Despite confident noises from lead stakeholder EADS UK during 2006, the year closed without a resolution to the AirTanker consortium's almost two-year process to finalise a Future Strategic Tanker Aircraft (FSTA) deal with the UK Ministry of Defence.
The MoD last year extended the assessment phase of the planned 27-year project and increased risk reduction funding to £30 million ($58.7 million) in advance of a delayed Main Gate decision to proceed.
Published late last year, the UK National Audit Office's Major Projects Report 2006 noted: "While the MoD, in consultation with the rest of government, hopes to complete its assessment soon, further progress has to be made with AirTanker towards agreeing a fully developed contract covering all the commercial terms and service provision aspects."
MoD and industry sources now suggest the FSTA contract should be signed in the first quarter of this year, with the project now entering the final approval process.
Source: Flight International
