30 June 2012

News Story: Japan Accepts First F-35s Despite Cost Premium


By PAUL KALLENDER-UMEZU

TOKYO — Japan’s Ministry of Defense (MoD) said June 29 it had agreed to purchase the first four of 42 Lockheed Martin F-35s and two simulators for 10.2 billion yen ($127.8 million) each, plus parts, for a total cost of 60 billion yen, according to a news release.

The price of the initial four jets in the Letter of Offer and Acceptance singed by the MoD is significantly above the 9.9 billion yen ($124.1 million) agreed to last December, when, in a contentious decision, the ministry selected the advanced but still developmental F-35 to replace its 1960s-era F-4EJs.

After a tough request for proposals review, the MoD opted for 42 of the stealthy F-35s over the flight-proven and less expensive Eurofighter Typhoon and Boeing F/A-18E/F Super Hornet.

Read the full story at DefenseNews