Navy Receives Production Approval for Next-Generation Air Combat Training System - Seapower

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  January 30, 2019 | International, Aerospace

  Lockheed: F-35A Cost To Drop Below $80 Million Per Fighter In 2023

  By: Ben Werner Lockheed Martin is committed to producing the F-35A Lightning II Joint Strike Fighter for $80 million each by next year and further reducing the overall program costs as part of the next production contract negotiations with the Department of Defense, the company said on Tuesday In 2022, Lockheed Martin officials expect to negotiate the next multiyear F-35 contract with the Joint Program Office. The goal is to use the steady cash flow from a multiyear contract to drive down further the production costs once the contract kicks in. As part of a pitch for multiyear contract, Lockheed Martin officials say such a deal will lower the F-35A price to less than $80 million per fighter, Marillyn Hewson, chief executive of Lockheed Martin, told analysts during a conference call today discussing the company's 2018 year-end results and expectations for 2019. “That's our target, to continue to drive the unit cost down,” Hewson said. “And we won't stop there, we will always be looking at ways that we can take the cost down in the program as it continues to mature and grows.” Currently, the F-35A, the standard take-off and landing variant primarily used by the U.S. Air Force and foreign partners, has a price tag of $89.2 million. The F-35B short takeoff/vertical landing variant used by the Marine Corps and some foreign partners currently cost $115.5 million each, and the F-35C carrier variant used by the Navy cost $107.7 million per fighter, according to Lockheed Martin. As production increases, the price per F-35 is expected to decrease due to efficiencies in the production process and the ability to lock in lower prices for large quantities of raw materials and components. Lockheed Martin plans to deliver 131 fighters this year, compared to the 91 F-35 fighters delivered in 2018. Within two years, company officials expect to deliver more than 161 fighters per year. However, with F-35 production is closing in on what's considered the full capacity for the program of record, Hewson said the company could build more. Increasing the production rate would require coordination with the JPO, the supply chain and international customers, but Hewson said the company could handle increased demand. Germany, Switzerland and Finland are currently considering buying the F-35, Hewson said. Already the U.S. and 12 other countries are either part of the program of record or committed to purchasing F-35 fighters, according to Lockheed Martin. “We could certainly go to a higher rate if the demand were such that we needed to do that,” Hewson said. Other segments of Lockheed Martin's weapons systems portfolio are also expected to perform well in 2019. The company's Missiles and Fire Control business are expected to record a profit of between $1.3 billion and $1.4 billion in the year. The Rotary and Mission Systems business is expected to record a profit of about $1.3 billion for the year, Bruce Tanner, Lockheed Martin's chief financial officer, said during the call. After the call, the U.S. Department of State's Defense Security Cooperation Agency announced it approved the sale of two Aegis Weapon Systems, two Multi-Mission Signal Processors and two Command and Control Processor refreshes to Japan. Lockheed Martin's Rotary and Mission Systems division is the prime contractor for the Aegis Weapon System and Multi-Mission Signal Processor portion of the $2.1-billion total buy. Japan selected Lockheed Martin in July to outfit its Aegis Ashore system but needed State Department approval before finalizing the deal. In September, the Japanese Maritime Self-Defense Force successfully tested its sea-based Aegis ballistic missile defense capability with the U.S. Missile Defense Agency. Japan currently has four Aegis-equipped destroyers and is in the process of building two more. The following is the State Department notice it approved a proposed Aegis Weapon System sale to Japan. AEGIS Weapon Systems Transmittal No: 19-08 WASHINGTON, January 29, 2019 – The State Department has made a determination approving a possible Foreign Military Sale to Japan of two (2) AEGIS Weapon Systems (AWS), two (2) Multi-Mission Signal Processors (MMSP) and two (2) Command and Control Processor (C2P) Refreshes and related equipment for an estimated cost of $2.150 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today. The Government of Japan has requested to buy two (2) AEGIS Weapon Systems (AWS), two (2) Multi-Mission Signal Processors (MMSP) and two (2) Command and Control Processor (C2P) Refreshes. Also included is radio navigation equipment, naval ordnance, two (2) Identification Friend or Foe (IFF) Systems, Global Command and Control System-Maritime (GCCS-M) hardware, and two (2) Inertial Navigation Systems (INS), U.S. Government and contractor representatives' technical, engineering and logistics support services, installation support material, training, construction services for six (6) vertical launch system launcher module enclosures, communications equipment and associated spares, classified and unclassified publications and software, and other related elements of logistical and program support. The total estimated program cost is $2.150 billion. This proposed sale will contribute to the foreign policy and national security of the United States by improving the security of a major ally that is a force for political stability and economic progress in the Asia-Pacific region. It is vital to U.S. national interests to assist Japan in developing and maintaining a strong and effective self-defense capability. This proposed sale will provide the Government of Japan with an enhanced capability against increasingly sophisticated ballistic missile threats and create an expanded, layered defense of its homeland. Japan, which already has the AEGIS in its inventory, will have no difficulty absorbing this system into its armed forces. The proposed sale of this equipment and support does not alter the basic military balance in the region. The prime contractor for the Aegis Weapon System and Multi-Mission Signal Processors will be Lockheed Martin Rotary and Mission Systems, Washington, DC. The Command and Control Processor Refresh will be provided by General Dynamics, Falls Church, VA. There are no known offset agreements proposed in connection with this potential sale. Implementation of this proposed sale will require annual trips to Japan involving U.S. Government and contractor representatives for technical reviews, support, and oversight for approximately eight years. There will be no adverse impact on U.S. defense readiness as a result of this proposed sale. This notice of a potential sale is required by law and does not mean the sale has been concluded. All questions regarding this proposed Foreign Military Sale should be directed to the State Department's Bureau of Political Military Affairs, Office of Congressional and Public Affairs, pm-cpa@state.gov. https://news.usni.org/2019/01/29/40708

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  September 14, 2020 | International, Land

  Hungary is Rheinmetall’s launch customer for the Lynx fighting vehicle

  By: Sebastian Sprenger COLOGNE, Germany — Rheinmetall announced it has found the first-ever taker for its new Lynx infantry fighting vehicle, with Hungary buying 218 copies for more than $2 billion. Company executives celebrated the order as a key deal for the company, following an unsuccessful bid for the U.S. Army's Bradley Infantry Fighting Vehicle replacement program last year. “The Lynx's market breakthrough is a major success for us,” Rheinmetall CEO Armin Papperger said in a statement. “And the fact that we were able to convince Hungary — an important EU and NATO partner — to choose this innovative vehicle makes this success all the greater.” Hungary has been on a military shopping spree recently, with billions of dollars spent on American missile-defense weaponry and German Leopard 2 tanks in the most modern configuration. At the same time, the government of Prime Minister Victor Orban is at odds with much of the European Union over its curbing of press freedoms and sidelining parliamentary oversight under the pretext of a state of emergency in response to the spread of COVID-19. Rheinmetall's €2 billion (U.S. $2.4 billion) contract with the Hungarian government, signed in Budapest, is for 218 Lynx KF41 vehicles, nine Buffalo armored recovery vehicles, as well as spares and simulators, the company wrote in a statement. The Lynx vehicles will be equipped with Rheinmetall's manned Lance 30mm turret. Production is slated for two phases, with the first 46 Lynx copies and the nine Buffalos to be built in Germany and delivered by early 2023. A second batch of 172 Lynx vehicles will then roll off a future production line in Hungary, for which the company established a joint venture with the Hungarian government last month. Rheinmetall's newest vehicle is also in the running in the Czech Republic as well as Australia, where the company has something of a lock on much of the land modernization program. https://www.defensenews.com/global/europe/2020/09/11/hungary-is-rheinmetalls-launch-customer-for-the-lynx-fighting-vehicle

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  June 26, 2018 | International, Aerospace

  Airbus threatens to leave Britain over Brexit trade relations

  By: Danica Kirka, The Associated Press LONDON — Aviation giant Airbus is threatening to leave Britain if the country exits the European Union without an agreement on trade relations, underscoring the concerns of business leaders who say the government is moving too slowly. Airbus, which employs about 14,000 people at 25 sites in the U.K., said it needs to know by the end of the summer what rules will govern its operations, or the company will “reconsider its long-term footprint in the country.” Airbus also says a proposed transition deal that runs through December 2020 is too short for the company to reorganize its supply chain. “While Airbus understands that the political process must go on, as a responsible business we require immediate details on the pragmatic steps that should be taken to operate competitively,” Tom Williams, CEO of Airbus Commercial Aircraft, said in a statement. “This is a dawning reality for Airbus. Put simply, a no-deal scenario directly threatens Airbus' future in the U.K.” While many business leaders have demanded clarity about the future with Britain set to leave the EU in nine months, Airbus' sheer size and role in the economy make it an influential voice in the Brexit debate. Airbus is the U.K.'s largest commercial aerospace company, a leading provider of military satellite communications and the biggest supplier of large aircraft to the Royal Air Force. It also has a significant impact on other companies, funneling an estimated £5 billion (U.S. $6.6 billion) to 4,000 U.K. suppliers, including big names like Rolls-Royce, as well as many smaller businesses. Darren Jones, the member of Parliament for the community where Airbus makes wings, attacked the government for listening to those who want the most hard-line form of Brexit and “not to the businesses that employ thousands of British workers, including Airbus.” “Thousands of skilled, well-paid jobs are now on the line because of the shambolic mess the government have created over the Brexit negotiations,” he said. Airbus, the biggest rival to U.S.-based aircraft-maker Boeing, has been a prime example of how European cooperation could lead to success in business. The German, French and Spanish governments own 26.4 percent of Airbus, which was created through the merger of German, French and Spanish aerospace companies. Prime Minister Theresa May's government reacted quickly to the Airbus statement, saying it was confident of getting a good deal and “we do not expect a no-deal scenario to arise.” But Williams said Airbus is frustrated after it tried to discuss its concerns with the government for 12 months and made little progress. “We've got to get clarity,” he said in an interview with the BBC. “We've got to be able to protect our employees, our customers and our shareholders, and we can't do that in the current situation.” The comments came as Airbus published an assessment of the risks Brexit poses to the company. The report shows that Airbus, like many modern companies, is particularly vulnerable to Brexit because of its international supply chain. Plants in several countries make specialized components, which are shipped back and forth across international borders as aircraft are assembled. Britain's membership in the EU makes this easy because goods move freely between the 28 member states, with no tariffs or other trade barriers. That will change after Brexit because Britain will not be a member of the EU's single market and customs union. While the U.K. government says it wants trade to be as frictionless as possible after Brexit, manufacturers are running out of time to plan for the future. Airbus said it is facing a variety of decisions, including whether to invest in future manufacturing capacity, the need to build up stocks of components in the event of border delays and how to ensure parts are certified by aircraft regulators in the future. Delays caused by a no-deal scenario could cost Airbus as much as €1 billion euros (U.S. $1.2 billion) of revenue a week, according to the risk assessment. “This scenario would force Airbus to reconsider its investments in the U.K., and its long-term footprint in the country, severely undermining U.K. efforts to keep a competitive and innovative aerospace industry, developing high-value jobs and competences,” Williams said. https://www.defensenews.com/industry/2018/06/22/airbus-threatens-to-leave-britain-over-brexit-trade-relations/