Chapter Six - Defence Materiel Organisation > Approved Major Capital Equipment Projects > AIR 87 Ph 2
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Approved Major Capital Equipment Projects

Top 30 Projects by 2004-05 Expenditure

AIR 87 Ph 2 Armed Reconnaissance Helicopter

Prime contractor: Australian Aerospace

This project will provide Defence with 22 armed reconnaissance helicopters, a training system including simulation devices for aircrew and maintenance personnel, a software support facility and a ground mission management system. The Commonwealth signed a 15-year support contract that commenced when the first helicopters started flying in Australia.

During 2004-05, the Commonwealth accepted three aircraft (helicopters one, two and five). Helicopters three and four were assembled in France, and were shipped to Australia in late 2004-05, but acceptance was delayed until early 2005-06 due to technical issues. In response to the delay of aircraft three and four, due to ongoing test and evaluation activities in France, the Commonwealth brought forward acceptance of aircraft five, which was the first Australian-assembled aircraft. During the period, work continued on further development of the final configuration design assembly of the remaining helicopters, with helicopters six, seven and eight assembled in Brisbane, Australia. The first ten armed reconnaissance helicopters are scheduled to be accepted by June 2006 with medium schedule risk and the final helicopter (22) to be in-service by December 2008.

Training of military and contractor flying instructors continues in France. The training program has experienced a delay due to the late acceptance of French Army helicopters which were required for Australian Instructor training. As a result of the limited availability of training time on the French aircraft, instructor training will now be completed in Australia in the second half of 2005.

Delivery of spares has been slower than contracted, but to date this has not impacted on the support of the accepted aircraft.

The estimated expenditure for 2004-05 was not met. This outcome reflects a delay in the acceptance of one helicopter, delay in spares deliveries and other non-aircraft related contract milestones.

This project contributes to Army capability.

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