Textron´s Bell Helicopter unit lost a U.S. Army contract worth billions of dollars Oct. 16, Textron is closing down its financing arm, and worldwide economic woes have sharply reduced new orders for Cessna Aircraft´s line of business jets, company officials said.
Hours after a Textron conference call with financial analysts to discuss third-quarter financial results, the Department of Defense notified Congress and Bell Helicopter that the government is terminating the Army´s Armed Reconnaissance Helicopter (ARH) program "for the convenience of the government."
DOD noted that the ARH contract was awarded several years ago for an expected development cost of $ 359 million and a procurement average unit cost of $ 8.56 million. Currently, estimated development costs had risen to $ 942 million and the average cost per helicopter to $ 14.48 million, DOD said. Initial deliveries were to have begun in 2009, but the latest projection indicated deliveries would not start until 2013.
The full version read at Aviation Week
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