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If Only We Could Piggyback on This Deal…Part II

SHAH ALAM: Its an open secret that RMAF wants the Super Hornets to replace its Hornet and Fulcrum fleets. The story below is self-explainatory. If would be great if we can get the same savings from the US Navy multi-year purchase as the story indicates that it will save some RM1.2 billion or so from the purchase price.

However any deal for the Super Hornets must overcome the lack of budget on the part of the Malaysian government first and the fact the Swedish and Europeans are also in the race to sell the Gripens and the Eurofighters.

Morever, it seemed that any Super Bug deal for Malaysia will probably mean that we will be getting the new International Version of the Super Hornet that Boeing had indicated in its presentation at Farnborough last July.

And we could still piggybback on the US Navy multi-year contract as modifications to the new Intertnational Super Bug could be made on the production line anyway…

Personally, I dont think we have the money to replace the Hornets and Fulcrums before 2020 and as I mentioned before its better, for me at least, for us to purchase the F-35. For some US$2.7 billion we can get 20 F-35s, which is only slightly costlier than the proposed Super Hornet buy….

Boeing Receives Multi-Year Contract from US Navy for 124 F/A-18 and EA-18 Aircraft

KUALA LUMPUR, Sept 29 (Bernama) — The Boeing Company has been awarded a new multi-year procurement (MYP) contract from the U.S. Navy for 124 F/A-18E/F Super Hornet and EA-18G Growler aircraft.

The new contract is valued at US$5.297 billion. Under the terms of the agreement, Boeing will deliver 66 Super Hornets and 58 Growlers to the Navy from 2012 through 2015.

“The men and women of Boeing are honored to provide the Super Hornet’s advanced, combat-proven multirole capability and the EA-18G’s unmatched airborne electronic attack capability to the American warfighters serving their nation around the world each day,” said Boeing F/A-18 and EA-18 Programs Vice President Kory Mathews in a statement from St. Louis.

“Procurement of these 124 aircraft through a multi-year contract takes advantage of the full efficiencies of Boeing s production and supplier operations, which will generate more than $600 million in cost savings for U.S. taxpayers.”

— Malaysian Defence

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Marhalim Abas: Shah Alam

View Comments (52)

  • In another mod, it stated that the cost will only cover the body , excluding weapons and other equipments. Around USD43 million bare plane with no weapon, engine or other equipment. So if malaysia piggyback it, we still could end up paying USD200 million per plane as the Aussie did.

    On another note, Our neighbour pay USD50 million a piece for su27sk and su30MK2, again no weapon. Makes me wonder whether our sukhoi deal was that bad....there are even worse

    Marhalim: Yes most probably it will cover the body and other equipment as engines and other stuff will be furnished under a separate deal ie government furnished equipment. Of course we will probably end up paying higher price but it will be cheaper if we were to buy outside these multi-year contract.

    The US had also anticipated that it will be able to export the planes hence the contract also said but it will also mean that we can get the planes faster if our order comes together and it does effect US navy plans. Our deal will be more expensive as weapons training and other stuff such as documentation will have to be purchased separately but to get discounts we could still piggyback on US Navy weapons purchase, engines and other stuff as well so it will be cheaper in the long run, if we piggyback on the first deal due to its economic of scale.
    Since the US Navy already has a training programme on the cost will not enter their procurement (development in our case) but it will be in their operational budget. Of course we will need to pay higher than the US Navy but it will be cheaper than buying other planes. We could reduce the training cost by sending our pilots and technicians to the US instead of setting a training school here although it is one way to get the local content into the deal.
    I still think its better for us to opt for the F35 though I am not convinced whether or not we have the funds to have another type in the air force I am just sounding the cheaper option since plans are afoot for the procurement....

  • Brother any new procurement by the RMAF ie Malaysian Government need a realistic justification and public must not be taken for a ride in spending billions of the nation coffers that has better use for the rakyat.
    Those taking charge of the Armed Forces need to visit the role and function of the Armed Forces and may be the need of total reform with a new outlook on the defense strategy and policy as to avoid all this smorgasbord planning.
    Enough is enough. Lets do it right and if they can't do it from the inside, we do it from the outside. Among many of the element of national power, I guess our political masters must have identified them, what is the priority and those generals with the many stars on the shoulder stop talking C@*K and stop dreaming of their empty slogan of the Air Force next generation, even the current asset management is below par or they have not learned anything apart from being Mat Jenin and Pak Pandir of the tip of the iceberg.
    Alahai... elok lah makan tidor and dream of the future war in South East Asia. Where will the battle be? Easy said, tell the RMAF top airman, we don't need it stupid!!!

    Marhalim: I know we cannot afford the new MRCA purchase, we couldnt afford the old one! Whether or not this has been really thought out I admit remained vague but the manufacturers are seriously believing the tender will be out soon if not this year it will be within the next two years .....

  • Salam Halim.
    The criticism of RMAF,the MAF,MOD,is valid,as Eagle very politely said. I think the SU-30MK,shud be upgraded,the MIG29 sold n more SU30MK bought.Improve the existing structure with RMAF rather then go spend billions on new systems.The maturity of the F-35 systems cud come in 2020,then we can make some moves to aquire.

  • if the Gripen somehow gets purchased, i won't be able to avoid thinking we should have bought the F-20 all those years ago.

  • Dave, it's reported again and again that the RMAF will not consider more SU-30MKM because of prior contractual difficulties faced with the Russians. If you keep suggesting more purchases from this supplier, then, you must explain how the dysfunctional contractual relationship can be repaired. If not, it's just MORE wishful thinking on your part.

  • The points raised by Eagle are certainly valid. There is no question that reforms are needed urgently with regards to Malaysia's defency outlook and its procurement policy.

    The average man on the street is understandbly more concerned with making ends meet in the face of rising inflation and basic food prices rather than national defence. Having said that, I still feel that there IS a justification to spend 'billions' on new fighters as part of an ongoing modernisation plan. Surely having a decent number of fighters to protect our airspace will be benificial to the 'rakyat' and not a waste of funds.

  • Marhalim is there really a problem with MAF top brass as strongly suggested by one of your regular armchair general? He kept on repeating the same thing over and over again. Its getting old lah. Why dont we nominate him as chief of the armed forces instead and solve all the problems that been plaguing the service. Let see if he can walk the talk although i suspect he wont last a day in the office. There is always the part of what has the chief of the armed forces has done and so on. He wrote as if the chiefs had it all their way. The chief take orders too. On one hand he chided the service for its below par equipment and on the other it appear he do not approve of money to be spent on procurement either. Damned if we do, damned if we dont isnt it? Please come out with valid reason to trash the service instead of sounding like a broken record.

    Marhalim: He is not an armchair general, he was actually one of them....

  • I don't think the Government will give the RMAF any major project in the coming 10th MP since they still need to pay for the A400M and EC735, carry forward from 9th MP.I believe the two projects will still take a big chunk of RMAF's budget.As I have said before, the A400M procurement was rather controversial.

    The Army which have been neglected in the past should get the attention of the policy-makers now.They need attack helicopters, modern kits for the soldiers, 155 Howitzers, 8x8 AFVs, Medium-Range ATGMs, UAVs, Night vision devices, etc...etc...etc

    Rather than a new MRCA, it would be more logical for the RMAF to beef-up their GBAD capabilities in the coming 10th MP.Policy and decison-makers should be alert to the immediate and real requirements of the RMAF!

  • IMHO the most cheapest solutions is to maintain just 1 type of aircraft. It will be cheaper in terms of logistical requirement, maintenance, training and may get discount from bulk purchasing.

    As it seems right now the only candidate for that seems to be the SU30 MKM. It is not the best in every front but for bad or worst, we already bought it for almost USd1 billion (inclusive of weapon i believe) and it is here.

    Till 2020-2025, this type of jet (SU) can still provide some competition to the vast number of block 52 f16, gripen and even f15, but after that w/o comitted upgrades program, it may not be much of fighter left.

    Then and by then if the funding commits, should we go for the proven 5th gen fighters. But till then, i guess we could dropped the Migs and Hawks,soldier the hornet d till its demise and maybe oreder between 6-12 more SU30 mkm.

  • dear OPSG,

    Your point is valid sir but this is malaysia. problem with the russians and the appointed agents with the Migs have been know prior to the purchase of SU but the govt still went ahead.

    As such i would never say never, especially when the super bug may gonna cost us upfront more than USd100 million a piece while at most the SU, no matter how problematic they are, cost between USD50-USD60 upfront.

    Hope however u are right and the government does listen to the airforce, but the price quoted, the most we could buy, either the super bug, JSF or other alternatives is around 8-12 airframes. Then we will have the kandang zoo problem all over again