Bell to Build New Helicopter in Amarillo

Bell revealed the plans Monday in an e-mail that Chief Executive John Garrison sent to employees.

The new helicopter program, code-named Magellan, seeks to produce a larger, longer-range aircraft aimed in large part at the offshore oil industry. Design and development are being conducted at Bell's facilities in Fort Worth, Arlington and Amarillo.

In his message Garrison said final assembly, production test flights and delivery of the aircraft will be in Amarillo because of capacity considerations.

Production of Bell's other commercial helicopters in Canada is expected to pick up in coming years as conditions improve, the message said, while production of the V-22 Osprey and other military aircraft in Amarillo will likely tail off as U.S. defense spending diminishes.

Bell produces major components -- rotors, transmissions and other key parts -- of military and commercial aircraft at facilities in the greater Fort Worth area.

But beginning in the early '90s the company moved commercial helicopter final assembly and other work to Mirabel, near Montreal. The decision was made in return for Canadian government helicopter orders and economic incentives, including research and development funding.