(NSI News Source Info) ROME - February 28, 2009: Chicago-based Boeing and Italy's Alenia Aeronautica have definitively broken off talks to jointly manage a final assembly line for Alenia's C-27J aircraft in Florida, meaning Boeing would no longer have any role in the U.S. Joint Cargo Aircraft (JCA) program. 
In 1997, Alenia and Lockheed Martin formed Lockheed Martin Alenia Tactical Transport Systems (LMATTS) for the development of an advanced version of the G.222 with advanced avionics, a glass cockpit and new engines, the same Rolls-Royce AE 2100s that power the C-130J Super Hercules. The LMATTS joint venture was later dissolved when Lockheed Martin chose to offer the C-130J as a contender in the same U.S. Army and U.S. Air Force Joint Cargo Aircraft (JCA) competition in which the C-27J was competing. Alenia Aeronautica then paired with L-3 Communications to form the Global Military Aircraft Systems (GMAS) joint venture to market the C-27J. Boeing Integrated Defense Systems later joined Alenia and L-3 Communications as a GMAS team member., as of this week Boeing are no longer involved in this procedure.
Alenia previously announced this month that it would start building the line in Jacksonville alone in order to make delivery deadlines to the U.S. Army and Air Force, which are set to acquire 78 of the aircraft.
Alenia and Boeing said at the time that talks would continue for Boeing to join Alenia in the work at a later date. But both firms on Feb. 26 said those talks would not continue.
"We have decided jointly to break off discussions," an Alenia source said. "The discussions did not reach an agreement on financial and economic conditions regarding the assembly line."
A Boeing spokesman confirmed the move.
"After our best efforts in talks, we have decided not to go ahead with Alenia North America in establishing the final assembly line," said Bill Barksdale, communications director for Boeing's Global Mobility Systems.
"It was not about the team or about the airplane," he added. "We did a final analysis, looked at the business objectives, at our shareholders and what they expect, and we made the decision not to go forward. We value our relationship with Alenia, and that relationship will continue."
After starting talks as long ago as 2006, the firms said last summer they were on the brink of agreeing to terms on revenue streams from the line, part of the $2 billion deal to supply the aircraft to the Pentagon. Officials subsequently said the deal would be signed before Christmas 2008.
Alenia plans to break ground in Jacksonville by the end of March to have the line operational in April 2010. Meanwhile, the first 13 aircraft ordered under the JCA program are set to roll off Alenia's production line in Italy.
Both firms confirmed that Boeing would no longer have any role in the JCA program.
In 1997, Alenia and Lockheed Martin formed Lockheed Martin Alenia Tactical Transport Systems (LMATTS) for the development of an advanced version of the G.222 with advanced avionics, a glass cockpit and new engines, the same Rolls-Royce AE 2100s that power the C-130J Super Hercules. The LMATTS joint venture was later dissolved when Lockheed Martin chose to offer the C-130J as a contender in the same U.S. Army and U.S. Air Force Joint Cargo Aircraft (JCA) competition in which the C-27J was competing. Alenia Aeronautica then paired with L-3 Communications to form the Global Military Aircraft Systems (GMAS) joint venture to market the C-27J. Boeing Integrated Defense Systems later joined Alenia and L-3 Communications as a GMAS team member., as of this week Boeing are no longer involved in this procedure.
Alenia previously announced this month that it would start building the line in Jacksonville alone in order to make delivery deadlines to the U.S. Army and Air Force, which are set to acquire 78 of the aircraft.
Alenia and Boeing said at the time that talks would continue for Boeing to join Alenia in the work at a later date. But both firms on Feb. 26 said those talks would not continue.
"We have decided jointly to break off discussions," an Alenia source said. "The discussions did not reach an agreement on financial and economic conditions regarding the assembly line."
A Boeing spokesman confirmed the move.
"After our best efforts in talks, we have decided not to go ahead with Alenia North America in establishing the final assembly line," said Bill Barksdale, communications director for Boeing's Global Mobility Systems.
"It was not about the team or about the airplane," he added. "We did a final analysis, looked at the business objectives, at our shareholders and what they expect, and we made the decision not to go forward. We value our relationship with Alenia, and that relationship will continue."
After starting talks as long ago as 2006, the firms said last summer they were on the brink of agreeing to terms on revenue streams from the line, part of the $2 billion deal to supply the aircraft to the Pentagon. Officials subsequently said the deal would be signed before Christmas 2008.
Alenia plans to break ground in Jacksonville by the end of March to have the line operational in April 2010. Meanwhile, the first 13 aircraft ordered under the JCA program are set to roll off Alenia's production line in Italy.
Both firms confirmed that Boeing would no longer have any role in the JCA program.
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