Aircraft frame contracts for F-35 fighters expected in spring; engine agreement delayed until 2025
Here's the Roll with the New F-35 Production Lots
Wanna know the lowdown on the F-35's production Lots 18 and 19? Well, buckle up! The F-35 Joint Program Office doesn't plan to ink a contract with Lockheed Martin until the spring, and engine negotiations may take longer. But don't fret—these ain't no snooze-fests!
While the delay pushes the contracts into President Donald Trump's administration, conspiracy theories about government slowdowns for price negotiations have been shot down. A source close to the affair revealed that negotiations have been ongoing and are just taking a bit longer due to factors like inflation, increased complexity, and the upcoming Block 4 upgrade.
In December, the F-35 team and Lockheed had a "handshake deal" for Lots 18 and 19, but the same agreement for the F135 engines from Pratt & Whitney is still pending. The JPO plans to finalize the air vehicle contract in the spring, while the engine contract is expected in 2025. And spoiler alert: the unit costs for the three F-35 variants won't be released until both contracts are signed. Prices were around $82 million for the previous Lot 18 deal, but keep in mind, that's without the engine.
While Elon Musk might call the F-35 "obsolete," the Pentagon has been working hard on this latest contract for months, with negotiations starting in December 2023. However, Pratt & Whitney has yet to weigh in on the extended engine negotiations. But hey, that's the chat for another day.
Overall, we're looking at Lockheed expecting a combined contract award for Lots 18 and 19 by the end of June 2025, with deliveries already planned to ramp up this year. So, hang tight and watch the skies, flying fans!
Insights:- The handshake deal for Lots 18 and 19 has already occurred, but the engine negotiations with Pratt & Whitney are still ongoing.- The Pentagon awarded an undefinitized contract for Lot 18 in December 2024, paving the way for negotiations on Lot 19.- The combined contract for Lots 18 and 19 is expected to be finalized by late June 2025, with deliveries starting later this year.
- The air force is awaiting the finalization of the combined contract for Lots 18 and 19 of the F-35 aircraft, which is expected by the end of June 2025.
- The contract for Lot 19 is in negotiation phase, following the handshake deal for Lot 18 that occurred in December 2024.
- Despite Elon Musk's claims, the aerospace industry is closely monitoring the progress of the F-35 program, as the Pentagon plays a significant role in its development.
- In the aerospace sector, finance plays a crucial part in the negotiations, with the unit costs for the three F-35 variants not to be released until both contracts for Lots 18 and 19 are signed.
