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Defence Portfolio Budget Statements 2001-02

Section 2 Results for Government as Defence's Customer

OUTPUT FOUR: AIR FORCE CAPABILITIES

The Air Force provides combat forces that contribute to the ADF’s capacity to defeat armed attacks against Australia, defend regional interests, defend global interests, shape the strategic environment and protect national interests. Air Force capabilities provide precision strike operations, offensive and defensive counter-air operations, wide-area surveillance, air defence and airspace control, maritime patrol, anti-submarine and anti-surface warfare activities, tactical and strategic airlift and combat support for air operations. Peacetime activities include maritime surveillance of Australian and regional exclusive economic zones, search and survivor assistance, aeromedical evacuations and VIP transport.

PERFORMANCE SUMMARY

Overview

• The Air Force provides the capability for air combat (including the air-defence ground environment), air-delivered strike, airlift (including air-to-air refuelling) and maritime strike and surveillance. The Air Force’s capacity to operate effectively is dependent on support from intelligence, surveillance and reconnaissance, and is reliant on the ability to provide combat support to air operations, including logistics support, sustainment and force protection.

• Air combat is the most important single capability for the defence of Australia, as control of the air over Australian territory and maritime approaches is critical to all other types of operations. With the planned upgrades to fighters, the introduction of airborne early warning and control aircraft, enhanced air-to-air refuelling and the planned improvement to wide-area surveillance systems, the Air Force air combat capability will allow the protection of Australia from air attack and the control of its air approaches.

• To achieve this, the Air Force will, in the short to medium term, maintain an air combat capability at a level at least comparable qualitatively to any in the region, and with sufficient margin of superiority to provide an acceptable likelihood of success in combat.

• Australia’s forces will be large enough to provide a high level of confidence that they can defeat any credible air attack on Australia, and capable enough to provide options to deploy an air capability in support to a regional coalition. They will also be able to provide airspace surveillance, air defence and offensive air support for deployed ground and maritime forces in Australia’s immediate region. Given personnel and logistics shortages, especially in fast-jet aircrew, the Air Force’s ability to sustain these operations over protracted periods remains a limitation.

• The Air Force strike capability will, following upgrades to the electronic warfare capability, allow it to attack military targets within a wide radius of Australia against credible levels of air defences with an acceptably low level of risk.

• The force will be capable of mounting effective land and maritime strikes against a number of targets that might be used to mount or support an attack on Australia with sufficient accuracy to minimise risks of collateral damage. The ability to sustain these operations over protracted periods remains a limitation.

• Maritime patrol aircraft will be able to support the naval elements of Australia’s maritime forces. They will have the capacity to operate throughout the region, providing surface and sub-surface surveillance and the ability to attack ships. The ability to prosecute submarines is currently limited.

• The airlift aircraft will continue to be able to deploy and sustain ADF operations. The ability to support concurrent operations will be limited in the medium term.

• The Air Force is capable of providing combat support to air operations from main, forward and deployed operating bases, including logistics support, sustainment, and force protection. Recent enhancements to the air combat support groups for deployed operations will be maintained but the ability to mount and sustain concurrent operations from forward bases remains a limitation.

• The types of tasks to which the Air Force will be able to contribute include:

• attacking hostile maritime, land, and air forces in the region;
• air combat and strike operations (including defence and offensive counter air operations);
• gathering intelligence;
• surveillance and battlespace management, in particular the surveillance of maritime approaches to Australia;
• assisting in the establishment, sustainment and force protection of forward operating bases;
• providing airlift capability and combat support for ADF deployments and Service assisted or protected evacuations; and
• command and control of joint or air forces across the spectrum of conflict.

Force Structure

• A capability for air strike/reconnaissance consisting of two operational squadrons. Ongoing upgrades to the electronic warfare self protection capability and enhanced precision stand-off weapons will improve the survivability and the accuracy of Australia’s strike force over the decade. The acquisition of airborne early warning and control aircraft and enhanced air-to-air refuelling will also contribute to strike capability.

• A capability for tactical fighter operations consisting of three operational squadrons. An ongoing and phased upgrade program for the F/A-18, which includes upgrades to the radar, acquisition of advanced air-to-air missiles, advanced datalinks, structural improvements and electronic warfare self protection, will be undertaken over the decade. The acquisition of airborne early warning and control aircraft, upgrades to the air-defence ground environment and enhanced air-to-air refuelling will also significantly contribute to the Air Force’s air combat capability over the next decade.

• A capability for strategic surveillance. The introduction of airborne early warning and control aircraft, and planned upgrades to the air-defence ground environment and wide-area surveillance systems, including 24-hour surveillance of Australia’s northern approaches, will significantly improve surveillance capability and support to ADF operations.

• A capability for maritime operations of two operational squadrons. Maritime operations will be enhanced by the ongoing upgrade of the P3C, planned enhancements to the electro-optical sensors, which will improve the ability to detect ships, and the acquisition of a lightweight torpedo, which will improve the ability to prosecute submarines. Electronic warfare self protection remains a shortfall.

• A capability for airlift consisting of six squadrons. The introduction of the C130J into operational service combined with the replacement of Caribou and refurbishment of C130H aircraft will enhance ADF airlift capability. Electronic warfare self protection upgrades will improve airlift survivability. The enhanced air-to-air refuelling capability will address existing air-to-air refuelling shortfalls and provide additional strategic airlift capacity.

• A capability for combat support consisting of five wings capable of providing logistics support, sustainment, and force protection for air operations. The remediation of significant personnel and equipment shortfalls identified during operations in East Timor will improve Australia’s ability to mount, sustain and protect air bases and ADF operations.

Key Risks and Planned Mitigation

In the shorter term, there are four key risks to the Air Force’s achieving the required capability targets:

• Personnel. The Air Force has personnel shortfalls in a number of key areas. The Air Force is participating in the broader Defence People Plan, which will specifically target recruitment and retention. Establishing sustainable personnel workloads and improving the occupational health and safety of Air Force personnel will also be key Air Force imperatives. The Air Force is currently identifying opportunities for reducing activity levels in key areas. Some risk to capability must be carried while the opportunities for reducing activity levels are developed and while recruitment and retention initiatives are instigated.

• Sustainment. Personnel and equipment shortfalls currently limit the Air Force’s ability to sustain operations. Personnel shortfalls will be addressed through the Defence People Plan. The Air Force is developing a capability management system, which will be used to develop and refine sustainability requirements and targets. The task of improving sustainability through the re-balancing of resources and output is ongoing, requiring careful consideration of key factors. While there is funding provision for rectification of some logistics shortfalls, some risk to capability must be carried while logistics stocks are replenished.

• Aging Equipment. The Air Force is confronted by a range of issues relating to the age of many of its key platforms and equipment. These include a reducing availability and increasing support costs due to life-of-type issues, including fatigue, corrosion and spares availability. While a number of platforms and systems are the subject of upgrade and replacement projects, there are risks to the readiness status of capabilities due to the unpredictable nature of the effects of aging equipment.

• Maintaining a Regional Capability Edge. The maintenance of a regional capability edge will be a challenge over the next decade, in particular in the areas of electronic warfare self protection, surveillance and battlespace management, and stand-off and precision weapons. Selective interoperability with coalition forces will also be an imperative. The White Paper details plans aimed at ensuring that the ADF retains an overall capability edge in key roles, taking account of expected regional capability trends over the next ten years and beyond.

Preparedness Measures

The Chief of the Defence Force’s Preparedness Directive underpins output performance measurement. The level of capability to be maintained is expressed in terms of force elements, roles/tasks and authorised readiness and sustainability obligations. Performance measures stipulate the levels of capability to be maintained to meet ongoing operations, and known national task requirements.

BUDGETED PRICE TO GOVERNMENT

Significant Variations

Only those variations that impact on output performance are explained. Variations due to changed accounting processes or further refinement of attribution rules are not shown.

Overall, the price of Air Force capabilities will increase by $41m to $5,331m, representing an increase of 0.8 per cent. The increase reflects:

• the full-year effect of pay increases, provisions for recruiting and retention initiatives to address higher than historical separation rates, increased rental payments to the Defence Housing Authority, and higher compensation costs. An increase in civilian staffing numbers reflects civilianisation initiatives aimed at redirecting military personnel to combat-related areas;

• the remediation of a number of logistics shortfalls, including East Timor, and in-service support costs for new capabilities; and

• the progressive rollout of new equipment, including C130J aircraft, Hawk lead-in fighter aircraft, the F/A-18 Integrated Avionics System Support Facility and the Australian Defence Air Traffic System, will enhance the Air Force’s airlift, fast-jet training, fighter and air traffic control capabilities.