Approval for Full Rate Production of V-22 Osprey Tiltrotor

Bell Helicopter, PROVIDENCE, RI & FORT WORTH, TX: Marking a major milestone in aviation, Textron Inc. today announced that its Bell Helicopter unit has been granted approval by the United States Defense Department for Full Rate Production (FRP) of the Bell Boeing V-22 Osprey tiltrotor aircraft.  
 
Current plans include the delivery of 360 aircraft to the U.S. Marine Corps (USMC), 50 for the U.S. Air Force and 48 for the U.S. Navy. The total program is worth in excess of $19 billion to Bell and Textron through 2018.  
 
With FRP, the U.S. Government has authorized Bell and Boeing to increase current low-rate production of 11 aircraft per year up to 48. Today's FRP decision by the Defense Acquisition Board (DAB) follows the successful completion of extensive Operational Evaluation testing, conducted last summer by the USMC.  
 
This revolutionary tiltrotor technology combines fixed-wing airplane and vertical lift capabilities into one efficient and extremely capable aircraft that can take off and land like a helicopter and fly like an airplane, providing military customers with significant improvements in combat capabilities – including speeds and range two to three times more than that of conventional helicopters, as well as increased payloads, survivability and reliability.  
 
“The V-22 Osprey is an unprecedented feat in aviation and an excellent example of how our investments in innovation are fueling organic growth for Textron,” said Lewis B. Campbell, Chairman, President and Chief Executive Officer of Textron. “Bell's tiltrotor technology is enabling new capabilities and more operational flexibility for our military customers never before thought possible and will undoubtedly take 21st Century flight to a new dimension. So much so, that the Federal Aviation Administration (FAA) is creating an entirely new class of aircraft specifically for the tiltrotor.”  
 
“Now that we are authorized for full rate production, U.S. Forces will soon have the most versatile aircraft in the world – which will provide a tremendous advantage in the face of ever-changing future combat challenges around the globe,” said Michael A. Redenbaugh, Chief Executive Officer of Bell Helicopter. “Not only is this a pivotal moment for Bell and the literally thousands of employees who helped bring the V-22 to life, but today we mark a truly game-changing advancement in the aviation industry.  
 
With this decision, tiltrotor technology has come to life in a big way.” “In addition, today's FRP decision provides us with an opportunity to deliver on our customer commitment to produce the aircraft in the most efficient, cost-effective way possible, ultimately bringing costs down,” added Redenbaugh. “And while there's a lot of work to be done, we have the talent, resources and infrastructure in place to achieve this goal.”  
 
Redenbaugh also noted that Bell expects to reach in excess of $1.5 billion in annual V-22 revenue in 2012 when the program reaches planned capacity of 48 aircraft per year.  
 
The initial Ospreys, called “MV-22s” will be delivered to the USMC for use in combat assault. Each Osprey can carry 24 Marines with full combat gear. The Air Force version of the tiltrotor, called the “CV-22,” is a Special Operations aircraft designed for the long range insertion and removal of special teams. Other mission critical capabilities for the V-22 include combat search-and-rescue, aerial refueling and anti-submarine warfare.  
 
With potential future foreign and domestic military sales and the possibilities for next generation tiltrotor development, tiltrotor technology continues to be an important growth area for the company. Earlier this month the Bell Boeing team was awarded a research contract by the U.S. Army to perform conceptual design and analysis of its next generation tiltrotor technology called the “Quad Tiltrotor” aircraft for the Army's Joint Heavy Lift program.  
 
Tiltrotor technology is also expected to play a significant role in commercial applications such as emergency disaster relief and emergency medical evacuation, regional passenger/cargo transport, search-and-rescue, offshore oil field support and anti-drug efforts, via the company's development of a civil tiltrotor aircraft, which is currently undergoing flight-testing.  
 
Bell Helicopter, a subsidiary of Textron Inc., is a leading provider of commercial and military helicopters and the pioneer of the revolutionary tiltrotor aircraft. Globally recognized for customer service, innovation and superior quality, Bell's global workforce of more than 7,500 employees serves customers flying Bell aircraft in over 120 countries.