ANZACS Set Trends in Asia-Pacific Arms Procurement

Close defense cooperation between Australia and New Zealand, coupled with their relative prosperity and political and economic stability, have ensured standard-setting status in Far Eastern procurement, as well as onerous regional peace-keeping tasks. Despite Australia's vast size, its 18.5 million population inevitably limits its defense spending, totaling $A10.95 billion ($7.18 billion) in 1998-99. With only 3.5 million people, New Zealand is even more cash-strapped, although with fewer military responsibilities from its geographical isolation.

Australia currently faces problems from $A2.3 billion funding shortfalls by 2002, principally from East Timor commitments, which could threaten several major procurement programs. Expected to survive current reviews are the recent $A2 billion contract for seven CFM56-7-powered "Project Wedgetail" Boeing 737-700/800 AEW&C aircraft and the $A1.2 billion Australian Army Aviation's Project Air 87 program, for 30 armed reconnaissance helicopters. This was recently re-opened to include the original Bell AH-1Z, Denel Rooivelk and Sikorsky S-70 contenders, plus the short-listed Agusta A129 Scorpion, Boeing AH-64D and Eurocopter Tiger. Selection is also imminent between the new Alenia/Lockheed Martin C-27J and stretched CASA CN-295 for the $A500 million Project Air 5190 Light Tactical Aircraft (LTA) program to replace 14 DHC-4 Caribou STOL transports.

But the next phases of the $A500 Project Echidna (Air 5416) program, including Air 5391 and 5394, to equip combat and support aircraft with EW suites, have already been deferred. This was despite completion by consortia led by Lockheed Martin, Northrop Grumman, Raytheon and Tenix Defense Systems of competing $A7.8 million study contracts.

Funded projects include $A900 million for 12 Lockheed Martin C-130J-30s now replacing C-130Es, with 6-12 more options; $A660 million for 11 Kongsberg Penguin-armed Kaman SH-2G(A) frigate-based helicopters; $A850 million for 33 BAe Hawk 127 lead-in fighter trainers; $A50 million for two more Boeing CH-47D Chinooks; $A4.1 million for FLIR/EW upgrades of 16 RAN Sikorsky S-70B-2 Seahawks by Northrop Grumman Electronic Sensors/Tenix Defense Systems; and $A100 million for MATRA BAeD ASRAAM advanced close-combat AAMs, supplementing AIM-120B AMRAAMs for 71 RAAF F/A-18A/Bs.

Boeing is upgrading these by 2005 for $A1 billion to F/A-18C/D standards with Raytheon AN/APG-73 radar and other systems. Their replacement is planned from 2012 by multi-phase procurement of new combat systems through the $10 billion Project Air 6000 program.

Outstanding funding requirements include:

Joint upgrade by Sikorsky and Elbit Systems of 35 AAA S-70A-9s with Toplite II IR/TV and laser-designator/ranging systems, plus a helmet-mounted sight/display, for armed recce and attack roles.

$A200 million Joint Project 117 Rapier SAM replacement requirement, attracting European, Russian and U.S. bids, for 2005-06 service.

Project Air 5232 studies covering initial $10.7 million lease of civil bizjets from Australian Flight-Test Services to replace four RAAF Douglas C-47Bs and 10 BAe 748 navigation trainer/transports. RAAF lease tenders are expected shortly for supply, management, maintenance and logistic support of new government transports, to replace five Dassault Falcon 900s and a Boeing 707-320C. Airbus A400Ms and Boeing C-17s are studied alternatives to more C-130Js from 2005.

Project Air 5402 is for six refueling-boom and underwing hose-drum drogue pod-equipped tanker/transport replacements, possibly leased, to replace four RAAF Boeing 707s from 2005.

Project Air 5404 integrates main features of Boeing Australia's $A490 million Avionics Upgrade Program (AUP) to digitize the RAAF's 17 F-111Cs and four RF-111Cs with new nav/attack systems, in its 14 later-acquired ex-USAF F-111Gs for service through 2020. Weapons include 51 Lockheed Martin/Rafael AGM-142E Popeye ASMs, from a $90 million 1998 order, and $A200 million for anti-radar, anti-ship and other ASMs for Project Air 5398. The RAAF also has a $2.5 million option on 11 surplus USAF F-111Gs, 130 Pratt & Whitney TF30 turbofans, ALR-621 RWRs, and $500 million of equipment, for spares and attrition. Denmark's TERMA Elektronik received an $A8 million RAAF contract last November for F-111 AN/ALQ-213(V) EW management systems.

New Zealand procurement plans are far less ambitious, involving $NZ663 million ($339 million) five-year funding from 1997. Replacement of RNZAF A-4K/TA-4K Skyhawks from 2001 planned by a $NZ743 million 10-year FMS lease/purchase of 13 undelivered Pakistani F100-PW-200E-powered Block 15OCU GD F-16As and 15 F-16Bs, faces possible cancellation by the new government, to fund up to six Lockheed Martin C-130Js. Also included were 12 each Northrop Grumman AN/ALQ-131 active jamming ECM and Rafael LITENING II targeting pods costing $NZ93 million.

The RNZ Navy has ordered a fifth Kaman SH-2G(NZ) ASW helicopter for $NZ63 million, with Raytheon AGM-65H/K Maverick ASMs, for 2001 delivery, supplementing four bought for $185 million in 1997. Raytheon was recently selected to integrate new missions systems in six RNZAF Lockheed P-3Ks.

By John Fricker