Boeing Backs Out Of Plans To Build Planes In Fla.

WASHINGTON — The Boeing Co. and Alenia North America Inc. have failed to reach a deal to jointly build an assembly plant in Florida for a new multibillion-dollar military cargo fleet.

Alenia still intends to build an assembly plant for the military’s C-27-J, known as the Joint Cargo Aircraft, in Jacksonville, Fla.

Boeing spokesman Bill Barksdale says Boeing decided to walk away from the project because of current economic conditions, not over concerns about the plane.

Alenia is a unit of Italy’s Finmeccanica SpA company.

It is partnered with New York-based L-3 Communications Holdings Inc., the prime contractor on the Joint Cargo Aircraft, to build an initial 78 cargo planes for the Army and the Air Force. The team won the $2 billion contract in 2007, beating out Raytheon Co.