LONDON -(Dow Jones)- Rolls-Royce PLC (RR.LN) welcomed Friday the U.S. lifting of probationary status for the F-35B Lightning II fighter jet after success with tests in 2011. Rolls-Royce's president of defense, Dan Korte, welcomed the news: "We are delighted that the STOVL program has been taken off probation." He added it is a "vindication" of hard work by the team with the move signifying a "solid future for the program." The U.S. removed on Friday its threat to cancel the Marine Corps version of Lockheed Martin Corp.'s (LMT) F-35 stealth fighter jet, after progress was achieved in resolving technical issues with the aircraft. The $382 billion Joint Strike Fighter program has been burdened by cost overruns and delays. Last year, the program was put on a two-year probation by then-Defense Secretary Robert Gates, with the future of the aircraft threatened unless technical problems were addressed. The F-35B offers "short take off" and "vertical landing" capability to the Marines, with Rolls-Royce LiftSystem the only company to produce vertical-lift capability for fighter aircraft. A person familiar with the matter said the Marine Corps is Rolls-Royce's largest customer for this technology, and ordered over 350. Rolls-Royce provides parts, including fans, posts and swivels, and is a subcontractor to Pratt & Whitney that manufactures the F135 engine for the Joint Strike Fighter program. Last year, the Rolls-Royce LiftSystem proved successful in the first ship-borne landings on the USS Wasp and completed 268 vertical landings. The first three production F-35B aircraft were delivered to Eglin Air Force Base in the U.S. this month in preparation for the start of pilot training. --Adam Entous contributed to this article. -By Kaveri Niththyananthan, Dow Jones Newswires; kaveri.niththyananthan@dowjones.com
