Boeing and Alenia Aeronautica have severed three-year-old partnership talks for the C-27J Joint Cargo Aircraft (JCA) programme.
The US Army and the US Air Force have ordered 78 C-27Js, with L-3 Communications as prime contractor and mission systems integrator and Alenia as the manufacturer. Alenia and Boeing had previously agreed in principle to have the latter perform final assembly at a greenfield site in Jacksonville, Florida.
However, the two companies have jointly decided to break off discussions permanently.
"The two companies were not able to reach a business agreement that was satisfactory," says Alenia. "A lot of it was driven by the global economy."
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Boeing also blames the "current global economic climate" for the decision, as the company could not reach an agreement that would satisfy its shareholders given wider financial circumstances.
The decision leaves Boeing relying solely on continued C-17 production to maintain a military airlift industrial capacity.
For its part, Alenia plans to move forward with completing a final assembly plant itself for C-27Js at Jacksonville's Cecil Field industrial park. The factory is scheduled to open in spring 2010. Alenia says the army and USAF customers should notice no changes to aircraft quality or production schedule with Boeing out of the JCA industrial team.
The army plans to buy at least 54 C-27Js to replace a fleet of about 40 Shorts C-23B Sherpa transports. The USAF is considering proposals to buy as many as 120, although the final number could depend on the results of a mobility requirements study due later this year.
Source: Flight International
