Acquiring 110 F-35 Stealth Jets May Cost India $80 Billion for 40-Year Life Cycle, While Similar Rafale F4 Stands at $48 Billion

India's ongoing efforts to modernize its Air Force (IAF) have brought two advanced fighter jets into focus: the Lockheed Martin F-35 Lightning II and the Dassault Rafale F4.

A detailed cost analysis, considering both acquisition and 40-year life cycle costs (LCC), reveals a significant financial disparity between the two platforms if India were to procure 110 units of either aircraft.

Life cycle costs provide a holistic view of the long-term financial implications, encompassing not only the initial purchase but also operating, maintenance, and support expenses throughout the aircraft's operational life.

The F-35, a fifth-generation stealth fighter, is produced in three variants: the F-35A (conventional takeoff and landing), F-35B (short takeoff and vertical landing), and F-35C (carrier-based). For the IAF's needs, the F-35A is the most suitable due to its compatibility with land-based operations and its lower price point compared to the other variants.

As of 2023, increased production and economies of scale have driven down the F-35A's unit cost. Lockheed Martin and US government data indicate a flyaway cost of approximately $82.5 million per unit. However, international sales typically involve added expenses for training, spare parts, and support equipment, raising the effective unit cost to an estimated $100-110 million.

For this analysis, an export price of $110 million per unit is assumed. This places the total acquisition cost for 110 F-35As at roughly $12.1 billion. This figure includes initial spares, training, and basic support infrastructure, but excludes weapons packages, which would represent a further cost dependent on Indian requirements.

The Rafale F4, an advanced 4.5-generation multi-role fighter, is already in service with the IAF, with 36 units procured under a 2016 agreement. The F4 variant represents an upgrade over the previous F3R standard, featuring enhanced radar capabilities, improved sensors, and advanced network-centric warfare capabilities.

The cost of the Rafale has been variable, contingent on specific contract terms and customization. India's initial purchase of 36 Rafales totaled €7.87 billion (approximately $8.7 billion at 2016 exchange rates), which equates to around $242 million per unit. This price included India-specific enhancements, weapons, spares, and infrastructure.

However, subsequent contracts with other nations, such as Egypt and Indonesia, point to a lower flyaway cost of $115-130 million per unit for the base aircraft, with additional costs for customizations and support. For this comparison, a unit cost of $130 million for the F4 variant is used, representing a standardized export price without extensive India-specific modifications.

At $130 million per unit, the total acquisition cost for 110 Rafale F4s would be approximately $14.3 billion. This estimate accounts for basic spares and training, but excludes weapons and additional infrastructure, the costs of which would depend on the IAF's specific needs.

40-Year Life Cycle Cost (LCC) Comparison​

To estimate the total financial commitment, a 40-year service life, consistent with modern fighter jet lifespans, is assumed. The LCC includes acquisition, operation, maintenance, personnel, upgrades, and spares.

The F-35 is recognized for its high operating and maintenance costs, largely due to its stealth features, sophisticated electronics, and complex logistics. Data from the US Government Accountability Office (GAO) and other sources can be adapted to create an India-specific estimate.

The F-35A's operating cost is approximately $33,000 per flight hour (as of 2023), although Lockheed Martin has stated a goal to reduce this to $25,000 by 2025. A conservative average of $30,000 per flight hour is used for this 40-year projection.

Assuming each F-35 flies 250 hours annually (a standard estimate for fighter aircraft), the annual operating cost per aircraft is $7.5 million. Over 40 years, this amounts to $300 million per aircraft, and $33 billion for a fleet of 110.

Maintenance costs for the F-35 are substantial, driven by its stealth coatings, advanced sensors, and software updates. Estimates suggest maintenance accounts for 60-70% of operating costs. Assuming 65% of the operating cost ($19,500 per flight hour), the total maintenance cost over 40 years is approximately $21.45 billion for 110 units.

Over a 40-year period, periodic upgrades (including software, avionics, and stealth enhancements) and spares could add 20-30% to the LCC. Assuming 25% of the combined operating and maintenance costs, an additional $13.61 billion is projected.

Therefore, the total LCC for 110 F-35As is estimated as follows:

• Acquisition: $12.1 billion
• Operating: $33 billion
• Maintenance: $21.45 billion
• Upgrades and Spares: $13.61 billion
• Total: $80.16 billion

The Rafale, while not a stealth aircraft, is known for its reliability, versatility, and lower operating costs compared to fifth-generation fighters. Data from the French Air Force and the IAF's existing Rafale fleet provide a basis for cost estimation.

The Rafale's operating cost is approximately $16,500 per flight hour, significantly lower than the F-35 due to simpler maintenance and the absence of stealth-related upkeep. Assuming 250 flight hours per year, the annual operating cost per Rafale is $4.125 million.

Over 40 years, this amounts to $165 million per aircraft, and $18.15 billion for a fleet of 110.

Maintenance costs for the Rafale are estimated at 50-60% of operating costs due to its robust design and lower complexity. Assuming 55% ($9,075 per flight hour), the total maintenance cost over 40 years is approximately $9.98 billion for 110 units.

Upgrades and spares for the Rafale, including radar enhancements and weapon integration, are estimated at 20-25% of combined operating and maintenance costs. Assuming 22.5%, an additional $6.28 billion is projected.

Therefore, the total LCC for 110 Rafale F4s is estimated as follows:

• Acquisition: $14.3 billion
• Operating: $18.15 billion
• Maintenance: $9.98 billion
• Upgrades and Spares: $6.28 billion
• Total: $48.71 billion

Comparative Summary and Implications​

While the initial acquisition cost for 110 Rafale F4s ($14.3 billion) is $2.2 billion higher than that of 110 F-35As ($12.1 billion), the long-term financial picture significantly favors the Rafale. The F-35's 40-year LCC is $31.45 billion higher than the Rafale F4, representing a 64.6% increase.

This substantial difference is primarily attributed to the F-35's significantly higher operating and maintenance costs, stemming from its stealth technology, complex electronics, and logistical demands.

The Rafale F4 presents a more cost-effective option over the long term, offering substantial savings that could potentially be allocated to indigenous programs or other defense priorities. However, the F-35's fifth-generation capabilities, including stealth and advanced sensor fusion, offer a strategic advantage that the Rafale cannot match.

The IAF's ultimate decision will likely involve a careful balancing of strategic requirements, budgetary constraints, and long-term goals for self-reliance. The Rafale F4, with its lower LCC and existing operational integration within the IAF, may be favored for its cost-effectiveness.

 

[Bibhu Dash]

F-35 is 5th Generation. Buy in limited quantities, maybe 20-30, to checkmate Pakistan and China. The F-35's reputation is very high and superior to any jet as of now; it will create fear among Pakistan and China. Rest you can buy of your choice. If you think the Rafale F4 is cheaper, then go for the remaining 110-30 = 80 quantities.

 

[Bibhu Dash]

Our domestic industry is on the cusp of producing a large number of jet fighters. Improve it further so that production happens with more automation and in a timely manner. Do not plan to import a large number of foreign fighter jets. Expedite Tejas Mk2 and AMCA.TEDBF for 50 aircraft will be more cost-effective than ordering 26 additional Rafales for the IN.After Tejas Mk2 development in 2030, take up a 6th gen fighter jet program for the Navy and IAF. Do plan for it beforehand.

HAL takes significant time in manufacturing the jets and is famous for manufacturing delays. Tejas was outdated by the time it came out. Similarly, AMCA will be outdated by the time it comes out. Buy the necessary items from outside and, for the rest, depend on HAL.

 

[AK S]

Doesn't matter. Stealth aircraft will be obsolete (in their present iteration) once radars are developed to trace them. Moreover, we have our own AMCA program, which can be prioritized. At present, what the IAF requires is more planes to defend Bharat.

Then AMCA will be obsolete too! As of today, the F-35 is a far superior platform. Though we don't know if and when it will be available to India and under what terms. And on top of that, to what extent can we align our defense requirements with the US? If the F-35 and Su-57 participate in MRFA, Rafale will have a tough time.

 

[AK S]

Eventhough you are right about china & pakistan, going in for US products is suicidical.

We are already using US products. Having said that, it comes with a price. The Mk1A has been grounded for a year now. The GE F414 agreement is still far off, which will power both the Mk2 and AMCA.

 

[AK S]

Think this is a slap to desktop experts who recommend F-35s & deride Rafales. These experts always cry themselves hoarse that Rafales are costly. One suggestion to these guys is: IAF is in a better position to judge what it requires, taking everything into account. We have AMCA, whose design is finalised. If it comes under PMO, the timeline can be preponed.One matter not taken into account is the unreliability of the US as a trusted supplier & ally. Even Trump is very unreliable.

Desktop experts, leave the decision to the real experts.

We are not decision-makers, and only the competent authority will take the call. One thing is clear though: if Su-57 and F-35 participate in MRFA, then Rafale's primacy will be severely contested. And the French meltdown is understandable.

BTW, timelines are aggressive for both Mk2 and AMCA. There will be slippages. Less so of Mk2, given Mk1A is flying, but still, it has new systems like IRST, MAWS, OBOGS, etc. It's not easy to integrate them. Maturing will take a lot longer than integration.

 

[Bks kumar]

Instead of spending this huge amount of money on the F-35 or Rafale, invest this money in AMCA fast-track production with Indian private companies, maybe in partnership with HAL if needed. If it is aggressively pursued, the AMCA may become ready within 5-6 years. The Indian government can certainly make this possible.

 

[Sham Kumar Saini]

Thank you for such a detailed analysis! It is now up to IAF and Government of India to evaluate each and every aspect of the deal before finalizing it! The most important aspect must be of Technology Transfer so that our R&D, Indigenousness can provide more and more opportunities for becoming self-reliant in years to come, which USA would never want to be!

 

[Kira]

I believe the LCC of the Rafale will be higher than the F-35 over a 40-year period due to the small size of the entire global fleet of Rafales (≈600) as compared to the F-35 (≈2500).As seen by the previous examples of French jets costing a bomb to upgrade and operate, especially costlier spares, I believe the Rafale would edge out the F-35 over LCC.

 

[Anant]

I would say make Rafale purchases for IAF (36) and IN (26) the last ever foreign acquisition of fighter jets for India.

Though we should keep 5th gen fighter options available (yes, dump MRFA) if, in case, AMCA induction is further delayed beyond 2035.

Further, TEDBF should be cancelled and AMCA-N must be adopted. Will save time, cost, funds (of MRFA, TEDBF) could be diverted to AMCA, more AMCA squadrons could be bought (attracting private sector for manufacturing; competition for HAL) and, hence, economies of scale (lower cost per unit) and logistics simplicity.

Regarding AMCA N, as per your idea, just how will you resolve the weight challenge associated with a navalised AMCA for STOBAR operations?

 

[Anant]

1 squadron of F-35s and 3-4 squadrons of Su-57Es are enough until AMCA.

Yeah... there is absolutely zero chance of getting both the F-35 and the Su-57. It is one or the other or neither.

 

[The_rED_dEVIL]

Regarding AMCA N, as per your idea, just how will you resolve the weight challenge associated with a navalised AMCA for STOBAR operations?

AMCA-AF's MTOW is 20-21 tonnes in stealth mode, and 25-27 tonnes in "beast mode". Meanwhile, TEDBF's MTOW was stated as 26 tonnes (as stated by ADA; check wiki pls). Hence, weight factor should not be problem (26 tonne design is with STOBAR ops in mind).

 

[Pankaj]

There is no comparison of Rafale with F-35. Both are different generation aircraft. The cost of iPhone 17 generally remains higher than the previous ones, & similarly the components.

This is the era of stealth fighters and drone technology. There are only 2 choices left: either SU-57 or F-35.

For 4th and 4.5 generation, we are developing our own Tejas, which will be quite sufficient in coming decades.

 

[divine]

The author should look at the figures of the American agency GOA, the figures given for the F35 flight hour are: 46,000 dollars to date in 2025!! Very far from the 30,000 dollars flight hour in this article!

And that's not going to get any easier, because to date, the F35 is still not in its F4 version, which is the only one fully operational, and you have to add to the price the change to the more powerful engine still under development, so we're a long way from the estimated price calculated here!

 

[Ravi]

With the growth in AI and later technologies, these aircraft would become obsolete in the next 10 years. What we really need is stealth missiles, which can be fired from a normal fighter jet. These missiles should be able to evade radar and hit the targets. With AI and robotics technology advancing so fast, the private sector should take a lead role in developing AMCA much faster than the previous aircraft.

 

[Chitra]

Excellent info on aircraft acquisition of Rafale & F-35.

Consider this: if we allocate 10% of total operational cost, i.e., 5 billion USD, can India (either HAL or the private sector) get ready or produce a 100% fully indigenous 5.5/AMCA/6th gen aircraft within a 3-10 year horizon? If yes, we should do that. If the govt allocates the right amount of money to the private sector, they will definitely come out with a good aircraft.

 

[Phantom]

Our domestic industry is on the cusp of producing a large number of jet fighters. Improve it further so that production happens with more automation and in a timely manner. Do not plan to import a large number of foreign fighter jets. Expedite Tejas Mk2 and AMCA.TEDBF for 50 aircraft will be more cost-effective than ordering 26 additional Rafales for the IN.After Tejas Mk2 development in 2030, take up a 6th gen fighter jet program for the Navy and IAF. Do plan for it beforehand.

F-35 is 5th Gen, Rafale is 4th gen, so cost is non-comparable.

No need of super-expensive 4th gen jet that doesn't share any tech. Gripen is our best bet; instead of paying $40 bln for a 4th gen jet and getting zero tech transfer, we could invest that money on F-35 for 20-30 years of the nation's security.

 

[Avada kedavra]

It has long been an established fact that due to sheer number of F-35s produced compared to Rafale. The initial purchase price is less.
But since F-35 is from the next generation and is very advanced, every other cost associated with it is higher.
However, F-35's real strength lies in sensor fusion and data linking. Its ability to coordinate with all the ground and other air assets to mount a coordinated attack on the enemy.
But F-35 can only link with military hardware made by US allies and not the Muscovy junk that still dominates the Indian Air Force.Then there is the issue of no tech transfer, access to source code which leads to inability to integrate homemade weapons to the jet.

Then I heard from a podcast of Abhijit Chavda that since the FA-18s sold to Australia also had restricted access to source codes. The plane was only able to lock on to Muscovy and Chinese junk planes. The Aussies somehow broke the firewall and broke the codes. Not sure how true this story is.

Another story I heard is that Pakistan Airforce was forced to house American troops on their airbase to monitor if the Pakis were trying to open up and find out hidden secrets of the F-16s technology. Can expect this vigil to be far higher for F-35s.
This might be normal for other small NATO allies (subservient satellite states), but for India which has the third largest army in the world and 1.4 billion people, its humiliating. It's like India is again under the rule of the white Englishmen.

In my opinion, the cons outweigh the pros.

Also, Trump just said "paving the way" for F-35. He didn't say F-35s are immediately available for sale.

 

[abhinav srivastava]

F-35 is 5th Gen, Rafale is 4th gen, so cost is non-comparable.

No need of super-expensive 4th gen jet that doesn't share any tech. Gripen is our best bet; instead of paying $40 bln for a 4th gen jet and getting zero tech transfer, we could invest that money on F-35 for 20-30 years of the nation's security.

Limted number of F35s or SU57s should be procured. You rightly said we need not import costly 4th gen fighter jets.

 

[sunnyp343]

U.S is not trustworthy. Go for su 57

 

[Krishnendu Chatterjee]

What's the use of purchasing these fancy war toys when we can't force back our captured territories from Pak-China?
Just to keep our perceived allies in good humor?
Even the mighty China with her futuristic weapons can't take back Ladakh & Arunachal Pradesh from us!

 

[rame]

I think we need F-35 to repulse a Chinese attack. To tackle Pakistan, Rafale F4 is good enough. We can go forward and acquire Rafale F4. If there's an urgent need by the IAF for F-35, go for a conventional American, customized weapon bay because an attack by the Chinese may not be immediate. The Chinese may only arm-twist to acquire some piece of land in Arunachal.

 

[Patriot24]

I would advocate a G2G purchase of two squadrons just like we did with the Rafales in 2015. There will be delays in this area as there is a long backlog of previous orders which defeats the purpose of procuring it if they start delivery after 2029.

Or buy 50 Su-57 with TOT which would help in developing the AMCA faster. One thing I like about this aircraft is that it is twin engined! A back up if one fails and the pilot can return back to safety!

Putting more funds into research is also advisable!

 

[Rohit Vimalnath]

The answer to this discussion truly remains a factor of the long-term strategic goals of the Indian Air Force, coupled with that of the Navy. I personally feel that it would be advantageous for India to procure a selection of Gen-5 aircraft from as many varieties of manufacturers or nations as possible.

The F-35s, as I understand it, are the most advanced fighter jets made by man. It would certainly be beneficial as a deterrent and as a tip of the spear in the event of any misadventures by our neighbors along the northern or western edges in particular.

Noting how the Rafales were purchased at a premium, I believe that our defense spending has enough heft to purchase a similar batch of F-35s—spread across the 3 varieties—A, B, & C, to ensure distributed strategic superiority. Higher longer-term operating and maintenance costs will be offset by their deadly efficiency and high safety record.

I am also mightily impressed by the SU-57s; we need to purchase a batch of those too—perhaps even split the next purchase between the Americans and the Russians. Notorious reliability concerns are an issue and need to be addressed. Interoperability with the present fleet needs to be ensured to smoothen integration across the board, regardless of aircraft. I feel that possessing diversity in terms of our attacking force can be tremendously beneficial, particularly against any given homogenous enemy force.

Alternatives from other manufacturers need to be considered too. Indigenous manufacturing is not mature enough to be a worthwhile consideration or alternative to any of the above-stated options. Long-term, certainly invest in our R&D and manufacturing capability to bring it up to the levels which other nations presently occupy, to reduce reliance and dependency on external imports and reduce costs.

In the meanwhile, we need to be realistic and seriously upgrade a severely lacking air power in the context of the present-day modern battlefield environment and competition.

 

[Varun]

it is becoming clear that the f35 project will make countries slaves. The state that buys this plane is dependent on the US for at least 30 years. Moreover, the f35 is very expensive and not as good as it is exaggerated in the media.

But is a compulsion to buy F 35, India have to buy it or else be prepared to face the music (U.S sanctions)

 

[Krishna Murari]

In my opinion, depending on USA is not advisable as USA may stop support the aircraft maintenance and upgrade any point of time. Track record of USA in long term dependency point of view is not good. USA will not give full operational freedom also. Hence, Rafale will be better choice. Meanwhile India can concentrate in developing fifth generation fighter using the money saved in operational and maintenance cost of F35.