Lockheed Martin is in the final stage of negotiating $37 billion worth deals to sell 440 F-35 fighter jets to 11 nations, including the US.
The deal includes all three variations of F-35 Lightning II jet, a Lockheed spokesman said Monday to several media outlets at the Paris Air show.
The nations in the group are Australia, Denmark, Israel, Italy, Japan, the Netherlands, Norway, Turkey, South Korea, Britain and the United States. Since all these countries are current customers of the F-35, the 440 planes order is most likely repeat orders for the flighter jet.
"This would be biggest deal yet for the stealthy F-35 jet, set to make its Paris Airshow this week." Reuters reported stating that the deal indicates that there is major change in practices from annual purchases to more cost effective multi-year deals which would reduce the cost of each jet. The cost of each jet is not final but the average price for each of 440 jets was expected to be $85 million. The multi-year deal consist of three tranches over fiscal years 2018-2020.
The memorandum of understanding being negotiated between Lockheed and the customers aims to procure 135 or more jets in fiscal year 2018 for delivery in 2020 for about $88 million per jet.
The procurement would increase to 150 or more jets per year in the following fiscal years, 2019 and 2020. The price in 2019 could be $85 million for the F-35 "A" variant and could drop below $80 million in 2020. That would mark the lowest price ever paid for an F-35, making this as a major step in reducing the overall cost of each jet.
The memorandum of understanding will guarantee contracts will take place in each successive future year. This allows the manufacturing group led by Lockheed to take advantage of greater economies of scale, reducing the cost of each jet.
The F-35 is expected to make its air show debut at Paris later in the week in one of the most eagerly awaited flight demonstrations.
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Lockheed Martin has won the US Air Force contract worth $108 million for Advanced Radar Threat System Variant 2 (ARTS-V2). ARTS-V2 is a pre-Milestone B Program to develop and field a high fidelity threat emitter for live aircrew training for anti-access/area denial environments
Israel's Ministry of Defense recently sent a letter to the US Department of Defense to complete the purchase of 17 F-35 jets, Israel's Walla News reported on Thursday. Each plane costs approximately US$100 million
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Lockheed Martin has received a $413.8 million contract for Lot 15 production of the Joint Air-to-Surface Standoff Missile (JASSM)-Extended Range (ER) version from the US Air Force
The Pentagon has awarded Lockheed Martin a contract worth more than $50 million to produce simulation software for the F-35 Joint Strike Fighter. "Lockheed Martin Corp
Lockheed Martin has been awarded more than $257 million to provide F-35 fighter jet mission equipment to the United States and its international partners, the Department of Defense said in a press release. "Lockheed Martin Corp
Lockheed Martin has won a more than $39-million contract to provide seven foreign governments with Patriot missile defense system enhanced launcher electronics, engineering support and maintenance. The Defense Department explained that the contract is for the Patriot Advanced Capability-3 [PAC-3] Missile Support for recapitalization of the enhanced launcher electronic system, field missile activities and unscheduled maintenance, the company announced Monday
The US Marine Corps has decided to "temporarily suspend" flight operations for 14 F-35B fighters due to software issues. The jets are from Marine Fighter Attack Squadron 211 based at Air Station Yuma in Arizona
French customs barred Russian armament firm, Rosoboronexport from bringing in aircraft, helicopters and weapons for display and demonstration at the Paris Air Show 2017 forcing it to make do with scale models shown at its stand. A source from the Rosoboronexport told Tass news agency, ''while the show organizing committee had not imposed any restrictions and had guaranteed Russia the safety of its exhibits and its exposition, the French customs bodies banned delivering full-scale items of military products to the country
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