Egypt named as F-16 sales candidate

[tigershark]

Egypt named as F-16 sales candidate
By Stephen Trimble

DATE:28/01/09
SOURCE:Flight International

A senior Lockheed Martin executive has named Egypt for the first time as a possible buyer for another round of new F-16s, perhaps throwing another lifeline for extending production of the single-engined fighter.

Bruce Tanner, chief financial officer, told analysts on 22 January that Egypt and Iraq represent near-term business opportunities, adding: "We still believe there is an opportunity to sell some [F-16s] in the Middle East."

Although Iraq has announced interest in acquiring F-16s, Egyptian officials have not made public similar plans, and Lockheed directed calls seeking elaboration to the US Department of State.

The US Defense Security Cooperation Agency (DSCA) declines to comment about Tanner's statement, but says there has not been a notification to Congress for such a possible sale. The DSCA is required to notify Congress only after Egypt signs a letter of request.
"The ball is not rolling," a DSCA source says. If anything, the Egyptians are "basically talking and window-shopping".

Egypt has since the early 1980s bought more than 200 F-16s, along with other US-made weapons, in six major allotments called Peace Vector I-VI. Lockheed is due to deliver the last F-16 purchased by Egypt under the Peace Vector VI project later this year.

The F-16 has been in production for more than three decades, but new business opportunities are still open. Lockheed has a backlog of 103 aircraft, and delivered 28 F-16s in 2008. In 2007, the company delivered 41 F-16s.

More F-16s could still be sold to Taiwan, which is seeking to overcome US political concerns about a notional purchase of 66 aircraft. Romania is also considering the F-16 for a purchase of 12-24 aircraft, Tanner says. Finally, the F-16IN remains a contender for a 126-aircraft order by the Indian air force.

But Lockheed executives acknowledge that the F-16's lifespan is nearing its end after a long run. Chief executive Robert Stevens told analysts as much during the same presentation, commenting: "I think demand is obviously narrow, but there are 24 countries that fly the airplane. There could be some replenishment or replacement aircraft. It's a contained universe now on the F-16."

Source
http://www.flightglobal.com/articles/2009/01/28/321733/egypt-named-as-f-16-sales-candidate.html