[Air Force Chief of Staff Gen. Michael] Moseley said the decision to cap production of F-22A fighters at less than the 381 the Air Force had planned to buy could increase the price of each fighter jet from the current level of $133 million. That figure, which excludes $41 billion in funds already spent on research and development of the F-22A, could “go up a little,” but would remain below $150 million,….
“By freezing the A-model configuration, you’re able to take a lot of the spiral development money, roll it back. So you’re not surprised with another bill down the road... By doing that you can squeeze another four airplanes out and take you out to 2010.”
Andrea Shalal-Esa, “Air Force eyes fleet of 183 F-22 fighers,” Reuters, 12/13/05.
…According to the Arms Trade Resource Center, Lockheed Martin gets $105 from each U.S. taxpayer and $228 from each U.S. household. In 2002 the company was effectively taxed at 7.7% compared to an average tax rate for individuals of 21-33%.
In late 2001 the company was awarded the world's largest weapons contract ever, a $200 billion deal to build the Joint Strike Fighter, a “next-generation” combat jet that eventually will replace aircraft used by the Navy, Air Force and Marine Corps. In the last few years the SEC has investigated Lockheed for insider trading and falsifying their accounts.
Lockheed Martin did not win the contract on force of personality alone, or fighter plane design. During the calendar year 2000, Lockheed Martin spent more than $9.8 million lobbying members of Congress and the Clinton administration, more than double the $4.2 million the company spent during 1999. Among the company's newest lobbyists: Haley Barbour, the former chairman of the Republican National Committee. During the 1999-2000 election cycle, Lockheed Martin contributed just over $2.7 million in soft money, PAC and individual contributions to federal candidates and parties. More than two-thirds of that money went to Republicans. Lockheed Martin spends more on lobbying Congress than any of its competitors, spending a whopping $9.7 million in 2002. Only General Electric and Philip Morris reported more lobbying expenses. And in the 2004 election cycle, Lockheed contributed more than $1.9 million.
Lockheed has also been able to exercise its influence in a larger way – in support of the invasion of Iraq. The company’s former vice-president Bruce Jackson chaired the Coalition for the Liberation of Iraq, a bipartisan group formed to promote Bush’s plan for war in Iraq. Bruce Jackson was also involved in corralling the support for the war from Eastern European countries, going so far as helping to write their letter of endorsement for military intervention. Not surprisingly, Lockheed also has business relations with these countries. In 2003 Poland shelled out $3.5 billion for 48 F-16 fighter planes, which it was able to buy with a $3.8 billion loan from the US.
Corpwatch Lockheed Martin Company Profile
U.S. defence contractors are riding high these days, buoyed by rising Pentagon spending on the wars in Iraq and Afghanistan as well as the high cost of homeland security in the U.S.-declared war on terror. The fiscal 2006 defence budget is set to climb to 441 billion dollars, an increase of 21 billion dollars over 2005. It envisions an additional 50 billion dollars for the wars in Iraq and Afghanistan. Congress plans to approve 79 billion dollars for weapons systems procurement and about 69 billion dollars for military research and development. …Lockheed Martin, the biggest U.S. defence contractor and top seller of secure computer systems, saw net profit jump 41 per cent to 830 million dollars in the first six months of 2005. Half-year sales rose to 17.8 billion dollars from 17.1 billion dollars in the same period last year, despite a drop in deliveries of F-16 fighter jets that cut into warplane sales. Lockheed, which is also strong on missile defences, integrated electronic combat systems and military space programmes, projects 2005 sales of up to 38 billion dollars and has orders worth another 73 billion dollars.
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