Large Defense Budget Seen As Opportunity For US Company

While the rest of the world struggles with a dip in the economy, spending in the defense segment of aviation and aerospace remains very robust. Lockheed Martin says it's weathering the economic crisis well, and is reaching out to Israel to buy its F-35 Joint Strike Fighter to keep its outlook bright.

Reuters reports Israel has not partnered on the plane's development, but is eligible to buy it when production starts early in the next decade. So far, Israel has expressed satisfaction with its F-16s, and has even talked of buying more of them when the last four of 102 being produced under its current contract are delivered in January.

During a sales trip to Israel Sunday, company executives were reportedly told part of the resistance to a sale stems from limited involvement in the plane's production by Israeli companies. Lockheed Chief Executive Robert Stevens says he put that back on the Israeli's, telling reporters, "The earlier one can participate in a program, the greater the amount of participation."

Like Lockheed, Israel's economy seems to be weathering the current economic downturn well... aided in no small part by significant US defense funding support. Asked whether the country's large remaining defense budget was one reason for the company's level of attention to Israel, Lockheed Senior VP Robert Trice responded simply, "yes."

US officials predict Israel could sign on the dotted line early next year for F-35s, at about $40 million per plane. The bulk of the money to pay for them would come from defense grants from the US.

FMI: www.lockheedmartin.com, www.iaf.org.il