F-16 and beyond
By Timothy Sifert
In the midst of fostering the largest-ever offset program and beginning the assembly of the country's 48 F-16 fighter jets, Lockheed Martin is digging in its heels in Poland: It's clear that the U.S. plane-maker sees a lucrative future on the horizon - beyond the $3.53 billion F-16 contract awarded earlier in the year.
"It's extremely important to us," says Irma Sippel, director of F-16 Programs Poland, about the country. "This is a major step for Lockheed - and for F-16 - to move into this region. Poland was our first major step in this area (of Europe). It's extremely important."
Sippel is the point woman for the F-16 program, and was in town last week as Lockheed formally opened its new Warsaw office, which houses Texas-based Lockheed Martin Aeronautics, the aircraft maker, and Lockheed Martin Global, which represents other Lockheed companies.
Housed in a newly renovated building a stone's throw from both the Ministry of Economy and the U.S. Embassy, the new office will be the central point of the company's deal making in the region.
While much of the limelight falls on Lockheed's and the Ministry of Economy's 10-year $6 billion (zł.24 billion) offset contract, which has found progress in fits and starts, the company's work at meeting the 2006 deadline to deliver aircraft, as well as its planned efforts to develop future business in the country, is an important bull's eye for the company as well, Sippel notes.
The company has said that it is looking to snap up business in such areas as air traffic control, radars, missile defense and simulation. And its efforts will be aided by Poland's accession into the European Union, NATO and its support of the war in Iraq - all of which are expected to provide Lockheed's potential customers with fatter wallets.
What's more, market watchers point out that a litany of U.S. companies are following Lockheed. Some see Lockheed's efforts as spearheading a larger effort of other U.S. aerospace and defense companies, which last week also made overtures toward the local government and aerospace sector.
For Sippel, it's clear that ensuring the timely delivery of Poland's F-16s - which will replace the country's antiquated jets - is the key concern. She speaks about this with precision: "Most of the process of building our plane has to do with developing a building schedule and sticking with it," she says. "So the most important thing that we can do is to release our designs early. And we're on track; In fact, we're a little ahead of schedule. If you can keep everything on track schedule-wise you don't really have problems later on as you go." Assembly won't begin until the middle of next year, she points out.
Also, outside the existing F-16 and the offset program, business opportunities abound.
"We certainly hope that there will be additional interest in the F-16s at a later date," she says. "Also, with the F-16, a lot of business will come in here for support for the plane and training for the pilots. That's a lot of additional business."
In addition, Lockheed Martin Aeronautics sees potential future business in providing C-130 airlifters, in which the Polish government has expressed interest. And, sometime down the line, the company hopes the government will be interested in the F-35 J8F fighters, which the company describes as "affordable, lethal, survivable and supportable combat aircraft." The F-35s would be a follow-on to the existing F-16 program.
