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Italy Pressuring U.S., Lockheed Over JSF Work
http://www.aviationweek.com/aw/gene...channel=defense&id=news/asd/2010/04/01/01.xml
Italy Pressuring U.S., Lockheed Over JSF Work
GENOA, Italy — The Italian ministry of defense is increasing the pressure on both the U.S. government and F-35 Joint Strike Fighter prime contractor Lockheed Martin to win better terms for technology transfer and local industry involvement.
Guido Crosetto, the undersecretary of defense charged with crafting the deal, says he is confident negotiations will conclude “within two to three months.” During hearings before an Italian defense committee, Crosetto said bluntly that so far the ministry is not at all satisfied with the level of Italian participation in the program, which is “not adequate [considering] the investments that Italy has made and is willing to sustain in the future.”
Italian industry, in particular the defense electronics industry, is far from happy, although the situation is better in the aerostructures area thanks to the agreements signed by Lockheed and Alenia Aeronautica, mainly involving wing design and production.
To increase the pressure, Crosetto has blocked work from starting at the Cameri air force base, where the FACO (final assembly and check out) facility is to be built. The FACO is expected to build at least the Italian and, eventually, Dutch aircraft, but could expand its assembly activities to deal with other international customers. Furthermore, the FACO is to be used to support the F-35 fleet for its operational life, spanning 40 years. Crosetto says that both the U.S. government and Lockheed are now more willing to allow the Italian FACO to support the F-35 of other “European users.”
Crosetto says Italy deserves to be fully recognized as a JSF partner and not just a customer, and he also hinted that if the Italian requests are not met the program will have to be brought back to Parliament for further scrutiny.
Crosetto maintains there is a substantial potential for Italian industry to be active in the program: around 30 aerospace and electronic companies of all sizes could be involved, and the “potential” value of Lockheed work they would compete for is estimated to be $11.2 billion, as well as $2.4 billion from Pratt & Whitney and $4.2 billion from General Electric/Rolls-Royce.
Italy committed $10 million in 1999 for the early phases of the program, $1 billion in 2002 for the system design and development phase and then another $900 million for production and support for the life of the program (known as production sustainment and follow-on development, or PSFD). Italy also is planning to spend up to €605 million ($815 million) to build the FACO and €13 billion to acquire and provide logistic support for up to 130 F-35s. For FY 2010, €207.6 million has been earmarked.
Italy’s potential requirement at the moment stands at 131 F-35s, including 22 short-takeoff-and-vertical-landing (Stovl) F-35Bs for the navy and a mix of 109 conventional F-35As and Bs for the air force. But the high cost of the F-35B is putting budget pressure on air force plans.
Nonetheless, Italian defense officials consider the F-35 acquisition one of their highest-priority programs. The navy has no alternative to replace its force of AV-8B Harrier II Stovl aircraft. The air force is willing to replace the AMX fighter bomber first and then at least part of its Tornado fleet with the F-35.
The air force is urgently trying to assess what extra costs may stem from F-35 delays, recently acknowledged by the Pentagon, since it will be forced to keep its current fighter-bomber fleet in service longer. And having two fighter-bomber types is logistically and operationally complicated and very costly. In addition, the number of upgrades that the AMX and Tornado are slated to receive could increase if they are to remain in active duty for substantially longer. However, some internal trade-off studies call for retiring the AMXs on their original schedule.
So far the issue of the increased F-35 costs has not been officially tackled by the defense ministry or the parliament, but this is sure to be a hot topic when Italy finally signs production orders, when overall procurement numbers could be affected or procurement rates diluted.
http://www.aviationweek.com/aw/gene...channel=defense&id=news/asd/2010/04/01/01.xml
Italy Pressuring U.S., Lockheed Over JSF Work
GENOA, Italy — The Italian ministry of defense is increasing the pressure on both the U.S. government and F-35 Joint Strike Fighter prime contractor Lockheed Martin to win better terms for technology transfer and local industry involvement.
Guido Crosetto, the undersecretary of defense charged with crafting the deal, says he is confident negotiations will conclude “within two to three months.” During hearings before an Italian defense committee, Crosetto said bluntly that so far the ministry is not at all satisfied with the level of Italian participation in the program, which is “not adequate [considering] the investments that Italy has made and is willing to sustain in the future.”
Italian industry, in particular the defense electronics industry, is far from happy, although the situation is better in the aerostructures area thanks to the agreements signed by Lockheed and Alenia Aeronautica, mainly involving wing design and production.
To increase the pressure, Crosetto has blocked work from starting at the Cameri air force base, where the FACO (final assembly and check out) facility is to be built. The FACO is expected to build at least the Italian and, eventually, Dutch aircraft, but could expand its assembly activities to deal with other international customers. Furthermore, the FACO is to be used to support the F-35 fleet for its operational life, spanning 40 years. Crosetto says that both the U.S. government and Lockheed are now more willing to allow the Italian FACO to support the F-35 of other “European users.”
Crosetto says Italy deserves to be fully recognized as a JSF partner and not just a customer, and he also hinted that if the Italian requests are not met the program will have to be brought back to Parliament for further scrutiny.
Crosetto maintains there is a substantial potential for Italian industry to be active in the program: around 30 aerospace and electronic companies of all sizes could be involved, and the “potential” value of Lockheed work they would compete for is estimated to be $11.2 billion, as well as $2.4 billion from Pratt & Whitney and $4.2 billion from General Electric/Rolls-Royce.
Italy committed $10 million in 1999 for the early phases of the program, $1 billion in 2002 for the system design and development phase and then another $900 million for production and support for the life of the program (known as production sustainment and follow-on development, or PSFD). Italy also is planning to spend up to €605 million ($815 million) to build the FACO and €13 billion to acquire and provide logistic support for up to 130 F-35s. For FY 2010, €207.6 million has been earmarked.
Italy’s potential requirement at the moment stands at 131 F-35s, including 22 short-takeoff-and-vertical-landing (Stovl) F-35Bs for the navy and a mix of 109 conventional F-35As and Bs for the air force. But the high cost of the F-35B is putting budget pressure on air force plans.
Nonetheless, Italian defense officials consider the F-35 acquisition one of their highest-priority programs. The navy has no alternative to replace its force of AV-8B Harrier II Stovl aircraft. The air force is willing to replace the AMX fighter bomber first and then at least part of its Tornado fleet with the F-35.
The air force is urgently trying to assess what extra costs may stem from F-35 delays, recently acknowledged by the Pentagon, since it will be forced to keep its current fighter-bomber fleet in service longer. And having two fighter-bomber types is logistically and operationally complicated and very costly. In addition, the number of upgrades that the AMX and Tornado are slated to receive could increase if they are to remain in active duty for substantially longer. However, some internal trade-off studies call for retiring the AMXs on their original schedule.
So far the issue of the increased F-35 costs has not been officially tackled by the defense ministry or the parliament, but this is sure to be a hot topic when Italy finally signs production orders, when overall procurement numbers could be affected or procurement rates diluted.