8
2013 Year in Review
Balancing Technology and Cost
Source: Open Sources, Public Filings
Defense Aerospace companies produced a steady stream of next-generation developments in 2013. The gradual, macro shift from
conventional to asymmetric engagements continues to drive militaries towards greater spending on state-of-the-art equipment. Advanced
technology investments in UAV surveillance systems, unmanned warplanes, and fighter jets are fast becoming critical components of
high-priority security strategy. However, high cost is also driving industry investments in mission specific, low-cost alternatives.
2
12
14
30
32
31 29 29
44
66 76
Proposed F-35 Procurement Schedule
Despite a $400 billion price tag, Lockheed Martin’s next generation F-35 program survived the
shrinking defense budget unscathed, securing two orders from the Pentagon for 71 aircraft
valued at $7 billion. F-35 testing is scheduled to be completed in 2017 at which point the
Pentagon will begin mass orders for a total fleet size of 2,443 aircraft. Northrop Grumman’s
Triton completed its first nine test flights and its X-47B became the first large UAV aircraft to
take off and land on a carrier at sea. In December, sources revealed that Northrop’s highly
classified RQ-180 was flying and projected to be operational by 2015. The large UAV’s
advances in stealth and aerodynamic efficiency are critical to the Air Force’s ISR asset shift
away from “permissive” environments and toward “contested” or “denied” airspace.
In combination with the shift towards “contested/denied” airspace, the US’ forward operating
presence is shrinking and regional partners can be unpredictable. The combination of these
factors provide budgetary protection for future Air Force platforms that offer reach and
survivability, such as the new long-range bomber. Boeing and Lockheed have announced that
they will team on this multibillion-dollar program. Lockheed also revealed long-running, follow-
on plans for the SR-71 Blackbird. Dubbed the SR-72, the program is a twin-engine, unmanned
hypersonic ISR / strike platform designed for Mach 6 cruise. Both the long-range bomber and
SR-72 programs could enter development in demonstration phases as early as 2018.
On the opposite end of the tech spectrum, Textron-AirLand unveiled its self-funded Scorpion Light Attack, Recce Jet. The two-seat, twin-
engine Scorpion completed its first test flight in December and is designed to handle low-end Air Force missions such as US-based
interdiction, quick-reaction natural disaster support, and air sovereignty patrols. The Scorpion’s design is focused on keeping operating
costs below $3,000 per flying hour, significantly less than the $25,000 per flying hour for F-16s currently flying these missions. If
delivered, the fuel savings alone would exceed $1 billion annually. While the Air Force has not declared a need for such an aircraft,
developers maintain that pressure to curb military spending has already created demand. Options like the Scorpion could provide savings
needed to maintain future funding for high-tech programs and create a new procurement opportunity for low-end missions.
RQ-180
Scorpion
SR-72
