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Mon, Jul 18, 2005

Embraer Ready To Build Next-Gen Spy Plane? Not So Fast

Lockheed-Martin Re-Evaluating ERJ 145 For Aerial Common Sensor Program

It was a big, big deal for Brazilian-based Embraer -- and for Florida. When the Army announced the ERJ-145 had been selected as the flying platform for the new Aerial Common Sensor program, the manufacturer broke ground on a new facility at Jacksonville's Cecil Field. Governor Jeb Bush attended, all a-giggle about the prospect of a huge aerospace plant at the former Navy base.

But now, Bush's administration is quickly re-corking the champagne and Embraer is suddenly a bit more somber as Lockheed-Martin, lead contractor on the ACS program, has decided to re-examine the use of the ERJ-145. There are new, troubling questions about whether the airframe itself can accommodate the equipment needed to make the platform successful.

The bottom-line is this, according to Lockheed: nobody seemed to realize the amount of equipment involved in the program simply might not fit into the ERJ-145. That could well end up a major "oops" on the part of those awarding the contract.

"They [the Army] should have known," Bill Dane, military aviation analyst with Forecast International Inc., told the Business Journal of Jacksonville. "To see something as basic as 'it won't fit,' that shouldn't happen at this level of command and responsibility."

The search is on now for a replacement. Several manufacturers are being considered -- including Embraer. Its ERJ-170 and -190 are in the running. But some analysts tell the Jacksonville business publication that could draw the attention of the big kid on the block -- Boeing -- which might decide, if the Army wants something that big, it should be flying the 737.

"The problem is that if you go to a 190, then Boeing might attack with its 737," The Teal Group's Richard Aboulafia told the Business Journal.

Also in the running, Gulfstream's 550 -- seven feet longer than the ERJ-145 and boasting a maximum take-off weight 23-percent greater than the -145.

FMI: www.embraer.com

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