Poland hires Lockheed-Martin to build fighter planes

WARSAW, POLAND - Lockheed-Martin beat out two rival European bidders Friday for a $3.5 billion deal by Poland to modernize its air force with U.S. F-16 fighter planes. <br> <br> The U.S. government-backed offer will supply 48 of the fighter jets and weapons, pilot training and investment in Poland to help offset the cost of replacing aging Soviet-made fighters. <br> <br> The first 16 planes are to arrive in 2006, the remaining 32 within the next two years. Washington padded Lockheed Martin&#39;s F-16 bid with the offer of a $3.8 billion loan to Poland with repayment terms of up to 15 years. <br> <br> The U.S. Congress approved the loan last October. U.S. officials said the financial plan is flexible and will depend on Poland&#39;s payment ability. <br> <br> Choosing the F-16 could also give Polish Air Force a strong position among NATO allies. Poland needed 48 fighter jets by 2008 to replace its Soviet planes and bring the country&#39;s military up to NATO standards.