Friday, June 10, 2011

Rise in F-35 Acquisition Cost Marginal: Minister


HELSINKI - The Norwegian government must deliver "exact and transparent figures" on the costs of buying 56 F-35 Lightning IIs lest it face a revolt from opposition benches, the opposition Christian Democrats warned June 7.
"I can only wonder why the Norwegian government is so eager to purchase four F-35 training aircraft at the same time as the U.S. government is postponing its purchases. If the government cannot be transparent about the costs, then we would support a motion to postpone the project," Christian Democrat leader Dagfinn Hoybrathen said during a parliamentary hearing into the costs involved in the Next-Generation Fighter Acquisition Program.
At the hearing, Defense Minister Grete Faremo said the jets' acquisition cost had increased $180 million, to $5.71 billion, since Norway announced it would purchase the F-35 in 2008. She called this a relatively small increase.
Faremo said that total is based on an expected unit flyaway cost of $102 million.
Norway expects to pay up to $13.3 billion for the full complement of 56 aircraft. This price not only includes logistics and weapons, but also a value for uncertainty and potential escalating price risks linked to the project.
Faremo said the government was unable to present a definite cost figure for the total program. Some supplementary costs would not be known until next year, including funding to reorganize the Norwegian Air Force's structures and build one or more new air bases.
But Conservative Party representatives described the government figures as vague and confusing.
"What makes this so difficult is that so much is being postponed until next year. The fighter acquisition program's total cost estimates now vary from between $26.7 billion to $40 billion," said Ivar Kristiansen, the Conservatives' senior representative on the Storting's Defense and Foreign Affairs Committee.
The defense minister confirmed that Norway would formally order four trainer F-35s worth $886 million this fall for delivery in 2016. The other 52 aircraft are to be delivered after 2018.
The operating and maintenance life-cycle cost, spanning 25 to 30 years of projected service for the F-35s, is estimated at $26.8 billion, the minister said.
"Let me again emphasize that we have common interests with the U.S. government to support the measures taken to reduce both acquisition and operating costs related to the F-35," said Faremo.

No comments:

Post a Comment