Canadian Manufacturing

Lockheed Martin gives U.S. government $728M discount on F-35s

The defence contractor has agreed to sell 90 F-35 aircraft to the U.S government at a reduced price

February 6, 2017  by Canadian Staff

Bethesda, Md.—Lockheed Martin, one of the world’s largest defence contractors, announced Feb. 3 that they reached an agreement to sell the United States government 90 F-35 fighter jets at a reduced price.

According to Lockheed Martin, the contract—worth roughly US$8.5 billion, according to Reuters—will save the U.S. tax payers $728 million.

The company has also stated that the deal represents an 8 per cent reduction in price from the last contract signed between the two parties, and that the cost of the F-35 is down 61.4 per cent from their first delivery to the U.S. government.

The order is expected to create 1,800 jobs at Lockheed Martin’s Fort Worth, Texas factory.


Lockheed Martin rationalized the price drop by stating that the increase in the number of aircrafts ordered by government allowed them to reduce costs and take advantage of “economies of scale and production efficiencies”.

Lockheed Martin also credited U.S. President Donald Trump for accelerating negotiations and “sharpening their focus” on reducing the price.

This announcement came several days after the U.S defence secretary ordered a cost review of the F-35.

“This is a good deal for the American taxpayer, our country, our company and our suppliers,” said Lockheed Martin in a statement on Twitter.

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