The US Defense Department and Lockheed Martin Corp. are nearing a deal that would lower the price of F-35 fighter jets to under $100 million per plane for the first time under a contract worth almost $9 billion, according to a report.
President-elect Donald Trump has slammed the costs of military hardware — including the stealthy F-35, the Pentagon’s costliest arms program — during his transition to the White House.
Though he has assailed the F-35 program as too expensive, the price per jet has already been dropping.
Jeff Babione, the F-35 program manager for prime contractor Lockheed, said during the summer that the price of the F-35A takeoff-and-landing version of the jet would drop to under $100 million per plane.
Talks are continuing for the 10th batch of F-35s, with a deal for 90 jets expected to be announced by the end of the month, three people told Reuters on condition of anonymity.
A Lockheed rep declined to comment and one for the fighter program said negotiations were ongoing.
The Defense Department expects to spend $391 billion in the coming decades to develop and buy 2,443 of the supersonic warplanes.
Lockheed and its partners have been working on building a more cost-effective supply chain for the production line in Fort Worth, Texas.
The F-35 comes in three configurations: the A-model for the US Air Force and American allies; a B-model than can handle short takeoffs and vertical landings for the Marine Corps and the British navy; and a carrier-variant C-Model for the US Navy.
Lockheed and its main partners — including Northrop Grumman Corp., United Technologies Corp.’s Pratt & Whitney and BAE Systems — have been developing and building F-35s for the US and 10 of its allies.
