Pentagon And Lockheed Martin Corp. Declare $8.5bn for 90 F-35 Jets

World - Pavan Pandey - Feb 07,2017

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pentagon and lockheed martin corp declare 85bn dollars for 90 f 35 jets

The Department of Defense of the United States and Aerospace Company, Lockheed Martin Corp., announced a deal worth about $8.5 billion for 90 combat aircrafts F-35.

The deal is the lowest price to date for the Pentagon’s (Department of Defense of United States) most costly program.     

In the month of December 2016, the newly elected president of United States, Donald Trump, stated that the price of the Pentagon’s most costly defense program was “out of control”.

The latest deal for another tranche of the stealthy fighter jet brings the price per jet below $95 million for the first time, compared to $102 million in the past deal; a saving of $728 million. This saving is more than the $600 million that the US President Trump claimed on Monday.

According to a statement from Lockheed Martin, President Trump’s personal involvement in the F-35 program boosted the negotiations and sharpened company’s concentration on driving down the value.

The aerospace company, Lockheed Martin Corp., further added that the rise in the number of combat jet in this deal enables the company to decrease prices by taking benefit of economies of scale and production efficiencies.

Lockheed Martin, the prime supplier, and its associates including United Technologies Corp.'s Pratt & Whitney, Northrop Grumman Corp. and BAE Systems Plc have been working on making a more cost-effective supply chain to fuel the production line in Texas.

The United States Air Force Lieutenant General, Chris Bogdan, the head of the F-35 jet program for the Department of Defense stated on 19 December 2016, the cost per plane should lowered by 6 to 7 percent for the latest agreement.

The Lockheed Martin F-35 Lighting II is a family of single-seat, single-engine and all-weather stealth multirole combat fighters. The F-35 is specially designed to perform air and ground attack missions.