Lockheed Martin says price increase of F-35 Lightning II fifth-generation fighter jets inevitable
U.S. company Lockheed Martin predicts that it will have to face an increase in the cost of F-35 Lightning II aircraft after years of declining prices.
Here's What We Know
In an interview with Defense News, Edward Smith, director of F-35 production, said the company is already preparing to begin deliveries of the first fighters under the Lot 15 contract. The manufacturer will begin shipping the planes late next year.
Nevertheless, Lockheed Martin has encountered difficulties in negotiating Lot 15 to Lot 17 shipments due to the "recent economic turmoil." Here, we're talking primarily about the record inflation in the last 50 years and supply chain disruptions caused by the 2020 coronavirus pandemic.
The cost of the F-35A Lightning II has been dropping for several years. The company was able to lower the price of the fighter jet from $89 million in Lot 11 to $78 million in Lot 14. But due to a decrease in the number of aircraft being purchased, an expansion of the aircraft's capabilities and a pandemic in the next batches, the Lightning II's cost will be increased.
Lockheed Martin produced 142 aircraft in 2021, and the company plans to produce at least 148 fighters by the end of this year (but no more than 153), nearly 30 more than in 2020. The manufacturer believes that in 2023 the production volume of the F-35 will remain at the level of the current year.
At the same time Smith notes that the shortage of components will increase in the coming years. And the problem will be not only consequences of pandemic COVID-19, but also the war in Ukraine, as Lockheed Martin will receive a part of materials from Europe.
The American company launched production of a batch of Lot 15 fighters. These aircrafts will be the first to offer the Technology Refresh 3 package. This upgrade will be the main for the Block 4 level upgrade, which will allow the F-35 Lightning II to carry more weapons.
It's worth noting that a Defense News reporter interviewed at Air Force Plant 4, which is located in Fort Worth. The company began operations 80 years ago. It produced B-24 Liberator and B-32 Dominator bombers, which took part in World War II. Over the 80 years, the plant produced the F-111 Aardvark, F-16 Fighting Falcon and parts of the F-22 Raptor.
Today, Air Force Plant 4 is the primary production site for the F-35 Lightning II and the only Lockheed Martin facility that produces all three variants of the fifth-generation fighter (F-35A, F-35B and F-35C) in three shifts. They are supplied to the U.S. Navy, Air Force and Marine Corps, as well as to allied countries including the United Kingdom, Denmark, Norway, Israel and Belgium.
Source: Defense News
