Posted on Oct 23, 2015
Pentagon expects USD1 million unit price increase if Canada leaves F-35 programme
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Pentagon expects USD1 million unit price increase if Canada leaves F-35 programme
Canada's threatened departure from the Lockheed Martin F-35 Lightning II combat aircraft programme could raise the price of the stealthy jets for the remaining customers, according to US Air Force Lieutenant General Chris Bogdan, the Pentagon's F-35 programme manager.
Lt Gen Bogdan told lawmakers on 21 October that "if any partner, or any service, moves airplanes to the right, takes airplanes out, the price of the airplane for all the other partners and all the other services goes up".
He said, in the case of Canada's potential termination, his office has estimated the increase in price at 0.7% to 1% or "about a million dollars a copy".
International partners would also be obligated to absorb Canada's 2.1% share in the cost of sustainment and follow-on modernisation, the general added. However, there would be no impact to the F-35 development effort, which ends in 2017.
Canadian prime minister-designate Justin Trudeau promised to end participation in the F-35 programme while campaigning this year. He has said that he would instead replace Canada's ageing fleet of Boeing CF-18s with a less costly alternative, arguing that the F-35 is not needed to defend Canada. Ottawa has not yet announced a policy decision.
http://www.janes.com/article/55466/pentagon-expects-usd1-million-unit-price-increase-if-canada-leaves-f-35-programme
Canada's threatened departure from the Lockheed Martin F-35 Lightning II combat aircraft programme could raise the price of the stealthy jets for the remaining customers, according to US Air Force Lieutenant General Chris Bogdan, the Pentagon's F-35 programme manager.
Lt Gen Bogdan told lawmakers on 21 October that "if any partner, or any service, moves airplanes to the right, takes airplanes out, the price of the airplane for all the other partners and all the other services goes up".
He said, in the case of Canada's potential termination, his office has estimated the increase in price at 0.7% to 1% or "about a million dollars a copy".
International partners would also be obligated to absorb Canada's 2.1% share in the cost of sustainment and follow-on modernisation, the general added. However, there would be no impact to the F-35 development effort, which ends in 2017.
Canadian prime minister-designate Justin Trudeau promised to end participation in the F-35 programme while campaigning this year. He has said that he would instead replace Canada's ageing fleet of Boeing CF-18s with a less costly alternative, arguing that the F-35 is not needed to defend Canada. Ottawa has not yet announced a policy decision.
http://www.janes.com/article/55466/pentagon-expects-usd1-million-unit-price-increase-if-canada-leaves-f-35-programme
IHS Jane's
Canada
F-35
Posted 9 y ago
This is a duplicate discussion. Click below to see more on this topic.
Pentagon expects USD1 million unit price increase if Canada leaves F-35 programme
Canada's threatened departure from the Lockheed Martin F-35 Lightning II combat aircraft programme could raise the price of the stealthy jets for the remaining customers, according to US Air Force Lieutenant General Chris Bogdan, the Pentagon's F-35 programme manager.
Lt Gen Bogdan told lawmakers on 21 October that "if any partner, or any service, moves airplanes to the right, takes airplanes out, the price of the airplane for all the other partners and all the other services goes up".
He said, in the case of Canada's potential termination, his office has estimated the increase in price at 0.7% to 1% or "about a million dollars a copy".
International partners would also be obligated to absorb Canada's 2.1% share in the cost of sustainment and follow-on modernisation, the general added. However, there would be no impact to the F-35 development effort, which ends in 2017.
Canadian prime minister-designate Justin Trudeau promised to end participation in the F-35 programme while campaigning this year. He has said that he would instead replace Canada's ageing fleet of Boeing CF-18s with a less costly alternative, arguing that the F-35 is not needed to defend Canada. Ottawa has not yet announced a policy decision.
http://www.janes.com/article/55466/pentagon-expects-usd1-million-unit-price-increase-if-canada-leaves-f-35-programme
Canada's threatened departure from the Lockheed Martin F-35 Lightning II combat aircraft programme could raise the price of the stealthy jets for the remaining customers, according to US Air Force Lieutenant General Chris Bogdan, the Pentagon's F-35 programme manager.
Lt Gen Bogdan told lawmakers on 21 October that "if any partner, or any service, moves airplanes to the right, takes airplanes out, the price of the airplane for all the other partners and all the other services goes up".
He said, in the case of Canada's potential termination, his office has estimated the increase in price at 0.7% to 1% or "about a million dollars a copy".
International partners would also be obligated to absorb Canada's 2.1% share in the cost of sustainment and follow-on modernisation, the general added. However, there would be no impact to the F-35 development effort, which ends in 2017.
Canadian prime minister-designate Justin Trudeau promised to end participation in the F-35 programme while campaigning this year. He has said that he would instead replace Canada's ageing fleet of Boeing CF-18s with a less costly alternative, arguing that the F-35 is not needed to defend Canada. Ottawa has not yet announced a policy decision.
http://www.janes.com/article/55466/pentagon-expects-usd1-million-unit-price-increase-if-canada-leaves-f-35-programme
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