the a-10 warthog: versus the competition

Post on 23-Aug-2014

151.128 Views

Category:

Government & Nonprofit

0 Downloads

Preview:

Click to see full reader

DESCRIPTION

Comparing the cost of the A-10 Warthog to competing close-air support-capable aircraft, is the Warthog really too expensive to save -- or is it too cheap not to keep?

TRANSCRIPT

The A-10 Warthog: Versus the CompetitionFairchild Republic’s A-10 Thunderbolt is taking friendly fire... from the U.S. Air Force. Photo: Wikimedia Commons.

Lockheed Martin’s F-16 FalconThe U.S. Air Force flies 827 F-16s, making it our most numerous fighter jet by a factor of two.

Each one costs about $34 million to buy.

According to the Air Force comptroller, an F-16C costs $22,514 per hour to fly.

Photo: Wikimedia Commons. Purchase cost data from Deagel.com. Ownership cost-per-flight-hour data from USAF and based on 2012 costs.

Lockheed Martin F-35 Lightning IIStill early in its production run, F-35 purchase costs are in flux.

Some say the plane costs “only” $100 million to buy. Deagel.com puts it at $154 million.

Cost per flight hour is a moving target, too, but USAF Chief of Staff Gen Mark Welsh estimates it at about $32,000.

Photo : Wikimedia Commons

Lockheed Martin AC-130U “Spooky”A small production run meant high purchase costs for the AC-130U -- $81 million apiece.

They’re not exactly cheap to fly, either, at a per-hour cost of $45,986.

Photo : Wikimedia Commons

Boeing B-1B LancerAmerica’s 60 B-1B bombers cost taxpayers $200 million apiece to acquire – a shocking figure at the time, but not much more than an F-35 costs today.

The cost of flying the B-1B, though, is sky-high -- $57,807 per hour in 2012.

Photo: Wikimedia Commons

Fairchild Republic A-10 Thunderbolt IILast but not least, we come to the plane that USAF says is too expensive to keep.

How expensive is the A-10?

Deagel.com puts the purchase price at just $9 million per plane...

...and the Air Force’s comptroller says it costs $17,716 per hour to fly.

Photo : Wikimedia Commons

Make no mistake.

These are all fantastic warplanes, and each one is very good at the job it does.

The F-16 Fighting Falcon is a superb fighter jet, and the most popular fighter on the planet.

Its replacement, Lockheed’s F-35, shows every promise of becoming a success as the world’s first operational

stealth fighter.

Boeing’s B-1B was superb as a supersonic strategic bomber, and is having a good “second

career” as a conventional bomb-dropper.

And the AC-130U? The Army officer who sang its praises to the Air Force Times earlier this month was right: The “Spooky” can fly farther and loiter longer than the A-10 Warthog – and carries more

ammunition to boot.

BUT...

When it comes to providing cost-effective close air support to troops on the ground, the A-10

remains king of the heap.

At $9 million apiece, the replacement cost of the A-10 is cheaper than that of any other aircraft the Air Force has proposed to replace its CAS mission.

And the A-10’s $17,716 cost-per-flight-hour is 21% below that of the next-cheapest F-16...

Nearly half the cost of an hour’s flight-time in the F-35...

Two-and-a-half times cheaper than the AC-130...

And three times cheaper than the B-1B.

And the Air Force’s “flavor of the month,” the multi-mission F-35?

There’s no denying the advantages of flying an “invisible airplane” in air-to-air combat. But on CAS missions, the F-35 costs 80% more than the

A-10 to fly – and carries only 13% the ammunition load of the A-10.

Meaning it costs more, but can shoot less.

These are the facts.

If Congress bases its decision to keep, or kill, the A-10 based on these facts, there’s really only one

conclusion it can come to:

Congress must save the A-10.

Now... What does this mean to investors?

We’ve laid out the details for you in this column:http://

www.fool.com/investing/general/2014/05/26/congress-saves-the-a-10-warthog-for-now.aspx

In a nutshell, keeping the A-10 means more revenues for Boeing, which is upgrading the

wings on more than 100 A-10s as we speak, a project worth several hundred million dollars to

Boeing.

It means millions of dollars more for Northrop Grumman, which is the Pentagon’s principal

contractor for A-10 maintenance.

Those maintenance costs, plus upkeep and related flying costs, will cost the Air Force $3.5 billion over

the next five years.

That’s $3.5 billion that will not be available to spend on new F-35s from Lockheed Martin.

And for investors that’s really the key takeaway from all this: If the A-10 lives, Lockheed Martin loses $3.5

billion in potential sales.

The Economist compares this disruptive invention to the steam engine and the printing press. Business Insider says it's "the next trillion dollar industry." And

everyone from BMW, to Nike, to the U.S. Air Force is already using it every day. Watch The Motley Fool's shocking video presentation today to discover the

garage gadget that's putting an end to the Made In China era... and learn the investing strategy we've used to double our money on these 3 stocks. Click here

to watch now!

top related