Lockheed Martin Receives $344 Million In Ongoing Funding For C-5 Modernization Program

MARIETTA, Ga., January 11th, 2010 -- Lockheed Martin [NYSE: LMT] has received ongoing funding through a recently issued Acquisition Decision Memorandum (ADM) that authorizes Low Rate Initial Production (LRIP) associated with the C-5 Super Galaxy Reliability Enhancement and Re-Engining Program (RERP).

"This funding enables us to continue to partner with the U.S. Air Force to produce enhanced C-5M Super Galaxy aircraft to support the warfighter for decades to come," said Lorraine Martin, Lockheed Martin C-5 program vice president. "The C-5M Super Galaxy is redefining strategic airlift and delivers unparalleled support to all U.S. armed forces."

The $344.3 million funding supports LRIP RERP production for 15 aircraft, including installation on three aircraft, material and fabrication for five aircraft, and long-lead funding for seven aircraft. Production of the C-5M Super Galaxy began in August 2009, when the first aircraft was inducted into the production program. This aircraft is slated for delivery to the USAF in September 2010. Three C-5Ms have already been delivered to the USAF and current USAF plans call for 52 fully-modernized C-5Ms by 2016.

The C-5M is the product of a two-phase modernization effort. The first, the ongoing Avionics Modernization Program (AMP), provides a state-of-the-art glass cockpit with modern avionics and flight instruments. The RERP is the second phase of the C-5 modernization effort. It includes 70 enhancements or replacements of major components and subsystems, including the installation of GE CF6-80C2 commercial engines. Modernization of the C-5 pays for itself through savings in operation and sustainment costs.

The C-5 has been the backbone of strategic airlift in every engagement since it entered service. It is the only aircraft capable of carrying 100 percent of certified air-transportable cargo, with a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneously. The C-5 can carry twice the cargo of other strategic airlift systems. With more than 70 percent of its structural service life remaining, the C-5M Super Galaxy will be a force multiplier through 2040.