New twists to Caribou replacement saga

“We are 50 per cent lower in the acquisition cost than the C-27J, and over the life of the aircraft … our assessment is that we can save around $400 million dollars over 30 years of operation,” Mr Merino said.

The recent US Presidential FY13 budget proposal kills off the C-27J JCA program, cancelling future buys and with the existing C-27J fleet to be sold off. Mr Merino said this meant none of the certainties of a normal Foreign Military Sales (FMS) deal would now apply, such as supply chain confidence and commonality with a much larger US fleet.

Mr Merino also questioned the RAAF’s cited preference for the C-27J for its ability to carry an Army G-Wagon. “Why is this requirement for vehicle carriage seemingly driving the acquisition for these aircraft when this type of mission will constitute such a marginal number of those undertaken by the battlefield airlifter?” he asked.

Acknowledging the C295‘s inability to carry a G-Wagon because of its shorter cabin height, Mr Merino cited Airbus’s internal desktop-based analysis of Alenia’s own data, which he said showed the C-27J could not fit 50 per cent of the incoming Army G-Wagon 4WD vehicle fleet either. The G-Wagon fleet is made up of both station wagons and a cab-chassis version fitted with box-shaped rear modules. The height of these modules exceed the maximum safe cargo height for the C-27J under the RAAF’s own DEF(AUST) 9009A standards, according to Airbus.

Airbus’s latest pitch follows the refusal by Alenia Aermacchi to support existing C-27Js sold by the US to other countries.

In what were seen as surprising comments, Alenia CEO Giuseppi Giordo has been quoted saying the company will not support the 21 C-27Js it has delivered to the US if they are resold elsewhere.

Giordo said Alenia will support new C-27Js purchase through the US Foreign Military Sales (FMS) program but views the used aircraft as competition to its own efforts to sell the C-27J internationally.

“In fact, we will do our best – not only us, but the Italian government – not to support those planes,” he told the US publication DefenseNews. “In that case the US government will be competing against our international campaigns in a market where 21 airplanes is a big deal.”

The US Defense Security Cooperation Agency in December flagged the possible sale of 10 C-27Js to

For Australia, the US decision to axe the program removed the interoperability advantages of flying an aircraft also used by its chief ally. On the other hand, it opened up the possibility of buying little used US aircraft – all of which have been delivered since 2008 – at a substantial discount.

Alenia’s move to refuse support for the used aircraft will likely undermine the appeal of the existing aircraft, but it’s also worth noting that the US hasn’t formally announced plans to sell the aircraft and could instead decide to transfer them to the Air National Guard or another agency like Homeland Security.

Alenia Aermacchi and longtime partner L-3 Communications issued a statement on March 1 reiterating their commitment to “meeting the needs of the Commonwealth.”

“The capability that the C-27J can provide for the Commonwealth is well suited to its operational requirements,” Alenia CEO Guiseppe Giordo said in the statement. “Beyond delivering the capability, we are committed to a long term and value added relationship with the Commonwealth that will enable them to operate and maintain the capability autonomously throughout its service life.”

The statement offered few specifics, however.

Alenia and L-3 have a longstanding partnership to market the C-27J through the US Foreign Military Sales (FMS) program, and their statement indicates their position that an FMS purchase of new aircraft remains an option for Australia. It’s unclear how much the US withdrawal from the program will impact the long term cost effectiveness of an FMS purchase, but it’s not likely to make it a more attractive option.

It is understood that Alenia and Raytheon Australia are also partnering to offer the C-27J to Australia as a direct commercial sale.

In response to questions over Alenia’s refusal to support used C-27Js, a Defence spokesman said support arrangements would be taken into consideration as the ADF weighs its options.

“The support capacity and ability of manufactures and suppliers…are part of the evaluation process for all Defence acquisitions,” the spokesperson said.

The US Defense Security Cooperation Agency in December flagged the possible FMS sale of 10 C-27Js to Australia for an estimated US$950 million, but much has happened since then.