Tough Choices Ahead for Japan’s F-XX Procurement

Defense News has just published a story that I did last week on the post F-35 choices Japan faces for its F-XX procurement. This was very interesting to write and research, as so much is “up in the air” and there are so many unknowns.

Unusually, Lockheed Martin refused to comment (Steve O’Bryan has been on the offensive recently emphasizing the positives with the F-35 program) while BAE’s Tony Ennis was happy to comment.

Questions include:

– Could there be some work for the Eurofighter after all? Will Japan feel bruised and abused if the F-35 turns out to be a poisoned chalice. (History of course is not on the Eurofighter’s side. The F-2, which became the thin edge of the wedge for the FSX procurement as the F-2 weighs in about 4X cost of a Block 50/52 F-16).

– What of the Mitsubishi ATD-X Shinshin? Is this as many believe a hedge or is it a complete waste of time and money. Is Japan really up for, and up to using this program as a hedge? Can MHI and TRDI really bring anything to the table.

Talking to analysts, the story would seem to be no. According to the excellent Prof. Narushige Michishita for one, the fact that Japan’s DBI is now non-competitive and falling away in technological ability (with analysts such as Kiyotani more or less calling the F-35 purchase an act of suicide), after failing to secure the F-22, Japan used the international RPF for the F-X in order to squeeze a better deal out of the U.S.

…and failed, or so it would seem to critics.

This question about the ATD-X revolves around the point that Japan seems to have felt compelled to buy the F-35 for fear of falling so far behind U.S. technology that it was prepared to swallow an industrial participation deal that many doubt will help Japanese industry to a 5th-generation fighter design and build capacity. Of course the U.S. probably doesn’t feel it wants Japan to have a 5th-generation fighter design and build capacity. But the days when Japan could bring technology, muscle, will and money to the table a la FSX seem to have long vanished. Meanwhile a recent internal report by MOD itself (see Japan’s Defense Industrial Base Nearing Crisis) has underscored just how much Japan is waking up to fundamental problems with its defense industrial base.

Interestingly for me,  Dr. Patrick Cronin at theCenter for a New American Security believes that that  F-15SE or the F-18 Super Hornet would still be great buys for Japan for the present, but should really go for it for a sixth-generation fighter.

“Either the F-15SE or the F-18 Super Hornet would be value added without breaking the bank.  Meanwhile, Japan needs to develop an F-XX future fighter that can defeat world-class defenses and aircraft out to the middle of this century and perhaps beyond.  That means Japan should be seeking to develop, possibly with an American partner, a sixth-generation aircraft with advanced stealth characteristics, directed energy weapons, and an unmanned option.  Thus, by the middle of next decade, JASDF would have two fighters (F-35s and either F-15SEs or F-18 Super Hornets).  It would then be preparing to field a sixth-generation F-XX.”

In addition to the Defense News version, here is the full interview with the  wonderful Paul Giarra at Global Strategies & Transformation whom along with Dr. Cronin, I would like to thank deeply for sharing some of their considerable insight and knowledge.

“JASDF fighter aircraft procurement beyond the 42 F-35s planned is a vital strategic issue for Japan.  In my view, Japan needs the best air force it can possibly get, for the defense of Japan as well as for alliance operations.  Unfortunately, even though Japan is normalizing militarily and responding to the emergence of China by revising its entire defense strategy, there is no aerospace strategy rationale in place to shape a positive outcome.

When Japan wanted to procure the F-22, there was no argument available to overcome legitimate export restrictions imposed by the U.S. Congress.  No one — whether Japanese or American airman or air power proponents — could argue that the Obey Amendment should be overturned, because there was no strategic rationale in hand for doing so.  That’s not to say that there could not be a compelling rationale for the F-22 or another equally good aircraft (Japanese or American), but there is no developed and deployable strategy, no vision, no operational basis for planning or procurement.

As for the F-35, I would say that 420 aircraft is as good a number as 42, because it is as arbitrary as 42, but at least with ten times the aircraft Japan would have a strong and credible air force.

As for particular aircraft, responsible airmen should have a vision of future air combat — we’re talking much more than a decade before any substantial number of new aircraft are available to JASDF.  Does an aircraft have to be a fifth generation, stealthy, and capable of super-cruise performance in order to meet the needs of JASDF?  What are those needs in the first place?  Will JASDF be flying directly overhead, defending Japanese airspace? Against what threats?  Will the JASDF be patrolling and fighting at the far periphery of Japan’s islands?  Will the JASDF be drastically outnumbered? What is the worst case?  The most likely case?  Will superb BVR missiles and air warfare command and control be sufficient, enabling a less capable aircraft?  What will be the operational relationship between JASDF and the U.S. Air Force?  Will alliance roles and missions influence, or even dictate, aircraft choice?  In this context, the Air Sea Battle concept looms large as a significant consideration going forward for JASDF and USAF planners.

How much time does JASDF have to make a choice and bring its new fleet of aircraft on line?  Is there a virtue to procuring relatively readily available F/A-18 Super Hornets or substantially re-designed F-15s?  Can Japan afford to wait?  Should JASDF skip ahead to some new combination of armed UAVs, or instead depend much more on very long range SAMs for territorial IAMD?  Are there new technologies or concepts on the horizon that are worth waiting for?

These are the sorts of questions that have answers if the JASDF and alliance aerospace strategy and air combat vision are in place.  There always will be tradeoffs between aircraft, but technical judgments and an informed choice can be made on the basis of a strategy, vision, and substantial and well developed roles and missions.

In the meantime, there are real industrial considerations on the table that never before have been factors.  With the relaxation of the three arms export control principles, it is possible for the first time for Japan’s aerospace industry to approach its American counterparts in a fundamentally different way that was never before possible:  as partners rather than consumers.  This adds a new dimension to JASDF’s procurement challenge.  In the long run, understanding and optimizing these new defense industry circumstances probably is as important as the aerospace strategy and vision.

It is natural that aircraft manufacturers paying suit to JASDF want to sell the aircraft they have developed.  Nevertheless, the most competitive will develop the aerospace rationale for JASDF’s new air fleet, and offer a strategic partnership that provides the air defense that Japan needs.

Japan F-35 Update – First 4 ALREADY at a Premium!

F-35s in production (sort of). A sight we won’t be seeing in Japan.

Here’s Japan Accepts First F-35s Despite Cost Premium

Was actually stuck on a train midway between Tokyo and them mountains without my MacBook Air on Friday so filed this late, but it does feed into my take on the F-XX purchase coming later, which will be the ASDF’s and MOD’s most significant purchase of the next 20-30 years.

Things don’t look good if Japan is ALREADY paying more than was agreed on last year, see: Japan May Cancel F-35 Buy if Cost Rises.

All-in-all, with Japan being a complete novice at offset trade negotiations and with it’s defense industrial base severely weakened, it seems that the MOD might have gotten a little out of its depth!  The Pentagon is altering the deal, and let’s hope they don’t alter it any further.

Japan Accepts First F-35s Despite Cost

Premium

Jun. 29, 2012 – 12:36PM   |By PAUL KALLENDER-UMEZU   |   1  Comments

TOKYO — Japan’s Ministry of Defense (MoD) said June 29 it had agreed to purchase the first four of 42 Lockheed Martin F-35s and two simulators for 10.2 billion yen ($127.8 million) each, plus parts, for a total cost of 60 billion yen, according to a news release.

The price of the initial four jets in the Letter of Offer and Acceptance singed by the MoD is significantly above the 9.9 billion yen ($124.1 million) agreed to last December, when, in a contentious decision, the ministry selected the advanced but still developmental F-35 to replace its 1960s-era F-4EJs.

After a tough request for proposals review, the MoD opted for 42 of the stealthy F-35s over the flight-proven and less expensive Eurofighter Typhoon and Boeing F/A-18E/F Super Hornet.

The price rise comes in spite of a threat, repeated publicly by then-MoD Minister Naoki Tanaka, that Japan would consider canceling the F-35 purchase if significant troubles and delays emerged. The Pentagon’s January decision to delay orders for 179 F-35s over the next five years as part of defense budget cuts, and an admission by Lockheed that this will boost prices, has caused international concern.

Underscoring Japanese alarm that it might have stuck itself with a steadily worsening deal, Tanaka said at a Feb. 24 news conference the MoD had asked the U.S. to “strictly adhere” to the terms of the agreement, including the original 9.9 billion yen price and 2016 delivery date.

That threat appears to have melted away. Despite the retreat, local defense analyst Shinichi Kiyotani said that because the cost did not rise even higher that might be interpreted as a partial victory for the MoD, which could face an even tougher job suppressing future price rises for the remaining 38 jets if the program suffers further glitches.

“The MoD has got a pretty good price and negotiated well compared to the price rises that might come later,” Kiyotani said.

The planned purchase of the other 38 jets has yet to be formally confirmed.

Details Scant on Anglo-Japan Defense Cooperation

Japan’s leading daily, the Yomiuri Shimbun, has a long editorial (see Japanese-British security ties must be strengthened) on UK PM David Cameron’s meeting with Japanese PM Yoshihiko Noda on Tuesday, but details of exactly what the potential partners are going to cooperate on remain scarce.

BAE M-777

BAE Systems M-777

My sources tell me that there is quite a bit of regret in some sections of Japan’s political and military establishment for choosing the Lockheed Martin F-35 Lightening II multirole fighter over the Eurofighter Consortium’s Typhoon, whose development is being led by BAE Systems. Analysts not troubled by ties to the U.S. who seem pretty neutral, question last December’s decision to buy American after a long and lengthy RFP say that the Typhoon, which while expensive could work out considerably cheaper than the F-35, would have actually suited Japan’s needs more.

With the cost outlook for the F-35 seeming to worsen every time you care to look, (see  Japan F-35 deal unchanged, Japan May Cancel F-35 Buy if Cost Rises, or just Google search “F-35 Canada”!)  one senior source in the UK Defense establishment called Japan’s purchase of the F-35 not so much a license to assemble the vaunted but troubled 5th generation stealth fighter so much as “a license to write a blank check” to the Americans.

The article reaches the same sort of conclusions Andrew Chuter and I printed last week:

“Small equipment, such as chemical protective suits, is considered a strong candidate at the initial stage of the joint development between Japan and Britain. The British side suggested a helicopter as a candidate. We hope the two countries will study and select a program advantageous to both countries.”

The article also contains some disturbing information about those perpetually cast Japan as some sort of nationalist warmongering nation not weaned of/ harboring secret intentions to regain past imperial pretensions aided and abetted by the U.S.

“To the Defense Ministry’s knowledge, 35 tank-related companies, 26 vessel-related companies and 21 fighter-related firms have either withdrawn from the defense industry or gone bankrupt since 2003.”

UK-Japan Defense Deal Coming Soon!

This story was prompted by leaks in the UK  so I was drafted in to make comments in the middle of last week.

Working the phones and contacts reminded me of when I was a foreign correspondent stationed in Tokyo back more than a decade ago!

Michishita Sensei is much more interested in my research work on orbital debris ADR, and SSA but that’s for later….

Here is the second part:

Japan Delays F-X Announcement

Given the strategic importance and Alliance issues attached to the purchase of the F-35, Defense News asked me to wring every last drop out of this story. As stopped being a full-time journalist in 2002, December was an interesting month!

Japan To Launch Much-Delayed F-X Contest

Again, here is anearlier story I did (back in March 2011) with esteemed colleague Wendell Minnick about the earlier stages of the F-X RFP…

TOKYO and TAIPEI – After years of vacillation, Japan’s Ministry of Defense (MoD) plans this month to formally launch a $10 billion purchase of 40 to 50 fighter jets, a program that could make or break the country’s ability to manufacture combat aircraft.

The F-X program will release a request for proposals March 28, sources in Tokyo said. Bids will be due Aug. 31, and a contract awarded at the end of this year, they said.

The competition will be closely watched by the Japanese defense industry. Unless some of the F-X planes are produced in Japan under license, the country faces its sunset as a maker of fighter jets. Production of Mitsubishi F-2s, the country’s only active fighter line, is to close in September.

A deal to make at least some of the F-Xs will prove very profitable for local industry, “but no licensed production will be tantamount to disaster,” a Japanese defense industry source said. “We have excellent engineers, and a generation of skills will be lost.”

Three competitors are expected to vie for the contract: the Boeing F/A-18 Super Hornet, Eurofighter Typhoon and the Lockheed Martin F-35 Joint Strike Fighter (JSF).

Boeing and Eurofighter are set to offer licensed production in their bids, but Lockheed may be unable to do so. Japan is not a member of the multinational JSF partnership, thanks to its self-imposed ban on making defense items for export.

Attempts by Japan’s defense industry to repeal the ban have met stiff resistance from pacifist political opposition groups.

This makes licensed production of the F-35 nearly impossible in Japan, said Satoshi Tsuzukibashi, director of the Office of Defense Production Committee at the Japan Business Federation, or Nippon Keidanren.

And that could finally scuttle the Japan Air Self-Defense Force’s (JASDF) dreams of buying a fifth-generation fighter. The F-X program was supposed to launch in 2007, but officials delayed it in hopes that the U.S. would allow Lockheed to export the F-22. When those hopes were dashed, Tokyo set its sights on the F-35, only to see the JSF effort dogged by delays and cost overruns.

“The delay of the RfP last year was somewhat because of the delay of the F-35,” Tsuzukibashi said.

Despite the doubts over licensed production, Lockheeds plans to compete for the F-X, offering some form of industrial participation, said John Giese, the company’s senior manager for international communications. He said the F-35 “meets Japan’s F-X acquisition timeline, both to support the F-X model selection decision to be made in 2011 and for delivery of aircraft and sustainment to meet JASDF’s F-X delivery requirements.”

But for the Japanese defense industry, licensed production remains the bottom line.

Industry “will happily accept the MoD’s decision for any of the options on the table, as long as the MoD secures licensed production,” said a senior Japanese defense industry source, who added that Tokyo must “do all it can to convince the U.S. to allow for technology transfer and licensed production if the MoD does opt for the F-35.”

If not, the source said, defense industry favors either the F/A-18 or the Typhoon as a matter of survival.

Boeing and Eurofighter are taking advantage of these fears.

Boeing would offer Japanese industry opportunities to develop and produce the F/A-18, including options under the new Super Hornet International Roadmap capability program, said Joe Song, Boeing’s vice president of Asia-Pacific business development.

“We believe we can offer a substantial package to Japan that enables it to sustain and advance its defense aerospace business for follow-on development,” Song said.

Kory Mathews, Boeing’s vice president for F/A-18 and EA-18 programs, noted that Boeing had brought Japan licensed production of the F-4EJ and F-15J.

But the Super Hornet faces stiff competition from the Typhoon, the first serious effort by a European fighter to unseat U.S. dominance in Japan. Tsuzukibashi said Eurofighter officials have been promoting it as a flexible, inexpensive alternative to the F/A-18 and F-35, and they believe it has a good chance of winning.

A European industry source in Japan said technical export restrictions hamper F-35 exports, while Eurofighter has “no blackbox policy,” which means wider options for Japanese industry participation.

A senior Japanese defense industry source said, “The Eurofighter people are always talking about full disclosure technology for production and technology transfer to Japanese industry and the MoD. The guys from BAE are very hard workers … very enthusiastic for promoting the Eurofighter option for the F-X.”

Eurofighter has teamed with Sumitomo, a major Japanese integrated trading and investment enterprise, to fight for the F-X contract.

Yet the Japan-U.S. military alliance and pressure to procure a U.S. fighter may keep the MoD from picking a European fighter, Tsuzukibashi said.

The F-X will replace Mitsubishi F-4EJ Kai Phantoms due to begin retiring in 2015. Tokyo is also considering buying more fighters to replace F-15Js in the next 10 years. That could increase the number of F-X fighters to 150, lowering the cost of manufacturing in Japan.

Typhoon Tries To Wrest Japanese F-X From Super Hornet

With the selection of the F-35, here is an older story (July 2010) I did with esteemed colleague Wendell Minnick, Defense News Asia Bureau Chief, at the earlier stages of the F-X saga. Many independents genuinely saw the Eurofigher Typhoon as the most suitable option for Japan to not only fit the requirement, but to give Japan’s sagging defense industrial base a lot of work!

TAIPEI and TOKYO – A request for proposals for the Japanese Air Force’s $10 billion F-X tender is expected as early as October, and the Boeing F/A-18 Super Hornet and Eurofighter Typhoon are preparing to duke it out for the 40 to 50 fighters.

Budget allocations to replace 73 aging F-4EJ Kai Phantoms are planned for 2011, said Satoshi Tsuzukibashi, director of the Office of Defense Production at the Japan Business Federation, or Keidanren, Japan’s most powerful industrial lobby. The decision has been on hold since 2007 due to budgetary problems, political upheaval and procurement scandals.

Tokyo also delayed a decision hoping the U.S. would release the F-22 Raptor for export. But that option died last year, when the U.S. canceled further production.

There were also hopes that program delays would make available the F-35, though this appears unlikely, except for possible low-rate initial production aircraft, due to program setbacks in the U.S., sources said. Japan put itself in the back of the line when it failed to join the F-35 international investment partnership, a Japan-based U.S. defense industry official said. The F-35 is not expected to be available until 2020 or later for Japan.

But not everyone in Japan has given up on the F-35 for F-X.

“The F-35 is the most probable choice,” Tsuzukibashi said. “However, Keidanren doesn’t support any specific option. Our request is to maintain and strengthen Japan’s industrial technology and production base, and we don’t particularly favor one option.”

Sources indicate the F-35 is better suited for Japan’s F-XX program for 200 to 250 fighters, scheduled for around 2020. Many see F-X only as a stopgap to a fifth-generation jet.

Though the Eurofighter consortium is offering Japan attractive industrial participation, the Typhoon faces an uphill battle. The Japanese have never procured a non-U.S. fighter jet.

“Normally, the Japanese would not mess with the U.S. alliance, therefore the F-18 will have a political advantage,” a European defense industry source said. “But the Eurofighter might well serve as a stopgap to the F-XX program’s preferred platform, the F-35. If they want the better fighter, the Eurofighter is better than the F/A-18.

“But for some, they may be nervous of drawing into question the U.S. alliance by picking a non-U.S. fighter,” he said. “We do not want to be viewed as a threat to U.S. relations with Japan or perceived as doing anything to endanger them.”

One strategy is to offer the Eurofighter as a pragmatic “stepping stone in terms of capability, industrial participation and technology transfer to either the indigenous development of the F-XX or the F-35,” the European source said. Eurofighter is offering Japanese industry licensed production.

There also is European interest in helping Japan develop its own indigenous stealthy fighter for the F-XX competition.

In 2009, Japan’s Ministry of Defense (MoD) initiated a $500 million research program, through the Technical Research and Development Institute, for the Advanced Technology Demonstrator-X (ATD-X) Shinshin stealth fighter.

Boeing also is offering attractive industrial participation options.

“We are prepared to work with the Japanese heavies as well as other firms to identify opportunities for local assembly and licensed production, including a tailored indigenous logistics support package,” said Joe Song, Boeing’s vice president of Asia-Pacific business development.

Boeing has a long history of working closely with the Japanese defense industry, including deals with Kawasaki Heavy Industries and Mitsubishi Heavy Industries, Song said. These deals include co-assembly and co-production of CH-47 Chinook helicopters, AH-64 Apache Longbow helicopters and upgrades for F-15J/DJ fighters.

Song said recent sales to Australia provide evidence of a strong vote of confidence in the acquisition of Super Hornets. “Boeing delivered five Super Hornets in March – and six this week – on time and on budget.

“In addition, our affordability is the most important factor that can ensure robust licensed production for the Japanese industrial base under the current Japan Ministry of Defense F-X budget,” Song said. “Our known cost, delivery schedule and proven track record of industrial participation in Japan is how Boeing brings the best value to Japan.”

The Super Hornet has a lot going for it, said one Tokyo-based U.S. industry analyst. Most important is commonality with the U.S. Navy and Marine Corps, which both fly it. Boeing also has a long history of cooperation with Japanese industry. However, there are shortcomings. The F/A-18 has only 11 hardpoints to accommodate weapons and a range of 2,300 kilometers compared with the Eurofighter’s 13 hardpoints and 2,900-kilometer range, the analyst said.

Not everyone agrees Japanese industrial participation is economically viable for just 40 to 50 fighters.

“It’s also hard to see the Japanese government spending a lot of money to set up a production line for a small number of fighters that, while competent and deadly, are certainly not on the cutting edge of stealth or control technology,” the analyst said.

“I simply don’t see where the Japanese industry would gain that much with either F/A-18 or Eurofighter limited co-production,” he said. “Full licensed production is probably not remotely realistic, but the question is, what do they get in terms of technology to build any part of either fighter? Both are long in the tooth compared to the latest and greatest fifth-generation fighters. So the Japanese industry will be hard-pressed to make the technology transfer case in this instance.”

Japan F-X Announcement Due Within Hours

The F-X saga reaches its climax…

U.S. Air Force
U.S. Air Force (F-35 Joint Strike Fighters sit on the tarmac at Eg)

TOKYO – The Japanese government’s sudden decision to delay the announcement of a winner in its multibillion-dollar fighter program is widely regarded as a sign that Lockheed Martin’s F-35 has emerged as a late frontrunner despite concerns over cost and local workshare, according to government and industry sources.

Japan’s National Security Council was slated to announce Dec. 16 whether the F-35, Boeing’s F/A-18 Super Hornet or the Eurofighter Typhoon will replace about 40 Mitsubishi F-4EJ Kai Phantoms starting in early 2017 under a contract valued at about $8 billion. The announcement has been moved to Tuesday, Dec. 20.

When the F-X competition began, the aim was to buy 48 air superiority fighters with little development cost and a large share of work for Japanese industry. The F-35 was considered a long shot because development was slipping, unit costs growing, and workshare prospects were more limited.

But Tokyo began to look more favorably on the plane after Japan was denied Lockheed’s stealthy F-22 and concerns about China’s military escalated.

Early last week, Japan’s defense establishment was thrown into a furor following local media reports that the F-35 was the likely winner.

Senior government officials denied that any decision had been made.

But one source said the Joint Strike Fighter had long ago moved to the front of the pack because government officials decided that they wanted stealth, as much high technology as possible and a good relationship with the United States.

“The Japanese always wanted the JSF,” said one source. “So they ended up with the result they wanted, and now the question is whether they can sustain it.”

Picking the F-35 would invite criticism from the opposition and media of the plane’s cost, schedule delays and a recent spate of reports that focused on shortcomings highlighted during development.

Critics may also charge that the competition has been less transparent than claimed, although executives of the three main contenders have said the MoD has been painstakingly careful to make the contest as fair and open as possible.

The stakes in the F-X competition go beyond replacing the F-4s; the winner is likely also to get the bigger prize of replacing more than 100 F-15Js within the next 10 years.

Internal Split

Shinichi Kiyotani, a military analyst and journalist, said the sudden delay in the announcement points to divisions within the MoD and the ruling Democratic Party of Japan (DPJ) cabinet.

“There are internal discussions within the MoD; some bureaus are sold on it [the F-35], others aren’t,” Kiyotani said. “There is division at the top of the MoD, and there are still internal discussions within the DPJ Cabinet. There are so many problems with the F-35, it’s seen as a huge risk.”

Among other concerns, there’s the question of whether the F-35 will offer enough local workshare to support Japan’s ailing aerospace sector. The country’s only active fighter-jet assembly line is slated to shut down after rolling out just six more Mitsubishi F-2s, a derivative of the F-16.

That consideration was seen as giving the edge to Eurofighter, which vowed to give Japanese industry as much as 95 percent of the work, or to Boeing, which said that more than 80 percent would be available. Lockheed offered less, but argued that access to next-generation production capabilities and coveted stealth technology outweighed financial value.

Perceived Risks

Kiyotani also noted concerns about the recent news of a slowdown in production of the F-35 caused by some lingering technical problems and the potential that U.S. politics and budget cuts could shrink the Pentagon’s own purchase.

“The F-35 is already seen as very expensive. If the number of units is only a few a year, then that will push up costs,” he said. “Nobody believes the Lockheed Martin story of an eventual $65 million or so a plane.”

Alessio Patalano, a Japan military expert at King’s College in London, agreed on the risks involved.

“Of these three options, the F-35 is on paper the one with superior performance characteristics, but it is an operationally untested aircraft, widely reported to run into constant escalating costs and with serious issues in relation to delivery timetables,” Patalano said. “More importantly, there is no way to know at the moment if its … superior stealth capabilities will make a difference in real-time missions: By the time it will enter into service, technology will have provided new ways to reduce the impact of this feature. Second, there is little guarantee as to whether once it is fully armed, this configuration will not have an impact on its stealth capabilities.”

A senior Japanese industry source speaking on condition of anonymity also said industry doesn’t yet fully buy into the F-35’s value proposition.

“We have not yet got concrete information of how we will be involved,” the executive said. “It is said that Japanese industry will assemble substantial portions of the F-35, according to the media, but we aren’t sure exactly what systems and components Lockheed Martin will be allowed to permit industry to produce in the future.

“I am afraid that delays will happen that will increase costs next year or a few years later. Some feel that it is better that we avoid such a situation. Others want to us to pursue the newest fighter like some kind of super car,” he said. “If Japan doesn’t get the final version of the F-35 until a decade later, we may really need a different fighter. If there are delays, then the government may well have to put up with purchasing lower numbers.”

Jun Okumura, a counselor for Eurasia Group, said the Japanese government will likely opt for the F-35 based on political reasons.

“The administration [of Prime Minister Yoshihiko Noda] places great value on the bilateral alliance, particularly at a time when a rising China is making waves in Japan’s near abroad and beyond – including hints of its own Gen-5 program – and the U.S. has decided to reupholster its engagement in the Asia-Pacific,” he said. “All that the government sources are willing to say now is that nothing has been decided yet. Assuming that it is indeed the F-35, though, it means that MoD could have, but did not, go for an interim, Gen-4+ solution while waiting for the questions around the F-35, including timing, to clear up.”

No Clear Signal Yet From Japan on F-35 Selection

As the F-X saga reaches its climax in Japan, we felt forced to respond to leaks to the Japanese press about, as expected, the selection of the F-35. My sources in the MOD were very angry about the leak and adamant that the final decision had yet to be taken.

No Clear Signal Yet From Japan on F-35 Selection

TAIPEI, WASHINGTON and TOKYO – The F-35 could see its wings emblazoned with the red sun roundel, if Japanese media reports are correct.

The Lockheed Martin Joint Strike Fighter (JSF) has been in competition with the Boeing F/A-18 Super Hornet and Eurofighter Typhoon for the Japanese F-X program for several years. The F-X will replace Mitsubishi F-4EJ Kai Phantoms, due to begin retirement in 2015.

Japan plans to purchase between 40 and 50 fighters for roughly $10 billion. Tokyo is also considering replacing F-15Js within the next 10 years, increasing the number of F-X fighters to 150.

However, both the Japanese Ministry of Defense (MoD) and the U.S. Pentagon’s Joint Program Office are denying any final decision has been made. Boeing discounted the reports, holding out hope the Japanese government will continue to work with the company, as it has with the F-15J.

“We’ve seen the speculation on the JSF winning but won’t comment on that aspect,” said Lorenzo Cortes, international communications, Boeing Defense, Space & Security. “The Japanese government could best respond to what’s going on. We are expecting a formal announcement as early as this week, but ultimately, it’s Japan’s discretion as to when they want to do that.”

The MoD has repeatedly said they “were unable to confirm neither decision in favor of the F-35 nor the public release of the announcement for Dec. 16,” an MoD spokesman said. “Nothing has been decided on the selection, and we can’t confirm when the decision will be announced.”

Richard Aboulafia, an analyst with the Teal Group, Fairfax, Va., said that if true, Japan’s selection of the F-35 is a “very strong endorsement from a respected service.” The F-35 has been under attack in the U.S. Congress and media due to a variety of production and program problems.

“Despite all the doubts, they still see the F-35s capabilities and technology as the future,” he said. “It’s the first new customer outside the original partner nations.”

Despite the Japanese endorsement for the F-35, there will be challenges finding a role for Japan’s indigenous aviation industry, which is facing layoffs and reduced production with the end of the Mitsubishi F-2 fighter, the country’s only active fighter line, scheduled to close soon.

“No licensed production will be tantamount to disaster,” a Japanese defense industry source said. “We have excellent engineers, and a generation of skills will be lost.”

A U.S. defense industry source in Tokyo said the F-35 program is a “complex multinational program that will take some negotiation to carve out a Japanese aviation industry role.”

Part of the problem is the limited number of F-X fighters, 40 to 50, which “means investment would be quite high, so question is, does this position the F-35 to fulfill the F-XX/F-15J replacement program?”

Lockheed Touts Production Tech as F-35 Sales Point

The F-X saga continues: here is a story I wrote back in October about the Lockheed Martin fightback against Boeing’s Super Hornet (see F-X Wars Redux: Boeing Improves F-X Offer) about local production terms for the F-35 JSF.