Sunday, 19 April 2009

Friday, April 17, 2009
IDF deal for F-35 sours over soaring costs of fighter jets and dispute over inclusion of Israeli gizmos
 
By Anshel Pfeffer, Haaretz Correspondent Last update - 02:35 17/04/2009
www.haaretz.com/hasen/spages/1078888.html
 
The defense establishment is reconsidering the purchase of American F-35
fighter jets due to the unexpected high cost and disagreements with the
manufacturer regarding the installation of Israeli systems in the planes.
"This is undoubtedly the ideal fighter plane, and we'd like to have it very
much, but not at any price," a senior defense establishment official said.
A defense establishment evaluation concludes that the Israel Air Force can
maintain its operational and technological supremacy even without the
advanced fighter aircraft. This could be achieved by upgrading the IAF's
F-15 and F-16 aircraft and buying their advanced models.
The Lockheed Martin F-35 is a fifth-generation, single-seat, single-engine,
stealth-capable military strike fighter, which can evade radar and
anti-aircraft missile systems. Senior Air Force officers insist on
purchasing it to deal with future battle threats.
Israel is interested in signing the preliminary contract to buy the planes
by the end of the year. The first 25 planes are expected to arrive from
2014, and Israel is planning to buy 50 more planes in the future.
The Pentagon and Congress approved the deal, estimated at $15 billion, last
autumn. However, disagreements between the Israeli Defense Ministry and
Lockheed Martin is holding up the negotiations, which have reached an
advanced stage.
The main argument is about the system structure integrating all the avionic systems. This makes it difficult to meet IAF demands that unique
communications, controls and special electronic systems, at the very least,
be installed, and that the plane be modified to carry Israeli-made
armaments.
Because of the F-35's structure, which places missiles, bombs and electronic
devices inside the plane, no system can be installed externally and
considerable internal modifications would be required.
These modifications push up the aircraft's price by at least 25 percent. In
2002, Lockheed Martin cited the cost of one F-35 at some $47 million, but
now the official price is about $80 million, in part reflecting the dollar's
devaluation. The modifications Israel is demanding raise the price tag to
over $100 million.
One Pentagon estimate quoted the cost of 75 F-35s in addition to spare
parts, engines and a comprehensive support system at $15 billion. Senior
defense establishment officials say such prices are prohibitive.
The F-35 purchase deal is the largest in Israel's history. The defense
establishment is afraid to mortgage most of the American defense aid
earmarked for purchases in the United States for this deal, especially when
the Defense Ministry's budget is expected to be cut.
If the budget is slashed, the defense establishment will have to use some of
the American aid money to buy ammunition and bombs (to renew the supplies
diminished by the Second Lebanon War and Operation Cast Lead) in the U.S.
instead of buying them in Israel.
IAF commanders praise the F-35's operational abilities and say that having
these planes would generate a deterrence effect similar to the one created
by purchasing the F-15 in 1976.
The IAF had begun building a complete aerial conception for the future
decades. The air force says that only the F-35 can deal with advanced S-300
anti-aircraft systems that Russia may supply Iran with soon, and in any case
some of the earlier F-15 and F-16 aircraft models, which arrived at the end
of the '70s, will have to be replaced soon.
Eight years ago Israel could have joined the development of the F-35 for a
$100 million investment. But the defense establishment believed at the time
that, in any case, Israel would be able to buy the plane in the future and
integrate Israeli systems into it.
Last year Defense Minister Ehud Barak approved purchasing the first 25 F-35
aircraft as part of the IDF's multi-year plan. At the same time the Pentagon
approved the sale and option for 50 additional aircraft.