If Canada pulls out of the Joint Strike Fighter (JSF) program, customers of the Lockheed Martin [LMT] jet can expect to pay about $1 million more per F-35A, the F-35 program executive officer told the House Armed Services Committee on Wednesday.
“If any partner or any service moves airplanes to the right or takes airplanes out, the price … goes up a little bit,” said Air Force Lt. Gen. Christopher Bodgan during a HASC tactical air and land forces subcommittee hearing. “In this instance, if there are 65 less A model airplanes in that production profile from any country, whether it be Canada or someone else, we estimate that the increase in price to everyone else is about .7 to 1 percent.”
Newly elected Canadian Prime Minister Justin Trudeau has said he would cancel plans to buy 65 F-35As. Canada is currently an international partner of the program and has contributed financing to the JSF’s development.
Bogdan stated that he had not received an official notification from Canada on a change in status and would not speculate on whether the country would withdraw.
Lack of Canadian participation would also drive up the price of sustaining the global F-35 fleet, he said. The country has a 2.1 percent share of those costs, which would have to be taken on by the other countries buying the product.
Should Canada drop out, Bogdan hinted there could be repercussions for the Canadian military industrial base.
“Today there are many Canadian companies building pieces and parts for the F-35 program. We do not have a set rule as to what happens to that industrial participation if a partner reduces airplanes, adds airplanes or even leaves the program,” he said. “But it is my opinion that the remaining partners and our industry partners are going to have a discussion about what to do with all of the industry in Canada that is building pieces and parts of the airplane.”
After the hearing, Bogdan clarified that the Defense Department has zero influence on the suppliers Lockheed Martin works with.
“I just want the cheapest airplane,” he said. “I don’t care where the parts are made.”