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 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.

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?”

F-X Wars Redux: Boeing Improves F-X Offer

Having bumped into the Boeing F-X team at the gate of the MOD on the way for separate business, and seeing a whole team really sweating bullets to get their case across…

Boeing, Lockheed, BAE To Vie for Japan’s F-X

As I am working more for Defense News these days, I thought I would start putting my articles up. Actually the DN web database doesn’t have a record of my earlier work on J-military space, but from now on I’ll be posting more work up.

The current crossroad is the just the latest installment of a 30-year drama that has been testing the flexibility of the Japan-U.S. alliance. When my Japanese industry sources tell me they really don’t mind building Eurofighter as long as they get the technology transfers and licensed production, I really question how much they are pulling my leg. Would the U.S. really, ever allow Japan not to buy American. Would Japanese companies ever cut their 50-year relationships with their U.S. masters and colleagues and collaborators?

How things have changed; in the days of the Super Sabre, the U.S. happy give Japan even the lathes and and the blueprints and the quality control systems necessary to produce some of the most advanced technologies of the era, thus helping Japan create its machine tool industrial base and then go on to momentarily conquer the world.

But the F-X saga represents another important facet of Japan’s spin-on/off technonationalism promotion policy. In the end, will the lack of 50 planes or 150 planes really serve to tip the balance of peacetime deterrence policies in Asia. Not in the slightest. But getting the technology to build a 5th generation fighter with stealth capabilities is a strategic national issue for Japan.

Boeing, Lockheed, BAE To Vie for Japan’s F-X, April 14, 2011