Lockheed to lay off 600 in copter program

WASHINGTON, July 14 (UPI) -- Lockheed Martin said Tuesday it will lay off 600 workers, mostly from its Owego, N.Y., facility, after the cancellation of the presidential helicopter project.

Other layoffs are likely for the Pawtuxent River, Md., facility, the company said.

The Hill newspaper said the company issued a statement on the layoffs, saying workers would get 90 days pay and benefits in addition to regular severance packages. No further reductions are planned.

U.S. Defense Secretary Robert Gates said in April the administration wanted to cancel the new presidential helicopter program, known as the VH-71. The Navy managed the program, and has moved ahead with its termination, The Hill reported. The program was under contract to Lockheed Martin and the British-Italian venture Agusta Westland.

The newspaper said the Obama administration decided to cancel after costs swelled from an estimated $6.5 billion to $13 billion. But proponents argued that growing requirements from Marine One Squadron, which flies the helicopter, led to higher costs and delays.