Raytheon, Leonardo Drop Out of T-X Trainer Program Partnership

Raytheon (NYSE: RTN) and Leonardo have decided to end their partnership to compete for the U.S. Air Force’s T-X trainer aircraft program after the companies failed to “reach a business agreement, ” Defense News reported Wednesday.

Aaron Mehta and Valerie Insinna write Leonardo said in a statement published Wednesday the firm has started to evaluate how to leverage the potential of the T-100 trainer jet in support of the service branch.

B.J. Boling, a spokesman for Raytheon, said in a statement the decision comes nearly a year after the company partnered with Leonardo to offer the T-100 aircraft for the trainer replacement program.

Leonardo originally partnered with General Dynamics (NYSE: GD) to propose T-100 for the T-X program, but the latter decided to end its role as a prime contractor in March 2015, Insinna and Mehta report.

According to Defense News, other industry teams that plan to compete for the T-X program include:

  • Lockheed Martin (NYSE: LMT) and Korean Aerospace Industries
  • Northrop Grumman (NYSE: NOC)
  • Boeing (NYSE: BA)
  • Sierra Nevada Corp. and Turkish Aerospace Industries

The Air Force expects to name the winning contractor this year to build 350 T-X trainer jets, the report added.

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