BRENDAN SOBIE / SINGAPORE

Rotorcraft manufacturers feel the squeeze as cabinet authorises scaled-down purchase

Defence budget cuts will result in Japanese manufacturers slowing production of licence-built helicopters this year, with the Japanese cabinet having authorised the purchase of only 19 aircraft in fiscal year 2004, which begins on 1 April. The approved number is five short of the 24 helicopters requested by the Japan Defence Agency (JDA) for the new fiscal year, and also down from the 26 procured in 2003.

The Bell Helicopter/Fuji Heavy Industries UH-1J programme is most affected by the cuts. Just two will be produced, despite a Japan Ground Self-Defence Force requirement for twice this number. Over the past decade, Fuji has typically produced four to six UH-1Js a year, and industry sources say two is the minimum number required to keep the assembly line open for the Japanese-developed UH-1H variant.

Japan is expected to continue funding the UH-1J programme for at least another five years, and its manufacturers are hopeful that production will return to normal levels in FY2005.

Production of the Mitsubishi Heavy Industries/Sikorsky UH-60 will remain steady in 2004 at 10 aircraft, as plans to boost the production rate have been scrapped. The JDA requested nine SH-60K anti-submarine warfare helicopters for the Japan Maritime Self-Defence Force, but the finance ministry last month decided to fund only seven. The cabinet also approved the purchase of two UH-60Js for the Japan Air Self-Defence Force and one UH-60JA for the ground forces, against a JDA request for three and one, respectively.

Industry sources say the cabinet was unable to fully meet the JDA's helicopter requirement because poor economic conditions have reduced government revenues. Some aircraft procurement funds have also been diverted to meet Japan's new ballistic missile defence requirement, they say.

The 2004 budget includes funds for two Kawasaki/Boeing CH-47J transports, two Fuji/Boeing AH-64D attack helicopters, two Kawasaki OH-1 observation helicopters and one Kawasaki/AgustaWestland EH101 transport. Sources say these programmes could not have been cut without halting production.

Japan acquired five CH-47Js, two AH-64Ds, two OH-1s and its first EH101 in FY2003.

The budget cuts have also forced the finance ministry to fund only two of the JDA's planned four Mitsubishi F-15J fighter upgrades in 2004. However, the government met a JDA request to acquire 11 Fuji T-7 trainers, five Mitsubishi F-2 fighters, one Boeing 767 tanker and one Raytheon Hawker U-125A search and rescue aircraft in FY2004, representing a slight increase in T-7 manufacture and a slight decline in F-2 production.

The Japanese parliament is expected to approve the finance ministry budget later this month.

Source: Flight International