Pentagon Announces ‘Historic’ $34 Billion Cost-Saving F-35 Deal

Reuters
By Reuters
October 30, 2019US News
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The Pentagon announced on Oct. 29 pricing details for its agreement with Lockheed Martin Co that lowers the cost of the F-35 jets it plans to purchase through 2022 by 12.7 percent, which may encourage other nations to buy warplanes.

At a news conference at the Pentagon in Arlington, Virginia, Ellen Lord, the U.S. under secretary of defense for acquisition and sustainment, said the $34 billion deal included the delivery of 478 F-35 aircraft.

She said the deal represented continued commitment to reduce F-35 costs aggressively, incentivize industry to meet required performance, and deliver enhanced capabilities at the best value to taxpayers.

Lockheed executives have said that any country with an F-16 jet, the predecessor to the F-35, is a potential customer.

Lord also said there has been no change in the conflict with Turkey over Ankara’s purchase in July of Russian S-400 missile defense systems.

After that deal, Washington began removing Ankara from a joint F-35 production program. The United States says the system is not compatible with North Atlantic Treaty Organization defenses, and pose a threat to Lockheed Martin Corp’s F-35 stealth fighters.

Turkey will continue production of F-35 parts through March 2020 when those responsibilities will transfer. Lord deferred questions on that transfer to Lockheed Martin and Pratt and Whitney.

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