Army not ready to surrender heavy chopper.

* Helicopter manufacturers have patiently been waiting for two decades for the Army to make up its mind on whether and when it will build a new heavy-lift chopper. This big-ticket acquisition--estimated to cost as much as $85 billion for 500 aircraft--may finally be showing signs of life.

[ILLUSTRATION OMITTED]

The Army has budgeted more than $20 million over the next two years to begin designing a new heavy-lift helicopter, said Paul Bogosian, Army program executive officer for aviation. But officials acknowledge that the project will not go far unless the Air Force agrees to participate. The new chopper potentially could replace the Army's Chinook and also supplement the Air Force's C130 fleet. "We're waiting to see when the stars align to allow us to take the next step," Bogosian told an industry conference.

The Congressional Budget Office calculated that development costs for the "joint heavy lift" aircraft will be about $14 billion over a period of 17 years. To produce 500 aircraft at a rate of 32 per year, the price tag would average about $170 million per aircraft.