Rolling Sales: Indonesia Becomes the Latest Buyer of German Tanks

Leopard 2A6

In August 2012, reports emerged that Indonesia had made a deal with Germany to buy heavy tanks and infantry carriers, after the Dutch had demurred. The Indonesian Army has a long record of human rights abuses, which sparked considerable opposition in the Netherlands. In contrast, Germany has been pushing hard for defense exports as a way to keep its defense industrial base busy, and of preserving jobs amidst Europe’s economic slowdown.

In May 2013, those reports were finally confirmed. What is the exact shape of the deal? How will the new vehicles fit with, and compare to, Indonesia’s existing equipment? And how did we get to this point?

CAMM Opener for the Naval Missile Market: MBDA & LMCO’s MoU

CAMM-M launch

In mid-May 2013, MBDA signed an MoU with Lockheed Martin that has the potential to shake up the naval missile industry. It sounds innocuous: both companies agree to jointly explore the market for the integration of MBDA naval missile systems into Lockheed Martin’s “>MK-41 Vertical Launch System, and ExLS VLS/cell insert. They’ll begin with a late 2013 demonstration involving Britain’s new CAMM-M Sea Ceptor missile, but the implications reach far beyond.

Right now, the naval missile market is divided by launcher type, and many of MBDA’s missiles sit in a DCNS banlieue.

RQ-4 Euro Hawk UAV: Death by Certification

Euro Hawk UAV
(clickto view full)

Since the 9/11 terrorist attacks, the RQ-4 Global Hawk high-altitude, long-endurance (HALE) UAV has gone from a developmental platform to the next generation of American aerial reconnaissance. Flying at 60,000 feet, the RQ-4′s use their advanced synthetic aperture radar and other sensors to provide high-resolution images, unaffected by clouds or similar impediments. A larger RQ-4B model has been developed, and forms the backbone of current deliveries.

The transatlantic Euro Hawk project aimed to produce an RQ-4B with additional capabilities in signals intelligence collection (SIGINT), to complement its native ground surveillance capabilities. The 6 UAVs would provide the ability to detect and collect information from electronic intelligence (ELINT) radar emitters and communications emitters, and would be connected to ground stations that can receive and analyze the data. An MoU was signed in May 2006, followed by a firm system development contract on Jan 31/07. The Euro Hawk flew, and was performing on a technical level, but regulatory barriers killed the program in May 2013.

Today’s Special: Turkey Subs

Preveze Class
(click to view larger)

In 2006 the Turkish SSM procurement agency issued a request for information (RFI) for 4 more diesel-electric submarines. That RFI became an RFP for 6 diesel-electric submarines with air-independent propulsion systems, to replace older boats like Turkey’s U209-based Preveze and Atilay classes.

DID covers the competition, and adds some quick background re: the Turkish Navy’s existing fleet, where its rival Greece stands, and contract developments regarding their new “Cerbe Class”. Turkey has a signed multi-billion Euro contract for HDW’s U214 subs… and are about to add a revolutionary new weapon.

NH90: Europe’s Medium Helicopter Contender

NH90: TTH & NFH

The NH90 emerged from a requirement that created a NATO helicopter development and procurement agency in 1992 and, at almost the same time, established NHIndustries (62.5% EADS Eurocopter, 32.5% AgustaWestland, and 5% Stork Fokker) to build the hardware. The NATO Frigate Helicopter was originally developed to fit between light naval helicopters like AW’s Lynx or Eurocopter’s Panther, and medium-heavy naval helicopters like the European EH101. A quick look at the NFH design showed definite possibilities as a troop transport helicopter, however, and soon the NH90 project had branched into 2 versions, with more to follow.

The nearest equivalent would be Sikorsky’s popular H-60 Seahawk/ Black Hawk family, but the NH90 includes a set of innovative features that give it some distinguishing selling points. Its combination of corrosion-proofing, lower maintenance, greater troop or load capacity, and the flexibility offered by that rear ramp have made the NH90 a popular global competitor.

As many business people discover the hard way, however, success can be almost as dangerous as failure. NH Industries has had great difficulty ramping up production fast enough to meet promised deliveries, which has left several buyers upset. Certification and acceptance have also been slow, with very few NH90s in service over a decade after the first contracts were signed. Booked orders have actually been sliding backward over the last year, and currently stand at 474 machines, on behalf of 14 nations.

AGS: NATO’s Battlefield Eye in the Sky [Alliance Ground Surveillance]

What is it good for?

The Alliance Ground Surveillance (AGS) program began in 1995, and it has taken a very long time. Its MoU was late, its contract will be both late and smaller in scope, and it won’t meet even a revised 2012 – 2014 fielding window. At long last, however, one can be assured that it will exist.T his is DID’s in-depth FOCUS Article covering the AGS program, from its platforms to its program structure to its long-awaited contracts.

The original AGS plan involved an Airbus A321 counterpart to Northrop Grumman’s E-8C Joint Surveillance Target Attack Radar System (J-STARS), a Boeing 707 derivative whose powerful ground-looking Synthetic Aperture Radar (SAR) offers American commanders combat-changing battlefield surveillance and communications. AGS would be a pooled NATO asset, adding 7 RQ-4B Global Hawk UAVs and dedicated ground stations to complement the manned planes. It has since been reduced to just 5 RQ-4 Block 40 Global Hawk UAVs and dedicated ground stations, but could expand again if countries decide to make some of their national surveillance assets part of the program.

Germany Sells Israel More Dolphin Subs

SSK Dolphin Class

In November 2005, reports surfaced that that Germany would sell Israel 2 AIP-equipped Dolphin submarines, to join its existing fleet of 3 conventional diesel-electric Dolphin Class boats. In 2006, the deal for 2 Dolphin AIP boats was finalized at a total of $1.27 billion, with the German government picking up 1/3 of the cost. The new boats are built at the Howaldtswerke-Deutche Werft AG (HDW) shipyard, in the Baltic Sea coastal city of Kiel, with deliveries originally scheduled to begin in 2010. Those have been delayed, and have not begun as of yet.

Reports that an additional sale may be in the offing have now been confirmed, but just absorbing these 3 new boats will be no small challenge for Israel’s “3rd service”…

Airbus’ A400M Aerial Transport: Delays and Development

A400M rollout, Seville

Airbus’ A400M is a EUR 20+ billion program that aims to repeat Airbus’ civilian successes in the full size military transport market. A series of smart design decisions were made around capacity (35-37 tonnes/ 38-40 US tons, large enough for survivable armored vehicles), extensive use of modern materials, multi-role capability as a refueling tanker, and a multinational industrial program; all of which leave the aircraft well positioned to take overall market share from Lockheed Martin’s C-130 Hercules. If the USA’s C-17 is allowed to go out of production, the A400M would also have a strong position in the strategic transport market, with only Russian AN-70, IL-76 and AN-124 aircraft as competition. To date, 174 orders have been placed by Germany (now 53 + 7 options), France (50), Spain (27), Britain (now 22), Turkey (10), South Africa (8), Belgium (7), Malaysia (4), and Luxembourg (1). Chile has expressed an unfinalized interest in 3 planes, but is now likely to buy Brazilian KC-390s instead.

EADS’ biggest issue, by far, has been funding for a project that is more than EUR 7 billion over budget. The next biggest issue is timing, as A400M delivery penalties and Lockheed Martin’s strong push for its serving C-130J Super Hercules cast a pall over the A400M’s potential future. The entire project was under moratorium for over a year as all parties decided what to do, but it’s now moving forward again. This DID Spotlight article covers the latest developments, as the A400M Atlas moves into production.

Leopards & Guns: Qatar Buys Heavy Armor from Germany

Leopard 2A7+

In July 2012, Qatar’s government announced their interest in purchasing up to 200 Leopard 2A7 heavy tanks from Germany. The tanks would more than replace Qatar’s existing set of 30-40 French AMX-30 medium tanks, which are a 1970s era design. The deal was completed in 2013, and it turned out to be smaller but broader.

May day: India’s New Basic & Intermediate Flight Trainers

HPT-32

India’s stalled defense procurements have become an international joke, but they’re not funny to front-line participants. The country’s attempts to buy simple artillery pieces have become infamous, but their current problem with trainer aircraft is arguably a more significant wound.

You can’t produce pilots properly without appropriate training, but the IAF’s fleet of 114 locally-designed HPT-32 Deepak basic trainers has been grounded since August 2009, because they aren’t seen as reliable enough or safe enough to fly. Since then, equally aged HJT-16 Kiran jets are being used for both Stage-I and Stage-II fighter training. That yawning gap has added urgency to a replacement buy, but progress has been predictably slow. With its high-end Hawk AJT jet trainer deals behind them after 20+ years of effort, can the IAF take the next step, and plug the hole in the middle of its training? In May 2012, it did.