JSF Market Analysis: How Many JSFs Will Be Produced?
(Source: Johan Boder for Dutch Parliament Defense Commission; issued Oct. 6, 2009)
How many Lockheed Martin F-35 Joint Strike Fighters will be manufactured? Optimistic marketing figures say that market opportunities for up to 5,000 6,000 F-35s are possible. The Dutch government structurally uses a number of 4,500 JSFs in its JSF Business Case calculations. These optimistic numbers are widely used amongst governmental and industrial organisations in several JSF Partner countries. However, if this parameter (4,500-6,000 JSFs) is wrong, the foundation of a lot a calculations, expectations, nice promises, non-binding contracts and investment decisions is also wrong.
This parameter is the foundation of the Dutch Business Case [see #51.1], the foundation of the Dutch participation in the JSF development stage (SDD) and one of the foundation of the Dutch project Maintenance Valley Brabant. Similar decisions and projects in other countries are also based on the same foundation: 4,500 to 6,000 JSFs will be manufactured.
But it is not only an important question whether the calculation of one of the most important parameters in the JSF Business Case discussion since 2001 is right. All calculations about procurement price, maintenance cost, cost of later upgrades are highly influenced by this parameter. There is a strong relationship between production cost and production quantities [see #51.2].
In this report it will be made clear that this essential parameter is marketing hype only, a fata morgana (i.e., a fairy taleEd.) Already in 2001 the projections of the fighter market were too optimistic and since the market expectations havent increased.
This report is based on a document, dated August 30, 2008, titled Analysis Business Case parameter 4,500 JSFs [see #51.3], prepared for several Dutch Members of Parliament.
A more detailed extension of that document used and defended in the Dutch Parliament Hearing of the Standing Committee of Defense in April 2009. After questions about some details, the author decided to add more detailed background information to this document and to translate it into English. This new version is submitted to the Standing Committee of Defense of the Dutch Parliament.
Full report (136 pages in PDF format) hosted by defense-aerospace.com.
http://new.isoshop.com/dae/dae/articles/communiques/JSF_MARKETANALYSIS_JOBO.pdf
(EDITORS NOTE: This very exhaustive report by an independent Dutch expert examines in detail the various figures provided by Lockheed Martin and the JSF Program Office to prospective JSF partners, including the Netherlands, to support the JSFs business case in these countries. The author demonstrates that, while Lockheed and JSF PO are still using figures based on the state of the fighter market in the late 1990s, these are no longer credible. The potential market for JSF is far smaller, argues the author, and will likely run to less than 3,200 units, compared to the over-optimistic 4,500-6,000 aircraft still claimed by Lockheed and the JPO.
This means that the value of subcontracts and coproduction offered to potential buyers is also smaller, and this undermines the business case on which individual countries will base their decision on JSF.
The report, although sometimes not as clear as it could be, includes a useful in-depth study of the worlds current fighter fleets, and the status of fighter replacement plans.)
http://www.defense-aerospace.com/article-view/release/108765/foreign-partners-short_changed-as-jsf-production-may-not-exceed-3%2C200.html
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