US Secretary of Defense Donald Rumsfeld has spared the Lockheed Martin C-130J programme a termination threat at year-end. Higher-than-expected contract termination costs prompted Rumsfeld to reverse his position, he told lawmakers in a letter dated 10 May. Rather than seek supplemental funding to continue paying for the programme, Rumsfeld says he will seek offsets in fiscal year 2007 and 2008 spending plans to divert to the C-130J. The termination threat to the C-130J was considered the most immediate impact of a Rumsfeld plan to cut several programmes and save $30 billion over six years.

Source: Flight International