Lockheed Martin and local subsidiary Lockheed Martin Aircraft Argentina (LMAASA) are struggling to negotiate a new agreement with the Argentinian government in the face of the country's financial difficulties, continuing delays to the AT-63 Pampa programme and money owed by the air force for maintenance work.
The US manufacturer denies threatening to pull out of the Argentinian market, claiming it is "focusing on renegotiating with the government, and that is the only way to move forward". The company says the cost of leaving the market would be "tremendous" and "both sides want to find a solution".
The Argentinian air force is understood to owe LMAASA $66 million, mainly for maintenance. In addition, a number of projects covered under a five-year deal signed in 2000 are in danger of foundering for lack of funding. These include the upgrade of Argentina's fleet of IA-63 trainers, which has been delayed, and the production of 12 new AT-63 Pampa light attack aircraft, which the air force has so far failed to order.
Argentina is looking to Lockheed Martin to make the Pampa part of its product line and sell the aircraft internationally. Lockheed Martin argues that in the absence of a domestic launch order, the AT-63 will be a tougher sell. Without the programme, LMAASA faces a challenge to maintain economic viability and its 900-strong workforce.
It had been hoping to develop a commercial maintenance business, but this has failed to grow as local carriers Aerolineas Argentinas and LAPA have run into difficulties. This has left LMAASA relying solely on air force maintenance work.
Lockheed Martin acquired the former air force-run FMA military aircraft factory in 1995 on the back of the sale of upgraded McDonnell Douglas A-4Ms to Argentina.
Source: Flight International
