Program On Hold Pending Litigation

With the Light Air Support (LAS) program on hold as a suit brought by Hawker Beechcraft makes its way through the legal system, both sides are taking the skirmish public, and both say the argument is principally over jobs.

Embraer Super Tucano

The Air Force had announced last week that the contract had been awarded to Sierra Nevada Corporation, a woman-owned small business which has partnered with Brazilian planemaker Embraer. The companies were to build 20 Super Tucano airplanes in Jacksonville, FL, under an initial contract worth $354 million.

Hawker Beechcraft, which builds the rival AT-6 Texan, filed suit to stop the award, saying that the Air Force had not followed its own contract award procedures in making its decision. Depending on the final number of airplanes ordered, the contract could be worth $1 billion.

The Associated Press reports that HBC CEO Bill Boisture said that awarding the contract to his company would have shored up as many as 1,400 direct and indirect manufacturing jobs in Wichita, KS, and elsewhere in the supply chain covering 39 states. He said that without the LAS contract, HBC might once again "have to pare down" its employee base, and "that is not our desire."

Hawker AT-6B

For its part, Sierra Nevada Corp., which is headquartered in Sparks, NV, told the AP in an e-mail that its Super Tucano would support some 1,200 direct and indirect jobs, including 50 high-tech engineering positions at the main assembly facility in Jacksonville. Sierra Nevada spokesman Taco Gilbert said Embraer has had a presence in the U.S. for over 30 years with about 800 employees in the country. Embraer recently bolstered its U.S. manufacturing bona-fides by opening an assembly plant for its Phenom 100 bizjets in Melbourne, FL.

Boisture and HBC have enlisted the Kansas congressional delegation in an effort to compel the Air Force to explain its decision. In a statement on his website, Congressman Mike Pompeo (R), who represents the Wichita area, said "Indeed, it’s also troubling that the United States Air Force would rather have these fighter aircraft built in another country, when jobs are needed so badly here at home.  I will continue to fight for answers on this matter and remain committed to the men and women at Hawker Beechcraft who build world-class aircraft.”

FMI: www.hawkerbeechcraft.com, www.embraer.com, www.sncorp.com