Money Eliminated From FY2009 Defense Budget Proposal

Representatives with General Electric say they "weren't entirely surprised" to learn funding for the company's proposed F-35 Lightning II powerplant was stricken from President Bush's fiscal year 2009 budget plan, announced this week. After all, they've been here before.

Dow Jones Newswires reports this is the third year in a row the Bush administration has pushed to axe the project, which calls for GE and Rolls-Royce to develop an alternate engine choice to the Pratt & Whitney F135.

In each of the previous years, funding was restored in Congress.

GE and Rolls-Royce were awarded the joint $2.5 billion contract in 2005. Just over half of those funds have been authorized so far, including $480 million for FY 2008. The White House doesn't want to spend a dime more.

Rick Kennedy, a spokesman for GE's aviation division, said the Pentagon wants the second engine option... and has been happy with progress on the GE/Rolls F136 turbofan so far. However, "they have their own issues in terms of (short-term) budget challenges," he said.

"We have a guarded optimism" that funding will be restored once again, Kennedy added. "We feel good about it."

The Pentagon believes competition between two engine suppliers would lower prices.

FMI: www.geaviation.com, www.rolls-royce.com, www.pw.utc.com