Pentagon gets discount in F-35 jet deal, says Greece among potential buyers

The US Department of Defense has a "handshake" agreement with Lockheed Martin Co to cut 8.8 percent from the price of its latest order of F-35A fighter jet, shaving a year from the time frame in which each aircraft will cost less than $80 million, a Pentagon official said on Monday.

The Pentagon said over three years the agreement will be worth $34 billion for 478 F-35 fighter jets. It is preliminary and a final deal is expected to be sealed in August for the 12th batch of jets, one of the most expensive aircraft ever produced.

The preliminary agreement details the first year, and lays out agreed upon options for two additional years. The options are there because official purchases cannot be made until the US Congress approves an annual budget for those years.

This year's agreement will lower the cost of each F-35A, the most common version of the aircraft, to ...