Stewart Penney/BRISTOL
The UK's Future Strategic Tanker Aircraft (FSTA) competition is generating interest among a host of countries interested in a similar private financing initiative (PFI)to fund a procurement or use of the in-flight refuelling capability.
Andy Kershaw, Defence Procurement Agency (DPA) head of the FSTA, says the UK will buy only an in-flight refuelling service and not the aircraft. Three teams are competing for the deal – BAE Systems, the AirTanker consortium and Strategic Support Management (SSM).
Kershaw says that Australia, Canada, France, Germany, Italy, New Zealand, Norway, Portugal, the USA and "a few others" have been briefed on the programme. Australia has been considering a PFI deal to replace its elderly Boeing 707 tankers for some time.
He adds that some countries could use the service as third parties while others are reviewing PFI-like means of financing their own deal. The UK believes that the winning bidder will make significant third party revenues by leasing spare capacity to other air forces or commercial operators.
Kershaw says that "we're well on the way to solving the regulatory problems" of operating aircraft modified with air-to-air refuelling equipment for commercial operations. He says it is likely the aircraft will be certificated with some permanent role-equipment such as the plumbing in the wings for fuel transfer while other kit, including the hose drum units and military communications, will be removable in "hours not days".
The DPA has still not finally decided whether FSTA will be a PFI, although there is no alternative funding allocated for the programme. Kershaw says the agency and the Royal Air Force need to be satisfied that the proposals meet the requirement and are the best value for money. The programme will last 30 years, while its value has risen by £4 million ($5.8 million) to £13 million due to a change in accounting methods, he says.
The three remaining contenders are due to submit their bids in early July and a decision on project go-ahead is due in the middle of next year, with a contract due to be placed in early 2003. The FSTA in-service date is 2007-09 but this could be brought forward if replacing the RAF's ancient BACVC10s early is "good value for money".
Initially, FSTA was for 30 aircraft based on the Airbus A310, says Kershaw, but the competitors are concentrating on the larger Airbus A330 and Boeing 767, which means "fewer aircraft, in the low twenties" will be needed to meet the specification.
Meanwhile industry sources expect a further reshuffling of the bidders after Rolls-Royce wrapped its AirReach proposal into the Eurotanker consortium, formed from Cobham subsidiary FR Aviation, Brown &Root, EADS Airbus and Thales Defence. SSM - comprising Serco and Spectrum Capital - is offering a package based around ex-British Airways 767s and industry sources speculate SSM could join a BAE/Boeing bid which will also offer the 767.
Boeing in the meantime has formed Military Aerospace Support to focus on the supply of tankers, support services and aircraft modifications for the role.
Source: Flight International
