New Zealand Prime Minister Helen Clark says her new government is considering using funds allocated to acquire 28 Lockheed Martin F-16 aircraft from the USA to instead buy Lockheed Martin C-130 Hercules transports.
Clark said on 13 December that a review of the F-16 acquisition would be carried out by Derek Quigley, head of the New Zealand parliament's foreign affairs, defence and trade committee. Clark said that advice she had received indicated New Zealand would incur no financial penalty if it backed out of the F-16 deal.
Before last month's national election, New Zealand defence officials claimed that abandoning the deal - finalised at the beginning of August - could cost up to NZ$70million ($34.7 million) in damages payments.
New Zealand has options, valid until 2002, for up to six C-130J-30s as part of the Royal Australian Air Force acquisition agreement with Lockheed Martin signed in December 1996. The Royal New Zealand Air Force currently operates five C-130Hs.
Source: Flight International
