MEDIA RELEASE
MIN 85 /97 Tuesday, 24 June, 1997
CONTRACT SIGNED FOR NEW LEAD-IN FIGHTER
The Minister for Defence, Mr Ian McLachlan, confirmed today the signing of a contract with British Aerospace for the acquisition of the Australian Defence Force's new Lead-In Fighter.
British Aerospace (BAe) was selected as the preferred tenderer in late 1996 to supply the Hawk aircraft to provide introductory fighter pilot training and other air support tasks for the ADF. The Hawk is planned to be introduced into service in the year 2000 to replace the Air Force's ageing fleet of Macchi jet trainers.
The Minister said 33 aircraft, along with spare parts and the necessary specialist support and training equipment, would be acquired over a three year period under a contract with a total value of around $850 million. The first 12 aircraft will be manufactured in the United Kingdom with the remaining 21 assembled by Hunter Aerospace at Newcastle.
Mr McLachlan said Australian industry would play a major role in the assembly, testing and on-going support for the new aircraft and the Rolls Royce Adour engines.
"The work in Australia related to the contract is now 35%, up from the 27% offered when I announced the preferred tenderer last November. In the maintenance and support phase, there is a target of just under 80% for Australian industry.
"Under the contract BAe will provide logistics and maintenance support over an initial seven year support period," the Minister said.
"However, I see this as an added new dimension to the long term relationship with BAe, which, in addition to supplying the aircraft, is committed to providing support over the full 25 year service span of the fleet," he said.
"The project is significant to both Australia and British Aerospace
as it represents a continuing and growing commitment to Australia by the
company's Australian subsidiary with considerable spin-offs for Australian
industry and employment."
Mr McLachlan said the new aircraft also offered opportunities for BAe's
partners in the project.
"Hunter Aerospace will play a major role, assemblying 21 of the
33 aircraft at Newcastle where it will also be responsible for major, or
Deeper Level Maintenance as it is known, when the aircraft are in service.
"A new facility will be built at Newcastle airport, generating possibly
150 construction jobs with about 300 other jobs Australia wide arising from
the assembly program and in-service maintenance work.
"Other employment opportunities will be spread around the country with South Australia, Victoria and Western Australia benefiting through various management, software support, manufacturing, assembly and overhaul sub contracts.
"Hawker de Havilland will manufacture airframe components and Qantas will maintain the Rolls-Royce Adour engine in Sydney. British Aerospace Australia will also be involved, developing radar simulation and emulation capabilities for the aircraft at Adelaide and Sydney."
Mr McLachlan said the project also paved the way for overseas possibilities with British Aerospace Australia hoping for support and maintenance contracts from other operators of the Hawk aircraft.
He said today's contract brought substantial benefits to the ADF, Australian industry and particularly the Hunter region.
Further information:
Ministerial, Jim Bonner Ph 06-2777800 or 0419 438490
Departmental, Richard Hogan Ph 06-2652913