Thom Patterson
The aircraft maker is nearing a deal worth between $35 billion and $40 billion to supply 440 F-35 Lightning II Joint Strike Fighter jets to the United States and 10 allied nations over the next several years, Lockheed (LMT) executive Jeff Babione said on Monday at the Paris Air Show.
"This more than doubles the total amount of airplanes under contract, and that we'll be building," Babione said of the agreement with governments to ramp up production of the world's most sophisticated fighter jet.
The deal promises big economic benefits. It would secure jobs at Lockheed and international partner factories in Texas, Italy and Japan, where more than 140 jets are now in production. The deal would support about 150,000 jobs worldwide connected to the program and a projected 200,000 jobs that eventually would be added, Babione said.
If concluded, the agreement would bring much needed relief to Lockheed's troubled program, which carries an estimated total cost of $400 billion. The company has been under pressure from President Trump to lower the price tag of each individual plane.
Trump has made no secret about his dislike for expensive government aircraft programs. In April, he touted his prowess as a negotiator and promised to save money on the expensive F-35. His comments followed a statement from Lockheed in February that credited Trump for helping to accelerate negotiations.
http://money.cnn.com/2017/06/19/news/companies/lockheed-martin-f35-fighter-jet-deal/index.html
