Is Donald Trump putting coal in Lockheed Martin’s Christmas stocking?
Trump has sent another tweet about the F-35 jet fighter (Lockheed Martin is the primary contractor), this time asking Boeing to price out a comparable F-18 Super Hornet as a possible replacement for that jet. Trump’s tweet caused Lockheed Martin shares to dive even as Boeing shares climbed.
Trump is right to pressure Lockheed Martin on the F-35, though I’m not sure tweets are the best way to do this. I remember planning for the F-35 twenty years ago when I was on active duty in the Air Force. The F-35 Joint Strike Fighter was supposed to be a relatively low cost fighter/attack aircraft that would meet Air Force, Navy, and Marine needs. Back then, the flyaway cost was estimated at $40 million per plane, more expensive than the F-16 but roughly equivalent to the F-15E “Strike Eagle.” The current flyaway cost is roughly $200 million per plane,* and even higher for the Marine Corps version with its vertical landing/short takeoff capacity.
The F-35 is reminiscent of another ill-fated effort to build a jet acceptable to all the services: the F-111 “swing-wing” program of the 1960s.
Here’s the thing: Although jets like the F-15 and F-18 are not stealthy, they are very effective, especially when updated with the latest weaponry and avionics and flown by skilled pilots. Meanwhile, highly effective UAVs (drones) have emerged, e.g. Predators and Reapers, with long loiter times and no risk of U.S. casualties. To put it bluntly, does the U.S. really need the F-35, especially given its high cost and underwhelming performance?
Back to Donald Trump. Is he bluffing when he threatens to buy Boeing-made F-18s instead of the F-35? Is he posturing to get Lockheed Martin to cut the price of the F-35 (which, at this late stage of its development, may not even be possible)? One thing is certain: A lot of good American jobs are riding on Trump’s tweets. Expect Lockheed Martin to rally its Congressional allies to defend the program. The plane’s multitude of contracts were deliberately spread throughout the 50 states to gain as much Congressional support as possible.
For a little fun, go to the Lockheed Martin website.
Let’s put in Pennsylvania. Here’s what you get: 41 supplier locations, 2100 jobs, $172.5M in economic impact. How about New York? 77 suppliers, 8160 jobs, $695.2M in economic impact. How about Bernie Sanders’s state of Vermont? 3 suppliers, 1410 jobs, $124.5 million in economic impact. Small wonder that even Bernie Sanders during the campaign was an F-35 supporter.
William J. Astore
*Note: estimates vary about the final flyaway cost since it’s ultimately dependent on how many F-35s are produced. Current estimates for the entire U.S. purchase are $400 billion, with another trillion dollars for maintenance and spares and related costs over the program’s lifetime.
**The most rugged and effective attack jet in the Air Force’s inventory, the A-10, was never much liked by the Air Force; generals have fought to eliminate it in favor of the much less effective F-35, but Congress has actually fought back to keep the A-10, affectionately known as the Warthog, a name and image contrary to the AF fighter pilot mystique of “eagles” and “fighting falcons.”