KBR Halliburton has left the AirTanker consortium, one of two bidding for the UK's 27-year, £13 billion ($21 billion) Future Strategic Tanker Aircraft (FSTA) programme, citing the lack of a viable business case.
FSTA is to be a private finance initiative (PFI)-funded programme to provide the Royal Air Force with in-flight refuelling aircraft to replace BACVC10s and Lockheed L-1011 TriStars. AirTanker is offering new Airbus A330 platforms, competing against Tanker Transport Services (TTSC) - comprising BAE Systems, Boeing, Serco and Spectrum Capital - which is offering ex-British Airways Boeing 767s.
After the withdrawal of infrastructure management specialist KBR, AirTanker's remaining members include Cobham, EADS, Rolls-Royce and Thales. KBR and AirTanker say their split is "amicable".
KBR says following a restructure of the bid proposal "there wasn't a strong enough business case for an equity investment". It adds that its decision does not affect its participation in other PFI programmes.
The company is a member of consortia running the British Army's Heavy Equipment Transporter fleets, the Devonport Dockyard and providing aircraft maintenance at RAF Valley.
AirTanker says EADS will take a "more prominent role as provider of the aircraft". It adds: "EADS will now take the leading role in the through-life support of the aircraft... contributing to a reduction in programme risk."
EADS will take a larger shareholding in AirTanker Services, one of the two subsidiaries of AirTanker Holdings. The latter, however, will continue to be equally owned by the four remaining shareholders. An Air Tanker source says the KBR shareholding could remain "vacant" and available for anew partner.
Final bids are due at the end of April, with selection of a winner expected by year-end.
Source: Flight International
