Europeans bid for Bush helicopter deal

THE US Navy was today set to decide which helicopter will become the next Presidential Marine One in a tender process that has become a test of competing US and European interests.

The choice for the high-profile aircraft has come down to the Anglo-Italian US101 and Sikorsky's S-92. A formal announcement will be made on 28 January but the decision is expected to leak out before that.

While the US101, a variant of the Royal Navy's EH 101, is considered the better helicopter, it may run foul of the new "buy American' climate in Washington. The order will be for 25 Presidential machines but could lead to orders for up to 750 for the US armed services.

The aircraft was originally designed by AgustaWestland, now wholly owned by Finmeccanica of Italy, but the US variants will be built in the US in partnership with Lockheed and Bell. However, the boost to worldwide sales would guarantee up to 5000 jobs in Yeovil, now the main European factory.

Tony Blair and Italian Prime Minister Silvio Berlusconi have lobbied President Bush hard for the US101 and the decision is being watched closely. "There's a view that if Britain and Italy can't get this through, this basically shows the US market is closed,' said Merrill Lynch aerospace analyst Charles Armitage.

Executives at Sikorsky, a subsidiary of United Technologies, say their machine has passed the US Navy's rigorous trials with flying colours.

However, the US101 is believed to have the advantage of being large enough for passengers to stand up in. It also boasts a complete bathroom.

The S-92, a variant of the Black Hawk, does not have enough headroom to stand and the toilet has to be added on "like an outside privy', according to one critic.

EADS has so far received 149 orders for its new mammoth aircraft model Airbus A380, Co-CEO Rainer Hertrich told Handelsblatt newspaper in an interview. The company will start making a profit with 250 sold A380 aircraft.