US lawmakers back GE-Rolls engine opposed by Pentagon

By Jim Wolf

Defense News: WASHINGTON, May 13 (Reuters) - Two U.S. House Armed Services subcommittees voted on Thursday to preserve an alternate engine being developed by General Electric Co (GE.N) and Rolls-Royce Group Plc (RR.L) for the multinational F-35 fighter aircraft program.

The Defense Department has tried to kill the interchangeable engine for four years on the ground it can ill-afford to finish building it.

Congress has sought to prevent a monopoly in the projected $100 billion F-35 engine market by Pratt & Whitney, a United Technologies Corp (UTX.N) unit that builds the engine now powering the fighter in early stages of production.

Defense Secretary Robert Gates repeated on Saturday he would strongly recommend a presidential veto of any measure that funded the second engine. He has described it as a waste that would undercut Lockheed Martin Corp's (LMT.N) F-35, the backbone of future U.S. tactical aviation and the world's costliest military acquisition at more than $300 billion.

The Air-Land and Seapower subcommittees, defying the veto threat, voted to add $485 million for the second engine in the fiscal year starting Oct. 1.

The Pentagon, in response, said it would carefully examine the panels' recommendations, which are subject to a scheduled May 19 vote by the full committee, and explain why it deems them "not in the interest of our military and the taxpayers."

"Ultimately, Secretary Gates stands ready to recommend a veto should the final legislation contain any money for the extra engine," Geoff Morrell, the Pentagon press secretary, said in an email.

Rick Kennedy, a GE spokesman, said the $485 million in question would let the development proceed "full bore" toward a first flight sometime next year. He said the second engine was about 75 percent through its development. (Reporting by Jim Wolf; editing by Andre Grenon)