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  • Can a new Franco-German export agreement clear the air for Europe’s future fighter?

    November 13, 2019 | International, Aerospace

    Can a new Franco-German export agreement clear the air for Europe’s future fighter?

    By: Sebastian Sprenger COLOGNE, Germany — French and German officials celebrated the signing of a new defense export agreement last month as a watershed moment, but political and industrial mistrust remains a wild card for the Future Combat Air System program — an envisioned sixth-generation fighter jet. The export pact, which entered into force in late October with the formal exchange of government notes, is meant to streamline a contentious process that has clouded bilateral defense cooperation for some time. Namely, the agreement dictates that joint government programs, like FCAS fighter jet, be free from interference by partner nations when it comes to eventual exports. The clause is mainly aimed at Germany, where politicians and lawmakers tend to scrutinize weapons deliveries to countries with known or suspected human rights abuses more heavily than their French colleagues. The situation has grown more tense since the October 2018 death of journalist Jamal Khashoggi, who Western officials believe was murdered by order of Saudi Arabia. Germany has since frozen all exports to the kingdom, prompting an outcry from France, where companies had to stall deliveries of equipment to Saudi Arabia in all cases where even a small number of components originated from Germany. The new agreement ensures “nobody can throw a wrench” into the other's export planning, says Matthias Wachter, chief defense analyst at the Federation of German Industries lobbying group. Having such a guarantee in writing is good news for FCAS and its ground-focused sister project, the Franco-German future main battle tank known as the Main Ground Combat System, he added. The language of the export pact is reminiscent of the 1971 Schmidt-Debré agreement, named for the German and French defense ministers at the time and panned in the left-leaning Spiegel magazine as an “embarrassing pact” when reporters found out about the then-secret understanding a year later. Fast-forward almost 50 years, and defense cooperation remains a thorny subject between the two countries destined to spearhead Europe's envisioned military autonomy in the coming decades. And there are also long-standing cultural differences that linger. There is a perception among some German lawmakers, for example, that cooperation with Paris inevitably means ceding power to French influence to the point that Germany plays only second fiddle, according to Wachter. That sentiment has led appropriators to craft a package deal for FCAS that would release funding for the next phase — building subcomponent demonstrators — only when there are assurances that Germany's tank makers, namely Rheinmetall, play a prominent role in the Main Ground Combat System effort. With armored vehicles traditionally being a strong suit for German industry, some here have privately complained about the 50-50 division of responsibility. “It's an emotional issue here in Germany,” Wachter said. Once the money begins to flow for an additional set of contracts early next year, there is a litany of questions yet to be sorted out. The fate of intellectual property rights, for example, remains unsorted, according to the analyst. In addition, as of late October, there was no agreement on Spain's industrial work share. Spain is something of a junior partner in the FCAS project, though officials in Madrid have said they expect equal treatment as a full member of the trinational project team. The Spanish government in the summer designated defense electronics company Indra as the national lead for the fighter program. The move angered Airbus, where officials were hoping to give their Spanish subsidiary a role that would satisfy Madrid's demands for industrial participation. Another potential point of contention has to do with military requirements for the future fighter. Perhaps the most prominent issue is that French officials want a carrier-capable jet, which Germany does not need. https://www.defensenews.com/air/2019/11/11/can-a-new-franco-german-export-agreement-clear-the-air-for-europes-future-fighter/

  • US approves $7.5 billion in foreign weapons sales in one day

    July 7, 2020 | International, Land

    US approves $7.5 billion in foreign weapons sales in one day

    By: Aaron Mehta WASHINGTON — It was a happy Independence Day for American defense companies, with the U.S. State Department announcing Monday it has approved almost $7.5 billion in potential foreign military sales to five different countries. The potential sales, announced on the website of the Defense Security Cooperation Agency, involve UH-60M Black Hawk helicopters for Lithuania, E-2D Hawkeye aircraft for France, MV-22 Osprey aircraft for Indonesia, Stryker infantry vehicles for Argentina and aviation fuel for Israel. DSCA announcements mean that the State Department has decided the potential FMS cases meet its standards, but is not a guarantee the sales will to happen in their announced forms. Once approved by Congress, the foreign customer begins to negotiate on price and quantity, both of which can change during the final negotiations. Israel: The biggest price tag, at $3 billion, is 990 million gallons of petroleum-based fuel for Israel, including JP-8 aviation fuel, diesel fuel and unleaded gasoline. Vendors will be selected “using a competitive bid process through Defense Logistics Agency Energy for supply source,” according to the announcement. Israel operates the American-made F-35I Joint Strike Fighter, among other aviation assets. France: The French request to purchase three E-2D Advanced Hawkeye aircraft comes with an estimated price tag of $2 billion. The aircraft is to replace France's legacy E-2C Hawkeye fleet. In addition to the aircraft, the country wants 10 T-56-427A engines, three AN/APY-9 radar assemblies, four AN/ALQ-217 electronic support measure systems and one Joint Mission Planning System, among other technologies. “The E-2D aircraft will continue and expand French naval aviation capabilities and maintain interoperability with U.S. naval forces,” the DSCA announcement read. “As a current E-2C operator, France will have no difficulty absorbing this equipment and support into its armed forces.” Primary work will be done at Northrop Grumman's Melbourne, Florida, location. There will be industrial offsets required in the future, but those have not been defined at this point. This is the first DSCA notification of an arms sale to France since at least September 2017, as the country prefers to rely on its domestic arms industry. Indonesia: Indonesia was cleared to spend an estimated $2 billion to buy eight MV-22 Block C Osprey aircraft. Also included are 24 AE 1107C Rolls-Royce engines; 20 each of the AN/AAQ-27 forward-Looking infrared radars, AN/AAR-47 missile warning systems and AN/APR-39 radar warning receivers; and 20 each of the M-240-D 7.64mm machine guns and GAU-21 machine guns, among other gear. The potential sale is announced at a time when the U.S. is seeking to beef up both its presence and the capabilities of partner nations in the Pacific in order to blunt Chinese interests in the region. This is the first DSCA notification of an arms sale to Indonesia since at least September 2017. “This proposed sale will support the foreign policy goals and national security objectives of the United States by improving the security of an important regional partner that is a force for political stability, and economic progress in the Asia-Pacific region. It is vital to U.S. national interest to assist Indonesia in developing and maintaining a strong and effective self-defense capability,” the DSCA notification read, adding the sale will “enhance Indonesia's humanitarian and disaster relief capabilities and support amphibious operations.” Primary work will be done by Bell Textron in Amarillo, Texas, and Boeing in Ridley Park, Pennsylvania. Lithuania: The Baltic nation of Lithuania plans to spend $380 million to procure six UH-60M Black Hawk helicopters. The standard U.S. configuration requested includes 14 T700-GE-701D engines, 12 M240H machine guns, night vision goggles, a number of radios and thousands of rounds of ammunition. “The proposed sale of these UH-60 helicopters to Lithuania will significantly increase its capability to provide troop lift, border security, anti-terrorist, medical evacuation, search and rescue, re-supply/external lift, combat support in all weather,” per the DSCA. “These UH-60 helicopters will allow for interoperability with U.S. and NATO forces in rapid response to a variety of missions and quick positioning of troops with minimal helicopter assets. Lithuania intends to use these defense articles and services to modernize and expand its armed forces to provide multi-mission support in its region and combat terrorism threats.” The Black Hawks will replace the nation's Soviet-made Mi-8 fleet. The U.S. is helping fund Lithuania's purchase through the European Recapitalization Incentive Program, or ERIP, a tool developed in 2018 alongside U.S. European Command to speed up the process of getting allied nations off Russian gear. The State Department kicked in $30 million of ERIP funding to help complete that deal. So far, three of the eight countries to receive ERIP funds have used them to purchase Black Hawk helicopters. Work will primarily be done at Sikorsky's Stratford, Connecticut, location and General Electric Aircraft Company in Lynn, Massachusetts. Argentina: The South American nation seeks 27 M1126 Stryker infantry carrier vehicles, with an estimated $100 million price tag. In addition to the vehicles themselves comes a pile of equipment, including 27 M2 Flex .50-caliber machine guns, radios and smoke grenade launchers. In addition, the vehicles come with special de-processing services outside of the continental United States as well as contractor-provided training. “The proposed sale will improve Argentina's capability to meet current and future threats by increasing operational capabilities and force availability,” per DSCA. “Argentina will use the Stryker vehicles to conduct stability operations in support of disaster relief and international peace keeping obligations.” Primary work will occur at the General Dynamics Land Systems facility in Anniston, Alabama. This marks Argentina's second FMS request of the fiscal year, after a December request for $70 million worth of support for its aging P-3C fleet. https://www.defensenews.com/global/the-americas/2020/07/06/us-approves-75-billion-in-foreign-weapon-sales-in-one-day

  • Budget spat puts Boeing contract for AWACS upgrades at risk: sources

    August 27, 2019 | International, Aerospace

    Budget spat puts Boeing contract for AWACS upgrades at risk: sources

    Andrea Shalal WASHINGTON (Reuters) - A dispute over budgeting processes could delay NATO's efforts to finalize a $1 billion contract to extend the life of 14 aging Boeing E-3A surveillance aircraft, often called NATO's “eyes in the sky,” sources familiar with the program said. NATO officials have invited the 16 member nations in the Airborne Warning & Control System, or AWACS, program to an extraordinary meeting on Sept. 12 to mark the program's 40th anniversary and resolve the budget dispute, the sources said. Unless the issue is resolved soon, the contract will not be awarded to Boeing in time to be announced as planned at the Dec. 3-4 NATO summit in London, the sources said. “It's disappointing that a one-sided interpretation of the rules is putting this much-needed upgrade program at risk,” said one of the sources. The upgrades would keep the 1979/1980-era airplanes, with their distinctive radar domes on the fuselage, flying until 2035. NATO needs the planes to carry out missions such as air policing, evacuations and counter-terrorism operations. A second source said the dispute was not expected to kill the upgrade program outright, but could well push a contract award to Boeing off until next year, marking a setback for the U.S. contractor at a time when it still is struggling to get its 737 MAX commercial airplane back in the air. NAPMA, the NATO agency that manages the AWACS fleet, said in June it expected to finalize by December a $750 million contract with Boeing to extend the life of the aircraft through 2035, with $250 million more earmarked for design, spare parts and testing. But unanimous consent of member states is needed to proceed, and Norway has raised concerns about an uneven flow of funds to the program until its completion by 2027, the sources said. They said Oslo wants the biggest program states - the United States, Germany, Italy and the Netherlands - to transfer the bulk of their payments at the start, but that is not possible due to budgetary rules in those countries. In the United States, for instance, funding for weapons programs is generally authorized and distributed on an annual basis, subject to approval by the U.S. Congress. Ann-Kristin Salbuvik, spokeswoman for the Norwegian defense ministry, said Norway remained committed to the AWACS Final Life Extension Program and was prepared to finance its share of the program in coming years. But she said a decision to launch the program was contingent on approval by all member states, and the Boeing offer had to be “compliant, affordable and feasible.” Boeing spokeswoman Melissa Stewart on Thursday had no comment on the dispute, saying Boeing continued to work with NATO “to assess needs and present the best options and upgrades that will keep their AWACS fleet operational for years to come.” Once NAPMA presented its recommendations later this fall, member nations still have to agree on technical, financial and managerial aspects of the program, she said. A NATO official downplayed the risk to the upgrade program but acknowledged that it still required securing final signatures on multilateral agreements, confirmation of budget arrangements and negotiation of other “last-minute details.” “Despite the complexity of a $1 billion multinational program being conducted by 16 Allies, these preparations are on track. The plan remains to award the contract in December,” the official said. https://www.reuters.com/article/us-nato-boeing-awacs/budget-spat-puts-boeing-contract-for-awacs-upgrades-at-risk-sources-idUSKCN1VC2NN

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