And this is interesting:
As far as which helicopter type will prevail, "it’s really a coin toss," Dane says. "They’re both excellent aircraft. It’ll probably come down to things that are not really related to actual aircraft performance."
That may well be. The military helicopter market is heavily politicized. Patriotic and nationalistic appeals resonate and carry considerable weight. The U.S. government tends to favor domestic firms; the Europeans do the same. This helps to explain why Borgman sounded the alarm about "unilateral disarmament."
The ‘New Paradigm’
But is this a legitimate criticism? The S-92, after all, is being built by an international consortium of companies, including the Jingdezhen Helicopter Group in the People’s Republic of China.
Sikorsky spokesman William S. Tuttle admits that international corporate partnerships reflect "the new paradigm in helicopter production," which does not correspond neatly with national boundaries. Indeed, modern-day rotorcraft typically include a wide array of international parts, systems and components, and thus cannot truly be said to belong to any one country.
But by the same token, notes S-92 program manager, Nick Lappos, "All of the aircraft’s dynamic systems and its core technologies—the transmissions, shafting, rotating controls, rotor heads and blades, for example—are designed and made in the United States by American designers and American craftsmen. We feel strongly that it’s important for the U.S. military to take advantage of this technology."
Lappos observes that the S-92 is basically a modernized version of the Black Hawk, replete with the very latest technological advances. The H-60 Hawk helicopters are a mainstay of the U.S. military.
"It would be a shame if all that investment from American taxpayers and the U.S. military were not reinvested in the future. I think that’s basically what Dean [Borgman] was saying," Lappos explains.
Not surprisingly, AgustaWestland officials dismiss Borgman’s criticism. "That dog don’t hunt, not in this day and age," says Stephen C. Moss, AgustaWestland’s chief executive in the United States. Yet, by choosing to partner with Lockheed Martin on the US101, the company implicitly acknowledges either the validity or resonance of Borgman’s concern about "unilateral [industrial] disarmament" by the United States.
"It’s a global economy and a global marketplace," declares Stephen Ramsey, Lockheed Martin’s vice president for aerospace systems. "We participate [in the economy] on a global basis and seek partnerships throughout the world that bring the best technology and the best products to the United States."
Ramsey’s comments are telling, because Lockheed Martin is the world’s premier systems integrator and one of the top U.S. defense contractors. The company also has considerable military helicopter experience, performing systems integration work on the Air Force HH-60D CSAR helicopter; Army Special Operations MH-60K and MH-47E; Air Force Special Ops MH-53M; and Navy MH-60R, MH-60S, and the SH-60B LAMPS Mk III.
Lockheed Martin has more than 250 international partnerships in more than 30 countries; international sales account for 23% of all business. For the helicopter industry, one partnership of late stands out: Lockheed Martin-AgustaWestland.
The two companies teamed up on the US101 last summer after more than a decade of working together on the Royal Navy Merlin HM Mk 1, the maritime variant of the EH101.
The ten-year agreement is a major coup for AgustaWestland. The company believes it absolutely must have American design and manufacturing "buy-in" to the EH101. Otherwise, it fears, the U.S. military will not procure the aircraft. American parts, systems and components already compose about 30% of the EH101. The proposed US101 would have at least 65% American content, Ramsey says.
Perhaps more important than the absolute number or share of U.S.-manufactured parts, though, is the nature of the work being performed by Lockheed Martin.
"Just because an aircraft has parts and components from many countries doesn’t mean that it lacks a particular national character," says Dr. Loren Thompson, chief operating officer of the Lexington Institute in Arlington, Virginia. "The most important skill in aircraft manufacturing is systems integration. If an airframe isn’t integrated here, then we can’t continue to be world-class leaders."
Thompson says he thinks "Borgman is essentially right" about unilateral disarmament in the defense and aerospace sectors if the United States opens its markets to foreign-made aircraft. However, he says that because Lockheed Martin is performing systems integration work on the US101, the aircraft is, for all practical intents and purpose, an American product.
So is this:
Who's More American Becomes Selling Point
On March 10, Sikorsky, during a helicopter demonstration for the press at Dulles International Airport, announced that it had lengthened the cabin space of its proposal, the VH-92, by almost five feet by rearranging components. The change makes Sikorsky's proposal "almost as big" as Lockheed's.
Sikorsky representatives also trumpeted their "All-American VH-92 Team," comprising Connecticut-based Sikorsky, New York-based FlightSafety International, Texas-based L-3 Communications Integrated Systems, Illinois-based Northrop Grumman, Iowa-based Rockwell Collins, and Texas-based Vought Aircraft Industries.
By comparison, Lockheed-led "Team US101" March 11 said it had selected more than 200 companies in 41 states to supply components and systems for the US101 helicopter. Executives also claimed they would create up to 100 jobs at a facility in Patuxent River, Md., to support the presidential helicopter program.
"Collectively, Team US101 and its industrial partners will create and maintain thousands of technical and manufacturing jobs in the United States," Stephen Ramsey, Lockheed Martin's US101 vice president and general manager, said in a statement. "We will import jobs by building, integrating, and maintaining in the United States a helicopter that currently is manufactured abroad."
And that is precisely Sikorsky's point about its rival. The Lockheed Martin team includes AgustaWestlandBell, a joint venture between AgustaWestland and Bell Helicopter Textron. AgustaWestland is owned jointly by Italy's Finmeccanica and the United Kingdom's GKN.
Lockheed maintains that its presidential aircraft would be built in Texas while its electronic systems would be installed in Upstate New York, creating or keeping "hundreds" of jobs in those two well-populated states alone.
Nevertheless, Sikorsky claims its "all-American" pitch is more relevant for security considerations involved in building and maintaining the helicopter suite for the president of the United States. "We don't know how to do this mission with foreign suppliers. I'm sure it could be done...it would be risky to do it," Sikorsky Senior Vice President Jeff Pino told reporters during the helicopter demonstration event.
Spat Started Early
Sikorsky's original team was made up of companies from China, Taiwan, Spain, Japan, and Brazil. But in June 2003, Lockheed Martin criticized Sikorsky for marketing its plan for Marine One as "all-American" when the majority of its helicopter would be foreign-made. Lockheed Martin stated at the time that its own EH101--renamed US101 for the Marine One program--would include at least 65 percent U.S. content.
Then, on Jan. 7, Sikorsky fired back by announcing its wholly American team for its presidential proposal. Meantime, its foreign partners would continue to support Sikorsky on civilian versions of the helicopters (81 FCR 48).
Edited by - rickusn on Jan 30 2005 08:34 AM
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