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St. Louis Post-DispatchBoeing targets Asia, Europe for jet fightersBy Tim McLaughlin
Of the Post-Dispatch
04/21/2005Boeing Co. is in the throes of an international dogfight to sell billions of dollars worth of St. Louis-made fighter jets in Europe and Asia - and that's on top of the U.S. Navy's contingency plan to buy another round of F/A-18 Super Hornets.
A little more than three years after Boeing lost a gut-wrenching competition to Lockheed Martin Corp. to build the next-generation Joint Strike Fighter - the biggest Pentagon contract ever - there's resurgent optimism at Boeing because of fighter jet competitions in India, Singapore, Switzerland and Japan.
At stake is the long-term security and stability of several thousand Boeing workers, who rely on Super Hornet and F-15 orders for their livelihood. At the very best, the company could expand its St. Louis work force over the next decade, company executives said Thursday. The four nations combined are considering purchases of at least 231 planes.
Of course, there are no guarantees. In recent years, Boeing has lost competitions to sell aircraft to Israel and Greece.
Still, building fighter jets is at the heart of Boeing's St. Louis-area operations, which generated $1.2 billion in annual payroll and paid out nearly $851 million to 1,257 Missouri suppliers and vendors in 2004.
Meanwhile, the Navy is considering a third, multi-year agreement to buy Super Hornets. The current deal, which runs through 2009, is valued at $8.6 billion, plus another $1 billion for a radar-jamming version of the plane.
Capt. Donald Gaddis, the U.S. Navy's program manager for the Super Hornet, said if development of the Joint Strike Fighter is delayed, the Navy would have a "serious production discussion" for more Super Hornets to bridge the gap until the Joint Strike Fighter's arrival.
Combat-ready Super Hornets cost $55 million apiece, Gaddis said. The current multi-year procurement program is on budget and three months ahead of schedule. That means a lot to the Pentagon, which may need to scrap some big-ticket weapons programs to pay for the war in Iraq.
Gaddis made his remarks Thursday in St. Louis before Boeing unveiled the most advanced version of the Super Hornet, which is packed with a radar and computing system that, in a matter of seconds, will allow the plane to relay coordinates for an enemy target to other fighters, bombers and ships.
That capability could be used in combat as early as 2007. The radar, made by Raytheon Co., offers three times the detection range and five times the resolution of its predecessor.
Today, pilots use a lot of time-consuming chatter to direct an attack on a target that's uncovered during a combat mission. The latest Super Hornet is designed to be plugged into a communications network that allows the plane and crew to interact instantaneously with soldiers, ships, satellites and battlefield commanders.
Gaddis told the Post-Dispatch his deputy is currently in India gathering information from the government that wants to buy at least 126 multi-role combat planes. Boeing plans to enter the Super Hornet in the India competition, which will include Lockheed Martin Corp.'s F-16 and entries from Europe and Russia.
The Bush administration opened the door to combat aircraft sales to India after agreeing to sell F-16s to neighboring Pakistan.
"We will be in that (India) competition," said Jim Albaugh, chief executive of Boeing Integrated Defense Systems.
Albaugh also recently learned the F-15 is a co-finalist for Singapore's next combat plane. Now in the final months of that competition, Boeing faces off against the Rafale fighter made by Dassault Aviation SA of France in what Albaugh described as a "cost shoot-out."
He plans to travel to Singapore in June to help close the deal.
"We have to make a profit, but I'm not so sure the French do," Albaugh said. Meanwhile, the war in Iraq is putting extraordinary stress on Navy combat aircraft. Some models of the F-18 Hornet, the Super Hornet's predecessor, have flown more than 8,000 hours.
That's far above their design limit of 6,000 flight hours, Gaddis said. Some planes are even logging 100 hours of flight time a month.
In response, the Navy has plans to try to double the lifespan of the Hornet's design limit.
"But that's a pretty tall order," Gaddis conceded.