President-elect Donald Trump upended years of Pentagon procurement planning with a tweet on Thursday, announcing he had asked Boeing to price an upgrade of its F-18 Super Hornet jet that could replace Lockheed Martin's F-35, the most expensive US weapon system ever.
"Based on the tremendous cost and cost overruns of the Lockheed Martin F-35, I have asked Boeing to price-out a comparable F-18 Super Hornet!" Trump said Thursday in a post on Twitter.
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Trump vows to cut plane costs
US President-elect Donald Trump says he discussed cutting costs with the chief executives of two major defense companies he has singled out for criticism over project costs.
Based on the tremendous cost and cost overruns of the Lockheed Martin F-35, I have asked Boeing to price-out a comparable F-18 Super Hornet!
— Donald J. Trump (@realDonaldTrump) December 22, 2016
Lockheed's $US379 billion ($525 billion) F-35 Joint Strike Fighter is intended to be the mainstay fighter of the Air Force, Navy and Marine Corps, replacing several older planes including Boeing's F-18. Development of the F-35 is more than a decade in the works, and Lockheed is planning to build more than 2400 of the aircraft for the US and allied air forces, a project that will create tens of thousands of jobs at factories across the country and overseas.
![Development of the Lockheed Martin F-35 Joint Strike Fighter has been more than a decade in the works.](/web/20161225144620im_/http://www.theage.com.au/content/dam/images/g/t/9/n/8/5/image.related.articleLeadwide.620x349.gth1xa.png/1482544157954.jpg)
The exact impact of Trump's tweet wasn't immediately clear. The Pentagon has scaled back purchases of the F-18, which lacks stealth and other high-tech capabilities of the F-35, and would require extensive design changes to be comparable to the newer plane.
Lockheed shares fell 2 per cent after Trump's tweet in after hours trading, while Boeing rose 0.5 per cent.
Summoning chief executives
In an e-mailed statement, Boeing spokesman Todd Blecher said, "We have committed to working with the president elect and his administration to provide the best capability, deliverability and affordability across all Boeing products and services to meet our national security needs."
The Pentagon had requested just two F-18 Super Hornets for the fiscal year that began in October. Congress has indicated in spending bills that it would like to buy at least 12 more.
Meanwhile, the F-35 program has had $US81 billion ($112 billion) in obligations for the last 10 fiscal years. Two contractors, Lockheed and United Technologies, account for 97 per cent of the spending. Yet the program has had repeated challenges, with defense officials saying it would need as much as $US500 million extra to finish its development phase.
The fiscal 2017 defense authorisation would allow an additional $US9.9 billion for the F-35 this fiscal year. The total includes $US3.3 billion in funding for the Navy and Marine Corps versions and modifications, and $US4.8 billion for the Air Force F-35 variant and modifications.
Trump had foreshadowed his move in an earlier tweet on December 13, where he lashed out at the F-35 costs being "out of control".
The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th.
— Donald J. Trump (@realDonaldTrump) December 12, 2016
Trump summoned the chief executives of both companies to his Mar-a-Lago resort in Florida on Wednesday, as well a group of top Pentagon officials, to discuss the costs of the F-35 program and also Boeing's proposed replacement for Air Force One, the presidential aircraft. Boeing CEO Dennis Muilenburg said he told Trump the new Air Force One would be built for less than $US4 billion, less than what Trump said the plane would cost.
Lockheed CEO Marillyn Hewson said in a statement after the meeting that she had assured Trump the company would continue efforts to reduce the F-35's costs. She didn't announce any new promises.
Lockheed spokesman William Phelps said the company had no comment. Boeing didn't have an immediate comment, spokesman Todd Blecher said.
Bloomberg
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