BUSINESS Donald Trump Presses Fight Over F-35 Jet Costs

Rising expense of fighter plane is in spotlight, but reining in military programs is a tall order

The Pentagon’s costliest programs to buy more than 2,400 planes to replace aging combat jets have long been viewed by experts and lawmakers as the most egregious example of cost overruns.

The cost of buying the F-35s from Lockheed Martin Corp. has doubled from initial estimates to nearly $400 billion, and the planes are still years late. Operating costs bring the bill to above $1 trillion.
.. While the average cost of each F-35 has fallen about 60% since 2012 to around $110 million, roughly 80% of planned cost savings are tied to higher production.
.. John McCain (R., Ariz.), for instance, has been pushing the Air Force to disclose the total contract award value for the B-21 Raider, a long-range stealth bomber under development by Northrop Grumman Corp.
.. The Defense Department’s annual procurement and research budget has averaged more than $160 billion during the past three years and its request could top $200 billion by the end of the decade
.. Only one big program—a revamp of the GPS led by missile specialist Raytheon Co.—was running more than 25% over budget this year

Deal for Carrier to Keep U.S. Plant Open May Hinge on Tax Overhaul

Talks include the conglomerate’s plans to shift more than 2,000 jobs from Indiana to Mexico

The incoming president’s goal is to show that he can keep some of his boldest campaign promises, and the CEO needs to keep peace with the federal government, a critical customer for products like its jet fighter engines. Military sales account for roughly 10% of the company’s $56 billion annual total, the company says.

United Technologies, like other globalized U.S. companies, also has large reserves of cash overseas—profits that corporations are waiting to repatriate to the U.S. until Congress cuts the level of tax they would pay. The company reported that 85% of its total cash, or more than $6 billion, was overseas, as of the end of 2015.

.. Democratic Sen. Bernie Sanders said Saturday that Mr. Trump must make it clear that if United Technologies “wants to receive another defense contract from the taxpayers of this country, it must not move these plants to Mexico.”

.. The company is the sole provider of jet engines for the F-35 Joint Strike Fighter.

 .. Carrier said on Thanksgiving Day that it didn’t have any changes to announce, roughly an hour after Mr. Trump tweeted that he was “making progress” in convincing the company to keep the jobs in Indiana.