Northrop Grumman-BAE team drops out of Air Force trainer competition

Northrop, which had partnered with BAE Systems on its proposal, said it will no longer compete for the T-X contract after reviewing the requirements in the final request for proposals released by the Air Force in December.

“The companies have decided not to submit a proposal for the T-X trainer program, as it would not be in the best interest of the companies and their shareholders,” the statement said.

It’s the second team to drop out of the competition in a week. Raytheon and Italian firm Leonardo dropped out on Jan. 25, saying that the two companies were “unable to reach a business agreement that is in the best interest of the U.S. Air Force.”

The T-X is a two-seat trainer jet that will be used to teach pilots how to fly fourth and fifth generation aircraft and replace the Northrop Grumman T-38. A contract is expected to be awarded this year, with initial operating capability set for the end of fiscal 2024. If all options are exercised, the $16.3 billion contract could buy up to 350 jets.

At least two teams are still in the competition. The offering from Boeing and Saab, a clean-sheet design made specifically for this proposal, made its first test flight in December. Lockheed Martin and Korea Aerospace Industries are working on a modified version of the F-50.

Sierra Nevada Corp. and Turkish Aerospace Industries are also reportedly working together to bid for the trainer contract.

Byron Callan from Capital Alpha Partners said the Boeing-Saab team is the favorite to win, but noted that it’s likely to be a “hard-fought competition.”

Callan also pointed out that whichever company wins could also sell its platform on the international market to countries that want a low-cost attack aircraft and can’t afford or doesn’t need the F-35.