Hopes Early Orders Will Lower Program Risks
Hoping to show support for its upcoming F-35 Lightning II
advanced fighter -- and bring some much-needed outside capital into
the program, which is significantly
over-budget -- Lockheed Martin has asked key allies to
place early orders for the plane.
The aircraft -- also known as the joint-strike fighter (JSF) --
is still in the early stages of its development program, with one
test plane flying. But Lockheed is working on a detailed plan
showing cost, order and delivery schedules for the plane, in hopes
of drawing orders to the program... and away from foreign
competitors, including the Eurofighter Typhoon and Saab's updated
Gripen.
The US aerospace giant hopes to attract orders from the eight
countries that have assisted in the plane's development, according
to the Fort Worth Star-Telegram. Lockheed is offering those
countries multi-year purchase deals, setting firm delivery dates in
exchange for guaranteed pricing, and a large percentage of payment
upfront.
That plan -- common for commercial aircraft producers like
Boeing, but far from the norm for US military procurement -- would
place additional pressure on Lockheed and its prime contractors to
complete the F-35 on schedule. Getting early orders for the plane
should drive down purchase and production costs, which would make
the plane far more attractive to Pentagon weapons purchasers
considering their own orders for the F-35.
"The importance is stability," said Lockheed F-35 program
vice-president Dan Crowley. "Stability of production, stability of
cost."
To date, Great Britain and the Netherlands are expected to
purchase three F-35 test planes between them, with the US signing
on for 16 aircraft in FY2009. While none of the other partner
countries on the F-25 have committed to buying their own JSFs, the
fact all eight have stuck with the development program in the face
of stiff foreign competition is encouraging for Lockheed, says
analyst Richard Aboulafia.
Lockheed courted weapons buyers from Denmark, Norway and the
Netherlands last month. Those countries are also considering the
Swedish-made Gripen.
"We made a strong proposal," said Tom Burbage, Lockheed's
executive VP overseeing political and marketing aspects of the
F-35. "We're competitive on price, and we're a much more capable
airplane."