U-turn in the UK over F-35 jets
hits French defence co-operation plans 

Posted on Thu, May 10, 2012, 9:01 am by The Financial Times

The government will today reverse plans regarding the fast jets that it is buying for future aircraft carriers, abandoning the conventional take-off version of the F-35 and instead purchasing a version with vertical take-off and landing.

Philip Hammond, defence secretary, will say the government has taken the decision to avoid a billion-pound over-run in the cost of creating a future carrier capability. But the decision is a blow to the prospects for future defence co-operation between the UK and France.

Hammond will also say that the UK will probably operate both its future aircraft carriers at the end of this decade, rather than just one. In its 2010 defence review, the UK had said its second aircraft carrier would either be sold or mothballed.

In the review, the government said it would buy the conventional version of the F-35, which uses catapults to get airborne and arrester gear to land. But Hammond will say the estimated cost of installing the launch system on carriers has risen from £1bn to £2bn. By moving to the jump-jet version of the F-35, the UK will get full carrier strike capability in 2020, at least three years earlier than planned, he will argue.

The jump-jet version of the F-35 has less operational range than the conventional take-off version, raising questions about whether the decision will undermine UK defence capability.

But the decision is strongly backed by General Sir David Richards, Chief of Defence Staff, and has the unanimous support of Britain’s three service chiefs.

“The person who has won the service chiefs’ respect here is David Cameron, who has taken a decision which looks a bit uncomfortable today but is in Britain’s long-term interest,” a senior MoD official said.

It is a blow to Franco-British co-operation just as Cameron needs to start working with François Hollande, France’s new president. France could have operated its Rafale jets on a UK carrier that integrated catapults and arrester gear, but this will not now be possible.

Copyright The Financial Times Limited 2012

(c) 2012 The Financial Times Limited

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Lockheed CEO to Step Aside as Defense Squeeze Looms

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BY DOUG CAMERON

Lockheed Martin Corp. said Thursday it is preparing for what it has warned would be a devastating impact on the industry from steep cuts in Pentagon spending under the so-called U.S. budget sequestration process.

The world's largest defense contractor by sales also warned that the outlook for temporary spending fixes remained uncertain, and is also contending with a strike by workers at its main fighter jet plant in Texas.

The multiple headwinds facing Lockheed were highlighted as Chief Executive Bob Stevens announced he would step down from the role next January, though planned to remain chairman for a further year.

Lockheed Martin strike could threaten F-35 program

by JIM DOUGLAS

WFAA

Posted on April 24, 2012 at 8:01 AM

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FORT WORTH — The future of American jet fighters is on the assembly line in Fort Worth.

The F-35 Joint Strike Fighter is designed to be the backbone of the Air Force, Navy and Marines for decades to come.

Delays and cost overruns have already put Lockheed Martin under the gun to deliver — and the workers who deliver the planes are on the picket line.

"We're prepared to stay one day longer than the company can stand," says Paul Black, president of Local 776 of the International Association of Machinists.

Thirty-six hundred machinists struck at midnight Sunday. They say they are frustrated over insurance changes.

"Higher deductibles. Higher out-of-pocket maximums," Black said.

The union is also angry with Lockheed's proposal to end pensions for new hires.

"The company is trying to split our membership by offering new hires a pension that's less than what we enjoy today," Black said.

Defense experts say the F-35 program is so big, with so many delays and cost overruns, that there's a lot more on the line than labor grievances.

"I think that's a real danger for the Joint Strike Fighter program at this time," said Todd Harrison, a defense analyst with the Center for Strategic and Budgetary Assessments in Washington. "Any slips can have tremendous ripple effects throughout the program, and end up causing much greater schedule delays."

Lockheed spokesman Joe Stout said white collar workers are keeping production going, but at a slower rate. He said F-35 testing is actually ahead of schedule for the year, and can tolerate some delays.

But defense analysts say a prolonged strike would give more ammunition to critics who want to scale back F-35 orders — something that could ultimately cost jobs.

Lockheed offered 3 percent raises for three years and a $3,000 signing bonus. But machinists say givebacks — especially for future workers — will keep them off the job and on the picket line.

There are no talks scheduled between the two sides.

E-mail jdouglas@wfaa.com

Dutch to buy fewer F-35 jets than planned - minister

04/13/2012

AMSTERDAM | Sun Apr 15, 2012 2:20pm BST

(Reuters) - The Netherlands will buy fewer than the 85 Lockheed Martin Corp (LMT.N) F-35 Joint Strike Fighter jets it had planned to acquire because costs have risen and the country needs to replace fewer F-16 fighters, the Dutch defence minister said on Sunday.

The costs of developing and building the F-35, which will replace F-16 fighters, have been rising. Japan and a U.S. Air Force official have warned they may order fewer planes if costs go up further.

Asked on Dutch television programme Buitenhof if the Netherlands still planned to buy 85 F-35 planes despite higher costs, Dutch Defence Minister Hans Hillen said: "The next cabinet will decide. It will certainly be fewer."

The Netherlands had planned to buy a total of 85 F-35 planes over the period 2019 to 2027, the Dutch Defence Ministry said in a letter to parliament last year. The ministry has reserved 4.5 billion euros to replace the existing F-16 fighters.

Hillen declined to say how many F-35s the Netherlands would buy instead but said fewer F-16s needed to be replaced.

"When we signed up (for the F-35) we took the number of F-16s at the time as a basis. When I became minister we had around 90 F-16s. Now we have 68," Hillen said.

The Netherlands has not finally agreed to buy the F-35 planes but is participating in the development programme and has ordered two F-35 test planes, of which the first has been constructed.

A new Dutch cabinet, which will take office in 2015 unless the current government falls early, will make the final decision about replacing its fighters.

Lockheed is developing three variants of the new plane for the U.S. military and eight partner countries: Britain, Australia, Canada, Italy, Turkey, Denmark, Norway, and the Netherlands.

Pratt & Whitney, a unit of United Technologies Corp (UTX.N), is building the F-35's engine.

(Reporting by Gilbert Kreijger; Editing by Helen Massy-Beresford)

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