Will Second-Hand F-16 Sales Rise With Budget Cuts?

Oct 9, 2012By Bindiya Thomas - defenseworld.net

      As countries struggle under the current economic climate, defense budgets have taken a major hit causing many to invest in used fighter aircraft.

      Over the last few years, developing nations have taken to buying used F-16s from allies to strengthen their air forces without spending billions on buying new aircraft.

      While Lockheed Martin will charge about $70 million for a brand new F-16, a second-hand jet will cost just $15 million. For many countries on a budget, that is an attractive offer.

      Budget strapped countries like Pakistan, Indonesia and Jordon besides some EU states procure used F-16 fighter jets to supplement their air forces.

      Earlier this month, Portugal agreed to supply Romania with an unknown number of F-16 aircraft.

      “Second-hand fighters do not mean the same thing as a second-hand car. They are disassembled to the last pieces of wing. When they are reassembled they can be used in safe conditions. The fighters are very well maintained,” said Romania’s Defence Minister Corneliu Dobritoiu.

      Jordon in 2007 signed an agreement with Belgium for the sale of 14 F-16s worth $90 million. Earlier in 2009, Chile purchased 18 F-16 aircraft from the Netherlands in a contract worth $270 million.

      In 2011, Pakistan requested the sale of an undisclosed number of used F-16s from the U.S to increase its air capabilities.

      “Because of the disparity with India, our needs are huge,” a diplomat was quoted as saying. “Ideally, we should buy new F-16s but the current economy does not allow us to pay $40-50 million apiece”.

      The same year, Indonesia agreed to buy 24 aircraft from the U.S with the first batch of 14 expected to be delivered in 2014.

      Romania also purchased 24 used jets from the U.S in 2010. "We have no money and we cannot commit ourselves to such a contract without a long-term financing scheme,” said Romanian President Traian Basescu, after European groups Eurofighter and Saab criticized the transaction.

      While the buyers are walking, or rather flying away with the low-cost, used F-16s, the sellers (Portugal, U.S, Netherlands, etc.) are also making a small profit that will be used to procure new replacements.

      Taiwan, for instance, has awarded Lockheed Martin a $1.85 billion contract to upgrade the avionics of 145 Taiwanese Lockheed Martin F-16 A/B aircraft. Meanwhile, it is also currently negotiating with the U.S for the sale of used F-16C/D and intends to submit a letter of request (LoR) soon.