Pentagon terminates F-35 second-engine contract

WASHINGTON, April 25 Mon Apr 25, 2011 2:49pm EDT

WASHINGTON, April 25 (Reuters) - The U.S. Defense Department has terminated a contract with General Electric (GE.N) and Rolls-Royce (RR.L) to develop an alternative engine for the F-35 fighter jet, the department said on Monday.

The budget deal recently passed by the U.S. Congress contained no funding for the alternative engine.

The Pentagon has sought for five years to kill the alternative engine as an economy measure. United Technologies Corp (UTX.N) unit Pratt & Whitney is building the primary F-35 engine. (Editing by John Wallace)

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