Lockheed, Pentagon reach deal on next 90 F-35s

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In November, U.S. Air Force Lt. Gen. Chris Bogdan, the F-35 Program's Executive Officer, predicted that the sides would meet at about a 6 - 7 percent reduction in prices for Friday's announced deal, but Trump's pressure appears to have pushed it to about a 9 percent cut.

The deal includes two F-35C jets created to deploy from carriers for the Navy, a dozen F-35B vertically-launched fighters for the Marines and allied nations, plus 76 F-35A jets that use conventional runways and are bound for the Air Force and allies.

"Lot 10 reflects a $728 million reduction in the total price when compared to Lot 9 and marks the first time the price for an F-35A is below $100 million", the JPO states.

Shares are up 1.1%. "The agreement was reached in a matter of weeks and represents significant savings over previous contracts".

The price per unit will be $94.6 million for the F-35A, $122.8 million for the F-35B and $121.8 million for the F-35C.

The short takeoff and vertical landing B model used by the Marines and the United Kingdom will run $122.8 million per unit.

The agreement, worth $8.5 billion for 90 Joint Strike Fighters, would bring the cost of the F-35 to its lowest point ever.

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"The. contract is a good and fair deal for the taxpayers, the USA government, allies, and industry", said Bogdan in a written statement.

Earlier this week, President Trump signaled that the contract was nearing completion, telling reporters that Lockheed had trimmed $600 million in costs from the next contract and that the F-35 program was now in "great shape".

White House Press Secretary Sean Spicer declared it "another big win that the president has delivered on for US taxpayers". "We continue to work with Industry to drive costs out of the program".

Lockheed and its main partners have been developing and building F-35s for the USA military and 10 allies.

However, defence analysts have said that a subsequent discount, which Donald Trump announced at the end of January, was in line with what had been flagged by Lockheed and Pentagon officials for months.

Last week, U.S. Defense Secretary James Mattis ordered reviews of the F-35 Joint Strike Fighter and Air Force One after meeting with the president. The Pentagon subsequently said the F-18 would be considered as an alternative to the F-35C, a more expensive variant that accounts for a very small portion of the overall program.

Planes procured in LRIP 10 will be delivered in 2018.

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