Cancellation of Apache also on the cards as defence agency seeks cuts to pay for ballistic missile defence system
Japan may cease production of the Mitsubishi F-2 as part of a nearly completed review of its mid-term defence spending plans.
Acquisition of the F-16-based fighter - co-developed with Lockheed Martin - would end in the current fiscal year under a Japan Defence Agency (JDA) proposal. The last of 76 fighters would be delivered in FY2007, about 50 aircraft short of the original requirement.
An early end to the F-2 production line is being considered, along with several other cuts, including cancellation of the Fuji-built Boeing AH-64D Apache (Flight International, 29 June-5 July).
The JDA needs to reduce aircraft purchasing to pay for a new ballistic-missile defence system. Japanese industry sources say there are several scenarios under review that would clear enough room - about ¥1 billion ($900 million) - in the annual budget for missile defence.
The Japanese media reported last week that the JDA had decided to go forward with the F-2 proposal, but industry sources stress Mitsubishi has not yet been notified of the F-2's termination and a final decision has not been made.
Sources say the JDA still must discuss the proposal with the US government, which signed production and technology transfer agreements with Japan before joint development began in 1990. Lockheed Martin builds the F-2's aft fuselage and wings, with long-lead items acquired 33-36 months before delivery.
Japan has already decided to acquire five F-2s in the fiscal year ending 31 March 2005. Production in recent years has been far below the minimum efficient rate of eight aircraft a year, resulting in an increase in unit costs to about $108 million an aircraft.
JDA is looking to cut multiple indigenous aircraft programmes - there are now 11, all of which are turning out aircraft at inefficient rates. The overall size of Japan's fighter fleet is also being reviewed in the light of the changing threat environment.
Under the original requirement, F-2s would continue to be acquired during the next five-year spending plan, which runs from April 2005 to March 2010. The JDA will finish drafting the new spending plan by the end of this month, but it will not be released formally until the end of December. Over the September to December period, changes are possible as the plan is debated by the finance ministry and other government layers.
BRENDAN SOBIE / SINGAPORE
Source: Flight International
