AVP0013
Written evidence submitted by BAE Systems plc
1.1 BAE Systems provides some of the world’s most advanced, technology-led defence, aerospace and security solutions and employs a skilled workforce of some 89,600 people in more than 40 countries. BAE Systems’ Air sector is at the heart of the UK’s sovereign combat air capability and industry and a world-leader in defence exports as part of the wider UK combat industrial sector. The business delivers combat air readiness today while ensuring next generation capabilities for the future.
1.2 The Air Sector business makes a vital contribution to UK’s defence and security, prosperity and social value, and exports. It directly employs 12,500 in the UK, spread across 20 sites, with a further 12,000 worldwide. The business has a significant presence in the North of England with the hub for advanced manufacturing, engineering across two main sites in Warton and Samlesbury in Lancashire.
1.3 BAE Systems is one of the major employers of STEM apprentices and graduates in the UK, with £93m invested in skills and education annually. In 20162, the BAE Systems Academy for Skills & Knowledge was opened in Lancashire following an initial investment of £15.6m. It plays a key part in developing and safeguarding sovereign skills for the defence and aerospace industry and supporting regional prosperity.
2.1 Air power is a critical national asset. It is the key to national security, to achieving global influence, supporting relations with key allies and driving national prosperity, jobs and significant economic return to the UK. For the UK to fully meet its objectives as set out in the 2018 Combat Air Strategy, the commitments of the Strategy must be implemented.
2.2 This long-term approach will ensure delivery of critical military capability and additional benefits such as value for money, international influence, prosperity and sovereign industrial capabilities. This approach is vital to maintain the effectiveness of our sovereign Combat Air capability in the face of an ever-evolving threat and will determine how the UK delivers future combat air power, maintain its freedom of action and freedom of modification.
3. WILL THE PROPOSALS SET OUT IN THE INTEGRATED REVIEW AND DEFENCE COMMAND PAPER DELIVER THE AVIATION CAPABILITIES (FIXED-WING AND ROTARY), COMBAT MASS AND INTEROPERABILITY REQUIRED OF UK ARMED FORCES, PARTICULARLY IN LIGHT OF THE CHANGED SECURITY SITUATION IN EUROPE?
3.1 The 2021 Integrated Review and Defence Command Paper acknowledged the importance of Combat Air and reaffirmed the significant capability delivered today through the combination of F-35 Lightning Force and the Royal Air Force (RAF) Typhoon fleets, and stated a commitment to continue to upgrade Typhoon’s capability to defend against evolving threats. These two papers followed the publication of the Combat Air Strategy in 2018, which confirmed the UK’s Combat Air sector as a critical national asset and set out the Government’s determination for the UK to remain at the leading edge of Combat Air system development to protect our people, project influence and promote our prosperity. Upon publication, the Strategy was endorsed by the RAF, Ministry of Defence, Government, Opposition parties, Trades Unions and industry, with all parties committing to delivering on the identified challenges and objectives.
3.2 The Strategy highlighted the critical importance of an end-to-end combat air capability, from the front line military assets through to the industrial ecosystem that underpins the sector. By providing a compelling long term vision for the sector, the Strategy provided the foundations to launch Team Tempest, a first of a kind collaboration between industry and Government backed by hundreds of millions of pounds of joint investment to identify and deliver the long term capabilities required for the UK, and partner nations’, armed forces.
3.3 To achieve this vision a very clear roadmap was outlined, which included continued investment in the current Typhoon force to maintain its relevance and to de-risk new technologies for the Tempest Future Combat Air System. The Strategy also called for significant transformation activities, in both industry and government, to arrest the increasing cost and time in our defence programmes, acknowledging the opportunities for Industry and MOD to work more closely together and to adopt an open systems architecture to better enable the spiral development of capability and innovation at pace.
3.4 This imperative has already driven significant activity over the last four years, to ensure a clear focus on delivering the future capability significantly quicker and cheaper than predecessors. BAE Systems’ investment in development of large-scale additive manufacturing within its Factory of the Future at its site in Lancashire, is one example of the use of technologies which will transform industrial manufacturing of next generation combat air platforms. The production of a demonstration large Typhoon frame using additive layer manufacturing reduced the time taken to complete from 100 weeks down to 60 days.
3.5 In summary, the Combat Air Strategy set out a clear vision and the ways and means to achieve this vision, delivering a credible strategy that was reinforced by the conclusions of the Integrated Review (IR) and the Defence Command Paper, as well as the Defence and Security Industrial Strategy (DSIS).
3.6 In order to fully maximise the potential of the defence-aerospace industry, the Government, working in partnership with industry as a sovereign combat air sector to ensure the UK armed forces have the capabilities they require, must continue to implement the Strategy as described in 2018. This will also ensure the significant and nationally important wider benefits of the UK’s sovereign Combat Air Sector, as set out in the National Value Framework can be realised – across military capability, budget, international influence, prosperity and industrial capabilities.
3.7 In addition, with continual investment in emerging technologies and advanced manufacturing, costs and timescales of early life cycle development will be reduced, helping to mitigate the impact of significant technological leaps such as those we see now in developing sixth generation capability in the UK.
3.8 These documents were written before the Russian invasion of Ukraine and the subsequent impact this has had on the European defensive response, led by NATO. From BAE Systems’ perspective, the early implications of the conflict reinforce the conclusions of the Strategy and subsequent papers, particularly the enduring nature of Combat Air as a critical military asset and the imperative to sustain the UK’s sovereign capability to protect our freedom of action, today and in the long term
3.9 BAE Systems is proud to support the RAF as a critical part of the UK’s sovereign combat air capability and industry. Through a 10-year arrangement, BAE Systems delivers deliver depth maintenance, modifications and upgrades across the Typhoon fleet as well as supporting the front line squadrons with ground engineers based across RAF Coningsby and Lossiemouth. The fleet is also supported by our Engineering and Airworthiness team, where teams manage and resolve technical issues to ensure the fleet remains available. In addition, BAE Systems, along with industry partners, forms part of the RAF Marham Lightning Team UK, supporting the UK’s F-35B Lightning Force at Marham. This extends to deployed operations and exercises (such as the Carrier Strike Group deployment in 2021) including deep depth maintenance support, upgrades, and modifications, working alongside Royal Navy and Royal Air Force Engineers.
3.10 BAE Systems provides a range of air and ground crew training to support RAF Typhoon and F-35 Lightning Force, though a mix of classroom learning and live flying with instructors embedded within the Air Force to support preparation of operational missions and deliver synthetic training. This includes developing synthetic training capability, which is aligned to the RAF’s strategy to further enhance training capability and deliver more able pilots, more quickly and more efficiently.
3.11 BAE Systems remains committed to the delivery of support to the RAF Typhoon fleet operational requirements as they continue to support UK and NATO objectives, during a time of heightened security concern across Europe. Since the beginning of the Russian invasion in Ukraine, BAE Systems has responded to RAF requirements and worked together to achieve optimal availability of Typhoon and F-35B aircraft. This has included working closely with the Typhoon fleet planning team, alongside the supply chain, to ensure the fleet remains available to deliver operational requirements through effective logistics support.
3.12 The existing 10-year arrangement between BAE Systems and DE&S for support arrangements is based on a set of assumptions achievable against a predicated level of requirement from the RAF. The recent increase in Typhoon operational activity and a revised flying plan will support increased flying and support requirements in the near term. Further review is ongoing to understand the medium-term impact on Typhoon of increased flying on original maintenance/capability upgrade plans.
3.13 If the requirement for increased flying hours, beyond the current arrangements, remains over a prolonged period of time, or should operational requirements for the RAF change significantly, there will be an impact on resources, materials and support services which would need to be reviewed.
4. WHAT IS THE RATIONALE BEHIND, AND WHAT ARE THE IMPLICATIONS OF, PLANNED REDUCTIONS TO THE EXISTING FLEET, INCLUDING: COMBAT AIR, WITH THE EARLY RETIREMENT OF TRANCHE 1 TYPHOONS AND THE APPARENT SCALING-BACK OF COMMITMENTS TO PURCHASE ADDITIONAL F35-B FIGHTER AIRCRAFT.
4.1 As set out in the Defence Command Paper, the retirement of Typhoon Tranche 1 by 2025 reflects their increasingly limited utility in the digital and future operating environment. BAE Systems recognises that technology and capability has evolved significantly and the Tranche 1 Typhoon would need considerable upgrades to bring them in line with current requirements, in an ageing airframe. Retiring these older aircraft means investment can be made in the remaining Tranche 2/3s to ensure the RAF can retain a highly capable Typhoon force.
4.2 Typhoon was designed to evolve with changing requirements and advances in technology. The Defence Command Paper reaffirmed a commitment to continually upgrade Typhoon through the integration of new weapons such as the UK-developed ‘SPEAR Cap 3’ precision air launched weapon and further investment in the Radar 2 programme to give it a powerful electronically scanned array radar (ECRS Mk2).
4.3 Under an existing contract, we are maturing the development and integration work of the new high-power multi-function radar and enhanced weapons integration for Tranche 2 Typhoon, which also has the potential to de-risk technology capability on Tempest. BAE Systems stands ready to support the delivery of the production contracts for these capabilities and next phase weapons integration work to ensure the UK’s stated aspirations for Typhoon capability are met. This will also provide a capability standard that is very relevant for future exports and ultimately prosperity back to the UK.
4.4 Combat mass is a matter for the RAF. However from BAE Systems’ perspective, if the NATO commitment remains at a heightened level for an extended period of time, higher flying rates will need to be sustained, and the impact on the fleet managed accordingly. We believe that the RAF will need to further increase its Typhoon capability recognising the operational advantage it delivers along with the sovereign capability and freedom of action is sustains in line with the Combat Air Strategy and the National Value Framework requirements.
4.5 This is particularly important as we look longer term, ensuring industry can continue to deliver the UK’s future combat air capability through programmes such as Tempest, which not only aligns with the UK Government’s prosperity agenda but enables future international military influence as a high profile export offering. This long term approach, supported by continued investment in the sector, as highlighted in the Strategy, is vital to maintain the effectiveness of our sovereign Combat Air capability in the face of an ever evolving threat. As per the original aim of the Strategy, this investment is critical if the UK is to maintain choice in how it delivers future Combat Air power, maintain its freedom of action and freedom of modification.
5. WILL THE UPLIFTED CONTRACTS FOR BOTH ROTARY AND FIXED WING MILITARY FLYING TRAINING EFFECTIVELY AND RAPIDLY RESOLVE CAPACITY ISSUES?
5.1 Through a recently announced 11- year contract extension, BAE Systems continues to support the delivery of pilot training and the Red Arrows, supporting the delivery of quality training at agreed level of flying hours, through a Hawk support contract. The revised contract offers improved value for money for the MOD.
13th May 2022
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