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news sport j2 money culture scene video subscription PLANES FOR CROATIA One of Lockheed Martin's leaders: 'Final price for F-16 will be the same as for Bulgaria' We spoke with JR McDonald, vice president of aeronautical strategy at Lockheed Martin By: Iva BadanjakPosted: October 2, 2020 8:41 pm JR McDonald and illustration of an F-16 fighter jet JR McDonald and illustration of an F-16 fighter jet Stocktrek Images, Inc./Alamy/Ronald Goršić / Cropix Facebook Twitter Messenger E-mail The United States is very interested in selling new multi-role F-16 block 70 fighter jets to Croatia, and on that occasion they brought a F-16 flight simulator to Zagreb, which was their way of "showing what they know and have". We spoke exclusively with JR McDonald , vice president of aeronautical strategy and business development at Lockheed Martin about their offering. Can you tell us why you brought the F-16 simulator to Croatia and is it a simulator that was offered to Croatia in the tender for the purchase of a fighter aircraft? - Not on offer, this is just a cockpit simulator. Unfortunately, the Covid-19 pandemic prevented us from coming to Croatia and discussing our platform with the Croatian government. We brought the simulator to show how serious we are about the offer and give the Croatian people a chance to see what it is all about. Several Croatian pilots will try it out so this is a great way to show our ability. What did Lockheed Martin offer Croatia? - The request was sent for up to 12 fighter jets. If Croatia chooses the US offer, an agreement is reached between the Croatian government and the US government. We make a deal with the US government, and then it does the whole job. However, this is not just about selling aircraft to Croatia, but about providing opportunities to Croatia. This means that we will do everything we can to turn Croatian pilots into pilots who can fly F-16s and Croatian workers into workers who can maintain this aircraft. It’s about 40 years of ability that we want to establish. What is the amount that Lockheed Martin is asking for the package offered to Croatia? - All I can tell you is that Lockheed Martin's offer is largely the same as the one we offered to Bulgaria in their package. (1.25 billion for eight aircraft op.a.) Each country is different and has different requirements and thus the total price will be determined. What is the current status of negotiations between the United States and Croatia? - The preliminary figure was submitted on September 7. Now the governments will communicate during the autumn and based on that communication, the offer will change to suit Croatia's needs. This means that the initial proposal will change to the final price. And that will happen in the first or second week of November. Speaking of logistics, if Croatia chooses the American offer, in what period could the first planes be delivered to it? RELATED NEWS JR McDonald, vice president of Lockheed Martin, and Robert Kohorst, US ambassador, visited the Faculty of Mechanical Engineering and Naval Architecture on the occasion of the presentation of the F16 fighter aircraft flight simulator.Video iconVideo icon US AMBASSADOR The cohort has news about the abolition of visas for the United States, he also spoke about airplanes: 'F-16 is a great choice!' INTENSIVE CONVERSATIONS Americans are extremely interested in the business, we find out at what price they offer us planes - It is up to governments to discuss. I can tell you that we can deliver aircraft between three and four years after the signing of the contract, so that they would arrive in Croatia in the mid-2020s, depending on when the agreement is concluded. Bulgaria signed a contract with Lockhead last year and was there any information on how the planes would be delivered to it in 2027? - No, long before that. Our first aircraft will be delivered in 2022, and Bulgaria is one of our first three clients. Will production be delayed given that you recently changed the location of your factory from Texas to South Carolina? - We currently have an agreement with Bahrain, Bulgaria and Slovakia, as well as Taiwan and another country. First in line is Bahrain, then Slovakia. Delivery dates for Bulgaria and Slovakia will be met. We had a bit of a delay due to the Covid-19, but we feel comfortable with the delivery schedule. Croatian MiG 21 aircraft will run out of resources in 2023 and 2024. Is there a possibility that several used F-16 aircraft will arrive in Croatia, which would be part of the Croatian Air Force until the purchased aircraft are delivered? - We didn't get a request for that. Based on the delivery schedule, Croatia can have new aircraft until 2024. Pilot training lasts between one and a half to two years. If these MIGs can no longer fly, Croatian pilots will be in training for up to two years before the delivery of new aircraft. Will the pilots fly before the planes arrive? - Yes, but it is something that is discussed within the agreement, if the state wants a simulator. One can also observe the number of pilots and maintenance technical personnel they want to train and align them with the time when aircraft are expected and when pilots need to start training. For example, Bulgarian pilots have just started training in the US for their 2022-2023 aircraft delivery. years. Croatia had several interesting offers from France and Israel offering used aircraft. Why didn’t Lockheed Martin offer a used F-16? - We do not offer used aircraft. What you are talking about is called the transfer of aircraft from a third party, and these are negotiations led by governments. There are a number of rules and laws on how this happens. We would offer new aircraft production and legally support any third party transfer. Croatia did not procure aircraft from Israel in 2018 because of these rules. How has the American position changed in the meantime and why are you offering Croatia an agreement this time? - The American and Lockheed position has not changed from that agreement to this. This time there was much better communication to fully understand the rules needed to convert aircraft from one country to another. In this now deal we have been very clear from the very beginning. I think in the last offer the governments were pretty new about knowing the F-16 Block 70 and Viper and I think there were some misunderstandings. What is the estimated cost of removing existing equipment from an Israeli F-16 Barak aircraft and installing new, American equipment in the aircraft? - This is something that the Israeli and Croatian Governments must discuss. How do you see Lockheed Martin’s position in Europe given the recent contracts to sell fighter jets to Bulgaria and Slovakia? - I think the more important question is whether Croatia will position itself as part of that opportunity for regional cooperation. Yes, Lockheed has a great opportunity because Bulgaria and Slovakia chose us. If we add Croatia to that, then we have a very strong regional opportunity to share resources, share spare parts and the like. Working together as three countries determines what training needs you have. This is an opportunity for you to connect training needs, share responsibility, share knowledge about aircraft. I think this regional opportunity we can give you is our most important asset. Can you say something more about the standardized F-16? Should they have a universal price and reach an agreement more easily? - We have just signed an IDIQ contract with the US government, unspecified delivery in unspecified quantities. The idea behind this is exactly what you mentioned in the question - let's commoditize the aircraft and thus simplify the conclusion of the contract. Instead of a year or more of negotiating each point, we set a benchmark and clearly showed what our price was for each standard offer. In addition, each country can offer certain changes as needed and two agreements will be concluded. One will be the basis, and all changes will be in a separate contract. We have just agreed such a contract for Taiwan and another country for 90 aircraft and we are now in the process of setting the price. An agreement with Croatia would be one such IDIQ agreement. This means that Croatia could have a simplified contract and this could save time and money. What is an F-16 block 70 aircraft like? - The most important innovations of these aircraft are the increase in the number of flight hours to 12,000, which extended the life of the aircraft to 40 years and something called the GCAS car. This is the aspect of pilot survival that is crucial for aviation. This system has so far saved 10 pilots and 9 aircraft. Fighter planes usually have no problems with engines or parts falling out of them. The problem is always the pilot. So if you guarantee pilot survival, you have a very safe plane. There is a button in the cockpit called the recovery system that the pilot activates. If the pilot is disoriented and cannot assess which way he is going uphill, he can push a button and the plane will straighten out and put in a safe position. Why would Croatia choose Lockheed's offer, and not that of Sweden, Israel or France, which may be cheaper? - I think that question has already been answered when we talked about regional possibilities. If we look at NATO now, the F-16 is still the cornerstone of NATO air operations. When we look at capability, affordability, especially in lifetime cost, and sustainability, the F-16 has the perfect balance. This plane is designed to fly 12,000 hours. It is the longest lifespan of an air fighter currently in existence. The maintenance costs of the F-16 proved to be the best in the world. Also, what the F-16 brings to you is the current entry into the NATO F-16 fraternity and a strategic partnership with the United States.