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Despite Budget Worries Programs Continue

by: Matthew Potter
January 17, 2013

Category: Alenia Aeronautica, Business Line, Companies, Congress, Department of Defense, development program, Events, General Dynamics, Lockheed Martin, Military Aviation, Press Releases, production program, Services, training, U.S. Air Force, U.S. Army | RSS 2.0

The U.S. Congress and the Obama Administration may have pushed off the decision on sequestration and dealing with the planned budget cuts for the Defense Department but that does not mean development and new programs don’t continue. Using available funding the work goes on to advance these efforts 2 recent press releases illustrate this activity.

General Dynamics and Alenia Aermacchi Join Forces for U.S. Air Force T-X Trainer Competition — “General Dynamics (NYSE: GD) and Alenia Aermacchi, a Finmeccanica company, announced today the signing of a Letter of Intent (LOI) to join forces and compete for the U.S. Air Force’s T-X trainer program, which will replace aging T-38 trainer jets and related training systems.” The American defense contractor will team up with Italy’s Alenia Aermacchi to propose a variant of the M-346 military aircraft trainer designated the T-100. The T-X program will replace the U.S. Air Force’s T-38 fleet. THe M-346 was recently selected by Israel to be their primary training aircraft.

Lockheed Martin JLTV Undergoes Successful Design Review — ” Lockheed Martin’s (NYSE: LMT) family of Joint Light Tactical Vehicles successfully completed a top-to-bottom government design review in late December, well ahead of the first Engineering and Manufacturing Development (EMD) JLTVs that will begin rolling off the assembly line this spring.” The JLTV is the planned replacement for the HUMVEE in use by the U.S. military and potentially its Allies. It will be a large program if fully executed as there will be a requirement for thousands of the vehicles. The U.S. is utilizing a process where multiple designs are being developed independently by contractors and then one or more may eventually be selected to go into Engineering, Manufacturing and Development (EMD) and then production.

The hard decisions facing U.S. defense budget decision makers is whether to cut back funding for these types of programs and make do with existing systems that may cost more in the long run to operate and maintain due to their age and capabilities. In the past it has been tempting to reduce investment in new systems beyond basic development to manage the size of the budget. If these types of programs continue it may mean cuts to current operations and force sizes to fee up the necessary investment requirements. The types of cuts required by sequestration will be hard to implement in the current budget but could be easier in future ones as more specific cuts may be made.

In the end if the cuts are carried out the U.S. will lose capability and may see new programs like these executed.

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