Jet fighter costs set to skyrocket

Published: Apr 16, 2006
Source: www.theage.com.au



A "SIGNIFICANT cost blow-out" is expected to hit Australia's multibillion-dollar plans to buy 100 Joint Strike Fighters from the US.

Already estimated to cost $16 billion, up from $12 billion when the deal was announced in 2002, the jets could cost more than $18 billion.

Australian Flight Test Services chief executive Peter Goon, whose Adelaide-based company provides a range of military flight test and aerospace engineering services, said his latest analysis predicted another "significant cost blow-out".

"The total cost of the JSF project has already increased significantly, with the US General Accounting Office revising the cost upwards this year, from $US256 billion ($A351 billion) to $US276 billion," Mr Goon said.

"Our estimates indicate that another very significant cost increase will be announced within the next three to five weeks."

A spokesman for JSF maker Lockheed Martin, Andrew Sloan, said it was likely further cost estimates would be announced.continue..