26 October 2010
Is the F-35 becoming unaffordable due to reduced orders?
October 26: The UK Governments stated intention to reduce its buy of the F-35 Joint Strike Fighter is starting to have repercussions with other customers around the world.
The programme could be at risk of entering a financial death spiral, where increasing costs force customers to buy fewer aircraft, which in turn increases the unit cost to others, who then cut their numbers, yet again increasing the unit cost
ad infinitum.
For the UK, a major partner in the JSF programme, to consider cutting its buy from a projected 138 aircraft to perhaps just 50 has caused concern amongst potential customers around the world. Australia was the first to react, which has plans to buy up to 100 F-35s at an estimated cost of $16 billion (11 billion). But with delays to the programme and spiralling costs, the Australian Strategic Policy Institute says that the British cuts would certainly cause ''some consternation'' within the Australian government. Andrew Davies from the Institute said ''It [will] cause some consternation that an important customer that has put $3.2 billion (2.3 billion) up front, is now stepping back.
More recently the Netherlands government has confirmed its intention to reduce its buy to below the 85 previously indicated, reports the Dutch newspaper Telegraaf. The report suggests that all parties in the coalition government want the total number reduced or the order scrapped altogether. A decision on whether to buy a second test aircraft is due to be made but has been deferred until costs have been clearly identified.
Even the programme in the US is not safe DoDbuzz reports that the US Air Force is considering reducing its 1,763 order by up to 400 to release funds to buy 100 new long-range strike aircraft in the B-1/B-2 class. With production horizons already spreading out to 2034 and unit costs rising as a consequence of reduced orders, forcing a slowed pace of deliveries, the F-35 could be obsolescent before force levels are at their peak.
that we expect logical answers from responsible people .... May be I'm wrong.
sorry if I hit the raw nerve of the Indians. they all had to remind me that I am a think tank
