Last Update 11:4
Tuesday, 16 July 2019

Pentagon agrees first multiyear purchase of F-35 jets, worth $34 billion

Reuters , Monday 10 Jun 2019
Share/Bookmark
Views: 1114
Share/Bookmark
Views: 1114

The U.S. Department of Defense has a “handshake” agreement that would cut the price of the F-35A fighter jet by 8.8% and bring the price of each Lockheed Martin Co aircraft below $80 million dollars a year earlier than expected, a Pentagon official said in a statement on Monday.

The agreement is preliminary and a final deal is expected to be sealed in August for the 12th batch of jets, one of the most expensive aircraft ever produced.

The preliminary agreement is expected to produce a three-year deal for the United States and 11 allies that the Pentagon said will be worth $34 billion for 478 F-35 fighter jets.

The first-ever multiyear agreement for the jets represents a shift in sales practices from annual purchases to more economic multiyear deals that lower the cost of each jet.

It will lower the price of the F-35A, the most common version of the aircraft, by 8.8% to $81.35 million from $89.2 million under a deal inked in August 2018, Under Secretary of Defense Ellen Lord said in a statement to Reuters.

In the next two years, the price of each jet will drop below $80 million, Lord said.

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.