Reuters reports today that the US Department of Defense is close to an agreement with Lockheed Martin
LOCKHEED MARTIN CORP
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To purchase 375 F-35s over three years, in anticipation of rising prices in most versions of the advanced aircraft.
The F35s carried a generous price tag of $ 221 million per aircraft when production began sometime in 2007. Since then prices have plummeted to $ 79 million as the number of buyers has increased and the company has streamlined production processes in parallel.
The current negotiations, which are supposed to resume the purchase of the aircraft after the previous contract came to an end, have been stalled for several weeks, but it is now known that the talks have been accelerated and may soon end in a deal that includes quantities and prices. It is estimated that the prices will not be completely locked in the coming months, but the final amount is estimated at about $ 30 billion.
The company recently estimated that aircraft prices may climb due to supply chain difficulties and inflation affecting production costs as well as given the expected decline in sales. While before the Corona the company expected to sell 485 aircraft in the next three years now the expectation is for the 22% lower quantity, which may raise the price.
The previous agreement signed in 2019 included 478 aircraft and amounted to a price tag of $ 34 billion. The larger quantity than the current one allowed Lockheed to lower the price by about 8%.
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