By Michael Calia 
 

The F-35 Joint Program Office said Thursday it had halted the development of an alternate pilot helmet and will instead focus on the helmet system used currently in training.

The program said it would recoup about $45 million in funds it had allocated for the development of the alternate helmet.

"The government's decision to proceed exclusively with the principal helmet is indicative of their confidence in the helmet's performance and the successful resolution of previously identified technical challenges," said Lorraine Martin, Lockheed Martin Corp. (LMT) executive vice president and general manager of the F-35 Lightning II Program.

The move comes just weeks after the head of the F-35 program, Lt. Gen. Chris Bogdan, pledged to press on with both helmets and make a final decision in a "fly off."

BAE Systems (BAE.LN, BAESY) started developing the alternate helmet in September 2011 after officials acknowledged technical issues in the primary helmet, which is developed by Rockwell Collins Inc. (COL) and Elbit Systems Ltd. (ESLT, ESLT.TV).

Lockheed Martin, the world's largest defense contractor, has been dealing with the effects of a partial shutdown of the U.S. government. On Monday it said it would still furlough 2,400 staff in the wake of federal facility closures and contract freezes.

Contractors in general have warned that tens of thousands of staff could be furloughed as the shutdown halts contract awards and payments, as well as work by civilian Pentagon inspectors on programs such as Lockheed's F-35 Joint Strike Fighter.

Shares of Lockheed Martin were inactive at $126.68 in after-hours trading, while Rockwell Collins's stock was down 2.6% at $66.53.

--Doug Cameron contributed to this article.

Write to Michael Calia at michael.calia@wsj.com

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