Air Force Requests 38 Lockheed Planes

The Air Force plans to buy 38 Lockheed Martin C-130J transports at a cost of $4.4 billion through 2007, according to service budget documents.

The military also is weighing a Lockheed proposal to sell 40 additional transports for $3 billion, military spokeswoman Gloria Cales said.

The Lockheed program has a history of cost overruns, technical problems and delivery delays that will keep it from earning a profit until 120 aircraft are sold. Lockheed has sold 111 and the military plans to buy 168 overall.

Lockheed shares fell 67 cents to $45.61 on the NYSE.