27 April 2011

Is Congress Really Killing Jobs the Alternate F35 Engine?

Hmmmm... Maybe the budget hawks are serious, and even though it will cost jobs in some districts, they're actually going to kill the GE/Rolls Royce alternate engine for the F-35 fighter.

The U.S. Defense Department ended a contract with General Electric Co and Rolls-Royce Group Plc on Monday for an alternate engine for the F-35 Joint Strike Fighter.
The Pentagon for five years argued the second engine was an unnecessary expense while supporters in Congress kept funding the project, maintaining that competition with an engine built by United Technologies Corp unit Pratt & Whitney would ultimately produce savings for taxpayers.
But lawmakers earlier this month omitted funds for the alternative engine in an agreement on a budget to cover U.S. government spending for the remainder of fiscal 2011 that ends September 30.
GE and Rolls-Royce vowed to press for funding to be restored in fiscal 2012, so that the engine can be completed and compete for orders. They estimate taxpayers have spent roughly $3 billion on the project so far.
"I can assure you we are not giving up," GE Chief Executive Jeff Immelt said in a letter to employees released on Monday.

By: Brant

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