Defence

BAE Systems has enlisted three UK government entities to analyse the business case for opening a final- assembly and checkout line for the Lockheed Martin F-35 Joint Strike Fighter. The English Northwest Regional Development Agency and UK Department of Trade and Industry both back the new study.

Their final numbers will be double-checked by the National Audit Office, says Tom Burbage, head of Lockheed’s international JSF programme team. The UK Ministry of Defence is not participating in the analysis despite its critical role in the decision-making process.

However, Burbage notes that the MoD may not have the final say. “The final decision would have to come from the UK Cabinet,” with the MoD’s input, Burbage says.

Building a business case that supports a UK final-assembly base for the JSF could prove challenging. US government policy is to consider only requests that have no impact on overall programme costs, meaning the host government would have to pay additional costs.

The UK business case must balance the projected $70-100 million upfront investment against the potential for industrial benefits. The UK analysis process is not likely to conclude before the international partners sign a memorandum of understanding next December for the production, sustainment and follow-on development phases of the JSF programme.

Lockheed says the final-assembly issue can be resolved after the MoU is signed. Meanwhile, Italy’s government is pressing the USA to establish an alternative final-assembly line on its soil. Its case may hinge on Italy becoming a European hub for final assembly. “If they are willing to make the investment, there is probably room,” says Burbage.

The projected 4,000-aircraft orderbook for the JSF may be large enough to accommodate three final-assembly sites.

The US government, however, still has the final say on whether to allow final-assembly work to be sent abroad. Its policy is to consider such requests on a cost-neutral basis, but officials are working to resolve technology transfer and security issues.

STEPHEN TRIMBLE/FORT WORTH