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President's helicopter deal goes to Europe
Financial Times ^ | 1-29-2005 | Demetri Sevastopulo in Washington and Ben Hall in London

Posted on 01/29/2005 4:34:38 AM PST by Cagey

AgustaWestland, the Anglo-Italian helicopter maker, last night won a contract to build the new US presidential helicopter fleet, dealing a blow to American rival Sikorsky, which has flown the president since 1957.

AgustaWestland, owned by Finmeccanica of Italy, and Lockheed Martin, its US partner, received a $1.7bn (£901m) contract to build more than 20 helicopters, in a competition that was seen as a litmus test for whether European companies could increase their defence business in the US. AgustaWestland's British operations are based in Yeovil in Somerset where it employs 4,000 people.

Richard Aboulafia, an analyst at the Teal group, said: "This is big news. It is the first time the US defence market has been open to a foreign helicopter. There is clearly a growing two-way street in US arms procurement." The decision was a major victory for Tony Blair, prime minister, and Silvio Berlusconi, his Italian counterpart, both of whom supported President George W. Bush's war in Iraq and lobbied him over the deal.

British government officials were delighted by the decision. They said it would help Mr Blair show that his close relationship with Mr Bush could bring dividends.

Mr Blair believes the Bush administration is now more willing to reach out to America's European allies and particularly participate more forcefully in the Middle East peace process.

In awarding the contract for Marine One, the name given to the presidential helicopter, the Navy rejected Sikorsky's argument that the president should fly in a helicopter that was 100 per cent US-made. John Young, assistant secretary of the Navy for research, development and acquisition, said: "This decision truly reflects the best value and capability for the American taxpayer who is funding it, the marines who will operate it and the future presidents who will fly in it."

But the decision angered some lawmakers. Joseph Lieberman, a Democrat senator from Connecticut, home to Sikorsky's parent company United Technologies, said: "The Navy's decision today on the Marine One contract is not just disappointing - it is outrageously wrong."


TOPICS: Business/Economy; Front Page News; Government
KEYWORDS: helicopter; lockheedmartin; marineone
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1 posted on 01/29/2005 4:34:38 AM PST by Cagey
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To: Cagey

Joe Lieberman is right on this issue. It's stupid to depend on foreign sources for vital items.


2 posted on 01/29/2005 4:38:56 AM PST by hoosierham
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To: Cagey

Best Value is best value, no matter who the company is. If you research both airframes, the Augusta Westland airframe is as proven as Sikorsky. As a serving service member, I think American companies need to wake up and smell the coffee. Long procurement lead times, repetitive over budget programs, etc.... and the relationship we have with the UK all made this possible. Well done Augusta Westland/Lockheed.


3 posted on 01/29/2005 4:40:47 AM PST by fwddeployed
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To: Cagey

Could be a way of thanking Italy and Britain for their support. Perhaps the American company is owned and run by a bunch of libs...


4 posted on 01/29/2005 4:40:54 AM PST by JudyinCanada (Five-fingered Canadian)
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To: hoosierham

This article claims the contract is 1.7 billion dollars, but I had heard the Navy claim the contract was for 6.1 billion.


5 posted on 01/29/2005 4:42:51 AM PST by Cagey
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To: Cagey

Owego,NY plant(Lockheed Martin) will add 750 jobs. Comp was NY vs. CT. NY won...


6 posted on 01/29/2005 4:44:10 AM PST by donozark (I've never had an original thought in my life. In fact, just the other day, I was thinking...)
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To: hoosierham
It is really a bizarre position and sends the wrong message to both the Euros and the enemy.

It just encourages the Euros to keep whining, and we will not get anything out of them anyway. They will still sell arms to China.

If this is a signal of the start of a "new tone" with the EU similar to the one we saw with the Rats, then I am disappointed.

7 posted on 01/29/2005 4:44:30 AM PST by CasearianDaoist
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To: JudyinCanada
Perhaps the American company is owned and run by a bunch of libs...

The American company is owned by a bunch of stockholders. Some of which are Canadian.

8 posted on 01/29/2005 4:44:47 AM PST by Cagey
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To: donozark
No, it is about transaltlanic "gestures." Nothing could be more obvious.

American helicopter technology needs the boost, even if it is mostly symbolic. The us is not a leader here.

9 posted on 01/29/2005 4:46:20 AM PST by CasearianDaoist
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To: fwddeployed

"Published data shows that the S-92, the baseline version of the H-92, flies farther, flies faster and carries more than the EH-101. Independent data confirms that the S-92 is lower in cost and costs less to operate.

The Federal Aviation Administration and the European Aviation Safety Agency have certified the S-92 to a higher standard of safety than virtually every helicopter flying today, including the EH-101. Furthermore, since certification in December 2002, the S-92 and H-92 have won every other competition against the EH-101, including selection by the governments of Canada, Turkey, and Turkmenistan; Gulf Helicopters in Qatar; and CHC, the world's largest offshore oil operator. "

It has nothing to do with value. It is purely payback to the Brits and the Italians for supporting the war in Iraq


10 posted on 01/29/2005 4:47:25 AM PST by heylady
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To: Cagey

As long as it was not France!


11 posted on 01/29/2005 4:50:52 AM PST by Recon Dad
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To: Cagey
ITALY IS PROUD!!!!
12 posted on 01/29/2005 4:53:36 AM PST by an italian (We are proud B countries: Bush, Berlusconi and Blair!!!!)
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To: Cagey

Insanity run amok. How can we win the WOT with morons in charge???


13 posted on 01/29/2005 4:54:18 AM PST by tkathy (Tyranny breeds terrorism. Freedom breeds peace.)
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To: Cagey

The winning helicopter is a better machine, period. Straight up, I will always support US producers, but Sikorsky has long relied on stodgy design, mediocre production times, cost overruns and complacency because they had Lieberman and Dodd to do their political scut work.

It is the American companies who are Euro-whining now. They need to get their a$$es in gear and design a better machine. The real competition is for operational helicopters, tactical heavy lift 'copters and the like.

The only reason this is politically significant is because the Augusta/Westland helicopter was so superior, that any other decision would have been purely political.


14 posted on 01/29/2005 4:55:54 AM PST by opocno (France, the other dead meat)
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To: Cagey
Some of which are Canadian. Ah, that explains it! Can't say as I blame them! LOL!
15 posted on 01/29/2005 5:02:28 AM PST by JudyinCanada (Five-fingered Canadian)
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To: JudyinCanada
Of course its a payback to Berlusconi and Blair. Let's get real. Alliances can't be a one-way street all the time.

This doesn't mean all future contracts for every major or minor procurement will go overseas. This was the right decision at the right time. It was geo-political......and for good reason.

The award of the contract makes our two staunchest allied leaders look good at this critical time. It demonstrates the advantages of being a member of the Coalition of the Willing. It's another good carrot-and-stick stroke by the Bush administration.

There isn't any deal made anywhere that can't be picked apart or that doesn't engender disappointment and criticism. In this case, there is more at stake here than an isolated order for helicopters. Timing and unusual circumstances dictated the decision.

Astute conservatives and canny poker players will figure this one out very easily.

Leni

16 posted on 01/29/2005 5:03:03 AM PST by MinuteGal
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To: JudyinCanada

LOL, we may be on to something.


17 posted on 01/29/2005 5:04:09 AM PST by Cagey
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To: CasearianDaoist

Many articles at pressconnects.com proclaim it a victory for NY. NY still a part of USA, although some here would argue point. 750 jobs at Owego plant. Many more "indirect" jobs will be created nearby. It was in essence, Hillary vs. Lieberman. She won...


18 posted on 01/29/2005 5:04:32 AM PST by donozark (I've never had an original thought in my life. In fact, just the other day, I was thinking...)
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To: heylady

parts for this airframe will involve 41 of 50 states in the US and will be handled from NY and TX (surprise). Sikorsky lost for a number of reasons. Doesn't hurt that you supported the GWOT though.


19 posted on 01/29/2005 5:05:20 AM PST by fwddeployed
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To: Cagey

Having worked for Martins many years ago, perhaps this will be a wakeup call for them and other fatcats of the industrial complex to mend their ways. I suspect it will not however.


20 posted on 01/29/2005 5:06:44 AM PST by cynicom (<p)
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