Chapter 5. ‘The Deal of the Century’—The F-16s

For over three decades, the McDonnell Douglas A-4K and TA-4K served as New Zealand’s strike aircraft. The 1966 Defence White Paper reinforced the need for the RNZAF to continue to operate in combat, transport and maritime roles.^[3] By this stage, the Canberra bombers of No. 14 Squadron, which had been introduced in 1959, were seen to need replacement by 1970. British fighter production had been axed by the 1957 White Paper, and attention turned to the United States, which had several aircraft which might be suitable. Types considered by the RNZAF during 1967 included the Northrop F-5E Tiger, McDonnell Douglas F-4E Phantom and A-4E Skyhawk, and the General Dynamics F-111. Ultimately the McDonnell Douglas A-4E Skyhawk was selected, and in April 1968 14 were ordered at a cost of $NZ24.65 million.^[4] Designated A-4K (K for Kiwi), the aircraft were essentially the A-4E with minor changes as specified by the RNZAF. The 10 A-4K and 4 TA-4K aircraft arrived in Auckland on board the USS Okinawa on 17 May 1970, although the uninsured aircraft were almost lost at sea. After leaving Pearl Harbor in Hawaii, the aircraft carrier hit a storm with 80 knot winds. The captain considered rolling the aircraft into the sea to save his ship, but the storm abated just in time to save them.^[5] The aircraft were officially taken into service in June 1970, with No. 75 Squadron.

The decision to purchase the A-4 Skyhawk met with some criticism within the RNZAF, but the aircraft, first flown in 1954, had demonstrated its capability by 1968 when New Zealand placed the order: it was at that stage still the mainstay of the US Navy and US Marine Corps attack wings, and had been well-proven in combat in the Vietnam War.^[6]

The aircraft’s general capability for close air support was sufficient for the tasks expected of it in 1970, but by the time of the 1983 Defence Review an extended range of tasks was anticipated, including maritime strike, counter-air, sea and land interdiction and close air support. The RNZAF considered three options at the time: the acquisition of more capable second-hand aircraft; new aircraft; or the upgrade of the A-4 Skyhawk. In 1983 the RNZAF evaluation group reviewed a number of new aircraft, and favoured the purchase of new F-16s. The program cost was to be NZ$900 million, including spares and equipment, and was seen as prohibitive. A decision was then taken to considerably upgrade the current aircraft. The 1983 Defence Review commented:

The Review went on:

The Royal Australian Navy (RAN) had a number of A-4 Skyhawks which were surplus to its requirements after its aircraft carrier had been scrapped in 1982. In 1984 the New Zealand Government approved the purchase of eight single-seat A-4Gs and two TA-4G two-seat trainers. The package deal cost NZ$40 million, including spares and equipment, and No. 2 Squadron was reformed to accept the aircraft.

The avionics upgrade was to be extremely comprehensive. The Labour Government gave its approval for a NZ$140 million modernisation plan in May 1985. The upgrade was anticipated to give the aircraft an avionics suite comparable to an F-16C, significantly enhancing the aircraft’s strike capability and intended to give it an operational capability of 90 per cent of an F-16C for 15 per cent of the cost—a variation on the classic Kiwi 80/20 solution.^[8] Despite the cooling of NZ–US relations over the anti-nuclear ships debacle, the US Congress gave its approval for the technology transfer in December 1985, and the contract with Lear Siegler was signed in 1986 by the Minister of Defence, the Hon. Frank O’Flynn. The importance of this work was reinforced by the 1987 Review of Defence Policy, which said:

The first ‘Kahu’ Skyhawk was returned to service and flown in June 1988, and the last in March 1991.

The value of the upgrade was immediately apparent. Wing Commander Ian Gore, who led No. 75 Squadron on a series of exercises with Australian, Malaysian, Singaporean, and Thai air forces in 1991 and 1992 said: ‘The Skyhawk has gone from an aircraft with no systems you could rely on, to one with the capability of modern front-line fighters, at a fraction of the cost.’^[10] Flight Lieutenant Murray Neilson, who also flew on those exercises, further noted: ‘We were constantly surprised how well we performed in air-to-air combat against superior aircraft, especially the F-16 … Kahu has brought the Skyhawk into the 1990s.’^[11]

The aircraft however still had shortcomings; they were noticeably slower than their modern counterparts when fully laden with weapons, and the Maverick missiles were only effective for a range of five miles—insufficient for a realistic attack on a modern warship. Nevertheless, Gore still saw Kahu as a major success: ‘Considering we did so well against aircraft we aspired to replace the Skyhawk with—the F-16 and the Harrier—the update was an inspired choice.’^[12]

At the time of the 1997 Defence Assessment, the decision was made to maintain an Air Combat Force comprising A-4 Skyhawks, which would be replaced by a suitable aircraft in due course. The 1997 White Paper commented further: ‘The aircraft are old but sturdy. They have been rewinged and seven years ago were given a major upgrade. They have sufficient life left to perform effectively into the next decade.’^[13]

In commenting on the Government’s decisions, the New Zealand Herald noted: ‘It is understood there is no immediate plan to replace the Air Force’s 19 elderly Skyhawk fighter-bombers, but longer-term purchases are not ruled out.’^[14] It was, in fact, to be no time at all before new purchases were considered.