Showing posts with label Billion. Show all posts
Showing posts with label Billion. Show all posts

Monday, 28 March 2011

U.S.S. America Versus H.M.S. Queen Elizabeth : A Cost Comparison




It is often suggested that Britain should buy ships like the United States' Navy's U.S.S. America class.



This is usually suggested as a "cheaper option" than the Queen Elizabeth class carriers.

This does not appear to be the case when one considers how much these ships cost.

From the United States' Navy' FY 2012 Budget,the U.S.S. America/L.H.A.6 class costs (U.S.) $13,419 Million/(U.K.) £8,387 Million for 3 ships or an average of $4,473 Million/£2,796 Million each.



From the National Audit Office Major Projects Report 2010,the Queen Elizabeth class costs £5,900 Million/$9,440 Million for 2 ships or an average of £2,950 Million/$4,720 Million each.



It is important to note that the decision to delay construction of the Queen Elizabeth class is responsible for £1,560 Million/$2,496 Million of that £5,900 Million/$9,440 Million total cost.

Had the ships not been delayed to free up money for other over budget projects like Typhoon,the 2 ships would have cost £4,340 Million/$6,944 Million or an average of £2,170 Million/$3,472 Million per ship.

If the United Kingdom had been building or buying the U.S.S. America/L.H.A.6 class instead of the Queen Elizabeth class they would have been delayed due to the same budgetary problems with similar cost penalties.

The U.S.S. America/L.H.A.6 class will have significantly higher operating costs than the Queen Elizabeth class as it requires almost 1,100 crew members compared to almost 700 crew members for the Queen Elizabeth class.

The U.S.S. America/L.H.A.6 class can only operate the vertical landing F35B which has lifecycle costs 25% higher than the F35C,according to the British Prime Minister,which can be carried by the Queen Elizabeth class.

While a single Queen Elizabeth class ship can supply all of the United Kingdom's expeditionary air power needs in most conflicts,the less aviation capable U.S.S. America/L.H.A.6 class cannot and would require either additional ships or land based fighter and tanker support at an additional cost which far exceeds that of the aircraft carriers themselves.

As current operations in Libya are demonstrating,land based aircraft are usually based further from the combat area than carrier based aircraft.

This has been the case in almost every major war fighting operation the United Kingdom has been involved in over the last 65 years.


This results in them generating fewer sorties per aircraft per day and fewer hours on station per sortie.

Consequently the land based combat aircraft fleet must be significantly larger and hence more expensive than a sea based carrier wing to deliver the same effect.

Often the land base requires twice as many combat aircraft to achieve the same effect as the carrier's air wing.

The cost of these additional land based aircraft may be 5 times that of the aircraft carrier it's self.


The land based aircraft will also require substantial aerial refuelling support while the carrier based aircraft will require less,or often no,aerial refuelling.

The British Future Strategic Tanker Aircraft costs approximately 3 times as much as the Royal Navy's Queen Elizabeth class aircraft carriers for each service year.

It can be seen that it would be prohibitively expensive for the United Kingdom to buy aircraft carriers with less aviation capacity.


Sunday, 28 November 2010

Republic Of Ireland:Bailout Or Serfdom?


The Republic of Ireland is currently negotiating a financial "bailout" with the European Union and International Monetary Fund.

The loan package includes a total of £85,000 Million Euros.

The interest rate to be paid on this loan has not been disclosed.


At that rate the annual interest alone would come to 5,695 Million Euros a year.

The Republic of Ireland has only 1,859,500 workers in employment to pay that bill.

Each worker will have to pay 3,063 Euros a year just to pay the interest on the loan.

In addition they will have to pay back the loan it's self and repay any other debts the nation owes.

The magnitude of that debt will result in the Irish people being effectively reduced to serfdom for the forseeable future.

Saturday, 20 November 2010

Aircraft Costs: Lightning II Versus Typhoon II




The 31 aircraft in the 4th Low Rate Initial Production (L.R.I.P.) lot will cost $3,480 Million or £2,175 Million.

That equates to an average of cost £70 Million for each of the mixed lot of 10 F 35As,17 F 35Bs and 4 F 35Cs.

This makes an interesting contrast with the latest order of Typhoon II aircraft for the Royal Air Force.


In July 2009 the Royal Air Force purchased 16 additional Typhoons to bring it's total order up to 160 aircraft.

These 16 aircraft cost £2,700 Million and bring the total procurement cost of the Typhoon fleet close to £21,000 Million (excluding it's weapons).

This equates to a staggering £168 Million per tranche 3A aircraft,it is unclear why these cost so much when production cost is said to be about £73 Million each.



"Following intensive negotiations,the Department subsequently decided that best value for money in the circumstances would be to buy an additional 16 aircraft to take it up to the financial ceiling whilst meeting operational requirements.

 In July 2009 the Department approved an additional £2.7 billion for the Typhoon programme including the purchase of these aircraft,which it believes meets its outstanding financial obligations.

 This represented a new financial commitment for the Department,and was a significant contributor to the gap between estimated funding and the cost of the Defence budget over the next ten years which we reported in the Major Projects Report 2009 as between £6 billion and £36 billion."


The procurement cost of these 16 aircraft is equivalent to half the cost of the Royal Navy's 2 new aircraft carriers.

In fact,it is nearly three times the £987 Million production cost of H.M.S.Prince of Wales.

The procurement cost of the aircraft carriers is spread over a 21 year period from 1999 to service entry in 2020.

The cost of the additional Typhoons drained £2,700 Million from the defence budget in a single year.

Strangely,this vast increase in expenditure has barely rated a mention in the press.


Over their life cycle,these aircraft are likely to cost £6,720 Million including operating costs.

Which is enough to operate the Nimrod M.R.A.4 fleet for the next 33 years.

It is also enough to operate the Harrier G.R.9 fleet for the next 54 years.

Unfortunately something had to be cut to pay for these Tranche 3A Typhoons.

The National Audit Office report continues:


"On the Typhoon combat aircraft project the Department did not include realistic provision in its budgets to reflect likely project outcomes.

The Department’s additional £2.7 billion commitment to the Typhoon programme including the purchase of 16 Tranche 3A Typhoon aircraft has therefore had to be accommodated by making savings elsewhere in the Defence budget."


It appears that cutting the Harrier and Nimrod fleets may have been the "savings elsewhere in the Defence budget" which the National Audit Office referred to.

Before even entering service the Tranche 3 Typhoons have already shot down 83 aircraft.

Unfortunately they were all friendlies.

Sunday, 14 November 2010

Raptor for Reaper?



In another post we recently determined that the only major reason for keeping Tornado in Afghanistan was it's ability to use the Reconnaissance Airborne Pod for TORnado  (R.A.P.Tor).

We pointed out that there are other platforms such as Nimrod and Typhoon which could also carry R.A.P.Tor eventually.

We also mentioned that the Royal Air Force had already trialled R.A.P.Tor on Reaper Unmanned Air Vehicles (U.A.V.s) back in 2005.

These trials were successful.



The Royal Air Force has operated Reaper Unmanned Air Vehicles (U.A.V.s) for 3 years now.

Royal Air Force Reapers are currently operating in Afghanistan.


There are 5 Reapers in Royal Air Force service at present.



Reapers equipped with the R.A.P.Tor system (known as DB 110 by it's manufacturer Goodridge) could provide more sensor coverage in Afghanistan than the Tornado fleet at far lower cost.



"In terms of cost, if we remove the Tornado force, we would be looking at about £7.5 billion by 2018.

With the Harriers, we are looking at less than £1 billion."



Keeping the Tornado instead of the Harrier will cost £6,500 Million.


A flight of 4 Reapers costs about £33 Million.




It appears that the Americans understand that there are better ways to get R.A.P.Tor sensor coverage than by using expensive,short endurance,fast jets.



"Potential Recipient: Goodrich ISR Systems

Location: Chelmsford, MA

Purpose: DB-110 on MQ-9

Request: $6,000,000

Project Description:

This program will provide a DB-110 airborne sensory system and its corresponding ground equipment for the US Navy.

The DB-110 sensor will be integrated onto an MQ-9 Reaper to augment the platform’s existing sensors with a long range wide area search/cueing capability."


Senator Kerry "get's it".

Perhaps he could explain it to his counterparts on this side of the Atlantic.

More sensor coverage at lower cost translates into more young men coming home in one piece.

Maybe one day the Ministry of Defence will start to use taxpayers money in a responsible manner.

Tuesday, 9 November 2010

What To Cut: Typhoon,Harrier And Nimrod Versus Tornado And F.S.T.A.



The biggest surprises of the recent Strategic Defence and Security Review were the decisions to cut the Harrier and Nimrod fleets.

It had been widely expected that the Royal Air Force Tornado fleet and Future Strategic Tanker Aircraft would be cut instead.

Here we will consider that decision further.


At present there are 3 front line Typhoon squadrons,7 front line Tornado squadrons and 2 front line Harrier squadrons:


The Typhoons are new and currently provide air defence to the United Kingdom and the Falkland Islands.

The 160 Typhoons currently on order will be replacing Tornados in coming years.

They have a limited ground attack capability at present but it has long been planned that equipment such as the Reconnaissance Airborne Pod for Tornado  (R.A.P.Tor) be integrated in future.


"The Harrier will be operating the reconnaissance sensor that the Jaguar currently operates alongside the Harrier.


We already have the Tornado GR4 which will continue with its raptor pod and then in due course we will feed in the reconnaissance capability of the Typhoon as well."




The Royal Air Force conducted trials of a R.A.P.Tor pod fitted to a Predator B Unmanned Air Vehicle ,such as those used in Afghanistan, back in 2005.




The above imagery was taken by a R.A.P.Tor pod.


The Tornados are the oldest combat aircraft in service and make up the bulk of the British combat aircraft fleet.

The Tornado fleet has surged 10 aircraft in Afghanistan at present (it sustains 8 usually),having relieved the Harrier wing which performed that task from 2004 to 2009.


The Harriers are the only aircraft which can fly from the Royal Navy's aircraft carriers.



Maintaining combat capabilities to support combat operations in Afghanistan was a major factor in decisions taken during the defence review.


"Military advice has been that the Tornado is the more capable aircraft.

 The greater size of the Tornado force allows continuous fast jet support for forces in Afghanistan, which is highly valued by ISAF,and an ability to meet other contingencies.

 With regard to keeping a smaller fleet of Harriers, the withdrawal of an aircraft type delivers greater savings than partial reductions."
"The military advice is that the Tornado has a greater capability.

The primary capability advantages of the Tornado GR4 over the Harrier GR9 include greater payload and range and integration of capabilities,such as Storm Shadow,fully integrated dual-mode Brimstone,the Raptor reconnaissance pod and a cannon."

Let us see how much substance there is to these words.

The Typhoon has not yet served in Afghanistan though XI squadron Typhoons were planned to replace the Harriers there in 2008.

The following was said by Commanding Officer Wing Commander Gavin Parker speaking at the stand-up ceremony of XI Squadron at RAF Coningsby on Thursday 29 March 2007:


“We are the second operational squadron, but we are the first multi-role squadron.......
We will be prepared and ready to deploy to Afghanistan next year.
It has not been timetabled, but I expect that when we are prepared, we will go.”


The Tornados went in their place in 2009,only because there were not sufficient Typhoons available.

As more Typhoon squadrons enter service they shall replace Tornados.


The Harrier wing flew close air support sorties in Afghanistan for 5 years from 2004 to 2009 with just 3 squadrons.

There is no reason why the Tornado wing would require more than 3 squadrons to sustain it's contribution to operations in Afghanistan.

The Harrier fleet maintained this commitment for 5 years with a fleet of only 74 Harriers:


"Ordered to Afghanistan as the only combat jet able to operate from austere landing sites,Harrier completed an uninterrupted five-year deployment in theatre,during the longest period of high-tempo sustained operations since World War Two.

During this time,the Harrier proved itself extremely reliable and effective, with Joint Force Harrier accomplishing 8,557 operational sorties,22,772 flying hours and a technical serviceability rate of more than 99 per cent. Its current support arrangements are proving cost effective and flexible in the face of changes to the fleet."


The Tornado fleet replaced the Harrier fleet in Afghanistan in 2009.

Initially they had 8 aircraft in theatre flying about 6 sorties per day and generating approximately 16 daily flying hours.

Recently an additional 2 Tornados deployed to Afghanistan temporarily giving a total of 10 aircraft in theatre.


To quote the Parliamentary Under-Secretary of State,Ministry of Defence (Lord Astor of Hever):


"In August 2010, the number of GR4 aircraft deployed on Operation Herrick increased to 10, with a resulting increase in the number of maintainers from 102 to 122.


The number of GR4 aircraft is planned to reduce to eight by the end of November."

To sustain this level of commitment would require a fleet of no more than 3 Tornado squadrons,the Royal Air Force currently has 7 Tornado squadrons.


The number of Tornados required to support commitments in Afghanistan is very small.


To again quote the Parliamentary Under-Secretary of State,Ministry of Defence (Lord Astor of Hever):


 "Currently 28 Tornado GR4 aircraft are capable of operating in Afghanistan."




In terms of suitability for operations in Afghanistan the Harrier and Typhoon aircraft have significant advantages in the hot and high conditions.



The Tornado was designed to operate at low altitudes in European conditions.


This causes it some problems in terms of runway length requirements and other factors which some have suggested may have caused the loss of aircraft in Afghanistan.


It also has a high demand for expensive aerial refuelling.

British fighter pilot Sharkey Ward,the closest the United Kingdom has had to a "fighter ace" in the last 50 years,recently said the following about the limiting effect of Afghan conditions on the Tornado:


"As a result of the high temperatures experienced in Afghanistan for two thirds of the year (during the most active Taliban operations), the high altitude and the limiting factors of Tornado GR4 performance (such as, inadequate power, wheel limiting speed, etc) a normal weapons payload for the two aircraft types is as follows:


Tornado Gr4 weapons: 2 x Paveway 4 or 2 x brimstone,Raptor  or Litening pod NOT BOTH, das pod and reduced rounds in gun!


Harrier Gr9 weapons: 4 x Paveway 4 and 2 CRV 7 38 rockets in multiples or singles, das pod, sniper pod, recce pod and full fuel


And all jets are in same fit reducing maintenance effort!"



Tornado has the advantage of having the R.A.P.Tor reconnaissance pod (which limits it's weapon options) but this can certainly be integrated on the Typhoon and even the Nimrod M.R.A.4 patrol bomber.


The Harrier has the less capable Digital Joint Reconnaissance Pod instead.

In Afghanistan the Harrier appears to routinely carry 4 significant weapons and a reconnaissance pod and a targeting pod.

 Tornado is also often seen in Afghanistan with 4 weapons and a targeting pod but no reconnaissance pod.

Tornado carries only 2 weapons with no targeting pod if the R.A.P.Tor pod is carried.

Tornado also carries a number of weapons which have not yet been integrated on other types yet such as Brimstone and Storm Shadow and Air Launched Anti Radiation Missile (A.L.A.R.M.).

Of these only the recently introduced Brimstone (which is rarely used,probably due to it's anti-tank warhead) is relevant to operations in Afghanistan and that is also planned to be integrated on the Typhoon and Harrier.


Storm Shadow and A.L.A.R.M. are not used in Afghanistan.

It was also intended to integrate Storm Shadow and Brimstone on to the Harrier G.R.9 which also has Maverick missiles and C.R.V.7 rockets which make up for it's lack of a cannon.

Brimstone was due to be integrated on the Harrier in 2012 as part of the "Capability E" upgrades.


There is some confusion surrounding the integration of Storm Shadow on to the Harrier.


 Adam Ingram,Minister of State for the Armed Forces said in April 2002:



"We do not currently intend to integrate Stormshadow on to Harrier GR9.

The operation of Harrier GR9 from the CVS (small aircraft carrier) with Stormshadow will not be practical, due to the size and weight of the missile.

 In addition, it is not currently considered to be cost effective to integrate Stormshadow on to Harrier GR9 solely for land-based operations."


The Harrier was clearly thought capable of carrying Storm Shadow when operating from land.

 It is not clear why it could not carry it when flying from a ship.

Possibilities include it's size precluding use of the ski jump and it's weight exceeding the Harrier's "bring back" capacity.

This reference to a B.R.C.P.821 study suggests that weight was the issue.

However,this issue must have been solved.

At the time this comment was made in 2002,Harrier was not cleared to operate from the carrier at maximum weight,that limitation was removed in 2006.



"On 25 March 2004, MoD announced that the Harrier Joint Upgrade and Maintenance Programme (JUMP) would be located at RAF Cottesmore in partnership with BAE Systems, instead of at DARA St Athan which had previously been responsible for Harrier support."

It continues:

"The JUMP upgrade allows the carriage of the latest smart weapons and navigation and global positioning systems.The new weapons being integrated are the Storm Shadow, Brimstone and Maverick missile systems." 


The Nimrod patrol bomber is also capable of carrying Storm Shadow (see top of page) and could easily have had Brimstone and other air to ground weapons integrated.



We might sum up the suitability of each aircraft for Afghan operations as follows:


Typhoon:

Does not have Brimstone and R.A.P.Tor integrated yet but has an airframe and engines more suited to "hot and high" conditions,will eventually be a superior replacement for the Tornado in Afghanistan (and was planned to go there instead of Tornado in 2008).


Tornado:

Has R.A.P.Tor and Brimstone but is not well suited to "hot and high" operations,has a heavy logistics footprint and high tanker demand.


Harrier:

Has Maverick and will have Brimstone as well,lacks R.A.P.Tor but is superior to Tornado in "hot and high" operations,has small logistic footprint,short runway capability and lower aerial refuelling demands.


Nimrod:

Has extreme endurance and superior communication,control and intelligence gathering capabilities,not in service at present and would require the integration of R.A.P.Tor and various air ground ordnance,potentially has no in theatre footprint and no aerial refuelling demand thanks to it's 15 hour endurance,potentially the best support aircraft for ground troops in a low threat environment like Afghanistan.



At present,the Tornado has only one significant advantage for operations in Afghanistan,the R.A.P.Tor pod,it is otherwise generally inferior to the other aircraft.


The R.A.P.Tor pod has already been trialled on the Predator B Unmanned Air Vehicles operated by the Royal Air Force in Afghanistan back in 2005.


It can also be integrated on to Typhoon and Nimrod.


The Tornado's R.A.P.Tor capability cannot then be described as essential.



Harrier appears to be better suited to Afghan operations in most other regards but lacks R.A.P.Tor pods.



When R.A.P.Tor is integrated,Typhoon is likely to be superior to Tornado for Afghan operations.



Nimrod was not due in service until 2012 but would undoubtedly be vastly superior to Tornado if R.A.P.Tor and air to surface ordnance were integrated,a single Nimrod being able to do the work of many Tornados with no in theatre footprint or tanker burden.



Having considered operational aspects,now let us look at the cost of maintaining these capabilities.

The Typhoon is not a candidate for cuts so we need not consider it further but an overview of it's extraordinary cost may be seen in another post.

Some relevant figures can be found in this Strategic Defence and Security Review internal briefing document.




On the Harrier it says:


"How much is taking Harrier out of service saving?


 In the region of £450M over the next 4 years and around £900M to £1000M in total."


The total figure presumably applies to the 8 years running up to the Harrier's planned out of service date in 2018.



"Turning to my noble friend's Question, we expect to make savings in the region of £900 million between now and 2018, the Harrier's previous out-of-service date."


These figures give us an annual saving ranging from £112 Million to £125 Million as a result of cutting the 74 strong Harrier fleet and the 2 remaining front line Harrier squadrons which it supports.


We can also find some figures for the Nimrod M.R.A.4 in this Strategic Defence and Security Review internal briefing document:


"How much will not bringing Nimrod MRA4 into service save for Defence?


 It is estimated that not bringing Nimrod MRA4 into service will save in excess of £2Bn over
the next 10 years."


This gives us an average cost of £200 Million a year to keep the Nimrod in service for 10 years.


It would have cost an average of £325 Million a year to keep both Harrier and Nimrod in service.




It is more difficult to find out how much would be saved by cutting a Tornado squadron.



"In terms of cost, if we remove the Tornado force, we would be looking at about £7.5 billion by 2018.
 With the Harriers, we are looking at less than £1 billion."

Pro rata,that gives a saving of £134 Million per year for each front line Tornado squadron cut.
Although this is not an entirely accurate method we can use this figure to come to some estimates.
On this basis the expected cutting of the Tornado fleet to 5 front line squadrons from 7 would save £268 Million a year.
Cutting the Tornado fleet by 4 front line squadrons to just 3  would save £536 Million a year.
Retaining the 2 front line Harrier squadrons and cutting 2 additional Tornado squadrons in their place would save an additional £143 Million a year over current plans.
That is about 3 times as much money as will be saved by mothballing one of the new aircraft carriers.
As 3 Tornado squadrons are more than enough for commitments in Afghanistan it is difficult to understand why David Cameron chose the option of cutting the Harrier fleet. 
It would be well worth asking the defence secretary what his estimate is of how much money would be saved by cutting the Tornado fleet to 3 front line squadrons instead of cutting the 2 front line Harrier squadrons.




There is no doubt that it is desirable to reduce the number of combat aircraft types in service.


There is also no reason why that reduction needs to take place in 2011.


Phasing out the Tornado after withdrawal from Afghanistan in 2014 may be a far cheaper option than withdrawing Harrier in 2011.


Reducing the Tornado fleet to 3 squadrons until 2014 will not negatively impact operations in Afghanistan.


It will also retain Storm Shadow,Brimstone and R.A.P.Tor capabilities until those systems are integrated on other platforms.


R.A.P.Tor capability can in any case be provided by the Royal Air Force's own Predator Bs as proven in 2005.


Retaining Harrier will also allow the United Kingdom to conduct independent combat operations.


This will also reduce the demand for tanker aircraft which permits further substantial savings.


These savings may more than offset the cost of retaining Nimrod in service.


This would result in a more capable air force at no greater cost.


If they can be made ready before 2014,Nimrod and Typhoon would be able to replace Tornado in Afghanistan,significantly enhancing capabilities,especially in the case of Nimrod.


The £11,917 Million cost of this project is spread over 27 years,an average cost of £441 Million for each year of the contract or a staggering £627 Million for each year that the full tanker fleet is in service.


By the time these aircraft are all in service the number of aircraft they support will have more than halved.


Only a handful of aircraft are required for troop transport.


The A400M and F35C can both provide aerial refuelling capacity in future.


There is significant over capacity in this contract.

The illustration above (click on the image for full size) shows bases used by British combat aircraft and distances to major target areas during Operation Allied Force,the Kosovo campaign of 1999.
It is typical of all 7 major air wars the United Kingdom has been involved in since 1945 (and before that date).
British air forces used at least 6 land bases (in 3 countries) and an aircraft carrier.
Other North Atlantic Treaty Organisation (N.A.T.O.) forces used several dozen additional air bases.
It is apparent that the carrier based aircraft flew far shorter distances and required far less aerial refuelling for each sortie.


The large distances flown by land based aircraft of the Royal Air Force explain why they generated half as many sorties per aircraft per day as the United States Navy's carrier aircraft.
A full wing of Harriers on an Invincible class aircraft carrier could have provided all of Britain's combat aircraft sorties during this conflict.
It could have done so without the vast amount of aerial refuelling which the land based Tornados required just to get to Serbia from Bruggen and Solenzara in 1999.


Tanker aircraft cost far more than aircraft carriers but a nation which has aircraft carriers does not need a large fleet of tanker aircraft.
The carrier would have needed fewer aircraft to generate the necessary sorties than the land bases required and would have required far less logistics support.

Note the large number of countries in which the land based aircraft required basing and overfly rights.

The carrier aircraft required no basing rights and no overfly rights.
Retaining 2 carrier capable Harrier squadrons would allow substantial reductions in the F.S.T.A. fleet.
Such savings may amount to £200 Million a year or more.
More than enough to pay for the retention in service of the Nimrod M.R.A.4..


It is difficult to understand why the Prime Minister did not cut the Future Strategic Tanker Aircraft project.


Perhaps he had a "gun to his head".



In conclusion,the Prime Minister's decision to cut the Harrier fleet,and failure to cut F.S.T.A. was best summed up by Lord West of Spithead:


"My Lords, the decision to get rid of the Harriers and not the Tornados is bizarre and wrong.

 It is the most bonkers decision that I have come across in my 45 years in the military and I can assure this House that I have been privy to some pretty bonkers decisions in that time."

Lord West might be interested in finding out the answers to the following questions:

1.What is the Secretary of State's estimate of the additional saving which would result from cutting the Tornado fleet  to 3 front line squadrons rather than 5 currently planned?

2.What is the Secretary of State's estimate of the saving which would result from cutting the Future Strategic Tanker Aircraft  fleet  to 6 aircraft rather than 14 currently planned?

3.When are R.A.P.Tor,Storm Shadow and Brimstone expected to be operational on the Typhoon?