Non-Subscriber Extract
Sliding US dollar rates hit JSF programme
By Nathan Hodge
20 March 2008
The US dollar's precipitous slide against other currencies is creating cost pressure for the Lockheed Martin F-35 Lightning II Joint Strike Fighter (JSF) programme.
US Navy Captain Wade Knudson, the Air Vehicle director in the JSF programme office, told reporters on 17 March that dollar exchange rates have "played a substantial role in some of the costs of the airplane".
The JSF was conceived as an international co-operative programme and success hinges in large part on the US-UK partnership. The UK has committed USD2 billion to the programme and BAE Systems is responsible for a significant portion of the airframe, including the aft fuselage and tail, as well as key mission systems such as the fuel system, crew escape and life-support system.
The dollar's fall against customer currencies is likely to mean cost increases over the longer term as the US dollar is worth less when importing or paying for goods built overseas. In the past year the dollar has fallen by 10 per cent against the euro and 8 per cent against UK sterling.