The US Department of Defense (DoD) plans to accelerate the procurement of Lockheed Martin C-130J Hercules transports for the US Air Force and Marine Corps, but has declined the company's offer of a substantial discount in return for buying more aircraft earlier.
Lockheed Martin, meanwhile, has signed a contract with Italy for two stretched C-130J-30s, taking the Italian air force order to 20 and the C-130J orderbook to 94.
Although the DoD's fiscal year 2001 budget request has yet to be finalised, a leaked internal document reveals that the DoD has decided to give the USAF $149 million to buy two C-130Js next year, with the US Navy receiving $150 million to procure two KC-130J aerial-refuelling tankers for the USMC.
They will be the first C-130Js to be requested by the DoD. Aircraft procured to date have been paid for with money added to the budget by Congress.
The funding for these aircraft will be found by reducing from 15 to 12 the number of Boeing C-17 transports to be purchased in 2001. The DoD plans to restore funding for the three aircraft in the 2003 budget.
The USAF had planned to begin procurement of at least 150 C-130Js in 2002 with just two aircraft. Late last year, Lockheed Martin submitted an unsolicited "economic order quantity" proposal, offering around 20% off the C-130J's $68 million price tag if the USAF began procurement in 2001 with a minimum of eight aircraft.
The proposal was predicated on maintaining a production rate of at least 19 aircraft a year. The DoD's latest plan, although less than the company hoped for, will allow Lockheed Martin to sustain its current rate of 16 a year, avoiding a production line break and keeping the programme economically viable.
• The Kuwaiti Higher Defense Council has allocated funds for four C-130Js.
Source: Flight International
