Boing stands to gain from Lockheed Martin's continued delays with the F-35 fighter program
For the second time in just a year, the F-35 fighter program utilizing planes built by Lockheed Martin Corp has required adjusted timelines. The joint effort between the United States and eight international countries has run into numerous delays, budget overruns and other technical issues, especially in the last few years.
Robert Gates, Defense Secretary, announced that the radar evading F-35 super fighter would fall prey to cost reduction plans. The Marine Corps version is in danger of being completely canceled if technical challenges aren’t solved within the time frame allotted to the program.
The total cost of the program comes in at $382 billion.
Part of the changes include a reduction in the number of planes ordered from Lockheed, down to 325 F-35s through 2016 from the original 449 ordered. This will represent a savings of $4 billion over the next five years.
As an interim supplement, the Pentagon said it would buy 41 F/A-18 warplanes from Boeing Co over the next three year period. This helps supplement needs during the slowed production schedule of the Lockheed plane. The deal represents an estimated $2 billion for Boeing plus a contract with General Electric Co for engine orders.
Once the F-35 is ready for delivery, it’s still not known how soon each of the three branches of military will be able to put the plane into combat action.
