AIR NEW ZEALAND Engineering Services has been named as preferred tenderer to overhaul the General Electric F404-400 engines of the Royal Australian Air Force's (RAAF) McDonnell Douglas F-18A fighter fleet.

Incumbent contractor Hawker de Havilland, a BTR Nylex subsidiary, and Australian airline Qantas were the other two bidders.

The award has sparked an outcry from Australian engineering unions, who claim it is a major blow to Australia's strategic capability which will also cost about 50 skilled jobs. An industrial officer for one of the unions condemns it as "a wrong and stupid decision," and unions are demanding that Australian defence minister Robert Ray reverse the decision.

The RAAF operates three squadrons of F-18s in the tactical fighter role, with a further squadron used for operational conversion.

Source: Flight International