Rising cost of F-35 jets a concern, but Canada buying base model: Peter MacKay
By Michael MacDonald, The Canadian Press – 1 day ago
HALIFAX — A stern warning from a top Pentagon official about the soaring cost of building the F-35 fighter jet has given Canada's defence minister cause for concern, but Peter MacKay insisted Thursday that his plan to buy 65 aircraft is a sound proposition.
MacKay, in Halifax to show off the latest test version of the military's new Cyclone helicopter, was responding to reports that the Pentagon's top acquisition official, undersecretary Ashton Carter, had revealed that the per-aircraft cost of the 2,443 jets the U.S. wants has almost doubled in real terms.
Pentagon officials say the cost of the project has jumped to US$385 billion, about US$113 million per plane in 2011 dollars. The original price was US$69 million per airplane.
"That's what it's going to cost if we keep doing what we're doing," Carter said last week. "And that's unacceptable. It's unaffordable at that rate."
In Ottawa, the Conservative government says it plans to spend $9 billion to buy 65 Joint Strike Fighters at about $75 million each. But there have been warnings that the Canadian price could also head for the stratosphere.
Earlier this year, the parliamentary budget officer, Kevin Page, estimated the price for the plane would be more like $148 million apiece.
MacKay confirmed he was aware of the U.S. undersecretary's dim view of the project
"Of course it gives me cause for concern," he said. "But ... there are three configurations for the F-35. We are purchasing the conventional takeoff model. Much of the criticism has been directed at the vertical-takeoff model. ... We're not buying that plane."
Carter attributed the ballooning cost of the jets to its complex stealth technology, as well as the technical challenges associated with its short-takeoff and vertical-takeoff versions.
As well, he said the Pentagon has grown used to spending more every time it encounters a problem — an attitude encouraged after the 9-11 terrorist attacks.
"In the decade of ever-increasing defence budgets, which we just enjoyed, it was always possible for our managers, when they ran into a technical problem or a difficult choice, to reach for more money," Carter said.
Republican Sen. John McCain said: "No program should expect to be continued with that kind of track record, especially in our current fiscal climate. It seems to me we have to start at least considering alternatives."
Last month, MacKay's department confirmed that the unit price of the fighter will be higher than the $75 million it planned for. But the military insisted it can still deliver the program on budget.
A statement from the department said "a degree of cost variation is envisaged in any program."
Still, MacKay said the Defence Department is in a good position to acquire the jets at a reasonable price because Canada is part of an international consortium that will purchase them when manufacturer Lockheed Martin achieves peak production.
He said the Canadian air force can expect to take delivery of its first F-35 Lightning in 2016-17, "the peak beneficial time for Canada as far as the price we expect to pay for that aircraft."
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