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Lower prices mean higher sales and higher profits. So what does this tell us about very expensive military aircraft?
Worlds Best Fighter Jet
In the 21st century we have fighter planes and then we have fighter jets. Which kind you get depends on how much you pay.
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Do you have billions of dollars Then, like the US government, he could hire Lockheed Martin (LMT -0.44%) to design and build the F-22 Raptor stealth fighter. (Of course, had production stopped before economies of scale worked, the plane would have cost him $412 million.)
Alternatively, the same money can buy Boeing's (BA -1.11%) full-service fourth-generation F/A-18 or F-15 fighter jets, which sell for about $100 million.
Shopping on a budget? You might like the Soviet-era Sukhoi Su-34 “Fullback”. (Price: $18 million). Or, if you want to buy domestically, Textron's (TXT -2.79%) new Scorpion he gets for $17 million per plane.
Different buyers choose different fighters and different prices according to the needs of the country. But what are the most popular combinations?
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10. Chengdu J-7 Fishbed (End of Production) First to appear in his 10th place in this year's Flightglobal Insight "World Air Forces 2015" report is his J-7 fighter from China. This is actually a Chinese version of the former Soviet MiG-21 and is no longer in production. Nevertheless, the 418 remains in service, and this fighter accounts for his 3% of the global market.
China's export version of the J-7, known as the F-7, is also the twin of the Russian MiG-21. Over the past 12 months, the number of F-7s hasn't dropped at all. A year ago there were 460 serving around the world. Each still flies today, with the F-7 having a 3% market share.
8. Northrop Grumman F-5 Tiger -- List price: $20 million to $25 million (estimated) After 20 retired in the past year, there are still 468 Northrop F-5 Tigers in the air. The aircraft is no longer produced, but still has a 3% market share. AircraftCompare.com estimates that if the Tiger were produced today, he would likely cost in the $20 million range.
Russia's answer to America's A-10 Thunderbolt II "Warthog", the Su-25 is a purpose-built "tankbuster" aircraft. It also seems to be almost as popular as the warthog. Only one Su-25 has been deployed for the past year.
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Today he still has 506 aircraft in service, accounting for 3% of the market. Now, with a new production variant, the Su-39, Frogfoot could rise even higher in the future rankings.
Once one of the world's most popular fighter jets, he is now out of production and the number of his MiG-21s in service continues to decline. That number he dropped from 793 in 2013 to 698 in 2014 and currently stands at 668. It's no longer in production, so it's hard to say what the new price will be...but it looks like you can buy a used MiG-21 on eBay for about 25 grand.
The MiG-21 still holds his 5% market share. And if you add all of its "twins" (his J-7 and F-7 in China, still in flight), you'll have a suite of 1,546 MiG-21s in service, which doubles his market share. .
5. Mikoyan-Gurevich MiG-29 Fulcrum – Limit price: $40 million Moscow's most advanced MiG's market share has fallen to his 5% (793 aircraft). This is enough for the MiG to rank him fifth. A new variant (MiG-35D) is due to enter service in his 2016, but could improve the MiG's prospects.
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4. Boeing F-15 Eagle – List price: $100 million Boeing's F-15 is increasingly losing out to international fighter competition due to its combination of high cost and low stealth, making him one of the best fighters in this year's rankings. has dropped one spot and is now ranked his fourth. . Listed on Flightglobal. With 11 fewer aircraft (now totaling 854), the F-15 holds his 6% share of the global market...
3. Sukhoi Su-27 Flanker – List price: $22 million Russia's most popular fighter, the Su-27 Flanker continues to rise in the rankings this year – one of his reasons may be its low cost. Hmm. According to military aircraft experts at deagel.com, his latest model of the Su-27, dubbed the Su-35 Flanker-E, was "helped" by the falling ruble.
Up two spots from his fifth place last year, the flagship Flanker and his siblings his Su-30, -33 and -35 now total 874 aircraft, his 6% of the global market. occupies
Similarly, Boeing's F-18 fighter jet, which maintains its No. 2 position in the market, holds his 7% share of the global market in multiple iterations. In 2015, the number of F-18 fighters in the world's air forces increased to 1046.
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And last (first?) last but not least, for the second year in a row, Lockheed Martin's affordable F-16 Falcon tops his Flightglobal rankings this year. increase. With 2,242 in active service, the F-16 remains the most popular fighter on the planet, making up his 15% of the world's air forces.
Why Fighters Matter to Investors So why are fighter jets important to defense industry investors? The more planes a company manufactures and sells, the wider the base it can spread its R&D costs, and the less money it can pay per plane.
Are you ever with me Lockheed Martin now sells over 4,500 of his F-16s worldwide. This should come as no surprise. After all, this is his one of the most effective military aircraft in our inventory. (Note also that Russia has sold the even cheaper MiG-21.)
Half of Lockheed's F-16s are still in the air, and Lockheed is providing its shareholders with service, maintenance and upgrade revenues, as well as his 11% profit margin on those revenues.
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Still, the F-35 stealth fighter that Lockheed wants to replace the F-16 costs three times as much as the F-16. In fact, certain versions of the F-35 can cost almost five times as much as the F-16. At a price of $150 million, the problem is: Can Lockheed Martin maintain its dominance in the global market in the face of much cheaper Russian and Chinese fighter jets?
I personally have my doubts. Of course, if all goes according to plan and Lockheed Martin is able to sell more than 3,000 of his F-35s over the next 60 years, the current high prices could be a big profit for Lockheed. But if Lockheed doesn't sell them fast enough and drop prices fast enough to attract buyers, one day this top 10 list of the most popular fighter jets in the world will be big. It will look different.
Rich Smith does not own any of the above companies. He can be found on CAPS and has publicly become Pope under the handle name TMFDitty, and currently ranks him number 359 out of over 75,000 rated members. Motley recommends and owns his eBay stock. We don't all hold the same opinion, but we all believe that taking into account different perspectives makes us a better investor. Motley has a disclosure policy.
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The F 22 Is The World's Best Jet Fighter. But It Still Can't Beat A Hurricane.
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Make a better investment with The Motley Fool. Get stock recommendations, portfolio guidance and more from The Motley Fool's premium services. Here are some things to keep in mind: The F-22 has also encountered current events, the economic demands of the wars in Iraq and Afghanistan, and lack of peers. At an unsustainable price, he built a $300 million fighter jet, according to government officials at the time.
In the late 1990s, the United States was at its peak as a post-Cold War air armored vehicle. Not only does it have the world's largest fighter jet fleet, it only built her F-22 Raptor, a fifth-generation fighter. By 2009, the US government had targeted this fighter and only 187 were produced. What happened to the F-22 program? Why?
The F-22 Raptor is arguably the best air superiority fighter of its time.
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