Pentagon Nears F-35 Jet Deal Worth $30-B

According to three sources on Monday, the U.S. Department of Defense is close to reaching an agreement with Lockheed Martin Corp. for roughly 375 F-35 fighter fighters over three years, despite estimates of a price hike for the most common version of the jet owing to lower quantities and inflation.

Photo Insert: The F-35 is available in three different variants: the A model for the US Air Force and US allies, the B variant for short takeoffs and vertical landings, and the C variant for use on aircraft carriers.

When the first F-35A was completed in 2007, it had a price tag of $221 million. According to a Reuters article written by Mike Stone on July 19, 2022, the price of the stealthy fifth-generation fighter has dropped to $79 million as a result of increasing production volumes and manufacturing competence.

Two sources involved with the talks said progress had slowed in recent weeks due to disagreements over data rights. However, a "handshake" decision on both pricing and quantity is possible after a meeting on Monday afternoon in Washington, according to the people.

Although the exact price tag wouldn't be known for weeks or months even if an agreement were struck, estimates put the sum somewhere around $30 billion.

Even if the only records anticipated to be broken at the event in southern England are for hot temperatures, the handshake agreement would come as the aviation industry gathered for the return of the Farnborough Airshow, seeking a display of confidence after the tragedy of COVID-19.

Lockheed warned that the cost of the plane could go up when economies of scale were eroded and supply chains slowed due to the pandemic.

There was a prediction that 485 planes would be included in this three-year procurement before the pandemic hit, but the 22 percent drop in volume would have an effect on the price of the F-35A.

The F-35 is available in three different variants: the A model for the US Air Force and US allies, the B variant for short takeoffs and vertical landings, and the C variant for use on aircraft carriers. As much as 27 percent of Lockheed's income comes from the F-35 aircraft development.

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