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The Air Force spent about $1.6 billion to purchase the 21 aircraft. Soon after the first C-27Js arrived in Afghanistan in 2011 to start resupplying deployed Army units, the Air Force said it could no longer afford the luxury of the aircraft.
The C-27J found itself in the middle of the debate between the Air Force active duty and the Air National Guard. Guard officials said the Air Force leadership was unfairly hacking away at the Guard’s budget in order to save the active duty. The C-27J fleet was a shining example the Guard used.
Air Force leaders justified scrapping the C-27J saying the C-130 could complete most of the missions, and it could do it cheaper.
Air Force officials had argued the sustainment costs were too expensive to keep the C-27J when compared to the C-130. Former Air Force Chief of Staff Gen. Norton Schwartz told Congress in 2012 it cost $9,000 per hour to fly the C-27J and $10,400 to fly the C-130. Even though the C-130 was slightly higher per hour, the C-130 is well established within the fleet and the Air Force couldn’t afford to introduce and sustain the C-27J.
http://www.dodbuzz.com/2013/10/07/time-runs-out-on-c-27j/