Thread: Lockheed Offers USA a $6B C-130J Deal

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Lockheed's offer reportedly involves 120 C-130J aircraft in different configurations between 2011-2015, at a production rate of 24 airplanes a year. This would double its existing production rate, and extend the line's guaranteed operating period from 2010-2015.

Costs per C-130J-30 would reportedly drop from $60-70 million in current FY08 dollars to $50.4 million in constant FY08 dollars; the KC-130J tanker variant would be $51.8 million, and a shortened version (which was disqualified from the Joint Cargo Aircraft competition) would be $47.8 million. In real dollars with inflation et. al. factored in, this could rise to about $60-65 million per plane between 2011-2015.

Note that specialty versions like US SOCOM's MC-130 Combat Talon/Shadow/Spear covert insertion planes, HC-130 King Bird SAR & aerial tankers, EC-130H Compass Call electronic warfare aircraft, EC-130J Commando Solo flying broadcasters, and AC-130 Specter/Spooky gunships tend to be more expensive, as they involve substantial changes and costs beyond the basic aircraft. The proposed agreement does not cover aircraft of these types, but the basic airframes could be bought under this multi-year agreement, and extra funds appropriated for the refit work.

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With Airbus A400M production unlikely to begin at any serious level before 2011, and 190 orders already on the books that must be filled, Lockheed's 2011-2015 deal offers the US military immediate relief for its aging force, before the competition can realistically deliver an alternative.

The important thing, from Lockheed Martin's perspective, is to raise the size of the USA's C-130J fleet high enough that competitive alternatives become too expensive due to the scale of duplication required for training, logistics, maintenance, et. al. An additional 120 aircraft would almost certainly achieve this goal, locking in a much larger volume of long-term orders, while keeping the production line open long past 2015 for other international customers.

The 20-ton space is likely to become rather crowded by 2020, however, with the Indo-Russian MRTA, Embraer C-390, and Chinese Y-9 all vying for market share, and the possibility of the American AJACS program as an additional complicating factor. Meanwhile, Airbus will be offering a competitor that offers major performance advantages, while remaining within the financial reach of existing customers like Chile, Malaysia, and South Africa.

For all of these reasons, the C-130J has little chance of duplicating its predecessors' international success. Regardless, Lockheed Martin has invested $1 billion of private funds in the aircraft's development, and wishes to recover them. To do so, however, it must remain in the competitive game. Offering substantial discounts now is a smart way to do it.

Hm...interesting. I've read a lot about the C-130J being a pork barrel project that Congress is jamming down the Air Force's throat.

By the way, Rossiman, a quick primer in posting articles like that; you can post the entire article in the same post, makes it a little easier to read.

A lot of members will copy and paste the article and then use the Quote tags to set it off from their own comments, like this.

This also makes it a little easier to read.

Anyway, welcome to the board.

I've heard good things about the J model. I think if it werent for the other things the AF needs much much worse (tankers, fighters) they'd be all over the C-130J.

Originally Posted by Jimmy

I've heard good things about the J model. I think if it werent for the other things the AF needs much much worse (tankers, fighters) they'd be all over the C-130J.

Oh no reflection on the J model itself. Everything I've read says that it's a real performer and then some.

It's just that I've also read that - as you said - the USAF has other things they need to buy but Congress is pushing the J down their throats to keep their districts in business.

Originally Posted by TopHatter

Oh no reflection on the J model itself. Everything I've read says that it's a real performer and then some.

It's just that I've also read that - as you said - the USAF has other things they need to buy but Congress is pushing the J down their throats to keep their districts in business.

Yes the J model is a great capability that we need, as it will close the gap on are heavy lift program that is in need of some love.

Originally Posted by Jimmy

I've heard good things about the J model. I think if it werent for the other things the AF needs much much worse (tankers, fighters) they'd be all over the C-130J.

I heard a serving RAF type say the J model has still not been cleared for as many loads as the earlier models which is why the old girls are burning up hours faster than forecast.

The crews at Little Rock love the J.

Originally Posted by zraver

The crews at Little Rock love the J.

It would be remarkable if the crews of any modern aircraft type didn't love their cabs.

Originally Posted by zraver

The crews at Little Rock love the J.

As do I if you heard my thread on are heavy lift program you would understand how much I think it needs work. Not to mention the new tankers we need to field and produce in a vast amount.