The US Navy on Friday gave a transatlantic team led by Lockheed Martin Corp a $1.7 billion contract to build a new fleet of 23 US presidential helicopters, a deal valued at up to $6.1 billion. The decision was a stunning setback for Connecticut-based United Technologies Corp's Sikorsky Aircraft unit - which for nearly 50 years has built and maintained the green and white "Marine One" helicopters that fly the president.
Sikorsky had wrapped itself in the American flag to pitch its twin-engined VH-92, based on the Black Hawk helicopter.
But lower cost, a larger cabin and faster delivery schedule allowed No. 1 Pentagon supplier Lockheed to prevail with its US101, based on the three-engined EH101 made by AgustaWestland Inc, a unit of Italy's Finmeccanica SpA.
The deal attracted international attention, with Prime Ministers Tony Blair of Britain and Silvio Berlusconi of Italy personally pressing President George W. Bush on behalf of Lockheed's British-Italian design.
Assistant Navy Secretary John Young said the decision came after an "exhaustive and deliberative" search and would ensure a high level of quality and safety for future presidents.
Texas-based Textron Inc's Bell Helicopter is the other big partner and Los Angeles-based Northrop Grumman Corp will provide electronics for the new chopper.
Lockheed Vice President Stephen Ramsey said 65 percent of the US101 would be built in the United States, with the remaining 35 percent to be split between Britain and Italy.