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U.S. Sees ~1% Price Increase To F-35s If Canada Drops Out

October 21, 2015
By Tony Capaccio

(Bloomberg) — Potential decision by new Canadian govt to leave Pentagon F-35 program would amount to about $1m increase per jet to countries buying same model, Pentagon program manager Lt. Gen. Christopher Bogdan tells House Armed Services Cmte

  • NOTE: Canadian Prime Minister-elect Justin Trudeau says he’d make good on campaign pledge to abandon plans to buy 65 conventional flight “A” model jets
  • No impact on current development phase ending in 2017 because Canada has already paid its share, Bogdan says
  • Price impact on “A” models bought by U.S. Air Force, allies about 1%, or $1m per jet, Bogdan says
  • U.S. Air Force plans to buy 1,763 A models; Australia, Denmark, Italy, Israel, Japan, Netherlands, Turkey, Norway, South Korea planning to buy 559 additional A models
  • NOTE: Australia, Turkey buying 100 A models NOTE: Bogdan tells panel he has received “no official notification from Canada” it is leaving program
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