C-5 Upgrade Billions Over Budget, Could Be Scrapped

[Matt Molnar]

Lockheed C-5 program breaches cost threshold-Wynne

By Andrea Shalal-Esa

WASHINGTON, Sept 24 (Reuters) - The cost of a Lockheed Martin Corp (LMT.N: Quote, Profile , Research) upgrade of the C-5 military transport plane appears to have breached congressional thresholds for big weapons programs, U.S. Air Force Secretary Michael Wynne said on Monday.

The Air Force was advising Congress that it expected costs on the program to be at least 15 percent -- and possibly 25 percent -- over budget, Wynne told reporters on the sidelines of the annual Air Force Association conference after making a speech.

If that does happen, then the Pentagon's top arms buyer could decide to terminate the program, he said.

Wynne said Air Force officials were working closely with Lockheed to get a better understanding of the program's costs, but current estimates ranged as high as $17 billion. More...

With 111 in the fleet, that's over $153 million per plane just for the engines if you're keeping score at home. Or $38.3 million per engine. :roll:

[FlyNavy]

Well, you don't think they spend $1000 on a toilet seat, do ya? :borat:

[Nonstop2AUH]

Correct me if I'm wrong, but that cost per plane can't be much less than just buying some new C-17s

[Jonesbeach]

I heard that the reason some of these programs go over budget is that they're supporting the top secret programs that don't have official funding. I don't know if it's true, but it seems to make some sense.