Lockheed F-16 sale to Iraq would be biggest in 5 years
Bloomberg News
Sept. 5, 2008, 6:26AM
A Lockheed Martin order from Iraq for 36 advanced F-16 fighters would be the biggest export purchase of the plane in five years, according to company data.
Iraq wants to buy the aircraft to reduce its reliance on U.S. airpower, the Wall Street Journal reported. Ann van Hooydonck, Lockheed's spokeswoman in Europe for aerospace issues, didn't return a call seeking comment.
More than 4,300 F-16s have been built for 24 countries, with 52 follow-on purchases by 14 customers, according to the company's Web site. Lockheed won a $3.5 billion agreement in 2003 to sell 48 F-16s to Poland and in 2000 sold 80 of the planes to the United Arab Emirates in an order valued at $6.4 billion.
The Bethesda, Md.-based company's most recent F-16 export order came from Morocco in 2007 for 24 aircraft. Morocco was the 25th country to select the plane, picking the U.S. model over the Rafale from France's Dassault Aviation SA. Other recent orders have come from Turkey and Pakistan.
Lockheed Martin has advanced 8 percent this year in New York trading. The shares traded in Germany fell 0.9 percent to the equivalent of $112.82 as of 12:05 p.m. in Frankfurt.
Production of the F-16 will probably continue beyond 2012, with major upgrades being incorporated for all F-16 versions, Lockheed Chief Executive Officer Robert Stevens said in July at the Farnborough International Air Show in England.
Morocco, Turkey
On June 6, the U.S. awarded Lockheed a contract worth $233.6 million to begin production of the 24 planes for Morocco.
In May 2007, the governments of Turkey and the U.S. signed an agreement for the sale of 30 F-16s. The total value for aircraft and equipment is about $1.8 billion. Turkey had an earlier F-16 order and also pledged to buy F-35 Joint Strike Fighters made by Lockheed Martin.
Pakistan has committed to buy 18 F-16 planes, and may purchase as many as 36.
Iraqi funds would be used to finance its purchase, which would be reviewed by the Defense Department, State Department and Congress, the Wall Street Journal reported, citing people.
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