U.S Offers Korea F-35 Aircraft At Subsidized Rates
The U.S has offered Korea 60 F-35 Joint Strike Fighter Conventional Take Off and Landing (CTOL) aircraft at a subsidized cost of $10.8 billion with each jet prices at $180 million.
This is in stark contrast to the differing prices to allies around the world. Japan’s acquisition of 42 F-35As (4 + 38 on option) aircraft will approximately cost $10 billion about $238 million per aircraft. And Israel, has been offered 75 F-35s for $15.2 billion about $202.6 million for each jet.
The Pentagon has yet to issue a statement on the varying price tags.
Meanwhile, the sale to Korea will include the Pratt & Whitney F-135 engines, and (9) Pratt & Whitney F-135 engines are included as spares.
Other aircraft equipment includes: Electronic Warfare Systems; Command, Control, Communication, Computer and Intelligence / Communication, Navigational and Identification (C4I/CNI); Autonomic Logistics Global Support System (ALGS); Autonomic Logistics Information System (ALIS); Full Mission Trainer; Weapons Employment Capability, and other Subsystems, Features, and Capabilities; F-35 unique infrared flares; reprogramming center; F-35 Performance Based Logistics.
Reacting to the announcement, Lockheed Martin says that it is pleased that the formal Congressional notification process is now under way, but added that the competing bids are still under evaluation by Korean officials and that price discussions are "on-going".
Comments
I wouldn't read too much into this preliminary 'estimate'. For one thing, everything about this 10.8 figure is based on many assumptions and expectations for certain continuity of annual buy orders as they currently stand. If there are however, any further restructurings in future orders, from FY15 onward, then that alone would likely influence a cost adjustment.
The cost/jet is rapidly decreasing with each succeeding lot. The prices for Israel and Japan reflect this. Another mitigating factor is any customization requested by the different nations. Lastly, it's generally difficult to compare unit cost using total price because country-unique financing, training, and sustainment details are included.
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