Monday, October 29, 2012

Lockheed Sees Huge Billion Dollar Liability If F-35 Program Delayed

An F-35C Lightning II test aircraft piloted by Lt. Christopher Tabert launches for the first time from the new electromagnetic aircraft launch system. The new launch system will be installed on the aircraft carrier USS Gerald R. Ford (CVN 78). The F-35C carrier variant of the Joint Strike Fighter is distinct from the F-35A and F-35B variants with its larger wing surfaces and reinforced landing gear to withstand catapult launches and deck landing impacts associated with the demanding aircraft carrier environment. Initial carrier trials for the F-35C are scheduled for 2013. The F-35C is undergoing test and evaluation at Naval Air Station Patuxent River and Joint Base McGuire-Dix-Lakehurst before delivery to the fleet. (U.S. Navy photo by David Sckrabulis/Released)

Lockheed Sees $1.1 Billion Liability If F-35 Deal Delayed -- Aviation Week

U.S. weapons maker Lockheed Martin said on Thursday it faced a potential termination liability of $1.1 billion on the F-35 fighter program unless it received additional funding for production of a sixth batch of airplanes by year end.

Lockheed disclosed the potential exposure in a filing with the U.S. Securities and Exchange Commission a day after company officials cited “great progress” on the fighter jet program.

Chief Financial Officer Bruce told analysts on Wednesday that Lockheed expected to finalize a contract with the U.S. government for a fifth batch of fighter jets in the fourth quarter, which would help free up additional funding for planes in a sixth order.

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My Comment: So much for Lockheed saying that they are making "great progress" on the F-35 fighter jet program.

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