Raytheon Targets Doubling of AMRAAM Sales Over Next Decade

Having sold about 10,000 AMRAAM air-to-air missiles, Raytheon believes it can generate almost the same number of sales over the next decade. To achieve that ambitious goal it plans to disclose here that the U.S. government has given its release authority for sales of more capable AMRAAM.

Raytheon began actively marketing the latest AMRAAM, known as AIM-120C-5, at the ILA show in Berlin, but only now has learned it will be allowed to sell the missile internationally. The announcement is expected to be made on the opening day of the Farnborough air show. The C-5 features the smaller shortened control actuation systems typical of the C-class of AMRAAM, as well as a 5-inch rocket motor extension.

With the UK's decision earlier this year to back development of the ramjet-powered Meteor air-to-air missile as its future system, there has been much question about how AMRAAM sales will be impacted. Meteor sales initially will be focused on the Eurofighter Typhoon.

But Raytheon doesn't see that situation undermining its near-term market prospects. The company expects to have about 10 years of sales opportunities before it will seriously have to worry about Meteor. During those years it hopes to sell at least 1,000 AMRAAMs to those European countries buying Eurofighter Typhoon. Another 2,000 missile sales to other countries are deemed possible, said Bill West, Raytheon's air-to-air missile business development manager.

Beyond the C-5, Raytheon is developing for the U.S. Air Force further upgrades to AMRAAM under the so called Phase III pre-planned product improvement program. Those upgraded missiles are to go into U.S. production soon, under the Lot 16 contract. However, international sales will not necessarily follow immediately. As was the case with the C-5, approval to sell the missile to international customers isn't expected to occur for a few years.

Raytheon hopes it will be allowed to sell continuously improved missiles to remain competitive even when Meteor nears production. "AMRAAM has continuously been a story of growth through evolution," West said.

Already on the drawing board is a fourth phase of AMRAAM upgrades. Although the U.S. Air Force once considered a ramjet powered version a possibility, that is now seen as less likely, according to USAF officials. Funding for phase 4 is to begin around 2004. West said the missile developed under that program will be similar to the ERAAM-plus missile Raytheon bid in the UK competition.

Raytheon officials also stress that one reason they foresee continued sales of the missile is the move towards internal carriage. The reason the control actuation surfaces were clipped on the C-version was to fit inside the weapons bay of the F-22 Raptor. The missile also will be carried internally on the Joint Strike Fighter. The Meteor missile will not fit, Raytheon says, which means there will be a continuous need for AMRAAM-sized missiles.

But the bulk of AMRAAM orders could very well be for ground-launch air-defense systems. Norway pioneered the missile's use in that form, and Spain this year announced it will follow. The U.S Army and U.S. Marine Corps are considering similar programs.
West said other international customers are emerging for the ground-launch application. They include the Netherlands and Denmark. Potential customers could also emerge in the Middle East, where missiles for the air-to-air application have been sold recently. Overall, the market for this application is believed to be around 5,000 missiles. The surface-launched missiles are identical to those used in the air-to-air role.

By Robert Wall