AgustaWestland Awarded €660 Million (£470 Million) - SKIOS Phase II Contract
Friday, November 30th, 2007
AgustaWestland is pleased to announce that Phase II of the Sea King
Integrated Operational Support (SKIOS) contract has now been launched
following the signing of the contract by AgustaWestland and the UK Ministry
of Defence on 29th November 2007. SKIOS Phase II introduces payment by the
flying hour arrangements, emulating the successful IMOS contract for the UK
MoD’s fleet of Merlin helicopters signed in early 2006. SKIOS Phase II also
includes an aircraft availability output responsibility for UK military SAR
aircraft that provide around the clock SAR cover for the UK and Falkland
Islands. The value of the contract for the first five years is € 660 million
(£470 million), with the potential of rising to €1.12 Billion (£800 Million)
over 10 years. The contract is expected to run for the remaining service
life of the Sea King fleet.
Under the contract the UK MoD will transfer responsibility to AgustaWestland
for Sea King Depth Maintenance located at DARA Fleetlands and the Second
Line Workshops activities located at RNAS Yeovilton. AgustaWestland will
also be responsible for providing 1st Line Maintenance Services for the SAR
Sea Kings at eight bases comprising Wattisham Airfield, RAF Lossiemouth, DST
Leconfield, RMB Chivenor, RAF Boulmer, RAF Valley, HMS Gannet and Mount
Pleasant Airfield, Falkland Islands. Transfer of responsibility for the
above activities will take place over the next six months as part of the
SKIOS Phase II transition plan. AgustaWestland will continue to provide
technical and spares support services introduced under Phase I of SKIOS.
Graham Cole, Managing Director – Business at AgustaWestland said “SKIOS
Phase II is another example of Strategic Partnering between AgustaWestland
and the UK Ministry of Defence delivering a contract that will bring
significant benefits to the front line squadrons and at the same time
significant cost savings. The success of the SKIOS Phase I and the IMOS
programme show that AgustaWestland is leading the field in delivering
through life support services to the Ministry of Defence.”
Baroness Taylor, Minister for Defence Equipment and Support, said “The
contract represents another deliverable of the Helicopter plans set out in
the Defence Industrial Strategy, strengthens the partnered relationship with
industry, and maintains aircraft availability levels but with reduced
through life costs. Overall it provides better value for money for the
taxpayer.”
The UK MoD’s fleet of Sea King helicopters totals almost 100 aircraft
comprising the Royal Air Force’s Mk.3 and Mk.3A SAR aircraft and the Royal
Navy’s Mk.4 and Mk.6CR amphibious support aircraft, Mk.5 SAR aircraft and
Mk.7 Maritime Surveillance and Control aircraft. The SKIOS Phase II contract
will sustain at least 270 jobs at the SAR bases and create 40 new posts with
AgustaWestland throughout the UK. AgustaWestland has also partnered with a
number of key aerospace and defence companies to deliver SKIOS Phase II
including VT Aerospace, Serco, Thales UK and SELEX S&AS.