Pentagon And Lockheed Martin Reach Agreement Reducing F-35A Cost By 12.8 Percent

Date 29.10.2019

The F-35A is now below $80 million; lower cost than legacy aircraft

 

The F-35 Joint Program Office and Lockheed Martin (NYSE: LMT) finalized a $34 billion agreement for the production and delivery of 478 F-35s at the lowest aircraft price during the history of the Program. This contract includes all U.S., International Partners and Foreign Military Sales aircraft in Lots 12, 13 and 14.

In the agreement, the F-35 Enterprise meets and exceeds its long-stated cost reduction targets for each variant – and the F-35A unit price, including aircraft and engine, is now below $80 million in both Lot 13 and Lot 14, the F-35A unit cost represents an estimated overall 12.8 per cent reduction from Lot 11 costs for the conventional landing variant, and an average of 12.7 per cent savings across all three variants from Lot 11 to 14.

“Driving down cost is critical to the success of this program. I am excited that the F-35 Joint Program Office and Lockheed Martin have agreed on this landmark three-lot deal. This agreement achieves an average 12.7 per cent cost reduction across all three variants and gets us below $80 million for a USAF F-35A by Lot 13 – one lot earlier than planned,” said Air Force Lt. Gen. Eric Fick, F-35 Program Executive Officer. “This $34 billion agreement is a truly historic milestone for the F-35 Enterprise.”

The agreement includes 291 aircraft for the U.S. Services, 127 for F-35 International Partners, and 60 for F-35 Foreign Military Sales customers. Price details include:

 

Variant

Lot 12

Lot 13

Lot 14

% Reduction
from Lot 11*

F-35A

$82.4M

$79.2M

$77.9M

12.8%

F-35B

$108.0M

$104.8M

$101.3M

12.3%

F-35C

$103.1M

$98.1M

$94.4M

13.2%

*Please note: Final prices for F-35 variants following adjustments for
Congressional plus-ups and other contractual settlements are as
follows: F-35A – $89.3M; F-35B – $115.5M; and F-35C – $108.8M.
 

“With smart acquisition strategies, strong government-industry partnership and a relentless focus on quality and cost reduction, the F-35 Enterprise has successfully reduced procurement costs of the 5th Generation F-35 to equal or less than 4th Generation legacy aircraft,” said Greg Ulmer, Lockheed Martin, F-35 Program vice president and general manager. “With the F-35A unit cost now below $80 million in Lot 13, we were able to exceed our long-standing cost reduction commitment one year earlier than planned.”

The sub $80 million units recurring flyaway cost for an F-35 represents an integrated acquisition price for the 5th Generation Weapon System. With embedded sensors and targeting pods, this F-35 unit price includes items that add additional procurement and sustainment costs to legacy 4th Generation aircraft.

Program Progress

With more than 450 aircraft operating from 19 bases around the globe, the F-35 is playing a critical role in today’s global security environment. More than 910 pilots and 8,350 maintainers have been trained, and the F-35 fleet has surpassed more than 220,000 cumulative flight hours. Eight nations have F-35s operating from a base on their home soil and seven Services have declared Initial Operating Capability.

In addition to strengthening global security and partnerships, the F-35 provides economic stability to the U.S. and International Partners by creating jobs, commerce and security, and contributing to the global trade balance. The F-35 is built by thousands of men and women in America and around the world. With more than 1,400 suppliers in 46 states and Puerto Rico, the F-35 Program supports more than 220,000 direct and indirect jobs in the U.S. alone. The Program also includes more than 100 international suppliers, creating or sustaining thousands of jobs.

 

About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 105,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

SOURCE Lockheed Martin

Stay up to date

with the latest news from Aerospace!

Your email address will only ever be used for Newsletters campaings with the legal agreement of your Privacy Policy. You can change your email preferences or unsubscribe in every email if you no longer wish to receive emails from us.


TOP Interviews

Flying is a passion for me

Flying is a passion for me

Date 1.10.2019

fl_en|fl_cs

An Interview with Damian Hirschier,  a certified test pilot that holds an Airline Transport Pilot License with a Category 1 Flight Test Rating. He flew more than 130 different aircraft types ranging from gliders up to airliners including 15 first flights of prototypes. By Katerina S. Urbanova You have performed a flight in an electrical […]

OUR SECURITY CANNOT BE TAKEN FOR GRANTED

OUR SECURITY CANNOT BE TAKEN FOR GRANTED

Date 9.9.2019

fl_en|fl_cs

An interview with Mirek Topolanek, Former Prime Minister of the Czech Republic and co-founder of NATO Days   NATO Days are the biggest security show in Europe. Who first came up with the idea of organising this event? NATO Days in Ostrava and Czech Air Force Days are one of the biggest and most important […]

WE SEE AN OPPORTUNITY TO EXTEND OUR ACTIVITIES IN THE CZECH REPUBLIC

WE SEE AN OPPORTUNITY TO EXTEND OUR ACTIVITIES IN THE CZECH REPUBLIC

Date 17.7.2019

fl_en|fl_cs

Zodiac Aerospace, the company producing systems and equipment for aircraft, was merged with Safran group in February 2018 and divided into three companies. One of them, Safran Cabin, employs over 13,000 people today and has cooperated with Airbus on developing modern lower-deck modules. “We see a lot of opportunities coming from the merger, and mainly […]

I STILL LOVE FLYING!

I STILL LOVE FLYING!

Date 3.7.2019

fl_en|fl_cs

„My personal record shows that I have flown nearly 3000 displays in 39 countries as a team leader, which I believe is an absolute record. But I hope to add several hundreds more in the next seasons," says Jacques Bothelin, chief pilot and owner of Breitling Jet Team

Show more

Stay up to date

with the latest news from Aerospace!

Your email address will only ever be used for Newsletters campaings with the legal agreement of your Privacy Policy. You can change your email preferences or unsubscribe in every email if you no longer wish to receive emails from us.

More news

Aero Vodochody will double its revenues this year

Aero Vodochody will double its revenues this year

Date 20.1.2020

fl_en|fl_cs

Revenues of the biggest Czech aircraft manufacturer, AERO Vodochody AEROSPACE, will almost double up to 5-6 bn CZK (200-240 mEUR) this year in comparison to 2019. Such growth of Aero’s revenues will be strongly driven by new MRO businesses, ramp up on the A220 programme and start of industrialization of L-39NG new jet trainer and […]

Global Investment In Aviation Summit 2020  To Highlight Top Aviation Trends

Global Investment In Aviation Summit 2020 To Highlight Top Aviation Trends

Date 9.1.2020

fl_en|fl_cs

6 January 2020. UAE, Dubai.  The second edition of the Global Investment in Aviation Summit (GIAS 2020), which is stated to take place on January 27-29,  will highlight top aviation trends in 2020 and beyond, with a focus on the need to develop strategies that help pump more investments into the aviation sector and support […]

Starliner suffers “off-nominal” orbital insertion after launch

Starliner suffers “off-nominal” orbital insertion after launch

Date 20.12.2019

fl_en|fl_cs

After launching successfully at 6:36 a.m. EST Friday on the United Launch Alliance Atlas V rocket from Space Launch Complex 41 at Cape Canaveral Air Force Station in Florida, the Boeing Starliner space vehicle experienced an off-nominal insertion. The spacecraft currently is in a safe and stable configuration. Flight controllers have completed a successful initial […]

Innovation & Aviation Summit 2020

Innovation & Aviation Summit 2020

Date 17.12.2019

fl_en|fl_cs

Innovation & Aviation Summit 2020 is an international gathering of aviation & space innovators, professionals & experts in Prague. The event is organized under the auspice of the Ministry of Transport and the Ministry of Industry and Trade of the Czech Republic.   Meet the experts, innovators, investors, leaders, government officials, financiers, key stakeholders, event […]

Boeing Completely Suspends 737 MAX Production

Boeing Completely Suspends 737 MAX Production

Date 17.12.2019

fl_en|fl_cs

The U.S. plane manufacturer said on Monday it would put the greatest importance on the delivery of the 400 737 MAX jets it had made since the model was grounded globally rather than feeding more aeroplanes into production. Boeing statement: Safely returning the 737 MAX to service is our top priority. We know that the […]

IoT expected to reshape aviation industry

IoT expected to reshape aviation industry

Date 15.12.2019

fl_en|fl_cs

 Global spending on the Internet of Things (IoT) is predicted to reach $745 billion in 2019, and like other industries, the aviation sector is also weighing upon to adopt smart technology to improve passenger experience to airport maintenance and cockpit connectivity.  Furthermore, airport facility automation is one of the benefits of the use of IoT, […]

Show more
Subscribe to our magazineRegister now