|  Lorraine Martin, executive vice president and F-35 general manager, 
			said 2013 has been a transformative year for the $392 billion 
			program, marking the beginning of pilot and maintainer training, 
			reductions in production costs, and progress on software, weapons 
			testing and other technical issues. 
 			She said the program — the Pentagon's most expensive weapons program — remained intensely focused on finishing development and flight 
			testing of the next-generation fighter over the next three years, as 
			well as driving down the cost of building and operating the planes.
 			"The program is on stronger footing than ever before," Martin told 
			2,000 workers and guests at a ceremony celebrating completion of the 
			100th F-35 at the company's mile-long plant in Fort Worth that 
			included patriotic songs and videos.
 			The Fort Worth area was shut down by a crippling ice storm late last 
			week causing delays of flight testing by Lockheed which is required 
			before the company can turn the jets over to the government. 			
			
			 
 			Delivering the 36 jets in 2013 is important for Lockheed which is 
			trying to improve its performance on a program that is years behind 
			schedule and 70 percent over initial cost projections.
 			She told reporters that 2014 would be another key year for the 
			program, with the Navy's C-model due to carry out sea trials on an 
			aircraft carrier next summer, the first jet to be completed at a new 
			assembly plant in Italy, and the first jet for Australia to be 
			delivered.
 			Lockheed is building three models of the radar-evading fighter for 
			the U.S. military and eight countries that helped fund its 
			development: Britain, Canada, Australia, Turkey, Norway, Italy, 
			Denmark and the Netherlands. Japan and Israel have also ordered the 
			plane, and South Korea has signaled its plan to buy at least 40 
			F-35s as well.
 			Air Force Lieutenant General Chris Bogdan, the Pentagon's F-35 
			program manager, told a defense conference last week that the 
			program had a "tragic past," but the cost of the plane was coming 
			down, flight testing was continuing, and most technical issues had 
			been addressed.
 			(See 
interview 
with F-35 program chief.)
 			The last batch of F-35 A-models cost around $107 million, including 
			the engines, but Martin said the company expected to beat that cost 
			in the eighth production contract to be negotiated early next year.
 			By the time the new stealth fighter reaches full-rate production in 
			2019, she said it would cost around $75 million in current year 
			dollars, or less, putting it on par with the cost of current 
			fourth-generation fighter jets. 			
			
			 
            
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			Boeing Co <BA.N> says its F/A-18E/F Super Hornet costs about $51 
			million, including engines and radar, but congressional aides say 
			the price is closer to $70 million when sensors, targeting pods and 
			other equipment that is standard on the F-35 is included.
 			Orlando Carvalho, executive vice president of Lockheed Aeronautics, 
			said Lockheed was aiming to deliver 38 aircraft next year, an 
			increase of two from this year, and hoped to start ramping up 
			production to help drive down costs.
 			"The need to ramp is key to being able to keep taking cost out of 
			the airplane," Carvalho told reporters after the ceremony. He said 
			the company was looking at every option for continuing to lower the 
			cost of the aircraft.
 			He said Lockheed was meeting revised cost, schedule and delivery 
			targets mapped out during a big restructuring in 2010, and had about 
			three years to go until development was done.
 			"Like any smart athletic sports coach, we're not going to declare 
			victory until the game's over and we're done," he said.
 			"With any program like this, you always have to be worried about an 
			unknown that may come out of nowhere. We're never going to sit here 
			and say we're out of the woods," he said, "What we're going to do is 
			stay focused on the fundamentals, day in and day out, and just keep 
			finishing the development."
 			Air Force General Robin Rand, commander of the Air Education and 
			Training Command, told the ceremony that he was looking forward to 
			the start of training at Luke Air Force Base near Phoenix, where the 
			100th jet will be delivered next year.
 			Lockheed is due to deliver 17 airplanes to the base by the end of 
			2014, and officials expect to start the first training course there 
			for U.S. and allied pilots in May 2015. 			
			
			 
 			Rand said the F-35 would be "the most lethal and advanced fighter 
			airplane on the planet," and he wished he was 20 years younger so he 
			could fly it.
 			(Reporting by Andrea Shalal-Esa; editing 
			by Jeffrey Benkoe and Diane Craft) 
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