June 2005 
Volume 04, Issue 2 
Industry Wrap

EADS-Raytheon team sets its sights on U.S. Army's Future Cargo Aircraft pact

In another example of transoceanic partnerships seeking U.S. defense business, two teams—each featuring a European aerospace firm and a U.S.-based systems integrator—are squaring off in a competition for the U.S. Army Future Cargo Aircraft contract.

Raytheon and European Aeronautic Defence and Space Co. CASA North America last month said they had formed a strategic partnership to pursue the contract, potentially worth $1 billion. The pair will offer EADS CASA's C-295 and CN-235 aircraft for the FCA acquisition. The C-295 can carry a 20,400-pound (9,253-kilogram) payload, or 71 soldiers. The CN-235 carries a 13,600-pound (6,170-kilogram) payload or 51 troops. According to Defense Daily, Raytheon will be prime contractor for its team's FCA bid; EADS CASA would assemble and deliver the FCA in the United States.

The Raytheon-EADS team will compete against Global Military Aircraft Systems, a 50-50 joint venture between L-3 Communications and Italian-owned Alenia North America, which is offering the C-27J. Boeing is not participating in this competition.

The opposing teams are vying to replace 44 Army National Guard C-23 Sherpas used for tactical, intratheater transport, according to Aviation Week & Space Technology magazine. According to Aviation Week, the Army is finalizing an additional requirement of about 125 more aircraft, likely worth $4 billion, for this mission. It's not clear, however, which service branch, Air Force or Army, would operate those additional aircraft, the publication said.

According to Aviation Week, the U.S. Army is expected to issue a final request for proposals for the competition this fall. A contract award is expected early next year.


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