By Robert Wall and Charles Duxbury 

The Danish Defense Ministry on Thursday recommended the purchase of 27 Lockheed Martin Corp. F-35 Joint Strike Fighter combat planes to modernize the country's air force.

The stealthy F-35 jet fighters would replace the Danish air force's aging F-16 jets, which have recently been used in the Middle East as part of the coalition striking Islamic State targets.

The full government still has to sign-off on the deal it valued at around 20 billion Danish kroner ($3 billion). Danish Prime Minister Lars Løkke Rasmussen said the new planes would allow the country to "monitor our airspace and repel violations at home and we can work to stop wars and conflicts abroad spreading and affecting us."

Denmark said it planned to take delivery of the planes between 2021 and 2026. The jets should be ready to participate in international operations in a basic role from 2025 and be fully war-ready two years later.

The U.S. government has been eager to add international buyers to the F-35 program to help reduce unit costs and offset lower-than-planned purchases by the Pentagon. The U.S. and overseas buyers are combining to buy about 3,000 of the planes.

Denmark would become the second Nordic country to buy the jet after Norway. Finland also has kicked off a program to buy a new fighter, where the F-35 is expected to compete.

Denmark first joined the F-35 program in 2002 and made a $125 million investment to be involved in the plane's development phase. Until today it hadn't committed to buying any of the planes. They cost about $100 million each to buy and far more to operate and maintain over the decades they are expected to be in service.

The trillion-dollar F-35 program has suffered years of delays and technical setbacks. It entered service with the U.S. Marine Corps, the first to operate the jet, last year, with the U.S. Air Force planning to declare the plane operationally ready by the year-end. Other buyers include the U.K., the Netherlands, Turkey, Italy, Australia and Israel.

Denmark's selection is a setback for losing bidders Boeing Co., the world's largest commercial plane maker, which offered its F/A-18E/F Super Hornet combat plane also flown by the U.S. Navy and Australia, and AirbusGroup SE, which led the effort to sell Denmark the Eurofighter Typhoon combat jet.

The team evaluating the three planes rates the F-35 highest in all categories covering everything from military performance to industrial aspects.

Boeing faces dwindling opportunities to extend the production line of its F/A-18E/F Super Hornet. Leanne Caret, chief executive of Boeing's defense unit on Wednesday told investors the company would be able to sustain production of fighter aircraft, which also includes the F-15 combat jet, beyond 2020. The U.S. Navy may buy additional jets and Boeing also is trying to interest Middle East countries and Finland in its combat planes.

The Eurofighter Typhoon team--which also involves BAE Systems PLC, Europe's largest arms maker, and Italy's Leonardo-- Finmeccanica SpA--has suffered a series of losses in international fighter competitions. Kuwait, however, recently gave the program a boost when it signed a contract to buy 28 of the planes in a deal valued at more than EUR8 billion ($9.13 billion).

Swedish defense company Saab AB had earlier opted not to submit a bid for its Gripen fighter, viewing the Danish competition as stacked against it.

Lockheed Martin, the world's largest arms maker by sales, has signed agreements with Danish industry, including arms maker Terma A/S to make parts for the plane. "Throughout the competition we have had a constructive dialogue with all three contestants. We look very much forward to engage in a deeper collaboration with Lockheed Martin," Terma CEO Jens Maaløe said. The union of Danish metal workers also welcomed the choice.

Denmark will buy the F-35A version being introduced by most air forces. Lockheed Martin also builds a jump-jet model, in-service with the U.S. Marines, and a version for aircraft carrier operations.

Write to Robert Wall at robert.wall@wsj.com and Charles Duxbury at charles.duxbury@wsj.com

 

(END) Dow Jones Newswires

May 12, 2016 06:43 ET (10:43 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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