Andrew is telling me that the negotiations between Lockheed and the government has resulted in a price of 107 million per airplane.
My reaction.
Big fucking deal.
Why? Because sequestration is baked in. Congress and the President aren't only looking at continued sequestration but also the possibility of a government shut down. Add to that the fact that its obvious to everyone that Lockheed Martin is finally feeling the heat for this over priced, under delivering, Pentagon chewing, Marine gobbling master piece and they probably low balled the hell out of the plane.
Call it a loss leader.
They take the pain now and will recoup lost revenues in later blocks.
But lets get back to sequestration. Its gonna continue which means that the number of F-35's that the government will be able to buy is going to--out of necessity be cut.
That means we're looking at the death spiral that they've been teetering on the edge of.
That means that by the time the first F-35 squadron is suppose reach IOC with the USMC, it will be unaffordable.
If my little troll is right then we're already fucked. We're on a road without exit ramps and the cliff is staring us in the eye.
