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."

FMI: www.lockheedmartin.com, www.teamjsf.com