Monday, January 14, 2013

F-35: Budget cutters may drive cost of F-35 up

One of the more interesting things consistently left out of the discussion the cost of an F-35 concerns the fact that many times the reason costs remain high have to do with DoD, not Lockheed Martin. And when it is not DoD, it is Congress.
With more fiscal battles looming in Washington, the Fort Worth-made Joint Strike Fighter will be a large target for those seeking to cut government spending, the Dallas Morning News reports.

The JSF, also known as the F-35, is made at Lockheed Martin's Fort Worth plant and the program's $400 billion price tag makes it a prime target as budget writers look for ways to trim government spending, the Morning News said.
 We mentioned many times, that the cost of the aircraft will come down as production goes up. Econ 101. They're called "economies of scale". However, if you insist upon cutting back on production and limiting the number of aircraft bought, the price will remain higher.

It remains a mystery as to why this doesn't seem to be understood. Mark my words, if indeed the cuts are made, the critics will again be hollering about the fact that the price of the aircraft isn't coming down.

It is a sure as the sun rising in the East.


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