The parties agree that the acquisition of new fighter aircraft to replace the F-16 combat aircraft is an investment in Defence's future ability to protect Denmark and Danish interests.
The acquisition continues Denmark’s current operational capacity in fighter aircraft and ensures that Denmark continues to have freedom of action and the ability to assert Danish sovereignty that can be deployed in international operations in line with commitments made in relation to NATO's requests, and ultimately to contribute to NATO's collective defense of Danish and Allied territory.
Denmark's ability as a sovereign state to safeguard its own security and Danish interests depends on Defence's ability to maintain flexible and powerful capabilities, including combat aircraft.
Type
The Ministry of Defence’s New Combat Aircraft Program evaluated the three participating bat aircraft (Eurofighter Typhoon, F-35A Joint Strike Fighter and the F / A-18F Super Hornet) according to strategic, military professional, economic and industrial criteria.
In all four evaluation areas the F-35A Joint Strike Fighter was ranked higher than the other aircraft.
Based on the evaluation results, the parties agree that the future Danish fighter must be of type F-35A Joint Strike Fighter.
The parties note that the F-35 is still in the development phase, and that therefore there is and will remain a number of risks associated with the aircraft's development. The parties want to follow the development of the F-35 program closely and will be regularly informed of progress and risks in the program.
Number
Based on the current level of ambition for the assignment of combat aircraft, the parties have agreed to acquire 27 F-35A Joint Strike Fighter.
The parties note that there are a number of optimizations and efficiency improvements as the basis for evaluation result. The parties agree that the Defence should have the freedom to determine the specific initiatives for streamlining and optimizing the aircraft structure so that problem-solving can be done without compromising security.
Phasing In
Given the usage pattern of the F-16 aircraft, it is expected that the last F-16 will be phased out by the end of 2024.
The service introduction of the Joint Strike Fighter aircraft is expected to take place a period of six years, from 2021 to 2026.
The delivery plan enables national missions to be carried independently with a new fighter aircraft from 2024. It means that operational readiness will be continuously maintained.
As for deployment on international operations, there may be a limited fighter aircraft during 2025, while national defense missions will be maintained.
From 2027 onwards, it is expected that the Joint Strike Fighter will be able to carry out the full range of missions, both nationally and internationally.
The parties are aware that there will be a period of approximately five years (2022-2026), when Danish fighters will not be able to perform their full mission capabilities on international operations. In the period 2022-2024, it may be possible to carry out some international operations.
Planned deliveries, F-35A to Denmark
Operation and logistics
The parties agree that the Danish fighter aircraft will continue to operate from Skrydstrup air base, which will be rebuilt and prepared to receive F-35 fighter jets.
The parties agree that Denmark will exploit the possibilities of "Smart Defence", cooperation and economies of scale resulting from the F-35 user countries being included in the partnership, including in relation to the operation and maintenance of the planes.
Financing
The purchase amount accumulated over the phase-in period about 20.0 billion Danish krone ($3.04 billion). The parties agree that the acquisition will be financed as follows:
-- 13.4 billion krone in the period 2018-2026 [will come from the materiel plan funded by the regular defense budget.]
-- Disposal of assets from the Ministry of Defence Property Agency and Home Guard will generate about 2.3 billion krone in the period 2018-26.
-- Advance on substantive plan of 0.9 billion. kr. from 2027 for the period 2018-26 at grant proportionally written down in 2027
-- Implementation of new efficiency savings in defense of 100 million krone in 2018, 200 million krone in 2019, 300 million krone in 2020 and 400 million krone in 2021, for a total of 1.0 billion krone, with a further 400 million krone during the acquisition period.
The parties undertake to implement these initiatives in the context of a forthcoming Defence agreement for the next parliament, 2018-22.
The parties agree that the ambition is that efficiency improvements are implemented so that other Defence operational capabilities are not reduced. The Minister of Defence will submit a proposal for these new efficiencies during the negotiations on the new defense agreement.
The parties note that the determination of the acquisition cost will only happen after contracting with the supplier. The parties agree that any unexpected costs will be financed through the Defence economic framework.
The Minister of Defence will present a document to the Parliamentary Finance Committee on the overall acquisition, and the parties note that the Minister of Defence will return to the Finance Committee if, during the acquisition process, any important deviations appear, including economic conditions (cf. budget instructions.)
The parties further note that the National Audit Office has indicated that the National Audit Office at an appropriate time will take the initiative to review the combat aircraft agreement.
It noted that the new fighter is expected to be purchased through a so-called "block buy" covering several years of deliveries. The parties to the Agreement agree that pre-contractual liability on the last six planes can be made at any time in the settlement cycle. At this point, it can be decided to purchase fewer aircraft if the first aircraft is not delivered in time and at the expected price which underlie this agreement.
It is further noted that the office at any time settlement group may decide to acquire several aircraft within the Defence economic framework.
The parties agree that there should be a special effort to promote Danish business opportunities for co-production of the aircraft, and that a facilitating mechanism will be established for that purpose.
(EDITOR’S NOTE: So, in the final analysis, Denmark does not know what price it will pay for its F-35As, and if the price increases it will buy fewer of them.
This is the reason why, instead of the publicized figure of 27, the parties have in fact committed to buy only 21, with the remaining six to be bought only if there is enough money to pay for them.
This, by the way, would bring the purchase in line with the intentions of the Konservative party, which voted against the purchase because it wants to limit the number to 21.
Given that this is barely enough to equip a single operational squadron, if it hard to understand why, given the cost, Denmark does not simply do away with fast jets altogether.
All the more so that Danish media, including the Berlingske daily newspaper, puts the lifetime costs of the F-35 fleet at well over 50 billion krone, or about $7.6 billion, while Henrik Dam Christensen, defense speaker for the opposition Social Democrats, puts that figure at 55 billion kroner.
In any case, given the F-35’s history of cost inflation, late delivery and mandatory upgrades, it is more than likely that, like Norway and the Netherlands, it will end up with far fewer aircraft that ti initially wanted – in this case, no more than 21.)
Click here for the Danish-language original of the above statement, on the Danish MoD website.
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Denmark Confirms Purchase of 27 New Fighter Jets; Konservative and SF Opposed the Agreement
Initially, Denmark will purchase 21 of the multi-role fighter jets, and then six more later, when it’s clear the state has enough money in the budget.
“This volume will secure that we will be able to perform the same tasks as with our old F-16s today,” Peter Christensen, the defence minister, told Berlingske.
Konservative and SF were against the deal and left the negotiations. According to Holger K Nielsen from SF, a total of 21 jets would have been enough.
“The government assumes that Denmark will participate in missions in which we will directly go and attack another country. Denmark should absolutely not do that,” Nielsen stated.
“We should not participate in a new Iraq war. We have to emphasise prevention, foreign aid and non-military conflict resolution.”
The defence minister said 139 MPs backed the agreement.
For the purchase to pay off, each of the 27 planes would have to fly 250 hours a year, which is significantly more than the 160 hours that the F-16s have flown a year, reports Berlingske.
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Jeff Babione, F-35 Program general manager, stated, “Lockheed Martin is honored by the trust and confidence the Danish government continues to show in the F-35 program with the approval to purchase the F-35 Lightning II. We stand ready to accommodate Denmark’s decision and will continue to work with the U.S. government and the F-35 Joint Program Office to support the procurement of the F-35.”
“Based on the evaluation results, the parties agree that the future Danish fighter must be F-35A Joint Strike Fighter,” said the Danish MOD in a statement today.
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from Defense Aerospace - Press releases http://ift.tt/1tgsh84
via Defense
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