Lockheed Martin and the U.S. Defense Department have reached an agreement in principle on a fifth batch of 32 additional F-35 fighter planes, the Pentagon said on Friday, bringing nearly a year of negotiations to a close. The deal is valued at around $3.8 billion, although the two sides are still finalizing details, according to a source familiar with the agreement.
The agreement will also pave the way for talks about preliminary funding for a sixth batch of planes which Lockheed, the Pentagon’s largest supplier, has been building at its own cost for some time. Shares of Lockheed were up 0.4 percent to $93.41 in afternoon trading, outperforming the Arca Defense Index, which was down 0.6 percent.
Pentagon spokesman George Little said details on the cost per aircraft would be released once the final contract is signed.
For the complete story by Andrea Shalal-Esa, click here.