US group Lockhead Martin wins Turkish military contract worth $1.1 billion

Turkish Defense Minister Vecdi Gonul announced on Tuesday that US group Lockhead Martin had won a contract to modernize the Turkish military's F-16 aircraft fleet for 1.1 billion dollars, under an agreement reached between Ankara and Washington. The agreement covers 117 planes with an option of 100 more."This agreement is the best proof that our relations are on track," Gonul told reporters following questions over the recent icy relations that had been noted between the two NATO allies.The agreement also envisages offset deals and sub-contracts to be handed out to Turkish companies, worth about $400 million.The project that will begin in July is expected to be complete by 2012 was hailed by US Ambassador Eric Edelman as beneficial for both sides: "This program will make the F-16 fleet more capable, operating in the modern aviation environment. And be of benefit to Turkey and the US as we want to be able to have a strong NATO ally." Â