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US Defence Secretary Robert Gates has sacked the marine general overseeing a $40bn (£25bn) project to build the next generation strike fighter jet.
Mr Gates said the F-35 programme had been plagued by problems and failed to hit performance targets.
He also said Lockheed Martin, the US corporation responsible for building the jet, would not be awarded $614m in performance-related payouts.
The Pentagon wants the F-35 to replace most of its ageing fighter jets.
"The progress and performance of the F-35 over the past two years has not been what it should," Mr Gates told a news conference on the Pentagon's proposed budget.
He added that "a number of key goals and benchmarks were not met".