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F-16 Peace Onyx

The F-16 multi-role fighter was the core of Turkey's offensive counterair (OCA), defensive counterair (DCA), and suppression of enemy air defenses (SEAD) capability. Not surprisingly, the Peace Onyx co-production program was accorded the highest priority for resource allocation. A well developed program management network exists within the TUAF, specifically for the F-16 program. Highly efficient, innovative, and technically astute management of Peace Onyx programs has set the standard for subsequent acquisition of major weapon systems. As of December 1994 a total of 160 Peace Onyx I F-16 Block 30/40 aircraft had been delivered and 80 Peace Onyx II F-16 Block 50 aircraft were to be delivered beginning in mid-1996.

Visionary planning on the part of the Government of Turkey and private enterprise resulted in the creation of two highly significant aerospace manufacturing entities located in the heart of Turkey. The first, TUSAS Aircraft Industries (TAI) was a Turkish-American joint stock companyestablished in 1984 to supply F-16 C/D (Block 40/50) aircraft both to the TUAF under the Peace Onyx I and II programs and to the Egyptian Air Force under Peace Vector IV. The second enterprise TUSAS Engine Industries (TEI), was a Turkish-American joint stock company established in 1985 to manufacture engine components and assemble F-l10-GE-100 engines for the TAI F-16 production.

The TUAF has taken several steps to ensure the F-16 was well equipped to accomplish the OCA, DCA, and SEAD missions for which it was designed. Near term delivery of the U.S. Advance Medium Range Air-to-Air Missile (AMRAAM) combined with a growing inventory of AIM-9MS, will give TUAF F-16s a sophisticated all aspect, beyond visual range, air-to-air arsenal. Additionally, future delivery of High Speed Anti-Radiation Missiles (HARM) will provide aformidable air-to-surface capability for SEAD missions. The TUAF has acquired a number ofsystems to improve combat interdiction and close air support capability. Most notably, the TUAF purchased Low Altitude Navigation Targeting Infra-Red Night (LANT1RN) Pods which give TUAF F-16 pilots the ability to deliver precision guided munitions during day or night operations.

Turkish arms manufacturers' most ambitious undertaking was a consortium with United States firms to produce F-16 fighter aircraft. Most of Turkey’s 240 Lockheed Martin F-16s were co-produced in Turkey by a predecessor firm of Turkish Aerospace Industries (TAI). In September 1983, the government of Turkey announced plans to buy 160 F-16s under the Peace Onyx I program, which operates under the Foreign Military Sales program. The first eight aircraft in the order were built at Lockheed Martin Aeronautics Company, with the remaining 152 aircraft assembled in Turkey.

In September 1983, the government of Turkey announced plans to buy 160 F-16s under the Peace Onyx I program, which operates under the Foreign Military Sales program. The first eight aircraft in the order were built at Lockheed Martin Aeronautics Company, with the remaining 152 aircraft assembled in Turkey at TUSAS Aerospace Industries (TAI) at Murted. TUSAS was an acronym for Tusas Ucak Sanayii AS, or Turkish Aircraft Industries, a company owned jointly by Turkish and American shareholders.

The Government of Turkey (GOT) entered into a Letter of Offer and Acceptance (LOA) with the US Air Force to purchase F-16 aircraft, to be manufactured by Lockheed under the FMS program. This program was entitled “Peace Onyx.” In conjunction with this program, the GOT sought and obtained co-production of certain elements of the F-16 in Turkey. Under this arrangement, airframes for the F-16s were produced in a factory at Mürted Air Base near Ankara by TÜSAS (Türk Uçak Sanayi Sirketi) Aerospace Industries [TAI], with 51 percent ownership by Turkish interests, 42 percent by General Dynamics, and 7 percent by General Electric. Among other things, TAI performedfinal assembly of the F-16s, known as “mate through delivery” or MTD. The engine plant near Eskisehir was a joint venture with General Electric.

Under this program, TAI manufactured 70% of the airframe of the F-16 aircraft including aft and center fuselages and wings. The Peace Onyx I Program covered 160 F-16s, eight of which were produced at the General Dynamics, Fort Worth facilities and delivered to TuAF. TAI manufactured and delivered 152 F-16C/D aircraft in Block 30 and 40 configurations at the TAI Facilities to the Turkish Air Force under the Peace Onyx I Program between the years 1987-1995.

The Turkish Air Force received its first two F-16s as assembly kits in March 1987. Turkey officially received its first F-16D in July 1987. The first Turkish F-16s arrived at Murted Air Base in October 1987, followed by the first flight of a Turkish-built F-16 on October 20, 1987. Starting with the 44th aircraft, all Turkish Air Force F-16s from the first batch were manufactured to Block 40 standards. The first 43 F-16s were Block 30 versions. TAI was awarded a contract to build wings, center fuselages, and aft fuselages for U.S. Air Force F-16s. They have also been awarded a contract to build 46 Block 40 F-16C/Ds for the Egyptian Air Force under the Peace Vector IV program. In March of 1992, a follow-on order for 80 Block 50 F-16Ds was placed under the Peace Onyx II Foreign Military Sales program. TAI delivered these aircraft from TAI from 1996 to 1999.

TAI co-production under Peace Onyx I was a technical and political success. The President of Turkey established a national objective to expand F-16 co-production at TAI on future programs, including the performance of additional and more technically complex work on the F-16, and to perform such work not only for itself but for other countries. However by 1990, there was no funding available within Turkey for additional F-16 buys, nor was there available any interested and funded third-country customer.

The Iraqi invasion of Kuwait on 2 August 1990 brought changed circumstances and new military procurement opportunities. The USG sought and obtained the supportof the governments of Turkey and Egypt (GOE) as part of an alliance against Iraq. Among other things, Turkey provided convenient fly-over access to the military theaterfrom its military bases, and also curtailed the flow of Iraqi oil through its country. The USG sought ways to reward its allies for their support of American foreign policy objectives in the Gulf region. For Turkey, the USG promoted the creation of a “Turkish Defense Fund,” funded by the United States, Saudi Arabia, Kuwait, and the United Arab Emirates, to be paid over a five-year period. In return for Egypt’s support, the USG forgave certain Egyptian debt obligations. As a result, Turkey now had a long-term funding source for additional F-16 buys – to be called“Peace Onyx II.” Egypt had additional funds freed-up to be a potential third-country customer for Turkey’s planned new co-production program.

Under an October 1994 agreement, Turkey requested that the TDF, which thus far amounted to some US$1.8 billion, be transferred to Turkey. Most of the TDF funds were to be used to cover the cost of eighty F-16 aircraft, of which forty were agreed upon in March 1992 and forty more in February 1994. Through offset arrangements, F-16 components and engines produced in Turkey were exported to the United States.

Egypt ordered forty-six F-16s to be delivered between 1993 and 1995. The GOT was to perform MTD on F-16s under Egypt’s FMS program (Peace Vector IV) at Turkey’s facility at TAI, and the GOE was to perform an equivalent number of manhours of work on F-16s under Turkey’s FMS program (Peace Onyx II) at Egypt’s facility at Arab Organization for Industrialization’s (AOI). As a result of the industrial cooperation agreement reached between the Governments of Turkey and Egypt in 1991, General Dynamics agreed to facilitate a Government of Turkey requested placement of 427,000 manhours of PO II coproduction work at AOI to meet Turkey’s commitment to Egypt.

Within the framework of the follow-on program Peace Onyx II, TAI produced an additional 80 F-16C/D aircraft in Block 50 configuration during the 1995-1999 period for TuAF. With this program, the manufacturing share of the company reached 80% with the addition of flaperons and the stuffing tasks for the forward fuselage to the airframe components manufactured in the first program.

The overall program cost to the GOT under Peace Onyx II would be much less, since Turkey would realize savings of roughly $26 million from its own co-producer – TAI – due to the fact that its work on the Egyptian aircraft under the counter-trade agreement would keep labor costs lower for the follow-on Peace Onyx II program. By the middle of 1994, the contractors had completed all control tooling necessary for co-production, and AOI had completed much of the production tooling. The quality of AOI’s work was as good as any other co-producer, and in certain instances as good as that at the facility in Fort Worth. But on 12 August 1994, General Dynamics canceled the AOI contract and moved the work out of AOI because it would not pay a premium to have work performed at AOI.