Lockheed Martin about to close $37bn+ deal for F-35 jets

Lockheed Martin about to close $37bn+ deal for F-35 jets

US defense contractor Lockheed Martin is in the final stages of negotiating a multibillion-dollar deal to sell a record 440 F-35 fighter jets to a group of 11 countries including the United States; Reuters reports.

The contract will be the biggest yet for the F-35 jets and will consist of three tranches over fiscal years 2018-2020.

‘Brain’ problem: Pentagon’s F-35 jet gives false-positive reading 80 percent of the time http://t.co/gV6KbiIkrBpic.twitter.com/rbvi6ZR4FM

— RT (@RT_com) April 16, 2015

According to people familiar with the talks, the pricing of the jets is not final, although the average price of the 440 jets was expected to be $85 million each.

Touted as the fifth-generation fighter jet with a modular design, the F-35 comes in three variants.

The average price for the F-35 "A" variant could be $85 million in 2019 and could drop below $80 million in 2020, the sources said.

A Lockheed representative said the company does not discuss negotiations on contracts and any deal involving a "block buy" would be announced by the US government.

One of the sources told Reuters the US Defense Department expects to spend $379 billion, down from $391 billion, to develop and buy 2,443 of the supersonic warplanes through 2039.

"This is part of an ongoing process. If it gets done, it would be a plus for Lockheed, allowing for better long-term production management," said Robert Stallard, an analyst at Vertical Research.

The F-35 program has been widely criticized for being too expensive, including by US President Donald Trump who tweeted in December the cost was "out of control." A month later Lockheed Martin CEO Marillyn Hewson met with Trump projecting “thousands and thousands of jobs” at the Lockheed plant in Texas, where the F-35 is built, and cheaper costs.

The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th.

— Donald J. Trump (@realDonaldTrump) December 12, 2016

In February, the Pentagon agreed to a deal for a tenth batch of fighter aircraft and to pay below $95 million per jet for the first time, compared with $102 million in the previous purchase.

The Pentagon said the price of a jet could fall 16 percent to around $80 million in future purchases.



Add Comment

all comments

  Other news

more
Strictly star Brendan Cole shares very rare photo of daughter Aurelia

Strictly star Brendan Cole shares very rare photo of daughter Aurelia..

27-Jun, 09:48

The four-year-old is Brendan's only child with wife Zoe Hobbs Brendan...

Study: new cars unaffordable for most Americans

Study: new cars unaffordable for most Americans..

26-Jun, 22:06

Ford Focus compact cars are offered for sale at a dealership on June 20,...

Facebook hits two billion users

Facebook hits two billion users..

27-Jun, 15:54

More than a quarter of the world's population now uses Facebook every...

Boy, 11, found dead with electrical burns at rail depot

Boy, 11, found dead with electrical burns at rail depot..

27-Jun, 17:06

A boy has died after sustaining serious electrical burns at a rail depot....

Fact-checking Trump's 'repeal and replace' Obamacare timeline

Fact-checking Trump's 'repeal and replace' Obamacare timeline..

24-Mar, 23:20

Following the collapse of the Republican-backed American Health Care Act...

Kremlin: Trump totally right that uproar over Sessions is 'witch hunt'

Kremlin: Trump totally right that uproar over Sessions is 'witch hunt'..

03-Mar, 10:24

The Kremlin on Friday said it agreed entirely with President Trump’s...

Police, coast guard, fire service unions protest in Greece

Police, coast guard, fire service unions protest in Greece..

22-Feb, 12:28

About 1,200 uniformed Greek police, coast guards and firefighters are...

Alicia Keys on teaching sons how to express their emotions, develop work ethic

Alicia Keys on teaching sons how to express their emotions, develop work ethic..

05-May, 12:32

Alicia Keys wants to make sure she has an open, honest relationship with...