Raytheon Corp. announced Wednesday that it has withdrawn from the competition to build a jet trainer for the U.S. Air Force.

The company announced in October that, if approved, it would build the jets in Meridian, creating 450 jobs in the process. The region was told those jobs would pay an average $80,000 annual salary.

Raytheon Company and Italian partner Leonardo said Wednesday it decided not to jointly pursue the U.S. Air Force Advanced Pilot Training program, known as T-X.

“In February 2016, Raytheon and Leonardo announced their intent to team on the T-X pursuit. While we remain confident that the T-100 is a strong solution, our companies were unable to reach a business agreement that is in the best interest of the U.S. Air Force,” said B.J. Boling, Raytheon spokesman in a joint statement. “Consequently, Raytheon and Leonardo will not jointly pursue the T-X competition.”

The companies said they would have no further comment at this time.

East Mississippi Business Development Corporation President and CEO Bill Hannah, who championed the deal for Meridian, was not immediately available for comment Wednesday.

Though it was disappointing news, a somber Meridian Mayor Percy Bland said Meridian and the area are stronger.

“The news of Raytheon’s withdrawal was unfortunate and unexpected, but ultimately we have come together as a community and we have figured out how to win,” Bland said. “This community, this region, and the state of Mississippi were chosen over countless other communities nationwide. We will remain united behind the EMBDC, Bill Hannah, and all those involved in the relentless pursuit to bring jobs, opportunities and growth to this city, county and region.”

Bland said there are many pluses despite the bad news.

“We would have had to compete to win the project. But at the end of the day, the positives still outweigh the negatives because we have proven we can win major contracts and major industry,” Bland said. “We did all we could do to get them here. I don’t think it’s going to be our last rodeo. We’ve got a lot of momentum and a lot of good things are going to happen.” Mississippi House Speaker Pro Tem Greg Snowden said the withdrawal had no reflection on the area or people.

Mississippi House Speaker Pro Tem Greg Snowden said the withdrawal had no reflection on the area or people.

“It’s a blow. It was very disappointing,” Snowden said Wednesday afternoon. “As I understand it, when it got down to specifics, Raytheon and Leonardo could not work out the details of their internal deal. That had nothing to do with the site, county, community, proposal or state support, because all that was there. Raytheon and Leonardo just couldn’t come to an understanding to move on.”

Lauderdale County Board of Supervisors president Josh Todd said in a statement that the county believes Raytheon decided to withdraw due to differences between Raytheon and Leonardo, the parent company that owns the T-100 trainer in Italy.

“Raytheon representatives said that this is is no way a reflection of Lauderdale County or the selected site. Raytheon has praised Lauderdale County as we are a true testament of the American Spirit,” Todd said in the statement. “As you know having Raytheon’s stamp of approval on Lauderdale County opens the door to a world market. In addition, Raytheon has identified Lauderdale County as a site for possible expansions for future projects.”

Meridian Airport Authority President Tom Williams said he was blindsided by the announcement.

“Raytheon’s decision to drop out of the bidding…came with no warning and was a disappointment to all of us in Meridian,” Williams said. “I have spoken to Raytheon officials today, who were effusive in their praise for our community, our airport and our ability to deliver what the company would need for its assembly plant. They assured me that the decision was strictly from a business perspective and had nothing whatsoever to do with Mississippi, our region or the chosen construction site at Meridian Regional Airport.”

Williams said the community realized its goals nevertheless.

“When we, the community, made the decision to fight for this project, we had two goals: To put Meridian in the forefront with the Mississippi Development Authority and to win the site competition with one of the top defense contractors in the world. We achieved both goals with flying colors,” Williams said.

Williams said he was proud of the area’s teamwork.

“I am so proud of the east Mississippi region. We spoke with one united voice,” Williams said. “We’ve gotten to know so many great Raytheon people, who also put tremendous effort into the T-100 project and are as disappointed as we are. But, because of all those efforts, east Mississippi is even better prepared to compete on the next project. The relationships we built with Gov. Phil Bryant, the MDA, our strong federal and state legislative delegations, and so many other community leaders have helped us build a strong and lasting foundation for future efforts. We have just begun, and we have proven we can be successful in the big leagues.

“This exercise has put east Mississippi in the spotlight as a major corporate player, and on the short-list for any company considering this type of project,” Williams said. “We intend to build on that success together. Bring on the next one.”

In October 2016, Meridian and East Mississippi were filled with excitement when Raytheon announced it had selected Meridian for a jet manufacturing facility that would be a final assembly and check-out facility at a site near the airport.

“This is a fantastic opportunity, a fantastic company, a fantastic project,” Hannah said at the time. “A lot of people were involved with this project. The Board of Supervisors, the City Council, the Riley and Hardin foundations, Mississippi State and community colleges and private folks.”

The facility was proposed for a 130-acre site at Meridian Regional Airport.

In early December, Raytheon held a red-carpet ceremony at Key Brothers Hangar to much fanfare. Speakers addressing a hangar full of local leaders that day included Raytheon President of Space and Airborne Systems Rick Yuse, Gov. Phil Bryant, Sen. Roger Wicker, U.S. Rep. Gregg Harper and Sen. Thad Cochran’s Chief of Staff Brad White.

The Air Force put out a request for proposals in January and Raytheon anticipated entering a competition against Lockheed Martin, Boeing and Northrop Grumman.

The proposal was met with caution. A long-time defense industry analyst with the Teal Group in suburban Washington, D.C., Richard Aboulafia, told The Meridian Star in October that Raytheon’s proposal to build the system in Meridian is somewhat of a longshot. Raytheon is not in the business of designing its own planes, Aboulafia said.

“Raytheon’s bid has the weakest chance of winning the bid,” Aboulafia said. “It’s probably the weakest of the four. Raytheon just doesn’t have the capability of designing its own planes and that’s why they’ve partnered with Leonardo. They’re barely able to meet the requirements of speed, maneuverability and ability to pull Gs.”