More Than 120 Airplanes To Be Pushed Into The Future

In an effort to save some $15 billion over five years, the Pentagon on Wednesday said it was considering a production delay for about 120 F-35 Joint Strike Fighters in the third schedule re-vamp in as many years.

President Barack Obama and Defense Secretary Leon Panetta met Thursday to discuss overall defense spending, and it was expected that there would be continued support for the JSF program. Sources close to the negotiations not authorized to speak to the media told Reuters that the specifics of the plan would not be revealed until after the President formally introduces his budget.

Defense Consultant Jim McAleese told the news service that there would likely be a significant delay in ramping up the program, delaying as many as 120 of the aircraft to the later years of the contract. The shift could save as much as 25 percent of the program's cost, the largest in U.S. DoD history.

Another analyst, Rob Stallard with RBC Capital Markets, told Reuters that ongoing defense cuts could reduce the number of planes eventually procured by the services, though it was not certain how many fewer might be produced. He downgraded Lockheed Martin stock to 'Underperform' based on his analysis.

FMI: www.dod.gov, www.lockheedmartin.com