Lockheed Martin Corp. (NYSE: LMT) reached a handshake agreement with the F-35 Joint Program Office for Lot 11 of F-35 aircraft for a reduced price, the company announced Sunday.

The goal has been to reduce the cost of an F-35 to $80 million by 2020 so the price will be comparable with fourth-generation fighter jets. The F-35, a fifth-generation jet, is considered to be one of the most technologically advanced military jets in the world.

The company is not releasing details about the specific price of the Lot 11 aircraft yet, but Reuters reported Sunday morning the price tag has dipped for the F-35A, the most common variant of the aircraft, by 6 percent to $89 million per plane. An F-35A in Lot 10 cost $94.3 million.

"The unit price for all three F-35 variants went down significantly in the latest negotiation, demonstrating the program's continued progress, maturity and cost reduction," the company said in a prepared statement.

"This latest agreement," the company added, "along with the technical stability of the aircraft, puts us on a great path to negotiate Lots 12, 13 and 14 as a Block Buy, which will generate additional savings for our customers."

Lot 11 includes 141 aircraft for the U.S. military, International Partner Nations and Foreign Military Sale customers. Turkey, despite opposition from the U.S. Senate, recently became the ninth international country to receive an F-35.

The F-35 is primarily manufactured in the company's Fort Worth plant. Between Lockheed Martin's Aeronautics division in Fort Worth and its Missiles and Fire Control business unit headquartered in Grand Prairie the company

By: DocMemory
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