Air Force Awards Copter Deal to Boeing
Thursday November 9, 5:10 pm ET
By Matthew Daly, Associated Press Writer
Air Force Awards $13B Contract for Search, Rescue Combat Helicopters to Team Led by Boeing
WASHINGTON (AP) -- The Air Force awarded at $13 billion contract Thursday for search and rescue combat helicopters to a team led by aerospace giant Boeing Co., two members of Congress said.
The lawmakers, speaking on condition of anonymity because no official announcement had been made, said Chicago-based Boeing beat out rival Lockheed Martin and helicopter maker Sikorsky for the contract to build 141 helicopters by 2019 for the Air Force's fleet of rescue aircraft. Estimates of the contract's eventual value run as high as $25 billion.
Some Wall Street and industry analysts had thought Maryland-based Lockheed would win. The Lockheed version had a roomier cabin, three powerful engines and was cheaper than the Boeing version.
The decision is the latest blow to Sikorsky, a division of United Technologies Co., which sought to replace its own Pave Hawk helicopters that the Air Force has flown since 1982 on rescue missions.
Sikorsky, based in Stratford, Conn., spent about $1 billion developing the new S-92 model, according to analyst estimates, but has yet to find a U.S. government buyer. Sikorsky has a deal to provide 28 to the Canadian government.
"It would be bad for them," Paul Nisbet, a defense industry analyst with JSA Research said before the late afternoon announcement. "They would go twice without winning despite having the most modern and up-to-date helicopter of the group."
Can't wait to see them. I saw the mock-up in D.C. in SEP. It looked great.
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Start building gents!!!