Lockheed Martin Corporation (LMT) Plans to Reduce F-35 Cost

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Lockheed Martin Corporation (NYSE:LMT) is an aerospace and security company which operates globally and engages in R&D, Design, manufacturing of technology. Principal customers of the company are agencies of the US Government. F35’s first hit the sky in 2006 and since then many variants have come. Lockheed Martin is currently working on fifth generation F35 and targeting a cost reduction. CNBC’s Jane Wells reports regarding the aerospace giant’s announcement and the risk that they are carrying with them.

Lockheed Martin Corporation (NYSE:LMT), fifth generation F35 issues, Pentagon, F35 cost reduction

Wells said that everyone is waiting to see if Lockheed Martin Corporation (NYSE:LMT) will debut their F35 at the Farnborough Air show in England. The engine fire issue has forced Pentagon to ground the F35 Fleet. Amidst all these issues, the company has announced an agreement with Pentagon to reduce the F35 firth generation cost to the price of fourth generation by end of the decade.

She said that Lockheed Martin Corporation (NYSE:LMT) along with Northrop Grumman Corporation (NYSE:NOC) and their major sub-contractors BAE Systems is planning to invest $170 million to investigate affordability measure over the span of next 2 years. The hope is that if initial investigation shows some success then US Government might pitch in with some investment to continue the investigation. F35 will be unrivalled in the fighter jet sector both in cost and capability point of view by 2019 if everything goes according to the plan.

“We expect that the F-35 with its unprecedented fifth generation capability will be nearly equal in cost to any other fighter on the market but with far more advanced capability” Wells quoted from Lockheed Martin’s announcement.

Wells said that Phil Lebeau will be available at Farnborough during the air show and interview CEO of Lockheed Martin Corporation (NYSE:LMT) during the debut of F35. But if the currently prevailing engine fire issues prevent the F35 debut from happening, then she feels that it will be big embarrassment to the company.

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  1. The Lockheed Martin F35 is going down as the biggest disaster in aviation history.

    The F35 is NOT stealth which was its only selling point. The International Aviation Authority has already confirmed this, the F35 can be picked up by Russia’s radars, you know, the ones the Chinese are also buying!.

    The F35 is far more expensive than any of the EU made fighter jets, so why would any European country take on the endless F35 troubles when they can buy a better fighter jet at a cheaper price that is also interoperable with the rest of the EU military technology.

    Canada knows that a single engine fighter jet could easily get taken out by birds, they have a history of having this problem with single engine fighter jets. And the Canadians are only too aware of what a dud the F35 is.

    The main reason the F35′s international debut is ‘Up in the air’ is because the F35 is a total dud, a scam, and an abysmal failure. It would be too embarrassing to have the F35 at this air show because it would show the F35 up for what it is – a total failure.

    The F35 is going the way of the F22, in the end it will not be sold to anyone, not for security reasons but because it is such a disaster the US will not allow anyone else to have it.

    The F35 is going to turn America into a laughing stock it is so bad.

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