Indonesia is set to buy five Airbus A400M military airlift aircraft, worth 2 billion USD, according to reports on Thursday 19 January. If indeed true, that’s great news for Airbus and its somewhat troubled A400M program.
Indonesia was already known to eye the A400M as a replacement and add on for C-130 Hercules aircraft. Indonesia in recent years purchased additional C-130s from Australia, one of which unfortunately was lost in crash in 2016.
The A400M is in service in six countries, being France, the UK, Germany, Turkey and Malaysia. Additionaly, Belgium and Luxembourg have ordered the type.
An order would be a very welcome boost for the A400M program, that suffered a fatal crash almost two years ago, plus some bad press in the German press in particular.
The price of a single Lockheed Martin F-35 Lightning II is set to fall, Lockheed Martin CEO Marillyn Hewson said last week. She announced the cost reduction as part of pending deal with deal with US president-elect Donald Trump. The deal should also see the creation of thousands of extra US jobs. It puts a a lot of extra pressure on the F-35 program.
According to Hewson, the price of the next 90 aircraft will reduce significantly under the deal. The question remains by how much the F-35’s unit price will fall and how this relates to a price reduction announced earlier. Currently, the price is 98 million USD for a single ‘vanilla’ F-35A, but that price was already set to drop to 85 million USD by 2020, as result of ‘numerous affordability measures to drive costs out of the program.’ Both the F-35B and F-35C versions remain more expensive than the F-35A.
The reduction mentioned by Hewson most likely concerns aircraft in Low Rate Initial Producion (LRIP) lot 10, which is currently being negotiated and includes 94 jets for the US plus other nations . A deal on LRIP-9 was only signed last November, involving 57 aircraft worth 6.1 billion USD. The cost of LRIP-9 was the subject of many months of hassle and talks between Lockheed Martin and the Pentagon.
It most likely these drawn out negotiations that sparked Trump’s criticism. Meetings with several top Pentagon and F-35 program officials did little to impress Trump. On the contrary, it probably only incented him in his determination to drive down costs. As we wrote earlier, he may actually do the US a favour by doing so.
Air Force One
It’s the second time Trump appears to have pressured a large aircraft manufacturer in lowering costs, the first of course being Boeing. After Trump’s threat to cancel the contract for a new Air Force One, Boeing was quick to say that it will keep costs below 4 billion USD.
But Trump’s victories so far only exists on paper. Wether Lockheed Martin and Boeing indeed succeed in keeping down costs, remains to be seen. It will be interesting to see also how they do it. And it will also be interesting to see Trump’s response if they fail – not to mention the response of F-35 customers. They already knew the unit price was set to fall, but now they’re counting on even lower prices.
It puts a of pressure on a weapons program that is anything but pressure-free.
So that’s 2016 almost over and done with. This past year saw military aviation headlines wizz by in a record and sometimes worrying tempo. Donald Trump’s pending presidency along with Putin’s neverending desire to show Russia’s potential will decide the pace for 2017. But for now, let’s look back at a year that wothout a doubt had it’s moments here at Airheadsfly.com. And for all readers: thanks for doing so and a happy new year to you all!
The Royal International Air Tattoo at RAF Fairford saw the F-35 for the first time. But this supposed star of the show was outstaged by the fabulous F-22 Raptor. Seeing is believing.
Early in the year, we flew the Airbus Helicopters UH-72A Lakota helicopter, courtesy of the US Army in Germany. They come in green but also in this wild combination of colours, which stands out against the German countryside…. like a bruised banana. Because that’s what these machines are nicknamed.
A Lightning in blue skies. Early June, we boarded a Royal netherlands Air Force KDC-10 tanker aircraft for a sortie alongside the F-35A Lightning II over the North Sea. It’s in the air where the beast becomes a beauty.
A beast, that is also what this Eurofighter Typhoon was at Fairford in July. Fully tooled up and piloted by BAE Systems test pilot Nat Makepeace, this jet gave all other Typhoon diplays at the same airshow – and there were plenty- a run for their money.
Airheadsfly.com was also on scene on when both Royal Netherlands Air Force (RNLAF) touched Dutch soil for the first time on 23 May 2016. The weather did not cooperate in any way, but as both jets came to rest and festivities ended, all was well. “An awesome experience”, recounted one of the pilots.
Between 21 February and 4 March, Portugal was the stage of annual exervise Real Thaw. Our contributor Jorge Ruivo was there to provide you with some much needed burner action. These burners belong to a US Air Force F-15C Eagle.
So yeah, of course our flight in the Leonardo Aircraft M-346 Master has to be in this. With hundreds of pictures taken, it’s a pity that we can show only a small selection. Here’s one of formation leader Cobra 1 over a fine turqoise Italian coastline.
Turkey made a lot of news headlines this year. And ok, technically it may have been 2015 when Dirk Jan de Ridder took this shot of two Turkish Air Force T-38 Talons. But we sure were glad to bring it to you in 2016 as part of a feature story on pilot training in Turkey. And given the fact that a lot of Turkish fast jet pilots were fired from duty after the failed coup, there’s a lot of training of new pilots to do.
The F-35 program celebrated major steps in 2016, such as the Initial Operation Capability within the US Air Force, but also the delivery of more aircraft than even before, including new jets for Israel and Japan.
There were setback also: insulation problems kept many jets grounded for weeks, while Canada opted not to buy the F-35 for now. Last but not least, president-to-be Donald Trump started taking swings at the program’s costs. And yes, development of this jet is expensive and still has some way to go – but it will get there and it will be impressive. And perhaps prove necessary.
Donald Trump’s latest tweet on the F-35 will cause Lockheed Martin executives to have a not-so-merry Christmas, while the opposite will be true in the Boeing board room. After meeting top executives from both companies and being briefed on the F-35 this week, Trump on Thursday said he has asked Boeing to ‘price-out a comparable F-18 Super Hornet’.
Lockheed Martin’s stock immediately went down again, mirroring the effect of Trump’s earlier tweet about the F-35. However, the president-elect criticism probably is not pointed at the F-35 itself, but at the program’s costs. Trump has made it very clear now that he will not accept such overruns after he moves into the White House in January. At the same time, Donald Trump seems to be preparing for an arms race, even stating this week that the US should expand its nuclear capabilities.
Based on the tremendous cost and cost overruns of the Lockheed Martin F-35, I have asked Boeing to price-out a comparable F-18 Super Hornet!
Being the businessman that he is, Trump obviously wants to keep the costs of such an arms race down. He probably realizes that his country is at a disadvantage compared to Russia and China, who are able to produce weaponry against far lower costs. China for example is developing new stealthy jets at an impressive and alarming rate. In Russia, a single new Sukhoi T-50 is many millions and millions of dollars cheaper than a single new F-35. This is indeed worrying for Trump. The signs of an arms race are already there and not to be ignored.
When it comes to the Boeing F-18 Super Hornet as an alternative for the Lockheed Martin F-35 – that shouldn’t be taken too seriously. It will definitely not be as stealthy and not as capable in the domain of gathering and spreading data. Also, the F-35 is getting closer to being fully combat ready every day.
But Trump most likely is not interested in ditching the F-35 in favour of a cheaper Super Hornet. He is interested in costs, and that may serve the US well in the end.