US Army Taps Bell Textron for Helicopter of the Future

Bell Textron was chosen by the US Army to build the Future Long-Range assault aircraft.

The contract is part of the Army's Future Vertical Lift program to replace both the Black Hawk and Apache helicopter and is seen as a crucial test of how the service can modernize without delay and cost overruns.

Textron's stock increased in extended trading.

Development of the contract is expected to take 19 months according to the Army.

The new machine will provide transformational increases in speed, range, payload and endurance to replace a portion of the Army's current assault and utility aircraft fleet, according to the Army.

Douglas Bush, Army assistant secretary for acquisition, told reporters at the Pentagon on Monday that the contract selection could be the next step in the program. The contract could go to $7 billion if all the options are exercised. The first low rate production of the new helicopter would be included.

There were two different aircraft that the army could pick from. Bell's V-280 Valor is an advanced tilt-rotor with its vertical lift and takeoff technology. The Defiant X helicopter was built by the team from Boeing.

Army Bets on Faster, Stronger Rotorcraft.

For the winner, selection could establish a foothold as the Army's aviation provider for decades, and reap the benefits of a market estimated to be worth from $60 billion to $90 billion.

The group said it wasn't done fighting for the contract.

The group is confident that Defiant X is the transformational aircraft the US Army needs to accomplish its complex missions. After reviewing feedback from the army, we will evaluate our next steps.

Textron's Bell division is trying to offset declining sales of its V-22 Osprey. Bell Military revenue was expected to decline from $1.8 billion this year to $802 million by the end of the decade without the contract. The Black Hawks replacement could make $11 per share for Textron.

After the announcement, Kahyaoglu wrote, "Despite a very strong showing from the LMT Sikorsky team, the V-280 tiltrotor is a better aircraft." She said the helicopter should make $65 billion in revenue.

It is a win for Textron that is revitalizing Bell's military franchise according to analysts.

It opens long-term questions about Boeing's helicopter business.

Bell Textron was the favorite to win the contract due to its range, speed and maturity, according to an analyst. The contract, which is 75% cost-plus and 25% fixed cost, is worth several billion dollars initially and will cover development work, including six prototypes as well as eight low-rate initial production aircraft.

The news isn't all bad for the company. One of the largest contractors for the V-280 is it. The company will continue to make Black Hawks until the middle of the next decade. The Army gave it a multi-year contract for 120 Black Hawks with options for 135 more.

The Army wants the new aircraft to fly twice as fast and twice as far as the helicopter it is replacing, which have been its aerial mainstays since the first Gulf War. They will be in service for a long time for the other US armed forces.

The Army wants its flying future to be on aircraft that can cruise like planes over vast expanses of the Pacific and Africa, and evade detection with quick maneuvers.

The Black Hawks have been around for a long time. The book "Black Hawk Down" tells the story of two of them being shot down during a 1993 raid in Africa. The Black Hawk crashed during the raid in Pakistan that killed Osama bin Laden.

Prototypes are expected to be created in the next fiscal year for the flight test of the helicopter.

Thomas Black and Julie Johnsson helped with the project.