The F-16 is currently the most popular fighter aircraft in service but production is scheduled to halt in 2017 after 44 years and 4,588 built. The manufacturer (Lockheed Martin or “LockMart”) will continue to do upgrades and refurbishments into the 2020s and beyond. Currently LockMart has orders for over 300 upgrades of late model F-16s to the F-16V standard. This involves replacing the mechanical radar with an AESA (phased array) radar, an upgraded cockpit, a Sniper targeting pod, a Link 16 digital data link and upgraded navigation gear. The new cockpit features a 15cm x 20cm/6x8 inch flat screen display that replaces dozens of gages and switches and makes it much easier to fly the aircraft. AESA and the new fire control system makes it possible to track multiple aircraft at once as well as track vehicles on land or vessels at sea. The targeting pod enables the pilot to confirm (visually) what is on the surface and promptly attack it with smart bombs or missiles. LockMart expects to get orders for at least 700 F-16V upgrades. While that brings in less than $10 million per aircraft, five or ten of these upgrades equals the price of one new F-16.
The F-16 thus follows the path of previous best selling fighters. During The Cold War (1947-91) Russia built over 10,000 MiG-21s, and the U.S over 5,000 F-4s but since 1991, warplane manufacturing has plummeted about 90 percent. However, the F-16 has been popular enough to keep the production lines going strong until now. The U.S. still has about 1,200 F-16s in service (about half with reserve units). F-16s built so far went to 27 countries. America has hundreds in storage, available for sale on the used warplane market. The end of the Cold War led to a sharp cut in U.S. Air Force fighter squadrons. Moreover, the new F-35 will be replacing all U.S. F-16s in the next decade. So the U.S. has plenty of little-used F-16s sitting around, and many allies in need of low cost jet fighters.
Since the 1990s most F-16s produced were for export and these cost as much as $70 million each (like the F-16I for Israel). Some nations, like South Korea, build the F-16 under license. A used F-16C, built in the 1990s, would go for about $10 million on the open market. The 16 ton F-16 also has an admirable combat record, and is very popular with pilots. It has been successful at ground support as well. When equipped with 4-6 smart bombs it is an effective bomber.
The U.S. F-16 is one of the most modified jet fighters in service. While most are still called the F-16C, there are actually six major mods, identified by block number (32, 40, 42, 50, 52, 60), plus the Israeli F-16I, which is a major modification of the Block 52. The F-16D is a two seat trainer version of F-16Cs. The various block mods included a large variety of new components (five engines, four sets of avionics, five generations of electronic warfare gear, five radars and many other mechanical, software, cockpit and electrical mods.)
The most advanced F-16 is theF-16 Block 60. The best example of this is a special version of the Block 60 developed for the UAE (United Arab Emirates). The UAE bought 80 "Desert Falcons" (the F-16E) which is optimized for air combat. It is a 22 ton aircraft based on the Block 52 model (which the KF-16 was originally), but with an AESA radar and lots of other additional goodies (what the upgraded KF-16 will largely be).