RISKY BUSINESS

The U.S. Air Force is planning to reduce funding for pilot training and construction around the globe, although Chief of Staff Gen. T. Michael Moseley says he hopes to keep procurement and research accounts intact as the Pentagon builds its Fiscal 2008 budget.

The Air Force trimmed $12 billion from its top line in the Fiscal 2008 spending plan, which was turned over to senior Pentagon civilian leaders for review last month. Those senior political appointees demanded reductions from each service. Their budgets are being impacted by the growing weight of war costs in Afghanistan and Iraq, which amount to $10 billion per month. And, with mounting concern about Iran's nuclear ambitions, continued infighting among factions in Iraq and a resurgence in offensive activities from the Taliban in Afghanistan, military leaders do not see relief from these demands any time soon.

The Air Force's strategy in recent years to keep afloat its procurement and research--what Pentagon officials call investment accounts--has been to reduce manpower, passing the savings on. Now the impact will be felt in the operations and maintenance accounts, which pay for pilots to execute proficiency flights and continue to hone their skills. Likewise, facilities upgrades will be delayed or cancelled.

"Any cuts in flying hours and any cuts in the ability to maintain competencies and proficiencies is something that I take very seriously," Moseley told Aviation Week & Space Technology last week. Moseley says the service aims to stay on schedule with its major programs, the F-22, F-35 and other efforts, although he acknowledges officials "took some nips" at some procurements.

However, future financial relief from planned manpower reductions may not be fully realized. Workforce cuts have been enacted for Fiscal 2006, and those in 2007 and 2008 will continue to go forward, but Moseley is backing away from those planned further in the future.

"Before we pull the trigger beyond '08, let's do this informed," he says. "Let's see where we are with the investment accounts and [not] make a decision for '10 or '11 until we know where we are." Some officials suggest planners may not have realized the full impact of the workforce reduction or the near-term turbulence it would cause across the branch.

In the meantime, the Air Force is re-evaluating the future of some key programs. The B-52 Standoff Jammer, one piece of a multi-pronged Pentagon airborne electronic attack strategy, was terminated in 2005, but Moseley says he's reviewing whether to reinstate a simpler version of it, taking into account the jamming potential of the active electronically scanned array (AESA) radars being fielded on the F-22, F-35 and new capabilities offered by the Navy's E/A-18G Growler. Leading to the B-52 Standoff Jammer's demise was a roughly sevenfold cost increase, to about $7 billion.

"We've reopened the door to say this could be attractive," Moseley says. "But as soon as that rascal begins to go up toward $7 billion again it is dead. That is a gas chamber offense." With Boeing as the prime integrator, the first increment is expected to cost $1.7 billion, although only $75 million has been earmarked for it, according to another Air Force official. This increment will employ E/A-18G mid- and high-band receivers and a low-band receiver developed by the Air Force Research Laboratory.

In the meantime, the Air Force continues to explore an AESA as an electronic attack system. By focusing multiple AESA modules on one electronic target, experts are finding they can disrupt the object's performance with a nonlethal means.