The Hindu Business Line : Economic reasons for F-16 sale?

THE Bush administration's decision to sell the F-16 jet planes to Pakistan has as much to do with economic reasons as it perhaps pertained to politics, security and American strategic calculations in South Asia and the Asia Pacific.

The Bethesda-based Lockheed that makes the multi role combat plane had made no bones of the fact that it was looking for more orders if its plant in Fort Worth, which employs about 5,000 workers, is not to suffer further shutdowns. The Dallas, Texas plant had an estimated 5,800 workers in January 2004 but this January this was down to 5,000 and by next January was scheduled to be down to 4,000 according to Mr Tom Jurkowsky, Spokesman of Lockheed Martin as quoted in The Washington Post.

In announcing the decision to sell F-16s to Pakistan and in the process reversing a 15-year ban on the sale the Bush administration also made it known that it had no specific number of units that would be delivered to Pakistan. One figure had that number to 24 but administration officials made it known that there was no limit. Further it was clarified that what was heading the way of Pakistan were not those old versions sitting on a tarmac in Tuscon, Arizona that were originally intended for delivery some years ago.

What is being pointed out is that the Fort Worth plant delivered its last of its F-16s to the US Air Force last month but that the plant is still building planes for Israel, Chile, the UAE and Poland. According to The Post, Lockheed has back orders for about 200 fighters with the last one coming off the production line in 2008.

Lockheed has thus far supplied the F-16s to some 24 countries with a price tag of between $30 million and $40 million per copy. This, of course, it is being pointed out, will vary depending upon the kind of upgrades that are requested and allowed. At times the spares and other support equipment could add up to 150 per cent more of the original price tag.

In the context of the F-16 sales to Pakistan, it is pointed out that Lockheed has a bigger issue or opportunity on its hands - the ability to bid and be able to supply another 100 or more of the F-16 jets if India opted to go in this direction. And the Bush administration has also made the point that the F-16 is not the last word on the subject when it came to sophisticated multi role fighter jets. And other companies in the jet fighters business like Boeing will stand to benefit.

"That's not just F-16s. It could be F-18s," remarked a senior administration official stressing that while it was up to India to decide from which country it wanted the jets, Washington has decided that the US will compete and is allowed to compete for that sale.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Economic reasons for F-16 sale?

ITC board okays Rs 14,000-cr investment plan over 5-yr period — Growth strategy covers outlays for acquisitions

Hyundai's second plant to be ready for new small car

BSNL launches Rural Info Society

Choppy equity markets may infuse life, spur flows into debt funds

Tata-Murdoch DTH venture clearance may take a while

Exports shift to more reliable Asian markets