1) SAAB is hoping–but Canada has not operated a non-US fighter, other than the CF-100, since the the 1950s, and the only NATO members flying the Gripen are Hungary and the Czech Republic (recent Gripen news here). Swedish Gripens did work with NATO air forces during the 2011 Libyan operation but with a limited role. Still, the Gripen is the least expensive of the planes involved in our government’s current fighter questionnaire:
Saab Says Gripen Export Chances Rise as F-35 Buyers Review Plans
Saab AB (SAABB) says sales prospects for its Gripen fighter are improving as country’s such as Denmark and Canada reconsider buying the Lockheed Martin (LMT) Corp. F-35 Joint Strike Fighter and others set fighter purchase plans.
Sales of current model Gripens and the NG, the next generation model [now called the "E"], may exceed 300 units in the next two decades, Eddy de La Motte, head of Gripen Exports said today. A lease of fighters to Malaysia, a new sale to Finland and a follow-on deal with Thailand are possible, he said in an interview.
European and U.S. combat jet makers such as Boeing Co. (BA), Lockheed Martin and European Aeronautic, Defence & Space Co. are battling in numerous overseas markets as domestic orders come to an end, risking the closure of production facilities. Saab secured Gripen’s future with an agreement from its home country, Sweden, and Switzerland to jointly develop the new version to be delivered from 2018.
“We can now offer a fixed price, fixed performance and fixed timetable,” de la Motte said. “The outlook is better than anything I’ve seen.”
Canada opened talks with Saab after the country in December decided to review options amid concerns over mounting costs for the F-35 it was set to buy. “We have got a formal request,” de la Motte said, while adding a decision has not been taken to mount a sales campaign.
“Canada has strong ties to the U.S. and we are really looking at trying to assess our chances,” he said.
More Bullish
The Stockholm-based company is more bullish about the outlook in Denmark, another F-35 program partner, where the government said last week it would pick a combat aircraft in 2015. “It is ideal timing,” de la Motte said [see: 'Dassault Aviation SA (AM) to extend their offers beyond a March deadline as it considers its plans, de la Motte said…
Saab secured a 47.2 billion Swedish krona ($7.32 billion) development pact for the Gripen NG in February and expects to book an order to build 60 of them before year end, Chief Executive Officer Hakan Buskhe said at the time. Switzerland plans to buy 22 aircraft [not done deal yet].
2) LockMart shuffle:
Lockheed VP retires amidst F-35 criticism
The head of Lockheed Martin’s aeronautic unit announced Monday he will retire from the company on April 5. Within his portfolio is the most expensive weapons program in the history of the U.S. military — the Joint Strike Fighter.
Since last September, the military’s top officer heading that program, Air Force Lt. Gen. Christopher Bogdan, has gone on the offensive criticizing Lockheed Martin for maintaining a poor relationship with the Pentagon and not taking the steps to control costs and ensure the program’s health over the next 40 years.
However, Lockheed Martin said in a statement that Larry Lawson’s decision to retire was made for personal reasons and had nothing to do with the comments Bogdan has made in the past few months. Marillyn Hewson, the newly appointed CEO and president of Lockheed, has also selected Orlando Carvalho, the head of the the F-35 Lightning II program, to take over for Lawson.
In place of Carvalho, Hewson has selected Lorraine Martin to take over the F-35 program. It’s a natural step up for Martin who is serving as the executive vice president and general manager of the program. Both moves seem unlikely if Lawson was forced out by Lockheed leadership because of Bogdan’s displeasure with the relationship between the F-35 program office and Lockheed Martin…
While Bogdan has taken the uncommon step of criticizing a lead defense contractor in public, others have pointed to progress in the F-35 program, albeit modest progress from a low point in a program riddled with cost overruns and missed deadlines.
The Government Accountability Office issued a report in which the investigators wrote that the “current outlook is improved,” however the “long term affordability is a major concern.” The report also highlighted that the F-35 program accomplished seven of its ten “key management objectives” in 2012.
Carvalho and Martin must face the forthcoming challenges of maintaining the program in the midst of the budget cuts brought on by sequestration and the continuing resolution. Despite the F-35’s stature and the priority it receives from the Pentagon, it must still sustain a seven percent cut under sequestration [emphasis added, that will slow US production and keep costs up--see also: “Five Military Cuts That Would Fix Sequestration”]…
Related:
Pentagon F-35 Testing Report (plus Turks)
F-35: Tough Words from Pentagon Program Chief
F-35 Testing Problems: Canadian and American Media CoverageF-35: New US GAO Report/Canadian Government’s New Fighter Study Contract
Mark Collins, a prolific Ottawa blogger, is a Research Fellow at the Canadian Defence & Foreign Affairs Institute
More on the Danish competition:
“Four rivals to enter Danish dogfight”
http://www.flightglobal.com/news/articles/four-rivals-to-enter-danish-dogfight-383554/
Mark Collins
I may have been a bit premature in calling the Gripen E “least expensive”; in any event a discussion at DID:
“Canada Preparing to Replace its CF-18 Hornets
…
What If… Potential Competitors
…
Saab’s JAS-39 Gripen could certainly beat the F-35 on price. It’s compatible with Canada’s existing weapons, has the requisite cold-weather pedigree, can be bought for around $60 million, and is built for very low maintenance costs compared to competitors like Eurofighter. It’s a single-engine fighter, like the F-35, but offsets that slightly with an exceptional reliability record in service. Saab’s undeveloped industrial presence in Canada will be a challenge, but using the same GE F414 engine as the Super Hornet helps, and their international record for industrial offset programs is good. The plane is fully NATO-compatible, and earlier model JAS-39C/D Gripens already serve with NATO countries Hungary and the Czech Republic.
The Gripen’s problem is that its JAS-39E/F models won’t be ready until 2022-2023, which is too late for Canada. The Swiss are solving a similar problem by getting leased JAS-39C/D aircraft on very attractive terms, until their more advanced JAS-39Es arrive. Sweden has cut its own active fleet size quite sharply, so there may be enough Gripens in storage to meet Canada’s needs. If not, a life extension program similar to the US Navy’s Hornet SLEP plans external link could keep 65 CF-18s flying for another 5 years, at a cost of about $1 billion. If the F-35′s schedule continues to slip, that may be necessary anyway.
Saab’s issue, if it gets an opening, is how to compete with a Super Hornet option whose production volume gives it a similar price, plus twin engines, long-term modernization assurance, local allied and expeditionary commonality, and lobbying from Canada’s biggest aerospace firm?..”
http://www.defenseindustrydaily.com/canada-preparing-to-replace-its-cf-18-hornets-05739/
Mark Collins
Where the Gripen can beat the the Super Hornet is cost-per-flight-hour (CPFH). Not only that, but the NG is said to have super cruise (M1.2), superior wing loading, and thrust-to-weight. It also has the benefit of an assembly line that’s not on the verge ending production.
It’s not as good as a bomb truck, however, and the idea of buying a single engine Swedish fighter over a twin-engined Yankee fighter will require some serious open-mindedness from the powers that be.
http://www.stratpost.com/gripen-operational-cost-lowest-of-all-western-fighters-janes
http://www.gripen4canada.blogspot.ca
Meanwhile the Netherlands. The Dutch are now planning on 56 F-35s (see end of 2) at this post, a reduction from 85 for cost reasons),
http://www.cdfai.org/the3dsblog/?p=1539
but could they go lower (52?)–or seriously look at other planes?
“Dutch orders for F-35 likely to be scaled back -sources
…
AMSTERDAM/WASHINGTON, March 21 (Reuters) – Dutch orders for the Pentagon’s F-35 warplane are likely to be cut back, sources close to the discussions told Reuters, citing cost overruns and delays in the program, uncertainty over the Netherlands’ defense strategy and budget cuts across Europe.
The Netherlands may cut 17 to 33 F-35s from its initial plans to buy 85 of the new warplanes, according to people close to the discussions who were not authorized to speak publicly since final decisions are not expected until later this year…
Prime Minister Mark Rutte’s Liberal Party, re-elected in September, has always been in favour of the F-35, but his new coalition partner, Labour, called in July for ending Dutch participation in the project. The plane’s rivals are lobbying hard for cancellation, according to Dutch media reports.
The Netherlands was slated to buy 85 F-35 A-models to replace its F-16 fighter jets. But the former defense minister last year said the government would buy as few as 56 F-35s because costs had risen and only 68 F-16s needed to be replaced.
The new coalition, sworn into office in November, expects to finalize a new defense policy and F-35 purchase plans this year…
Senior Dutch officials participated in a regular twice-yearly all-day meeting of the United States and all the partners helping fund the F-35′s development in Washington on Wednesday [March 20, one assumes Canadians were there--will they say anything?]..
Some Dutch politicians question whether the country needs such an expensive fighter, or whether to go for an alternative such as Saab AB’s Gripen, Boeing Co’s F/A-18 E/F Super Hornet, or the EADS Eurofighter…
https://research.tdwaterhouse.ca/research/public/Markets/NewsArticle/1314-L6N0CBJX6-1
Mark Collins