Airod upgrade contract stalls due to lack of funds and possible order for up to eight A400Ms

Malaysia has delayed a glass- cockpit upgrade for its Lockheed Martin C-130 transports as it ponders purchasing up to eight new Airbus Military A400Ms.

Malaysian maintenance company Airod last year installed new safety equipment on three Royal Malaysian Air Force C-130s with Canadian partner L-3 Spar, enabling them to operate under new global air traffic management (GATM) standards. The company was expecting to this year receive a follow-on contract for a full glass cockpit, including global positioning and inertial navigation systems, autopilot and flight management system. But industry sources say the second phase of the upgrade programme has been delayed by at least one year because of budget constraints and the proposed A400M purchase.

Sources say Malaysia may still go forward with C-130 upgrades because the A400M would not enter service until about 2010 and would not necessarily replace its fleet of about 12 C-130s. The Malaysian government made a verbal agreement to join the A400M programme at the end of last year and Airbus was expecting a final decision last month (Flight International, 22-28 March). However, industry sources now suggest a contract could be signed late this year.

A similar C-130 upgrade for Thailand is expected to go forward with the release late this year of tenders to potential international suppliers. Thailand requires at least a GATM upgrade to access European airspace, but the air force is seeking approval for a broader avionics and structural-enhancement package. Thailand is expected to budget for the upgrade in the fiscal year starting 1 October, with tenders to be released by December. Thai Aviation Industries (TAI) has been appointed to lead the project and the government will select companies to supply equipment and help with integration.

Airod or Singapore Technologies Aerospace could help TAI set up a C-130 upgrade shop, but Airod is more focused now on bringing work into its facility at Kuala Lumpur's Subang airport. The company does not have any customers for its three C-130 upgrade products, which also include stretch and tanker modifications, and is reeling from the loss last year of C-130 maintenance business from the USA.

Airod continues to maintain C-130s for Malaysia and some Middle Eastern customers and is trying to win new business.

BRENDAN SOBIE/SINGAPORE

Source: Flight International