Paul Lewis/SINGAPORE

JAPAN'S DEFENCE Agency (JDA) is pressing FS-X fighter programme contractors and suppliers for lower prices, to achieve an overall reduction of 20% in the aircraft's production cost.

The move is intended to counter the Japanese yen's rapid appreciation against the US dollar. Recent currency fluctuations, together with higher-than-expected development costs, have pushed up the FS-X's estimated unit cost to $100 million.

According to local defence sources, the JDA has set a target price of $80 million per fighter. It hopes to make savings by stretching out procurement of certain systems and getting contractors to reduce cost margins.

The JDA in return is promising manufacturers that additional FS-Xs will be ordered beyond the initial 70 aircraft needed to equip three fighter-support squadrons. The Japan Air Self-Defence Force (JASDF) originally sought to buy up to 130 aircraft (Flight International, 25-31 January ).

The largest savings are expected to come from FS-X prime contractor Mitsubishi Heavy In- dustries (MHI). In addition to FS-X final assembly and production of the forward fuselage, the company is responsible for the fighter's phased-array radar and electronic-warfare system.

Other Japanese manufactures affected by the cost reduction drive are main airframe subcontractors Fuji and Kawasaki Heavy Industries, engine producer Ishikawajima-Harima Heavy Industries and avionics suppliers Shimadzu and Yokogawa.

The JDA is also seeking cost reductions from principal US contractors Lockheed Martin and General Electric. US industry has been promised an overall 40% share of the FS-X programme, but a detailed Government-to-Government agreement on workshare has not yet been reached.

A reduction in programme costs is considered critical to the JDA gaining approval to begin production of the FS-X in fiscal year 1996. It hopes to secure funding in the next budget for an initial batch of 12-14 aircraft, to be delivered to the JASDF from 1999 onwards.

The first FS-X prototype was rolled out in January, and is now undergoing avionics, hydraulics and engine tests before its maiden flight, scheduled for mid-September. A second flying prototype is near to completion and two more are in production.

A second static aircraft is due for delivery in August to the JDA's Technical Research and Development Institute at Tachikawa for fatigue testing. Structural load testing of the first static aircraft has been under way since February.

Source: Flight International