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UPDATE 2-Danish government to recommend Lockheed Martin F-35 jet -sources

Published 2016-05-11, 03:44 p/m
© Reuters.  UPDATE 2-Danish government to recommend Lockheed Martin F-35 jet -sources
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* Government to recommend Lockheed Martin F-35 jets -sources
* Denmark to buy at least 27 of the fighter jets -sources
* F-35 choice can be blocked by Danish parliament

(Adds details, background)
By Jacob Gronholt-Pedersen and Tim Hepher
COPENHAGEN/PARIS, May 11 (Reuters) - Denmark's government
will recommend the purchase of at least 27 F-35 stealth fighters
built by U.S. weapons maker Lockheed Martin Corp (NYSE:LMT) LMT.N , people
familiar with the matter said on Wednesday.
Denmark would be the 11th country to buy the radar-evading
jets, joining the United States, Britain, Australia, Turkey,
Italy, Norway, the Netherlands, Israel, South Korea and Japan.
The selection by Denmark's minority Liberal government
follows intense public debate about the cost of modernising the
country's air force, but it can still be blocked by parliament,
where opposition politicians are urging budget restraint.
Danish Prime Minister Lars Loekke Rasmussen called a press
briefing for Thursday at 0800 GMT on the issue, but the
government declined further comment.
The recommendation, first reported by Denmark's TV2 News,
will be followed by a public comment period of 30 days, said one
of the people, who was not authorised to speak publicly. The
final number of jets could shift during this period.
If confirmed, the decision will mark a setback for Boeing (NYSE:BA)
BA.N , another U.S. weapons maker that mounted an expensive
last-ditch marketing effort for its older F/A-18E/F Super
Hornet, and the four-nation Eurofighter Typhoon consortium that
includes Airbus Group AIR.PA .
News of the recommendation emerged as doubts were raised
over a crucial parliamentary committee hearing scheduled for
Friday.
All three bidders have been invited to present their jets,
but Denmark's Conservative Party said Lockheed and Boeing had
been told by Washington not to participate. A spokesman for the
U.S. embassy confirmed they had been advised to stay away.
Airbus Group said it still planned to attend and called for
a "healthy and transparent" public debate.
Although viewed by many as an outside contender, Eurofighter
appears to be gambling on parliamentary support for a European
solution after a bitter spat between U.S. rivals. The German
government is expected to throw its weight behind the bid by
sending defence state secretary Katrin Suder to give evidence.
At approximately $100 million per jet plus infrastructure
and spares, the F-35 is the most expensive of the three planes
being considered after cost overruns and delays.
The United States says that will fall to about $85 million
per plane by 2019.
Some of Denmark's biggest parties including the Social
Democrats have raised concerns about the economic impact of
fighter purchases at a time of spending pressures.
Lockheed, Boeing and Airbus said they had not received any
official notification from the Danish government. The Pentagon's
F-35 programme office had no immediate comment.
Denmark is one of eight original partners that helped fund
development of the F-35 and flies Lockheed F-16 jets alongside
Belgium, Norway and the Netherlands.
Its decision is being watched worldwide as several other
nations prepare to decide how to renew fleets. Lockheed is
chasing further deals in Canada and elsewhere.

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