(DEFENCE SECURITY ASIA) — It is estimated that more than 100 fifth-generation F-35 fighter jets are currently grounded at Lockheed Martin’s facilities due to the U.S. Department of Defense’s (Pentagon) refusal to accept these fully constructed aircraft.
Since July last year, the Pentagon has declined to take delivery of the F-35s from Lockheed Martin, citing delays in the implementation of the Technology Refresh-3 (TR-3), a software and hardware upgrade initiative worth $1.8 billion (approximately RM8.45 billion).
The TR-3 program is intended to enhance the aircraft’s capabilities.
This standoff has left Lockheed Martin concerned about the lack of suitable storage space for the undelivered F-35 jets, a problem highlighted in a recent report by the U.S. Government Accountability Office (GAO).
While the GAO report did not disclose the exact number of F-35s languishing at Lockheed Martin’s facilities, the Pentagon has indicated that the specific figures are “not appropriate” for public disclosure, signaling the seriousness of the issue.
If the TR-3 issue extends beyond April 2024, Lockheed Martin is anticipated to run out of storage facilities and will be forced to devise a plan for accommodating more aircraft, as per the GAO report.
Senior officials at Lockheed Martin have asserted that they possess all necessary infrastructure and capacity to store the F-35s until all issues related to TR-3 are resolved and the aircraft can be handed over to their “customers.”
“Specific details about the storage (of the F-35s) will not be shared due to security concerns,” a senior Lockheed official recently told U.S. defense media.
Financially, this situation is also expected to impact Lockheed Martin significantly, as financial news agency Bloomberg estimates that for each F-35 not accepted by the Pentagon, Lockheed incurs a loss of approximately $7 million (RM33 million) in unmade payments by the Pentagon.
The GAO stated that both the Pentagon and Lockheed Martin face increased liability if the stored F-35 jets suffer damage or are lost while in Lockheed’s custody.
The agency also noted that the situation presents a unique set of scheduled and financial risks to the Pentagon.
“It is unique for so many critical DOD aircraft to be waiting for DOD acceptance, instead of stored at lower densities across many military locations throughout the world. This creates unique financial and schedule risks to DOD,” GAO said.
Despite the completion of TR-3, the GAO anticipates it will still take at least a year for Lockheed Martin to deliver all the over 100 grounded F-35 jets to the Pentagon, with deliveries expected to start in 2025.
Originally, the upgraded F-35s were scheduled to be delivered starting in July last year.
According to reports by U.S. defense media, the TR-3 upgrade system has faced challenges in supporting existing radar and electronic warfare (EW) systems on the F-35 jets.
Test pilots have reported needing to “reboot” their radar and EW systems mid-flight due to issues with the TR-3 upgrade.
The F-35 program is on track to cost over US$2 trillion (RM9.4 trillion), making it the world’s most expensive weapons program. — DSA