Wednesday, June 19, 2019

F-35 News. Lockheed Martin claims it will lower operating thought..FAT CHANCE!

via Breaking Defense.
While it is true — and impressive — that the F-35A has come down below $80 million in Lot 13, the program has had much greater difficulty lowering operating and maintenance costs. Part of the problem is the acknowledged mess of ALIS, the hugely complex and often ineffective planning and maintenance software system designed for the plane. The Air Force is pressing hard to break ALIS down into a series of apps that can be easily upgraded and provide faster and more accurate planning and maintenance, with Air Force acquisition head Will Roper personally pressing hard for change.
Story here.

A little chest thumping first.

I told you that the fight wasn't about the cost of the airplane!  Anytime the opposition stresses an issue then you KNOW its gonna be solved. 

The cost of operating the thing.  That is the true flex point and one that I don't think will be easily resolved.  It's not simply a matter of supply chain as many would have you believe.

This is a basic matter of economics.

Lockheed Martin is basing their future defense PROFITS on the F-35 not only being bought but on them maintaining it for the next 50 years.

That alone tells you that at least on their side they're looking at the actual sale of the plane being a LOSS LEADER.  They might get to a point where the sell the plane at cost but will make up with it by profiting off the maintenance portion of the thing.

That alone is why talk of lowering operating costs is such an issue. 

That is why they're fighting so hard to deny the Pentagon access to ALIS and to give auditors any insight to the parts inventory/usage charts.

That's where their profits will be in the future and that's what they will protect till their dying breath...and why operating costs will be high for the life of this program.

The only economic part of this thing that you need to remember is this.  They can sell the F-35 at a loss and still profit from maintenance.

Sad but that's just a fact.

No comments :

Post a Comment

Note: Only a member of this blog may post a comment.