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October 2, 2018

US DoD and Lockheed cut F-35 price under $11.5bn deal

The US Department of Defense (DoD) has awarded a contract worth $11.5bn to Lockheed Martin for the production and delivery of a total of 141 units of F-35 Lightning II joint strike fighter aircraft.

The US Department of Defense (DoD) has awarded an $11.5bn contract to Lockheed Martin for the production and delivery of a total of 141 units of F-35 Lightning II joint strike fighter aircraft.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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The per unit price of the F-35 has been reduced for the 11th consecutive year, with the cost this year being the lowest in the history of the aircraft development programme.

With the cut, the cost of an F-35A aircraft in Low-Rate Initial Production Lot 11 (LRIP 11) has been quoted at $89.2m, including engine and fee, representing a 5.4% reduction from the $94.3m per unit cost in LRIP 10.

Similarly, the unit cost of F-35B short-take-off and landing variant has been reduced by 5.7% to $115.5m from $122.4m in the previous year.

“As production ramps up, and we implement additional cost savings initiatives, we are on track to reduce the cost of the F-35A to $80m by 2020, which is equal to or less than legacy aircraft.”

The F-35C unit cost in LRIP 11 was cut down by 11.1% to $107.7m from the $121.2m unit cost for the carrier in LRIP 10.

F-35 vice-president and general manager Greg Ulmer said: “This agreement marks a significant step forward for the F-35 programme as we continue to increase production, reduce costs and deliver transformational capabilities to our men and women in uniform.

“As production ramps up, and we implement additional cost savings initiatives, we are on track to reduce the cost of the F-35A to $80m by 2020, which is equal to or less than legacy aircraft, while providing a major leap in capability.”

The current production agreement involves the development and delivery of 91 F-35 jets for the US services, 28 for international partners and 22 for F-35 foreign military sales customers.

Deliveries of the aircraft under LRIP 11 are slated to be carried out by the company beginning next year.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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