Posted on 06/30/2006 6:48:00 PM PDT by nypokerface
WASHINGTON (Reuters) - The U.S. Army on Friday said it chose French-German defense company EADS to build a new fleet of 322 light utility helicopters in a deal expected to be worth up to $3 billion over the longer term.
It marks the first major U.S. defense contract won by the North American unit of EADS, and comes as EADS prepares to bid against No. 2 U.S. defense contractor Boeing Co. for an even bigger contract to build hundreds of new aerial refueling tankers for the U.S. Air Force.
Analysts said the Army deal could also help EADS win more commercial and government orders for its twin-engine UH-145 rotary wing aircraft.
"It's great news for us," Ralph Crosby, chief executive of EADS North America, said in a teleconference with reporters. "We now have a customer, and a customer with a tremendously important mission."
EADS, teamed with Sikorsky Aircraft, a unit of United Technologies Corp., beat out another European contender, Agusta Westland, a unit of Italy's Finmeccanica SpA, which had joined forces with L-3 Communications Holdings; Textron Inc.'s Bell Helicopter unit; and MD Helicopters Inc., a small private company.
The Army said the initial contract award would be for $43 million. EADS, Europe's largest aerospace company, said the deal could be worth up to $3 billion over the next 20 years, including maintenance and support.
The new helicopters, based on Eurocopter's EC145, will replace hundreds of the Army's Vietnam-era UH-1s and Kiowas, and will also be used for homeland defense, humanitarian and other non-combat missions.
Col. Cory Mahanna, Army program manager, agreed the contract award would have "far reaching effects."
"This fleet of U.S. Army aircraft will benefit America in crisis situations, like those associated with Hurricanes Katrina and Hugo, and the aftermath of the Mount St. Helens' explosion," said Mahanna, adding that the helicopter would be an important new tool for homeland defense.
EADS has supplied helicopters to various U.S. agencies for the past two decades, including the Department of Homeland Security, the Coast Guard, and the FBI, but the Army deal marks what it called its "first major system win as a prime contractor for the U.S. military."
Defense analyst Richard Aboulafia of the Virginia-based Teal Group said the selection of EADS amounted to "a solid endorsement of globalization," as well as the UH-145, to be built by American Eurocopter in Columbus, Mississippi.
"This is a real endorsement of EADS' U.S. market strategy," said Aboulafia. "And it sure beats waiting for the German and French defense ministries to spend any money."
EADS said it planned to nearly triple the size of the Mississippi American Eurocopter plant and add more than 200 jobs. It plans to start with partial assembly, then move to full assembly and later, the manufacture of major subsystems.
Construction of the first UH-145 was already underway, and current plans called for the aircraft to be delivered to the Army by November 2007, Crosby told reporters. "They want airplanes fast. We'll deliver them as fast as we can."
Sen. Trent Lott, a Republican from Mississippi, welcomed the announcement and said it would further expand Mississippi's role as a "worldwide center of excellence in helicopter manufacturing and aerospace technology."
they could have the whirly birds, i'll take the 787's.
Pictures of the new helicopter?
F**K globalization and the Sc**bag Traitors of all parties
who espouse it.
Retired Master Army Aviator...30,000 hour..11000 Helo,
ATP,type ratings BV-107, SK-61, Sk-76. FW ATP Multi Land Sea. 40 year Mil/Civilan Aviation Career.,
WAKE THE F**K UP PEOPLE !!!!!!!!!!!!
It's a damned shame that weasels are allowed to participate in making our military hardware.
Atleast they aren't going to re-engine them with lycoming LTS-101 engines.
$3 Billion for 300 helicopters is a pretty good deal as far as defense contracts go.
We're spending double that refurbing Hueys. (yesterdays technology at tomorrow's prices)
You can be rather certain that it will end up helping US makers in the end. Now the US has the high ground in the trade war with the EU, and they did it by giving EADS this piddly helicopter contract.
Not that it matters, is the product any good?
Guys, please don't get too worked up about the name/origination of the company.
See the part of the article that says the company will triple the size of its MISSISSIPPI plant.
These helicopters will be built here in Columbus MS by Mississippi residents. The people who will benefit most from this contract are my friends and neighbors. Some of those people or their family members probably once worked for and laid off by a division of the company that employs me.
It IS a shame that EADS is not a US owned company. But then, I work for a US owned apparel company. The only apparel that we actually still make in this country are the samples. ALL the production is done in other countries from the Dominican Republic to Vietnam. Now that's what I call a damned shame.
I guess one could assume it was the better product...
OUTSTANDING Columbus MS news ping.
"expand Mississippi's role as a "worldwide center of excellence in helicopter manufacturing and aerospace technology."
Who'd a thunk it??
To a lot of people, that is not the relevant point...
Two points that I see from this that need to be brought up:
1) The EADS defense in front of the imminent challenge at the WTO gets a little weaker with this purchase. The EU has always countered that Airbus subsidies were justified because Boeing gets indirect subsidies through its numerous US defense contracts. Now EADS is eating at the same trough, yet Airbus is still getting subsidies.
2) Wow. This puts the Huey and Kiowa to shame with it multirole capabilities. I don't know what kind of reliability it has, but it looks like a platform that can be easily/quickly modified to do just about any mission. I honestly don't know what the competition was offering, but this is a great looking machine.
The 145 is just a version of the Eurocopter 145, which is a version of (and actually registers as) Eurocopter 117B-2. Basic design been around a long time, just updated. This contract was for an 'off-the-shelf' product. Right now, US Mfgrs are not on par with Europe in the rotary world.
Unlike others on this thread, I am HAPPY!
"These helicopters will be built here in Columbus MS by Mississippi residents."
That is THE point to be made.
Goodness...this is great news after the losses from Katrina.
Yep!
I'm happy. ;o)
Thank you, NerdDad!
Can you explain? How does it help and how does the U.S. now have the high ground?
Don't bother. They're on a roll.
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