Pentagon To Buy 71 Additional F-35s With 8 Percent Price Cut

Lockheed Martin will offer its most expensive fighter aircraft, the F-35 Lightning II, at an eight percent reduction in a new agreement with the Pentagon. 

The new deal will allow the U.S DoD to purchase all aircraft as originally planned, including those that were in jeopardy of being cut due to sequestration budget impacts.

According to Lockheed Martin, the next two batches to the U.S., Australia, Italy, Norway and Britain will see price cuts of four percent every year, and increased production.

The eight percent cut will come into effect by mid-2015, according to Lockheed Martin officials. The average price tag for the current batch of F-35s is valued at $120 million. 

The latest deal will cost the Pentagon $7 billion including ancillary equipment. It remains the most expensive aircraft program undertaken by the DoD and could potentially cost the U.S $392 billion for more than 2,400 fighters. 

"These two contracts represent a fair deal that is beneficial to the government and Lockheed Martin," said Lt. Gen. Chris Bogdan, F-35 Program Executive Officer. "Improving affordability is critical to the success of this program, and by working together we were able to negotiate a lower cost F-35. There is still work to be done, but these agreements are proof the cost arrow is moving in the right direction.”