PAUL LEWIS /WASHINGTON DC

A meeting this month should give the plan the go-ahead

NATO's Conference of National Armaments Directors (CNAD) has agreed a three-phase plan to kick-start preliminary work on the alliance's airborne ground surveillance system (AGS) requirement in January, subject to final political endorsement at a heads of state and government meeting in Prague on 21-22 November.

AGS is one of several new programmes due to be addressed at the Prague summit to support the1999 Defence Capabilities Initiative (DCI). NATO secretary general Lord Robertson has made AGS a top priority and aims to have a system in place by 2010. Other DCI priorities to be debated include transports and in-flight refuelling tankers.

It is understood that representatives from 17 nations agreed to a proposed AGS schedule, with a programme definition phase (PDP) starting in early 2003, at the CNAD meeting in late October. France is expected to formally add its support at the summit. This would lead to release of a request for proposals mid-year, which is expected to be a sole source exercise, with full design and development beginning in November. A production decision is targeted for 2005.

Sources say a critical factor in the CNAD decision was US government approval of a number of technical assistance agreements. These clear the way for Northrop Grumman and Raytheon to begin technical discussions with EADS, Fokker Space, Galileo, Indra and Thales on joint sensor development combining the US companies' Multi Platform-Radar Technology Insertion Programme and the European Stand-off Surveillance and Target Acquisition Radar demonstrator.

NATO is budgeting $350 million to integrate the AGS suite with a mid-size jet platform, with the Airbus A321 being the most likely choice. The alliance is initially seeking six aircraft and may increase or opt for a mixed fleet with unmanned air vehicles such as the Northrop Grumman RQ-4A Global Hawk. This question is expected to be addressed by the PDP.

Meanwhile, a group of NATO nations led by Germany has debated the acquisition, loan, lease or power-by-the-hour use of Boeing C-17 transports until the Airbus Military A400M enters service.

The German defence ministry says a NATO working group has been given a "tight timeframe" in which to report its findings. Robertson is understood to have delivered the proposal as a fait accompli to the lead nations in the A400M project and procurement details are now being discussed.

Tanker aircraft could be acquired in a similar manner, by pooling assets or modifying airframes to in-flight refuellers, says NATO. While some countries have tanker orders or plan procurements, there remains a shortfall until the aircraft enter service, says the alliance.

Meanwhile, German defence minister Peter Struck met his French and UK counterparts last week to discuss the A400M, development of which has still not been agreed.

Struck has to present spending plans to the German government by the end of this month and the dossier is thought to conclude which of the outstanding international collaborations can be delayed or reduced. Germany's joint chief of staff has been asked to present the findings from a "military strategy point of view" and is thought to have been given a tacit undertaking that his budget of c26 billion ($26 million) will not be cut. The defence ministry says it is in talks with Airbus Military as well as the other major A400M purchasers to determine whether Germany would be able take fewer than the 73 to which Berlin is committed. The ministry adds: "If any reduction makes each aircraft more expensive, then it's back to square one."

Additional reporting by Justin Wastnage in London

Source: Flight International