Lockheed's Marine One Plans on Schedule

Lockheed's Marine One Plans on Schedule

	Published : Fri, 01 Jun 2007 00:56 By : Agencies Print this Story

WASHINGTON (AP) - Lockheed Martin Chief Executive Robert J. Stevens said Thursday there were inherent risks in accelerating by three years delivery of a redesigned Marine One presidential helicopter.

The Navy is buying a fleet of new Marine One helicopters from Lockheed to replace 40-year-old Sikorsky Aircraft helicopters. An unusually tight timetable, however, is leading to cost overruns and aggravating weight problems in building the aircraft, critics say.

'It was a high-risk program before the contract ever began,' Stevens told investors at the annual Sanford C. Bernstein Co. conference in New York. 'Some observers have looked at it with some alarm, but the schedule was always aggressive,' he said.

Stevens' remarks at the investor conference follow a March 30 Government Accountability Office report that said Lockheed's VH-71 helicopter program was exceeding cost estimates by 18 percent and that the aircraft as planned were going to be at least 1,200 pounds over the specified weight.

Recent reports suggest the cost of the helicopter program has jumped more than 34 percent to $2.4 billion from an initial $1.7 billion estimate on the initial contract awarded in January 2005.

Lockheed says the additional costs are due to aircraft changes requested by the Navy and unanticipated testing.

Stevens said demands that the Bethesda, Md.-based defense contractor deliver the first five VH-71 presidential helicopters by October 2009 exacerbated scheduling and cost challenges.

The Lockheed executive assured investors that the company will be able to deliver the remaining 23 helicopters on time.

'We haven't run the mile to perfection, (but) we are running the mile better and faster than it has ever been run before,' said Stevens.

Navy officials have repeatedly backed the defense contractor's claims, saying the helicopter program is on track.

Shares of Lockheed fell a penny to $98.09 in extended trading, after dropping 12 cents to close at $98.10 in the regular trading session.