LMT - Australia plans to buy 20 military transport planes from Lockheed Martin

2023-07-24 09:41:56 ET

Australia plans to spend A$9.8 billion ($6.60 billion) for 20 Super Hercules military transport aircraft made by U.S. defense contractor Lockheed Martin ( NYSE: LMT ), according to an announcement on Monday.

The new C-130J Hercules aircraft will replace and expand upon Australia’s fleet of 12 planes now operated by the Royal Australian Air Force. Delivery of the first plane is expected in 2027.

“The C-130J Hercules is an important capability for our defense force, but also for Australia as a nation,” Richard Marles, Australia’s minister for defense, said in a statement . “From bushfire and flood emergencies across the country, the delivery of crucial supplies to the region during the COVID-19 pandemic and more than two decades supporting peacekeeping operations, this has and will continue to be a crucial asset.”

The U.S. State Department in November signed off on the sale of the planes and related equipment to Australia.

The purchase coincides with the biggest Australia-U.S. joint military exercise of all time. The two-week Talisman Sabre war games include more than 30,000 troops and attendees from a total of 13 countries.

Lt. Gen. Hiroki Kobayashi, vice chief of staff of Japan's Ground Self-Defense Force, speaks with Australian Commodore Paul O’Grady at the Beecroft Weapons Range in New South Wales, Australia, on Thursday in the lead-up to the Talisman Sabre exercise. Photo: Australian Defense Force

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