Americans reluctant to share latest
technologies with other key development partner seems to make
Britain more and more impatient to stay in this program if things
really go wrong.
Britain in battle with US over fighter
plane
Peter Almond and Dominic O'Connell
BRITAIN is threatening to pull out of the Joint Strike Fighter
(JSF), a co-operative combat-aircraft project with America that is
one of the largest military programmes in the world.
The move, confirmed to The Sunday Times by senior defence
officials, could have serious repercussions for BAE Systems and
Rolls-Royce, Britains two main contributors to the project.
BAE is part of the consortium developing the plane, and had
expected revenues of about $24 billion (£13.8 billion) in
development and production contracts.
Rolls-Royce is developing the lift fan for the vertical take-off
version, and is working with its American rival, General Electric,
on an alternative engine for the aircraft.
The JSF is a versatile plane aimed at replacing several types of
aircraft currently in use, and could achieve total sales of more
than $300 billion, according to some forecasts.
While the development is being driven by the Pentagon, it is being
built by a multinational team in which Britain is the sole Tier
One partner. The government has already provided $2 billion in
development funding, and had been slated to buy 150 aircraft for
the RAF and Royal Navy.
But Britain is now threatening to withdraw after rows over the
Pentagons reluctance to agree to the transfer of technology, and
because of likely increases in the price of each plane.
According to senior Ministry of Defence officials, instructions
have been given for alternative strategies for projects affected by
American technology- transfer problems, the most important of which
is the JSF.
Dropping the JSF would stun the defence industry, but a senior
official told The Sunday Times it was time to think the
unthinkable. I know how the Americans negotiate, said the
official. They will not do a deal unless they know the other side
has a serious alternative. Its like a high-stakes poker game . . .
its essential to have a Plan B because its very important not to
travel in hope.
The JSF was to have equipped the Royal Navys two new aircraft
carriers. The Plan B being worked on is a version of the
Eurofighter Typhoon adapted for the navy. The Typhoon recently
entered service with the RAF after long delays and cost
overruns.
Defence-industry sources say negotiations on the Tranche 3
Eurofighter contract, under which Britain will take the last 88 of
the 232 orders, now encompassed the issues needed to be addressed
to make the aircraft fly from a carrier.
Sources close to the Eurofighter programme say there are no major
obstacles to the operation, although some elements of the carrier
design would have to be changed.
BAE Systems is likely to stand behind the governments tough line
on the negotiations with the Americans. The company is eager to
secure more defence technology to allow it to play a full role in
the JSF programme if it continues.
But Rolls-Royce could be an early casualty. Defence-industry
sources in Washington said last week that the US budget row could
threaten funding for the F-136 engine that it is developing in
conjunction with General Electric.