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Lockheed Martin Lowers F-35A Price Tag Below $90 Million

Lockheed Martin Lowers F-35A Price Tag Below $90 Million
F-35Bs belonging to the U.S. Marine Corps fly in formation alongside South Korean and Japanese aircraft during a show-of-force mission over the Korean Peninsula on Aug. 28. (Photo by Republic of Korea Air Force)

Lockheed Martin [LMT] and the Defense Department have agreed on a new $11.5 billion contract that drops the price of an F-35A below $90 million for the first time.The new contract, which covers 141 F-35s and will go into effect in 2019 with low-rate initial production (LRIP) Lot 11, represents an average price reduction of 9.2 percent across the joint strike fighter's three variants.Under the new pricing structure, a conventional-takeoff-and-landing F-35A will cost $89.2 million, down 5.4 percent from the $94.3 million one cost in LRIP…

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