Lockheed Martin has entered an initial production and sustainment agreement with the US Department of Defense for at least 850 F-35 Lightning II fighter jets over the next ten years, the company and the department said on Thursday.
Source: Reuters
Under the framework, Lockheed will self-fund at least $7 billion in initiatives supporting the F-35 programme — yaani more than seven arab dollars of the company's own money — and aims to maintain annual production at 156 aircraft. The agreement also covers international orders for the F-35, as well as initial spares and modification kits, Lockheed said in its statement.
Both sides were clear about what the deal is not: it does not constitute an order. It is a prearranged long-term framework, and Lockheed said that if multi-year authority is granted in the coming months, the F-35 Joint Program Office and the company will finalise contract terms, pricing and schedules through a formal contract award.
At least 850 jets over 10 years; production target of 156 aircraft a year; at least $7 billion (yaani 7 arab dollar) in self-funded Lockheed initiatives. Lockheed estimates the agreement will support 317,000 US jobs and generate nearly $79 billion (yaani kareeb 79 arab dollar) in annual economic activity over the decade — figures provided by the company.
"We have fundamentally changed how we stabilize the American defense industrial base to produce at speed and scale," Under Secretary of Defense Michael Duffey said. "This agreement with Lockheed Martin proves it."
A global fleet, not just an American one
The F-35, built with stealth technology designed to evade enemy detection, is at the core of Lockheed's aeronautics division, which forms close to 40% of the company's quarterly revenue. The jet is flown by the US and a growing list of allied air forces, which is why a ten-year production framework in Washington shapes procurement planning far beyond the United States. Lockheed and its peers have benefited from increased global defence spending as conflicts continue, Reuters noted.
What is solid
- Lockheed Martin and the Pentagon announced an initial framework on Thursday covering production and sustainment of at least 850 F-35 jets over ten years, with a production target of 156 aircraft a year.
- Lockheed will self-fund at least $7 billion in programme initiatives, and the framework also covers international orders, initial spares and modification kits.
- The framework is not a formal order: final terms, pricing and schedules depend on multi-year authority and a later contract award.
What is only claimed
- The jobs and economic figures — 317,000 US jobs and nearly $79 billion in annual economic activity — are Lockheed Martin's own estimates, not independently verified numbers.