LOCKHEEDMARTIN IS poised to return to commercial aerospace, through a possible alliance with Airbus Industrie and by expanding its existing aircraft-maintenance capability. Micky Blackwell, president of Lockheed Martin's Aeronautics sector, says that the US company must increase its international business and boost its share of the maintenance market if it is to grow.
Talks now under way could result in Lockheed Martin adapting an Airbus design into a tanker/transport, while taking a stake in future Airbus programmes. The discussions underline the US company's desire to involve European companies in the commercial development of a strategic airlifter to complement its private-venture C-130J tactical transport.
Lockheed Martin has "turned the corner" on the C-130J programme, Blackwell says, after experiencing substantial delays in development of the improved Hercules. US certification and first deliveries are now planned for September, although the programme is "-not without its schedule challenges," he acknowledges.
Blackwell says that Lockheed Martin was "badly bitten" by some subcontractors on component delivery for the C-130J, but admits that additional flight-testing has been needed because of undesirable stall characteristics caused by the new six-blade propellers.
Italy is expected to commit to buying C-130Js before the Paris air show in June, allowing Alenia and Lockheed Martin to give the go-ahead for joint development of an improved version of the Italian company's G.222 transport, dubbed the C-27J. "There is far more interest in the C-27J than we expected," admits Blackwell.
"There are countries that want the lift, but not the cost. The C-27J has half the price, half the range and half the payload [of the C-130J]." There will be substantial commonality between the two aircraft, although Blackwell indicates that the C-27J powerplant choice is still open, with the C-130J's Allison AE2100 facing competition from the Pratt & Whitney Canada PW150.
Australia and Brazil are among potential customers for the C-27J, development of which will form a "major part" of Lockheed Martin's offset commitment for an Italian purchase of C-130Js, he says.
The US company is discussing joint development of its proposed New Strategic Aircraft (NSA) with Airbus partners Aerospatiale and Daimler-Benz Aerospace (Dasa). The three companies have completed a study of the market for a commercially developed tanker/ transport aircraft and will decide by Paris whether to proceed jointly into concept development (Flight International, 30 April-6 May).
Blackwell says that Lockheed Martin is stressing to its potential partners that the NSA is not a competitor for the Airbus-led Future Large Aircraft (FLA). "I do not want to engender an NSA versus FLA competition," he says, arguing that the turboprop-powered FLA is a tactical aircraft, and therefore not competitive with the turbofan- powered NSA. "The FLA as envisaged is a competitor for the C-130J," he says.
"Competition today is not company versus company, but programme versus programme," Blackwell maintains, noting that Lockheed Martin and Boeing co-operate on the F-22 but compete on the Joint Strike Fighter (JSF). "Europe can do what it likes with the FLA, but if Europe needs strategic lift then the [NSA] 'world airlifter' is a good answer," he says.
The NSA and FLA programmes may compete for resources available within the European companies, Blackwell acknowledges, "...but they have to decide internally how to use their resources."
A modified Airbus aircraft is one of the options being studied by Lockheed Martin, Aerospatiale and Dasa, and is a "very viable candidate" to replace the Boeing KC-135 tanker, says Blackwell. The US company is having a "broad range of discussions" with Airbus, which include talks about co-operation on the NSA, a Lockheed Martin bid to supply engine nacelles for the planned A340-500/600 and an Airbus offer of work on the A340 and proposed A3XX.
"We are always open to a good deal," says Blackwell. "We are looking at the investment and return [on the A340 and A3XX]," he says, adding: "We are willing to make the investment if the aircraft will sell and we make money." There are also other opportunities for co-operation, either with Airbus or with one or more of its partner companies, he says.
"Lockheed Martin's goal is to expand as a global company," Blackwell says, noting that over 50% of its aeronautical sales are international. A key part of the company's drive to become the partner of choice in Europe is that "-Lockheed Martin is not a threat in the commercial market," he says.
In addition to the C-27J joint-venture with Alenia, and a deal with Spain's CASA on upgrading C-130s, Lockheed Martin has agreements with Alenia and Dasa to pursue the opportunity to replace or upgrade German and Italian Dassault Atlantic maritime-patrol aircraft. Blackwell says that the US company is offering two options: a new mission system for the Atlantics; or new P-3 airframes with a European mission system. "Our European partners call the shots," he stresses. "We can proceed in either direction."
The P-3 Orion production line, now dormant, is expected to be restarted following receipt of a South Korean request for proposals for an additional four to eight aircraft, he says. South Korea has eight P-3Cs, and a requirement for 24. The improved Orion 2000, offered unsuccessfully to the UK, is "-still alive and well", and available "almost off the shelf" at a lower price than for a new maritime-patrol aircraft, Blackwell says.
The backbone of Lockheed Martin's international presence remains the F-16 fighter, and Blackwell acknowledges that the United Arab Emirates (UAE) fighter competition "-is a critical programme for us". AUAE contract would underwrite development of an advanced, 'Block 60', F-16 of interest to other potential customers, including Norway, which has already shortlisted the F-16 for its next fighter purchase. "We have a firm backlog of over 400 aircraft, but if we want to go another 700-1,000 aircraft we need the Block 60. We'd like to see it developed with the UAE," he says.
Lockheed Martin's bid to win the UAE contest has been set back by an apparent dispute over technology transfer, and the Arab nation is now openly considering the Eurofighter EF2000 in addition to the Dassault Rafale originally shortlisted against the F-16. Blackwell is hopeful of overcoming the latest obstacles, but acknowledges: "The UAE is very demanding, on the aircraft, the financing and industrial participation. We will have to wait and see-it's too close to call."
Saudi Arabia, meanwhile, is working towards the purchase of F-16s to replace its Northrop F-5s and Israel is in the early stages of planning its next fighter competition, codenamed Peace Marble V. In Latin America a new market has opened up, with the US granting permission for pricing data to be supplied to Chile, and Blackwell says that Brazil is also interested in the F-16.
Follow-on orders are critical to the F-16's continued success, and Blackwell lists Bahrain, Egypt, Thailand, Singapore, Venezuela and the US Air Force among operators with extra requirements.
Further F-16 sales would bridge the gap until F-22 production gets under way, and would help offset any reduction in F-22 deliveries which might emerge from the USA's Quadrenniel Defence Review (QDR), to be completed this month.
Blackwell believes that the F-22 development programme is now "...on a very solid foundation" following a cost review which added funds and extended ßight testing. "For the first time, the programme has reserves," he says. Blackwell also believes that F-22s will be delivered for "much lower" than the estimated average production unit-cost of $71 million, through cost-reduction initiatives agreed by industry and the US Air Force.
Blackwell says that the agreement gives contractors increased profits in return for taking on the added risk associated with bringing down the aircraft's price to offset budget overruns, mainly inflation-related. He says the team will receive "not unreasonable profits" for delivering the aircraft "-cheaper than when we won the competition."
Admitting that he was previously sceptical that the requirements of three US services could be combined in the Joint Strike Fighter, Blackwell says that he is now "totally disabused" of his doubts. "We can do it. We can build one aircraft for three services. The possibilities are there and the economies are staggering," he says.
While previous joint programmes have collapsed, the JSF will survive "-because [the services] need each other. There's not enough money to do it by themselves," Blackwell says. While the QDR may change the timing of the programme, there is "-enough merit, rationale and desire for the services to stay together," he says.
The JSF is a key programme for Lockheed Martin Skunk Works, where the two X-35 concept demonstrators will be built. Blackwell says that recent organisational changes have integrated the Skunk Works into the company's aeronautics sector. The Skunk Works is Lockheed Martin's lead site for stealth technology, which Blackwell describes as a "core capability": it is developing the airframe for the missile sector's Joint Air-to-Surface Stand-off Missile competitor and leading the company's space sector in development of the X-33 reusable launch-vehicle.
The Skunk Works is also Lockheed Martin's lead site for development of unmanned air-vehicles (UAVs), Blackwell says. The company sees a strong future in unmanned aircraft and has developed a detailed strategic plan for "...a whole family of UAVs". Problems with the Lockheed Martin/Boeing Dark Star "Tier 3 Minus" technology-demonstrator UAV have been rectified, and flight-testing is expected to resume "later this summer," he says.
Blackwell sees "Tier 3 Minus or something like it" replacing the Lockheed U-2 reconnaissance aircraft. He says that the company is confident it can build the UAV for "close to $10 million a copy". Looking ahead 20-30 years, he foresees fighter UAVs and says the company has already proposed unmanned derivatives of the F-16.
While UAVs form an area of potential long-term growth, Lockheed Martin Aeronautics is looking nearer-term at growing through partnerships, joint ventures "-and small acquisitions." Blackwell says. The latter are likely to be in aircraft maintenance and modification, a business sector which the company has completely restructured ready for expansion, he reveals.
"There is more money in maintenance, repair and overhaul than in any other line of business - it's bigger than tactical aircraft," Blackwell says. The company has consolidated its interests in this sector into Lockheed Martin Aircraft and Logistics Centers, at Greenville, North Carolina.
This unit encompasses aircraft maintenance and modification, nacelle and aerostructures manufacture and airbase support, and manages the company's maintenance ventures in Argentina, China and Hungary.
Maintenance and modification plants in Ontario, California, and Tucson, Arizona, have been closed while the Greenville site is to be expanded, Blackwell says. "We are aggressively pushing to get back all Lockheed Martin aircraft," he says. At the same time, the company is pursuing maintenance business on other manufacturers' military and commercial aircraft, both in the USA and at its overseas sites.
Lockheed Martin already handles P-3 depot maintenance and is bidding for the same role on Lockheed C-5s. Lockheed F-117 maintenance is to be moved back to the Skunk Works and the F-22 avionics depot will be provided by industry, at least for the first few years.
Source: Flight International
