Paul Lewis/WASHINGTON DC

Lockheed Martin has been awarded a series of critical US Government orders for 12 C-130J-30 Hercules, sustaining production until 2003 and securing the company more time to finalise potential export sales to Europe and the Middle East.

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The $734 million contract includes the first US Coast Guard order for six C-130Js using funding from an emergency supplemental bill. The USCG operates around 30 ageing HC-130s, which have been suffering increasingly from a poor operational availability rate.

The US Air Force has ordered two stretched C-130J-30s under a previously announced plan, diverting funding away from the Boeing C-17 Globemaster programme to advance Hercules procurement. The aircraft will supplement three previously ordered C-130J-30s, the first of which is due to fly this year.

Another three KC-130J in-flight refuelling tankers have been ordered for the US Marine Corps, the third aircraft having been added by Congress. As is now traditional, Congress also added money for the Pennsylvania Air National Guard (ANG) to order an EC-130J.

This latest contract increases the C-130J orderbook to 111 aircraft of which 68 have been delivered to Australia, Italy, the UK, the US Air Force Reserve and ANG. Nine of the newly ordered aircraft will be delivered in 2002, filling production positions for next year, with the remaining three Coast Guard C-130Js following in 2003.

Lockheed Martin has been struggling to maintain production and avoid a costly shutdown before the US Department of Defense's planned procurement pick-up later in the decade. The company has been building the C-130J at a rate of 11 per year and says it can drop to eight, below which it is no longer economically viable.

A Danish order for three C-130Js has filled positions in late 2003. The company is perusing international requirements for up to 50 transports. Near term prospects include negotiations by Kuwait to buy four aircraft, while Saudi Arabia needs up to 24 C-130Js.

Sales negotiations are also underway in Bahrain and Israel, while Canada requires up to 12 C-130J-30s and Italy is expected to confirm an option for a final two. Longer term, the USAF has identified a need for up to 168 C-130J-30s to replace its older C-130Es and the USMC needs 51 tankers to replace KC-130F/Rs.

• US Special Operations Command has awarded Boeing a $50 million contract to develop and manufacture Engine Infrared Suppression Systems (EIRS) for Lockheed Martin HC-130 Hercules.

Source: Flight International