PETER LA FRANCHI / CANBERRA

Eurocopter beats off Boeing and Bell to win Canberra's armed reconnaissance helicopter programme with Tiger HAP

Eurocopter has won the Australian Army's A$1.3 billion ($660million) AIR 87 armed reconnaissance helicopter programme with a modified Tiger HAP. This is the first time the Tiger has defeated the Boeing AH-64 Apache and Bell AH-1Z Cobra in an export competition.

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Bell finished second in the Australian evaluation, with Boeing third. A fourth bid by Agusta- Westland was dropped in May after it failed to lodge a compliant tender response. Eurocopter was offering a marinised Tiger with uprated MTRMTR390 engines and a laser designator incorporated into the sight to allow the use of Lockheed MartinAGM-114 Hellfire missiles.

The Australian order is expected to be for 22 aircraft, with first deliveries by late 2004. The Australian Army is seeking an initial operational capability by late 2004. Production and through life support contracts will be signed before the end of this year.

Australian Defence Minister Peter Reith says: "Eurocopter stands out and that's the reason that we've been able to select them to go to the development stage on the tender, and into contract negotiation. It is in Australia's interests that we buy on the basis of value."

Eurocopter's bid included a strong Australian content package which industry sources say could reach 70% of the purchase contract value. Reith says the package would include setting up a production facility at either Brisbane or Oakey in southern Queensland to build 20 to 50 Eurocopter EC120 light helicopters a year for the Asian and South Pacific markets. The same facility will be used to undertake local assembly and deep maintenance of the Tigers.

Eurocopter says the Australian factory will build all tail rotor and wiring harnesses for French and Germany army Tigers, as well as for AIR87 aircraft. EADS Australia chief executive Gilbert Dangleterre says: "We will use the industry and capability of Australia for production elements of the Tiger for the whole series." He says local assembly will account for 49% of the local industry involvement package.

Eurocopter is teamed with ADI, a joint venture between Thales and the Australian Transfield group, EADS Australian Aerial Space (previously Hawker Pacific), and Brown and Root Services.

Australian analysts say Eurocopter is likely to have offered Tiger at a much reduced cost to secure vital follow-on orders beyond the French and German requirements. The win is also seen as paving the way for a Dassault/Thales/EADS bid for the Royal Australian Air Force's Project Air 6000 future fighter based on Rafale.

Source: Flight International