Cons@minority%
2012-04-05 23:08:49 UTC
U.S. estimate of F-35 costs continues rising
American defence cuts
While the global forecast for the F-35 is cloudy, Lockheed Martin has to be concerned also
about the storm warnings at home in the U.S.
The government is trying to reduce military spending and officials have warned orders will be
cut if costs continue rising.
"We have told the contractor and the program office that there is no more money," Michael
Donley, the U.S. secretary of the air force, said on March 20.
But the amount of money that is in the pot is still substantial. The 19 F-35As that the U.S.
will acquire in fiscal year 2013 will cost $197 million each. In 2001, the projected cost for
these jets was $69 million.
The cost per plane is expected to drop later in the production cycle, assuming the order
numbers do not.
Over the course of the U.S. program, the "average" cost of acquiring each F-35 should be about
$162 million each, according to Pentagon figures.
The Canadian government has estimated its 65 F-35s will cost just $75 million each to acquire.
But the parliamentary budget officer pegs that number at $148 million.
*******************************************************
"We CAN look after each other better than we do today.
We CAN have a fiscally responsible government.
We CAN have a strong economy; greater equality; a clean environment.
We CAN be a force for peace in the world." - Jack Layton
American defence cuts
While the global forecast for the F-35 is cloudy, Lockheed Martin has to be concerned also
about the storm warnings at home in the U.S.
The government is trying to reduce military spending and officials have warned orders will be
cut if costs continue rising.
"We have told the contractor and the program office that there is no more money," Michael
Donley, the U.S. secretary of the air force, said on March 20.
But the amount of money that is in the pot is still substantial. The 19 F-35As that the U.S.
will acquire in fiscal year 2013 will cost $197 million each. In 2001, the projected cost for
these jets was $69 million.
The cost per plane is expected to drop later in the production cycle, assuming the order
numbers do not.
Over the course of the U.S. program, the "average" cost of acquiring each F-35 should be about
$162 million each, according to Pentagon figures.
The Canadian government has estimated its 65 F-35s will cost just $75 million each to acquire.
But the parliamentary budget officer pegs that number at $148 million.
*******************************************************
"We CAN look after each other better than we do today.
We CAN have a fiscally responsible government.
We CAN have a strong economy; greater equality; a clean environment.
We CAN be a force for peace in the world." - Jack Layton