TOKYO: Tokyo has secured cost cuts on support equipment for its next batch of six U. S. F-35 stealth fighter aircraft of around US$100 million, according to sources and Japanese budget papers, on top of savings being finalised for all buyers of the high-tech jets.
The deal represents a rare case of Tokyo negotiating down the price of military hardware from its U. S. ally and underscores progress for the Lockheed Martin Corp-run F-35 programme, which has faced criticisms over cost overruns and other problems.
U. S. President Donald Trump, who lashed the programme as “out of control” in December, said on Monday he had been able to shave some US$600 million from the latest U. S. deal to buy about 90 F-35s from Lockheed.
But defence analysts and sources downplayed news of those cuts, saying the discount hailed by Trump was in line with what had been flagged by Lockheed for months and would apply to other countries committed to the programme.
Lockheed and the Pentagon did not directly respond to questions regarding the Japanese deal.
A spokesperson for the U. S. Defence Department office which runs the F-35 programme said negotiations over the current batch of fighters, known in the industry as LRIP 10, was continuing.
“For every nation that buys an F-35 in LRIP 10, the base price of the F-35 will be the lowest in F-35 history,” Lockheed spokesman Michael Rein said.
The price of the F-35 has been dropping with each new batch as Lockheed and the U. S. government ramp up production, helping to lower overall costs.
Four sources told Reuters Japan had further trimmed the price for its latest order, largely on ground support costs such as parts, logistics and technical assistance.
