WASHINGTON, Jan 21 (Reuters) – Deputy Defense Secretary William Lynn on Thursday underscored the Pentagon’s commitment to Lockheed Martin Corp’s (LMT.N) $300 billion F-35 fighter jet, saying the U.S. government and its allies still planned to buy 3,000 of the new fighters over time.
“We are heavily investing in the F-35. A successful Joint Strike Fighter is at the heart of our continued air superiority,” Lynn told industry and military officials at a conference hosted by Tufts University and the Institute for Foreign Policy Analysis.
Draft budget documents obtained by Reuters show the department will request $10.7 billion to continue the F-35′s development and buy 42 aircraft in fiscal year 2011, 10 less than initially planned.
The Pentagon “has adjusted F-35 procurement quantities based on new data on costs and on likely orders from our foreign nations partners and realigned development and test schedules,” the document said without giving details.
Lynn, speaking to reporters after his speech, acknowledged the program had run into some problems typical of large new weapons programs, but said the department was implementing steps to bring the program back “in line.”
He said there was no plan to halt work on any of the three variants of the radar-evading new fighter jet. “There’s no thinking of changing that kind of fundamental,” he said.
Asked if the program could breach cost thresholds that would trigger a notification to Congress and a life-or-death program review, Lynn said Pentagon officials would address that issue next week.
He said he was aware of reports that Britain could halve its proposed buy of F-35 fighters for an aircraft carrier due to rising unit costs and increased budget pressures, but said the British had not yet made a final decision on the issue.
Lynn said he did not anticipate that any such cuts would increase the unit cost of the new fighters and undermine its business case as a relatively low cost replacement for Lockheed’s F-16 and 12 other warplanes.
“There’s always going to be puts and takes on orders. I think the fundamental core of the buy is still there — it’s going to be several thousands purchased,” Lynn said. “I don’t think there’s a threat there right now.”
A senior Pentagon official told Reuters in November that a “couple” of unnamed co-development partners were delaying planned purchases of the jet, a move that will boost initial prices of the costliest ever U.S. arms purchase.
Eight international partners have co-financed the F-35: Britain, Italy, the Netherlands, Turkey, Canada, Australia, Denmark and Norway.
Northrop Grumman Corp (NOC.N) and Britain’s BAE Systems (BAES.L) are Lockheed’s key subcontractors on the new fighter.
