At the Farnborough Air Show in the UK, Lockheed Martin officials expressed concerns that the price of F-35 Lightning II jets might not continue to come down in the next production lots being negotiated, due to inflation and increased costs of raw materials and production.
Lockheed is negotiating the next two production lots of F-35s (Lots 18-19) with the US government and needs to strike a deal before October to avoid running out of money and having to put cash forward from the company’s pockets. The cost of an F-35 had been declining in previous years, but inflation, increased capability and complexity of the jet, and proposed budget cuts could lead to a price hike in the next contract.
Lockheed is aiming to clear a backlog of F-35s, which has been piling up due to problems with developing new technology for the jet. The company plans to deliver about 20 aircraft a month to clear the backlog over the next 12-18 months.
The full TR-3 combat capability for the F-35 is expected to be ready next spring, but there are potential risks to the schedule due to testing and development needed for certifications. The Pentagon is withholding funds from Lockheed due to delays in the TR-3 software, with payments expected to resume once the software is fully completed.
The TR-3 hardware and software upgrades will serve as the foundation for a suite of upgrades called Block 4. Delays in TR-3 have impacted the timeline for starting Block 4 upgrades, leading to considerations about the necessary timeline and capabilities that can be delivered.
To handle the power needs of future Block 4 upgrades, the program will need to upgrade the engine and cooling system on existing F-35s. Pratt & Whitney is on track to field the engine upgrade in 2029, while a competition will be held to overhaul the current cooling system, involving companies like Honeywell and RTX subsidiary Collins Aerospace.
