LONDON -- Lockheed Corp. yesterday won a $1.3 billion contract from the British government to supply 25 military transport aircraft, overcoming opposition that had split Britain's cabinet.
The decision to order the Hercules transport planes, instead of waiting a decade for an untested, much more expensive European military model came over the objections of Trade Secretary Michael Heseltine and British Aerospace, which is helping to develop the European Future Large Aircraft, or FLA.
They had said buying the Hercules from Lockheed, based in Calabasas, Calif., would damage Britain's aerospace industry and its participation in European projects.
The Royal Air Force and the Ministry of Defense had pressed the government to order the Hercules C-130s because they will be ready by 1996, the deadline for replacing half of Britain's aging fleet.
The FLA, an eight-nation European project under the control of French-based Airbus Industrie, won't be available until 2003.
Each C-130J costs $37.5 million; the FLA would cost about $65 million.
Scheduled for roll-out in mid-1995, Lockheed said the C-130J will have 35 percent greater range than the existing model. It also cruises at a higher altitude, climbs and reaches maximum speed more quickly than the existing Hercules.
Britain's decision, announced by Defense Secretary Malcolm Rifkind, signals London's wariness about becoming embroiled in another costly multinational project like the program with Germany, Italy and Spain to build the Eurofighter 2000.
The fighter jet has been troubled by cost overruns and technology problems and made its maiden flight two years late, in March.
Lockheed is scheduled to merge with Bethesda-based Martin Marietta Corp., pending approval by the federal government. The new company, to be called Lockheed Martin Corp., would be the United States' largest defense contractor.
Lockheed's shares closed at $68.25 yesterday, up 50 cents.
