Markets | Fri Jun 10, 2016 9:04am EDT
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Lockheed hopes to complete delayed F-35 contracts soon
http://www.reuters.com/article/lockheed-fighter-contract-idUSL8N19230KLockheed Martin Corp, the Pentagon's top supplier, on Friday said it hoped to complete quickly long-delayed contract negotiations with the Pentagon for the next two batches of F-35 fighter jets, orders worth about a combined $15 billion.
Jack Crisler, vice president of business development for Lockheed's F-35 program, told Reuters the negotiations were continuing nearly every day, and the two sides were "really close" to an agreement for the more than 150 aircraft in the net two batches.
Lockheed and Pentagon officials had initially hoped to complete the negotiations by the end of the year, and later moved their target to the end of March, only to miss that mark as well.
Crisler said the discussions were complicated by the scope of the contract - which includes over 150 aircraft - and the subcontractors involved.
"It becomes more and more difficult as you get closer to the end," Crisler said. He declined to give any details about the substance of the negotiations.
A source familiar with the process confirmed that the two sides had made progress and were nearing agreement.
"We're aiming to get it done within the next month," said the source, who was not authorised to speak publicly.
Top officials from Lockheed and its main suppliers, Northrop Grumman Corp and BAE Systems Plc, as well as engine maker Pratt & Whitney, a unit of United Technologies Corp , will be in Britain early next month when the F-35 is due to fly at the Royal International Air Tattoo, a large air show outside London, and the Farnborough Airshow a week later.
Crisler said it was possible that the contracts could be completed in time for the air shows.
(Reporting by Andrea Shalal, editing by David Evans)
