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September 28, 2018 | International, Aerospace

PENTAGON AND LOCKHEED MARTIN AGREE TO REDUCED F-35 PRICE IN NEW PRODUCTION CONTRACT

F-35A Aircraft Now Below $90 Million

FORT WORTH, Texas, Sept. 28, 2018 /PRNewswire/ -- The U.S. Department of Defense and Lockheed Martin (NYSE: LMT) have finalized an $11.5 billion contract for the production and delivery of 141 F-35 aircraft at the lowest per aircraft price in program history.

For the eleventh consecutive year, the cost of an F-35A was lowered. The F-35A unit price including aircraft, engine and fee, is $89.2 million. This represents a 5.4 percent reduction from the $94.3 million it cost for an F-35A in Low-Rate Initial Production Lot 10 (LRIP 10).

In LRIP 11, the F-35B unit cost was lowered to $115.5 million. This represents a 5.7 percent reduction from the $122.4 million it cost for the short-takeoff and landing variant in LRIP 10. The F-35C unit cost was lowered to $107.7 million. This represents an 11.1 percent reduction from the $121.2 million it cost for the carrier variant in LRIP 10. The LRIP 11 agreement funds 91 aircraft for the U.S. Services, 28 for F-35 International Partners and 22 for F-35 Foreign Military Sales customers. Deliveries will begin in 2019.

"Driving down cost is critical to the success of this program," said Vice Admiral Mat Winter, F-35 Program Executive Officer. "We are delivering on our commitment to get the best price for taxpayers and warfighters.

"This agreement for the next lot of F-35s represents a fair deal for the U.S. Government, our international partnership and industry. We remain focused on aggressively reducing F-35 cost and delivering best value."

With stealth technology, supersonic speed, powerful sensors, large weapons capacity and global deployment, the F-35 is the most advanced fighter aircraft ever built, enabling women and men in uniform to execute their mission and return home safely. More than a fighter jet, the F-35's ability to collect, analyze and share data, is a powerful force multiplier that enhances all airborne, surface and ground-based assets in the battlespace.

"This agreement marks a significant step forward for the F-35 program as we continue to increase production, reduce costs and deliver transformational capabilities to our men and women in uniform," said Greg Ulmer, F-35 Vice President and General Manager. "As production ramps up, and we implement additional cost savings initiatives, we are on track to reduce the cost of the F-35A to $80 million by 2020, which is equal to or less than legacy aircraft, while providing a major leap in capability."

Program Progress

The latest contract is a demonstration of the program's progress and maturity, as industry and the government now set their sights on future acquisition approaches for the next three production lots to further reduce costs.

With more than 320 aircraft operating from 15 bases around the globe – the F-35 is playing a critical role in today's global security environment. More than 680 pilots and 6,200 maintainers have been trained and the F-35 fleet has surpassed more than 155,000 cumulative flight hours. The F-35 weapons system reliability continues to improve through a combination of hardware and software improvements.

In addition to advanced capability, the F-35 provides economic stability to the U.S. and Allied nations by creating jobs, commerce and security, and contributing to the global trade balance. The F-35 is built by thousands of men and women in America and around the world. With more than 1,500 suppliers in 46 states and Puerto Rico, the F-35 program supports more than 194,000 direct and indirect jobs in the U.S. alone. The program also includes more than 100 international suppliers, creating or sustaining thousands of international jobs.

About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 100,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. This year the company received three Edison Awards for ground-breaking innovations in autonomy, satellite technology and directed energy.

SOURCE Lockheed Martin Aeronautics Company

https://news.lockheedmartin.com/2018-09-28-Pentagon-and-Lockheed-Martin-Agree-To-Reduced-F-35-Price-in-New-Production-Contract

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  • Spain to double its military spending

    February 16, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    Spain to double its military spending

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If social security, pensions and insurance for the military, missions abroad, state aid for military research and development at private companies, the budget of the militarised Civil Guards and NATO fees were included, then the true figure would stand at around €18.8 billion. By 2024, it will really be “the implausible figure of €28 billion a year,” the Centre declared. Spain's increase in military expenditure is in response to the agreement made at last May's NATO summit, under intense pressure from the Trump administration, for all NATO members to increase defence spending by 2024 to 2 percent of GDP. Cospedal admitted that the increase to 1.53 percent fell short of NATO's objective, but insisted it would “facilitate the achievement of that horizon in future years” and was in line with targets set by other European countries. An idea of the scale of the upgrade and renewal of the military can be gathered from the list of new equipment that will be purchased. Included are 348 new Piranha 5 armoured infantry vehicles, which are designed for close combat situations, five F-110 frigates, four S-80 submarines, three Multi Role Tanker Transport refuelling aircraft, 23 NH-90 helicopters, a Reaper unmanned aerial vehicle (UAV) and a new training aircraft. In addition, the army will acquire a new Command and Control System and the renovation of its barracks, 17 Chinook helicopters will be modernized, and Spain will contribute funds towards the replacement for the F-18 fighter jet. Cospedal confirmed that the military spending in Spain's participation in 17 military missions around the globe last year was €835 million, 8.2 percent more than the previous year. Spain will participate in the European Union's (EU) Permanent Structured Cooperation (PESCO) on security and defence and will head the Command and Control System for EU Missions and Operations. PESCO was agreed last November by 23 of the EU's 28 member states “to jointly develop defence capabilities and make them available for EU military operations.” Spain's commitment to PESCO reflects the attempt by the ruling elite in Spain and in Europe to defend their economic and military positions vis-a-vis actual and potential competitors, in a situation threatened by Brexit and the Trump administration's “America First” policy. The Spanish government is attempting to straddle the contradictions of supporting both the German-led PESCO and the US-led NATO, two militarist projects that are incompatible in the long term. This was reflected in a resolution proposed by the government to be debated in an upcoming parliamentary session, which calls for improvements to EU-US relations in the sphere of defence, while concluding that “Europeans must assume more than ever before the responsibility of our own security.” The growth of Spanish militarism, as elsewhere globally, is the response of the ruling class to rising inequality, the deepening economic crisis and the growing conflicts between the major powers. Its aim, as recently expressed in the new US National Security Strategy, is the conquest of new spheres of influence, markets and raw materials—above all in conflict with Russia and China—and to deflect social tensions outwards. The main obstacle for the Spanish ruling class is the population's traditional hostility towards the military. This was recently revealed in the attempt to open a debate to re-impose conscription, following the example of France under President Emmanuel Macron. All the main dailies published articles and opinion pieces bemoaning the population's hostility to such a measure. The pro-militarist senior researcher for the Real Instituto Elcano, Félix Arteaga, complained to El Mundo, “Raising it [conscription] here would be political suicide, first because there is no military need to justify it, and second, because the concept of obligation is not liked by Spanish society. There is no mentality or culture of national identity and, of course, no one believes that you should lose your life for the defence of the country.” The ability of Spain's ruling elite to pursue its military ambitions is to a large extent due to the role of the pseudo-left Podemos, which has been virtually silent on these developments or has openly endorsed them. Last month Podemos covered up for increased Spanish intervention in Mali, where an EU “Training Mission” still continues five years after jihadist groups overran the north of the country in 2012, prompting a wave of refugees. Thousands attempted to cross the Mediterranean to Europe, and many drowned. On January 24, Cospedal appeared before the Defence Commission to get belated authorisation for approving Spain's taking over control of the mission and sending in more troops on January 9. She warned the commission that increased involvement in the EU intervention was “fundamental” and that North Africa was “a strategic place” for Spain. Juan Antonio Delgado, the Podemos spokesperson for military affairs, complained that Cospedal had “broken the law” by sending in the troops before parliamentary approval. He revealed, “I was in Mali three months ago and I learned that Spain would take over the operation,” before asking Cospedal, “In that time has there not been time to ask for authorization?” The obvious question is why Delgado himself did not pursue the issue... and when it came to the vote [on authorisation] at the commission he merely abstained. Even more explicit was Podemos General Secretary Pablo Iglesias, who attacked Cospedal from the right over the death of a pilot killed in a jet crash last October. He told her, “Patriotism is defending the rights of the professionals of our Armed Forces. It is shameful that in this country some who fill their mouths talking about our homeland do not respect the rights of workers who are here to protect us all and whose lives cannot be endangered.” Such statements prove Podemos is a pro-war party, offering itself as a reliable political platform for Spanish militarism. Since its foundation, Podemos has created branches in the army and made an explicit effort to articulate its main demands. Former Chief of the Defence Staff Julio Rodríguez Fernández has stood as a Podemos candidate in recent parliamentary elections and is the general secretary of Podemos in the municipality of Madrid, where he will be the party's main candidate in next year's elections. https://www.wsws.org/en/articles/2018/02/08/spai-f08.html

  • Estonia eyes mid-range air defense systems to rectify NATO ‘oversight’

    September 13, 2018 | International, Land

    Estonia eyes mid-range air defense systems to rectify NATO ‘oversight’

    By: Aaron Mehta WASHINGTON — Estonia's military is prioritizing the purchase of a midrange air defense system as the country seeks to plug a capability gap its defense minister called the result of a “total oversight” by NATO. During a Washington trip to attend Sen. John McCain's funeral, Estonian Defence Minister Jüri Luik told Defense News that NATO made a strategic mistake in the years following the collapse of the Soviet Union by not building up air defense capabilities, outside of rotational deployments of aircraft. “For a long time, there was no consideration that you would actively have to close the airspace at some point. So NATO countries have very weak air defense capabilities,” Luik said. “I think this is one of the priority systems, or priority areas, which every [one of the allied] countries should develop.” “I have to say with sadness that very few NATO countries actually have proper air defense capabilities. That is one of the areas which was gravely mismanaged, or was not under any attention,” he added. “I think that was a total oversight. But, of course, it was based on the idea that the era of big power tensions is over.” Luik hopes to put Estonia's money where his mouth is. The country in June signed an agreementwith MBDA to purchase more Mistral short-range air defense weapons, but has its eyes on adding another layer of protection. The country is looking at procuring a medium-range air defense system, similar to the Kongsberg network-centric air defence system, or NASAMS, purchased by Lithuania, which is also in use by Finland. While not declaring Estonia would also go after NASAMS, Luik acknowledged that regional air defense systems “should be as close as possible coordinated” with neighborhood countries. However, such a system is “the only step which is even theoretically available to our country with our defense spending,” Luik said, even if the upcoming March elections lead to a government willing to increase defense spending to about 2.5 percent of gross domestic product. (At the worst, Luik predicts, defense spending would remain flat.) Full article: https://www.defensenews.com/global/europe/2018/09/12/estonia-eyes-mid-range-air-defense-systems-to-rectify-nato-oversight

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