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Article: AIR FORCE, MARINE CORPS MULLING LOCKHEED C-130J OFFER.
- Article from:
- Defense Daily
- Article date:
- November 5, 1999
CopyrightCOPYRIGHT 1999 Access Intelligence, LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Frank Wolfe
The Air Force and Marine Corps are considering a recent offer by Lockheed Martin [LMT] to invest $225 million in long-lead funding in FY '01 for the company's C-130J airlifter and KC-130J tanker in exchange for price reductions on the aircraft of up to 21 percent, sources said.
This week, Tom Burbage, president of Lockheed Martin Aeronautical Systems, briefed House members on the advantages of the Economic Order Quantity (EOQ) strategy. Under the proposal, the Air Force would invest $150 million in long-lead funding for the C-130J-30 aircraft in FY '01 and reap an 18 percent price reduction for buying the aircraft from FY '02 through FY ...