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Reuters: Pentagon wants 5%-7% price savings for Lockheed's F-35 program

Published 04/10/2017, 02:31 PM
© Reuters.  Reuters: Pentagon wants 5%-7% price savings for Lockheed's F-35 program
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  • Lockheed Martin (LMT -0.3%) and the U.S. Defense Department could trim at least 5% off the price of F-35 fighter jets in their upcoming annual purchase contract, as the standard version of the plane heads toward a price of less than $80M, Reuters reports.
  • Current negotiations are for a batch of ~130 planes, and the talks could shave 5%-7%, or $660M, from the ~100 standard takeoff and landing "A-model" jets for the U.S. Air Force and U.S. allies, according to the report.
  • Pres. Trump and other U.S. officials have criticized the F-35 program for delays and cost overruns, but the price per jet has steadily declined in recent years as production increases.


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