In December 1973, a joint American and British team completed a project document defining an Advanced Harrier powered by the Pegasus 15 engine. The Advanced Harrier was intended to replace the original RAF and USMC Harriers, as well as the USMC's A-4.[11][12] The aim of the Advanced Harrier was to double the AV-8's payload and range, and was therefore unofficially named AV-16. The British government pulled out of the project in March 1975 owing to decreased defense funding, rising costs, and the RAF's insufficient 60-aircraft requirement.[10][12][13] With development costs estimated to be around £180–200 million (1974 British pounds),[14] the United States was unwilling to fund development by itself, and ended the project later that year.[15]
Despite the project's termination, the two companies continued to take different paths toward an enhanced Harrier. Hawker Siddeley focused on a new larger wing that could be retrofitted to existing operational aircraft, while McDonnell Douglas independently pursued a less ambitious, though still expensive, project catering to the needs of the US military. Using knowledge gleaned from the AV-16 effort, though dropping some items—such as the larger Pegasus engine—McDonnell Douglas kept the basic structure and engine for an aircraft tailored for the USMC.[10][16]
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