NEWTOWN, Conn.---The availability of the Raytheon AIM-120 AMRAAM is playing a key role in United States' efforts to win fighter aircraft export contracts. In Europe, South America and Asia, the AMRAAM is tipping the balance in favor of the U.S. entries in various ongoing fighter procurement competitions.
"The AMRAAM is a highly sought after missile and the standard by which all other medium-range AAMs are measured," said Larry Dickerson, Missile Analyst for Forecast International/DMS. "Countries interested in U.S. fighter aircraft have repeatedly said that without the AMRAAM they were not interested."
The Chilean Air Force, for example, plans to purchase 10 to 12 Lockheed Martin F-16C/D fighters, but only if the United States provides the AMRAAM. "Chile cannot accept restrictions and limitations," Aviation Subsecretary Nelson Haddad told reporters. "If during the course of negotiations the air force's needs are not satisfied, then unfortunately a final contract will not be signed.''
Chilean Foreign Minister Soledad Alvear said Chile could go shopping elsewhere for fighters if the United States refused to provide the AMRAAMs. "If all the requirements are not met, there are other alternatives, other possibilities of other corporations that have expressed their interest in selling planes to Chile," Alvear told Reuters.
The United States is also using AMRAAM's desirability to win South Korea's FX next-generation fighter aircraft contract. The Pentagon has offered South Korea the AIM-120C and other advanced weapon systems if Seoul selects the Boeing F-15 fighter to meet its FX requirement. A winner could be announced in July. The FX project is South Korea's second-largest single weapons procurement project.
Despite its loss to the European Meteor for the United Kingdom's beyond-visual-range air-to-air missile (BVRAAM) contract, Raytheon is expected to remain the dominate provider of air-to-air missiles over the next decade. According to an analysis prepared by Forecast International/DMS, Raytheon is expected to control nearly 30 percent of a market worth $13.6 billion over the next 10 years.
Although in second place, Matra BAe Dynamics will still see its revenues from air-to-air missile sales reach $2.7 billion during this same period.
"Throw in Europe's other missile manufacturers, like BGT and Vympel, and the continent's share of this market just about equals that of Raytheon," Dickerson said. "If current plans to bring together most of Europe's missile manufacturers under the EADS roof proves successful, Raytheon will have to fight even harder to hold to its leading position within this market."
Forecast International/DMS Inc., is the world's leading provider of Market Intelligence and Analyses in the areas of aerospace, defense, power systems and military electronics. Based in Newtown, CT, USA, Forecast International specializes in long-range industry forecasts.
