Lockheed Martin 1996 Annual Report Download - page 42

ith advanced products like
the F-22, C-130J, X-33 and
F-16, Lockheed Martin's
Aeronautics Sector is at work on designs
of the future, programs of the future and
partnerships of the future. Aeronautics is a
leader in each of its core lines of business:
tactical aircraft, airlift, maritime patrol/sur-
veillance, reconnaissance/advanced
development programs, modification/
maintenance/logistics and thrust reversers.
That leadership manifested itself dramati-
cally in 1996, as Aeronautics won key
competitions, achieved important mile-
stones on existing programs, reached
agreement on strategic industry alliances
and proceeded with necessary consolida-
tions of its facilities.
Vice President Al Gore announced
on July 2 that NASA had chosen
VentureStar™ as the winner of the X-33
single-stage-to-orbit reusable launch
vehicle technology demonstrator program.
NASA's funding, combined with an
industry team investment, gives the X-33
cooperative agreement a program value
exceeding $1 billion.
In another event of long-ranging sig-
nificance, then-Secretary of Defense
William Perry announced November 16
that the U.S. government had awarded
Lockheed Martin one of two concept
demonstration contracts for the next-gen-
eration Joint Strike Fighter. This innova-
tive weapon system is being developed to
replace several different types of tactical
aircraft in the U.S. Air Force, U.S. Navy,
U.S. Marine Corps and Britain's Royal
Navy with approximately 3,000 affordable,
lethal, survivable and highly common mul-
tirole fighters beginning in 2008. Several
other nations have joined the program as
observers and others have expressed
interest in potential acquisition of the Joint
Strike Fighter. Additional international
orders could result in eventual production
of more than 5,000 aircraft through the
years 2050 to 2060. Lockheed Martin
views the Joint Strike Fighter program as a
top new-business priority.
In the Middle East, the United Arab
Emirates selected an advanced variant of
the F-16 Fighting Falcon as one of two
finalists in its multi-billion-dollar fighter
aircraft competition for up to 80 aircraft,
which may be decided in early 1997. The
United Arab Emirates' decision is an
important expression of confidence in the
long-term viability of the F-16 and its
evolving technology, which continues to
meet all customer expectations and needs.
Each of these competitions was a
watershed event for Lockheed Martin, for
its competitors and for the industry. We
are honored to have been selected by our
customers. While the Aeronautics Sector
positioned itself well for future market
leadership through these key selections, it
also achieved noteworthy milestones
throughout its lines of business.
In the tactical aircraft line of
business, the F-22, which will provide air
dominance for U.S. forces in the 21st
century, is Lockheed Martin's top priority
among ongoing programs. Assembly of
the first F-22 continued on schedule
toward first flight on May 29, 1997. In
another important development on the F-22
program, Lockheed Martin and the Air
Force adopted recommendations made in
December by the F-22 Joint Cost Estimate
Team to restructure the Engineering and
Manufacturing Development phase of the
program within existing budget levels.
Lockheed Martin and the Air Force both
view this as a positive commitment that
will ensure affordability during the pro-
duction phase while preserving the Initial
Operational Capability date of 2004. The
F-22's unprecedented integration of next-
generation stealth, supercruise engines and
advanced avionics will enable U.S. forces
to prevent armed conflict or win quickly
and decisively with minimal casualties on
both sides if combat becomes necessary.
The year also contained good
news for the F-16 program, with 39 new
aircraft orders, 21 from Egypt and the
balance coming from the U.S. Air Force
and other nations. These orders, and others
that are expected, help to ensure that
production of the F-16 will continue well
into the next century.
Entering 1997, we are pursuing
F-16 sales in several regions of the
world. As the Central European market
for western defense systems emerged,
Lockheed Martin launched campaigns to
win competitions in Poland, the Czech
Republic and Hungary as those nations
prepare to modernize their air forces.
Aeronautics