Matt Molnar
2007-09-27, 02:08 PM
Lockheed C-5 program breaches cost threshold-Wynne (http://today.reuters.com/news/articleinvesting.aspx?view=CN&symbol=LMT&storyID=2007-09-24T212642Z_01_N24469158_RTRIDST_0_LOCKHEED-TRANSPORT-UPDATE-1.XML&pageNumber=0&WTModLoc=InvArt-C1-ArticlePage3&sz=13)
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... (http://today.reuters.com/news/articleinvesting.aspx?view=CN&symbol=LMT&storyID=2007-09-24T212642Z_01_N24469158_RTRIDST_0_LOCKHEED-TRANSPORT-UPDATE-1.XML&pageNumber=0&WTModLoc=InvArt-C1-ArticlePage3&sz=13)
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:
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... (http://today.reuters.com/news/articleinvesting.aspx?view=CN&symbol=LMT&storyID=2007-09-24T212642Z_01_N24469158_RTRIDST_0_LOCKHEED-TRANSPORT-UPDATE-1.XML&pageNumber=0&WTModLoc=InvArt-C1-ArticlePage3&sz=13)
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: