Sign up for fighter or pay more later, says US companyBy Tom Allard
March 17, 2006
AUSTRALIA has been delivered an ultimatum to sign up for the troubled Joint Strike Fighter project or face financial penalties, and an influential US body has warned of huge cost blow-outs and of the aircraft's untested capability.
The manufacturer of the fighter, Lockheed Martin, made the demand as it confirmed that some countries - possibly including Australia - would get models inferior to those operated by US and British forces.
Yet, according to the US Congress's audit and investigative arm, the much vaunted stealth characteristics of the fighter remain worryingly unproven, even for the premier US variant.
Jane's defence newsletter quoted Lockheed Martin's senior executive on the project, Tom Burbage, as saying the US wanted a commitment to the fighter by the end of the year in a memorandum of understanding that would last through "the life of the program".
If a customer then declined to go ahead "there will be a penalty associated with the disruption of production planning", Mr Burbage said.
Australia had wanted to defer its final decision on the fighter - the world's costliest ever military project and one critical to Australia's future air combat dominance in the region - until 2008. Australia has budgeted to buy as many as 100 of the jets for $15 billion.
The Minister for Defence, Brendan Nelson, did not comment directly on the threat of financial penalties in the proposed memorandum of understanding but said Australia would not sign an unsatisfactory deal. "We are committed to negotiations but we would not sign up to an agreement unless we are satisfied we have all the information we need and it was in Australia's interests," his spokesman said.
The fighter program has received heavy criticism this week amid threats from partner countries, including Australia, that they will pull out if they do not get access to technology. The US Congress's Government Accountability Office said there had been inadequate testing on the fighter for it to be considered a mature design and that production should be slowed.
"Significant development risk remains, and it is likely that current cost and schedule goals will not be met," it said in a report.
"To improve the chances for a successful outcome, we are recommending the JSF program delay production and investments in production capability."
The office has strong influence over US legislators, but the Pentagon and Lockheed Martin have insisted that the aircraft's design is sound. If the Pentagon slows funding and production it will not only increase the price of the aircraft but leave a bigger gap between the scheduled retirement of Australia's fleet of F-111 and FA-18 jets in 2010-12 and the delivery of their replacements.
The Herald also revealed this week that the fighter's ability to elude powerful radar had been downgraded.
The Jane's newsletter said Mr Burbage had told it that different countries would get different versions of the fighter.
http://www.smh.com.au/news/national/sign-up-for-fighter-or-pay-more-later-says-us-company/2006/03/16/1142098602856.html