Rockwell Takes Aim at Military Upgrade Market : Avionics: With the future uncertain for big-ticket systems, the company’s Anaheim division and its new Italian ally will concentrate on selling new gear worldwide for aging F-5s.
With some of Rockwell International Corp.’s big-ticket defense programs facing an uncertain future, the company’s Anaheim division has struck up an alliance with an Italian defense contractor to pursue business in the worldwide avionics market.
Officials from Rockwell and Milan-based Fabbrica Italiana Apparecchiature Radioelettriche S.p.A. (FIAR) said Wednesday that they plan to target the growing international market for upgrading electronics gear in military aircraft, particularly the U.S.-made F-5 jet fighter.
The partnership hopes to capture 30% to 40% of the estimated $25 billion worldwide market for military avionics upgrades in the next decade, said Ken McQuade, vice president and general manager of Rockwell’s Autonetics Marine and Aircraft Systems division.
“We see a trend to keep more aircraft around the world in service longer,” McQuade said.
Many nations prefer to retrofit existing military aircraft as a less costly alternative to purchasing expensive new aircraft.
FIAR has developed radar and avionics systems designed to upgrade the world’s aging fleet of F-5 jet fighters, which number about 1,700. FIAR’s Grifo radar systems are unique in their ability to operate in air-to-air, air-to-sea and air-to-ground situations, said Silvano Casini, president and general manager of FIAR.
The F-5 upgrade package, which extends the life of the 20-year-old aircraft by replacing its radar tracking systems and other electronics gear, would garner $2 million to $5 million in sales per aircraft, McQuade said.
Rockwell, which is based in El Segundo but plans to move its headquarters to Seal Beach in 1992, has not developed its own F-5 upgrade, McQuade said. Rockwell’s contribution to the venture would be its expertise at combining systems made by different manufacturers, he said.
In addition, the Italian firm may have access to markets which Rockwell cannot serve because of government policies prohibiting military sales to certain foreign countries.
As part of the deal, Rockwell will have an option to manufacture radar equipment using FIAR technology.
The two firms will face competition primarily from the Israeli Aircraft Industries, General Electric Co. and Westinghouse Electric Corp.
Another source of competition could come from Eastern European countries, which could decide to sell their aircraft fleets, reducing the market for avionics upgrade equipment, McQuade said.
He said the agreement will have no immediate employment impact at the Anaheim division. But he said any contracts that result from the collaboration could increase employment by the hundreds.
Rockwell employs about 10,800 workers in Orange County, including 6,300 at its Anaheim division, which supplies guidance systems for the Midgetman and MX nuclear missiles.
F-5 AVIONICS UPGRADE
1. Inertial Navigation System: A standard navigation computer that keeps track of a location by monitoring the aircraft’s movements.
2. Multifunction Display: A standard computer screen that can display data on various aircraft systems as well as radar readings.
3. Head-up Display: An instrument display at eye level that gives the pilot information without forcing him to look down.
4. Data Transfer Set: A computerized mission planning system that reduces time involved in programming data for a mission, such as geographical coordinates for a bombing run.
5. Control & Display: In simplest form, a keypad that allows the pilot to enter data.
6. Mission Computer: The computer that performs computations and stores data for manuevers, navigation, and combat missions.
7. Radar: Transmitter and receiver with antenna used for targeting and positioning.
