The UK Ministry of Defence has finally given the green light to a private finance initiative deal worth about £13 billion ($26 billion) to equip the UK Royal Air Force with a new fleet of 14 Airbus A330-200-based tanker-transports from 2011 - two years later than originally planned.

EADS-led AirTanker last week received so-called Main Gate approval to formally launch the project, and will now seek an initial £2 billion in funds from financial institutions to acquire the Future Strategic Tanker Aircraft fleet and establish support new infrastructure and training equipment at RAF Brize Norton in Oxfordshire.

AirTanker expects to conclude arrangements with lenders and sign a final contract with the MoD later this year, says company chief executive Phill Blundell. "The deal for 14 new aircraft represents the best value-for-money solution for the MoD, and a good balance of risk and reward," he says. "A PFI solution is the best way to provide our armed forces with significantly improved capability," says minister for defence equipment and support Lord Drayson.

The 6 June announcement followed 30 months of negotiations on contractual terms and pricing conducted since AirTanker was confirmed as preferred bidder for the FSTA deal in January 2004. The company - also formed of Cobham, Rolls-Royce, Thales UK and VT - will own the new fleet and manage maintenance activities, with the MoD to buy services on a per-hour basis.

The Rolls-Royce-powered A330s, which are expected to operate as a core fleet of nine plus five for possible third-party use and to be held at short readiness, will replace the RAF's current Lockheed TriStars and Vickers VC10s.

Related articles:


Source: Flight International

Topics