The Australian Department of Defence has formally terminated acquisition of a light tactical airlifter for the Royal Australian Air Force, pending the outcome of a review of its future airborne mobility requirements.

Spanish company CASA, which became part of the EADS (European Aeronautic Defence and Space) company on 10 July, and Lockheed Martin Alenia Tactical Transport Systems were advised at the end of last month that the Defence Department did not intend to seek further extensions to the tender process after having dragged out a source selection for more than a year.

The decision effectively provides a A$600 million ($364.7million) relief to the Defence Department's highly stretched budget. The manufacturers were offering the C295 and C-27J, respectively.

The termination also allows Canberra to start replanning its future airlift requirements from scratch rather than working from force development assumptions laid out three years ago.

Australian aerospace industry analysts see this "fresh start" approach as essential to any prospects for a future RAAF acquisition of aircraft in the Boeing C-17 Globemaster or Airbus Military Company A400Mclass to replace the fleet of Lockheed Martin C-130H Hercules in 2004-8.

The termination decision comes as the RAAF begins studies to determine whether its 14 de Havilland Caribou short take-off and landing airlifters can be retained in service for a further five to eight years.

Australia's mixed airlift fleet comprises eight C-130Es, 12 C-130Hs, eight C-130Js, the Caribous and five Boeing 707s configured as in-flight refuellers, but also used to carry cargo and passengers. The C-130Js will replace the C-130Es, which will be retired from operational service later this year.

Australia already has 30 C-130J options as part of a 1996 deal it made for 12 aircraft. The options remain valid until 2002 and form the basis of its existing C-130H replacement plans.

Source: Flight International