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EADS Signs 27 Year Air Refuelling Contract With UK MoD

- EADS is to become RAF's leading supplier of military transport aircraft
- AirTanker aircraft will be more than 50 per cent British by value
- The Airbus A330-200 has now won each of the last five military tanker contracts internationally demonstrating its superior capability, flexibility and economics
- EADS is undertaking further investment and growth of its UK defence business
- World's largest ever Defence Private Financing Initiative ("PFI"), worth approx GBP13 billion (EUR16.7 billion) over 27 years

(London/Amsterdam, March 27, 2008) -- AirTanker, the EADS-led consortium, has today signed a 27 year contract with the UK Ministry of Defence for the provision of air transport and air refuelling capability to the Royal Air Force. The AirTanker consortium has also completed its financing for the programme, raising approx pound2.5 billion (EUR3.2 billion) for investment in the fleet, a new state-of-the-art operational base and associated infrastructure.

The Future Strategic Tanker Aircraft (FSTA) programme includes the provision of a fleet of 14 new tanker aircraft, based on the latest generation Airbus A330-200 to enter service from 2011, replacing the previous fleet of VC-10 and Tristar refuelling aircraft. The contract also includes provision for all necessary infrastructure, training, maintenance, flight management, fleet management and ground services to enable the RAF to fly air-to-air refuelling and transport missions worldwide. The A330 FSTA aircraft will be more than 50% British by value. Through this agreement, EADS will become the RAF's leading supplier of transport aircraft, complementing its existing commitment to supply 25 A400M aircraft to the UK forces.

EADS CEO Louis Gallois commented: "We are proud to be providing the RAF with the very best air-to-air refuelling solution available internationally. The MoD's requirements are known to be highly exacting, and we are grateful that its trust has been placed in EADS and our consortium partners, Cobham, Rolls-Royce, Thales and VT Group. For our part, this win further demonstrates the A330 as the platform of choice for the world's refuelling fleets and comes on the back of our recent success in the US market. This award strengthens our ongoing commitment to grow our business in the UK in the long-term."

The Military Transport Aircraft Division (MTAD) is responsible within the EADS Group for all military derivative programmes based on Airbus platforms. For the FSTA programme, MTAD will be responsible for the design and development of the A330 FSTA aircraft, and for delivering them on-time to AirTanker, fully certified and MoD qualified.

Carlos Suarez, Head of EADS Military Transport Aircraft Division, added: "With this comprehensive service contract, we now cover the full spectrum of customers' requirements. The A330-200 based tanker solution has now won the last five consecutive military tanker competitions internationally. This demonstrates the A330's superior capability, flexibility and economics."

Robin Southwell, CEO of EADS UK, said: "This is a hugely important step forward for EADS in the UK and for our defence business, both in this country and internationally. The Air Tanker A330s promise to provide a crucial enhancement of tanking and transport capability for the UK armed forces. The nature of the PFI funding also means that the programme offers real value for money to the UK tax payer."

Source : EADS

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