Friday, April 03, 2009

Alenia Talks With Northrop About C-27J Role

Alenia Talks With Northrop About C-27J Role
(NSI News Source Info) April 3, 2009: Italy's Alenia Aeronautica and Northrop Grumman are discussing a possible role for the American giant on the $2 billion program to furnish the U.S. Army and Air Force with C-27J tactical transports, according to sources at the two companies. The C-27J has a 35% increase in range and a 30% increase in service ceiling over the original G.222. The Italian Air Force, Hellenic Air Force, Bulgarian Air Force, Romanian Air Force, United States Army and the United States Air Force have ordered the C-27J. Alenia is offering Canada the C-27J as a CC-115 Buffalo replacement. Lithuania ordered the C-27J as Antonov An-26 replacement. The GMAS team promoted the C-27J in the U.S. Army and Air Force's Joint Cargo Aircraft competition against Raytheon and EADS North America's C-295. Both the U.S. Army and Air Force JCA orders combined are expected to top 100 aircraft. The JCA will eventually replace the existing C-23 Sherpa, C-12 Huron and C-26 Metroliners. The C-27J had completed the U.S. Department of Defense's Early User Survey evaluations by November 2006, flying 26 hours and surpassing all the JCA program requirements. The GMAS team also announced that the C-27J will be assembled at a facility at Cecil Field, Duval County, Florida. While the final selection of the JCA was expected to be announced in March 2007, the decision came on 13 June 2007, when the Pentagon selected the C-27J as its Joint Cargo Aircraft. A contract worth US$2.04 billion was awarded to the L-3 Communications team for 78 C-27Js along with training and support on 13 June 2007. On 22 June 2007, Raytheon formally protested the award of the JCA contract to the Alenia C-27J. On 27 September 2007, the GAO announced that it had denied Raytheon’s protest, thereby allowing the Pentagon to go ahead with the C-27J procurement. Prior to Raytheon's protest, the first C-27J aircraft were to begin delivery to the joint U.S. Army-Air Force test and training program in June 2008. The first flight of a US C-27J occurred on 17 June 2008. The C-27J was being considered as a sole-source contract by the Government of Canada as a future replacement for its current search and rescue airfleet, the contract being worth approximately C$3 billion as of January 2007. Romania ordered seven C-27Js for delivery from 2008 to replace Antonov An-24 and An-26 aircraft, beating the EADS CASA C-295. However, the order was blocked by the government in February 2007 upon a legal challenge filed by EADS. In June 2007, the order was confirmed again when the Romanian court rejected EADS' complaint. The Romanian government officially signed a contract for the delivery of seven C-27Js on 7 December 2007. The C-27J is a probable contender for a Royal Australian Air Force requirement for light airlifer to replace its aging DHC-4 Caribou. Currently orders stand at Italy (12), Greece (12 + 3 options), Bulgaria (5), Lithuania (3), Morocco (4), Romania (7), and United States (78). The US Air Force is shifting US$32 million from the Pentagon's 2008 budget to purchase a C-27J for its Special Operations Command. The AC-27J will be equipped using proven hardware and systems to reduce risk. Alenia is partnered with L-3 Communications which is serving as the U.S. prime contractor on the effort to supply 78 of the aircraft to the Pentagon. Two have already been delivered. It remains unclear whether Northrop would step into the role vacated by Boeing, which pulled out of the C-27J program in February after more than two years of difficult negotiations with Alenia, largely over investment levels. Alenia executives have repeatedly said that the company alone - or working with other arms of its giant parent Finmeccanica - could easily handle U.S. production of the aircraft even without another American partner. Boeing was to serve as co-manager of Alenia's planned assembly line in Florida, ensuring a major U.S. platform provider was on board the C-27J program. Northrop could work with Alenia on final assembly of aircraft at a new factory in Jacksonville, Fla., which Alenia plans to build. Even before Boeing pulled out of talks earlier this year, Alenia said it would start building the U.S. assembly facility on its own to ensure it wouldn't miss its delivery deadlines. Alenia will break ground April 25 to have the line operational by April 2010. In the meantime, the first 13 planes are being delivered from Alenia's production line near Turin, Italy. Northrop and Alenia declined to comment.

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