Spain Abandons F-35 Fighter Jet Purchase Plans

Spain has dropped plans to buy F-35 jets from Lockheed Martin, according to unnamed government sources cited by El Pais. The country had initially allocated €6.25 billion in its 2023 budget for new fighter aircraft. The decision to abandon the F-35 purchase is reportedly due to concerns over the high cost and potential risks associated with the program.

Spain has reportedly halted its plans to purchase F-35 Lightning II fighter jets from Lockheed Martin (NYSE:LMT), according to a report by El Pais newspaper. The Spanish Defense Ministry had previously made a non-binding request for information about the American-made aircraft but has now shelved these plans, El Pais reported, citing unidentified government sources.

The decision appears to align with Spain’s goal to spend 85% of its defense budget within Europe, which the government views as incompatible with purchasing jets from the United States. Spain’s Prime Minister Pedro Sánchez had earlier committed to raising defense spending to meet NATO’s 2% of gross domestic product target but resisted calls to further increase it to 5% during a NATO summit in June. This stance drew sharp criticism from U.S. President Donald Trump, who threatened new tariffs on Spanish exports.

The Spanish government had initially set aside €6.25 billion ($7.24 billion) in its 2023 budget for new fighter aircraft. However, El Pais reported that the decision to direct most of this year’s additional €10.5 billion in defense funding toward European initiatives ruled out the acquisition of American-made jets.

Lockheed Martin, the manufacturer of the F-35 Lightning II, recently flagged $1.6 billion in charges as its new chief financial officer conducted a deep financial review of the company’s operations. The F-35 Lightning II is an American family of single-seat, single-engine, supersonic stealth strike fighters designed for both air superiority and strike missions. It also has electronic warfare and intelligence, surveillance, and reconnaissance capabilities. The aircraft has three main variants: the conventional takeoff and landing (CTOL) F-35A, the short take-off and vertical-landing (STOVL) F-35B, and the carrier variant (CV) catapult-assisted take-off but arrested recovery (CATOBAR) F-35C.

The F-35 program has drawn criticism for its unprecedented size, complexity, ballooning costs, and delayed deliveries. As of July 2024, the average flyaway costs per plane are: US$82.5 million for the F-35A, $109 million for the F-35B, and $102.1 million for the F-35C. The F-35 first flew in 2006 and entered service with the U.S. Marine Corps F-35B in July 2015, followed by the U.S. Air Force F-35A in August 2016 and the U.S. Navy F-35C in February 2019.

Neither Spain’s Ministry of Defense nor Lockheed Martin have issued official comments on the matter. The decision to abandon the F-35 purchase is reportedly due to concerns over the high cost and potential risks associated with the program.

References:
[1] https://www.investing.com/news/company-news/spain-halts-plans-to-acquire-lockheed-martin-f35-jets-93CH-4172152
[2] https://seekingalpha.com/news/4479543-spain-drops-plans-to-buy-u-s-made-fminus-35-jets-report-says
[3] https://en.wikipedia.org/wiki/Lockheed_Martin_F-35_Lightning_II