaining replacement parts can be both difficult and expensive, and a refurbished fleet may not provide as many available and mission-capable aircraft as a new fleet.”

If the service wants to increase the availability of its inventory without paying the high price associated with developing a new stealth fighter, it could retire its legacy F-15s and F-16s and buy new ones. That option is probably more expensive, but would result in aircraft that are more reliable.

The Air Force could also defer the PCA program while allowing some of its legacy aircraft to be retired, the CBO posits.

However, Air Force leadership contend that the service is already too small, with Secretary Heather Wilson arguing that the number of operational squadrons needs to increase from 312 to 386 — a goal that necessitates buying more aircraft.

https://www.defensenews.com/air/2018/12/14/budget-watchdogs-warn-of-expensive-price-tag-for-next-air-force-fighter/

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November 4, 2019 | International, Aerospace

Elbit Systems Awarded $50 Million Contract by the Portuguese MoD to Provide a Complete EW Suite for New KC-390 Aircraft
Haifa, Israel, October 31, 2019 – Elbit Systems Ltd. (NASDAQ: ESLT, TASE: ESLT) (“Elbit Systems”) announced today that it was awarded a contract valued at approximately $50 million from the Portuguese Ministry of Defense (MoD) to supply the Portuguese Air Force (“PtAF”) with a complete Electronic Warfare (EW) suite and Customer Logistics Support for the new KC-390 multi-mission aircraft. The contract will be performed over a five-year period. Under the contract, Elbit Systems will supply the PtAF's KC-390 aircraft with a complete EW suite comprised of Radar and Laser Warning Systems, IR Missile Warning System, Countermeasures Dispensing System, a Directional IR Countermeasures (DIRCM) system and Active ECM (AECM) POD system. Edgar Maimon, Executive Vice President and General Manager of Elbit Systems EW and SIGINT - Elisra, commented: “The Portuguese Air Force is a long-standing strategic partner of Elbit Systems and we are proud of this contract award to provide enhanced survivability for their new fleet of KC-390 aircraft”. About Elbit Systems Elbit Systems Ltd. is an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land, and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems, radios and cyber-based systems and munitions. The Company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial applications and providing a range of support services, including training and simulation systems. For additional information, visit: [elbitsystems.com]elbitsystems.com, follow us on Twitter or visit our official Youtube Channel. This press release contains forward‑looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current fact. Forward-looking statements are based on management's expectations, estimates, projections and assumptions. Forward‑looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results, performance and trends may differ materially from these forward‑looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward‑looking statements speak only as of the date of this release. The Company does not undertake to update its forward-looking statements. Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this Press Release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies. All other brand, product, service and process names appearing are the trademarks of their respective holders. Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein. Visit our Press Relations website for background materials and information regarding Elbit Systems fields of activity. David Vaaknin Vice President, Head of Corporate Communications Tel: 972-77-2946691 Cell: 972-52-8000403 E-Mail: david.vaaknin@elbitsystems.com Dana Tal-Noyman Manager International Corporate Communications Tel: 972-77-294-8809 Cell: 972-54-9998809 E-Mail: dana.tal@elbitsystems.com
July 24, 2019 | International, Aerospace

Armée de l'Air : campagne d'essai pour les C-130H modernisés par Collins Aerospace
Le premier des Lockheed Martin C-130H de l'Armée de l'Air doté de la nouvelle avionique Collins Aerospace a débuté sa campagne d'essais en vol et de certification sur la base aérienne de Bordeaux-Mérignac. L'avion est équipé de la solution avionique Collins Aerospace Flight2™ et du double affichage tête haute (HUD), HGS-4500, avec système de vision améliorée multibande, EVS-300, pour améliorer la perception des pilotes de leur environnement. Une caméra infrarouge pour la détection d'objectifs a également été intégrée au HGS. Ensemble, ces solutions permettent d'améliorer les capacités opérationnelles des appareils pour répondre aux besoins spécifiques des missions. “Avec Flight2™, l'Armée de l'Air française dispose d'une avionique de dernière génération et d'une solution optimisée de support et de maintenance pour mener à bien ses missions exigeantes dans le monde entier,” a déclaré Olivier Pedron, directeur général, avionique de Collins Aerospace en France. Après le premier vol et la qualification par la direction générale de l'armement (DGA) des deux premiers appareils rénovés, Collins Aerospace et Sabena Technics fourniront des kits de modification au Service industriel de l'aéronautique (SIAé) pour l'installation en série sur les 12 C-130H restants de la flotte française. Le contrat de modernisation avait été attribué en septembre 2016, par la DGA, à Collins Aerospace pour la maîtrise d'ouvrage, conformément à sa certification FRA-21J, aux côtés de ses partenaires Lockheed Martin et Sabena Technics. Flight2™ permettra aux C-130H français un accès sans restriction à l'espace aérien mondial tel que défini par l'Organisation de l'Aviation Civile Internationale (OACI), leur procurant des capacités tactiques accrues tant sur les thé'tres d'opérations que dans l'espace aérien civil. De plus, il permet une communalité pour le support et la maintenance avec les autres plateformes de l'Armée de l'Air telles qu' E-3, AWACS, et KC-135 ainsi qu'une communalité avec les HUD du C-130J. https://www.air-cosmos.com/article/arme-de-lair-campagne-dessai-pour-les-c-130h-moderniss-par-collins-aerospace-21508
February 11, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

Northrop CEO forecasts ‘more consolidation’ for defense sector
By: Joe Gould WASHINGTON ― The drive to rapidly develop defense technologies will spur more industry mergers and acquisition activity over the next two decades, and create new entrants in the realm of cyber and artificial intelligence, Northrop Grumman CEO Kathy Warden said Tuesday. “As a result, I believe the industry will look different in terms of its composition. There'll be more consolidation,” Warden said in a wide-ranging interview through the Center for Strategic and International Studies. She also foresaw increased government-industry collaboration. “There will also be more new entrants, and so it's hard to say there will be fewer players, but the ones that exist today will likely continue to consolidate as we have seen in recent years and we've seen in other cycles,” she added. New firms will adapt commercial AI and machine-learning applications for military surveillance as well as command and control, Warden predicted. The executive's comments came after the new deputy defense secretary, Kathleen Hicks, said at her confirmation hearing this month that she is concerned by consolidation in the defense-industrial base and that competition is needed for the U.S. military to maintain an edge over China and Russia. Hicks' office will review deals that involve national security issues. “Extreme consolidation does create challenges for innovation,” Hicks said. “We need to have a lot of different, good ideas out there. That's our competitive advantage over authoritarian states like China, and Russia. And so if we move all competition out, obviously that's a challenge for the taxpayer, but it's also a challenge in terms of the innovation piece.” The U.S. faces a new space race, and the Biden administration should continue work to compete in that domain, said Warden, whose firm saw sales growth last year driven by its space division. Her comments also come in the wake of the Biden administration's affirmed support for Space Force, the military service created under the Trump administration. “Many nations are demonstrating the capability to both operate in space but also have anti-satellite capability, so what we need to focus on is putting in place the norms and technologies that allow us to have freedom of operation in the space domain,” Warden said. Last month, Northrop reported that its Space Systems segment led the company in sales for both the fourth quarter of 2020 and for the full year. The segment was driven by a higher volume on classified programs as well as the Next-Generation Overhead Persistent Infrared and NASA Artemis programs. A ramp-up for the Ground Based Strategic Deterrent, launch vehicles and hypersonics programs drove the company's Launch & Strategic Missiles sales. Northrop won a $13.3 billion contract in September from the U.S. Air Force to build the GBSD, which replaces the aging Minuteman III intercontinental ballistic missile system. President Joe Biden is expected to launch a review of the nation's expensive nuclear modernization portfolio. Reportedly, the GBSD program could cost U.S. taxpayers as much as $110.6 billion. Warden defended the country's current track on nuclear modernization and said America's triad of nuclear weapons is “very important to keeping the peace.” More broadly, Warden offered a message that seemed calibrated to the new administration, saying the aerospace and defense industry provides platforms like the F-35 fighter as “an aid to diplomacy” and interoperability among allies. “It's hard for anyone to say what would have happened had we not had ICBMs over the last 50 years,” she said, “but lots of very smart statesman, military personnel and civilians alike have studied this through multiple nuclear posture reviews and come out believing that the best posture for our nation is continuing to move forward with the modernization of all three legs of our triad.” https://www.defensenews.com/2021/02/09/northrop-ceo-sees-more-consolidation-for-defense-sector/

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