UK Defence assets sell off continues ....

If you thought the sell off of DERA as Qinetiq last week at a modest profit to the Carlyle Group and it's senior executives was of interest ... read on.

The Italian defence company Finnmeccanica took over Westland Helicopters, based in Yeovil, Somerset, in 2004. The firm was then merged with Italy's Agusta helicopter manufacturer.

Last year the company paid £355m for a 75% stake in BAe's avionics division, including the radar and laser research and production site at Crewe Toll in Edinburgh which it is claimed saved 2000 , since renamed Selex Sensors and Airborne Systems.

Defence Aviation Repair Agency (DARA) who had Archie Hughes, a Scots wheeler dealer who has worked for Rolls-Royce and BAE, was installed as DARA chief executive in 2004 has pushed for privatisation and consolidation.

In the first move, November MoD announced that its other DARA bases at Fleetlands, Hampshire, and St Athan, in Wales, were to close with 550 redundancies.

Finnmeccanica helicopter subsidiary Agusta-Westland has already sub-contracted between 40% and 50% of its component repair work on the Royal Navy's fleet of Sea King helicopters to Dara Almondbank and is now poised to bid for control of the operation.

Archie is now poised to sell the rest to Finnmeccanica. Consult the House of Commons Defence Committee report "Delivering Front LIne Capability to the RAF" for more information about the "End to End" review of the UK defence capabilities especially Page 5/6

In another development extending privatisation of UK defence assets ....

The UK Ministry of defence have 40 Boeing Chinook (Mk2 and Mk 2a) helicopters. Under a newly awarded non-competitive, single source strategic partnering agreement with Boeing, the Through Life Customer Support (TLCS) contract, Boeing will ensure that MoD has an agreed number of serviceable aircraft available at the Chinook main operating base, RAF Odiham, Hampshire and depth maintenance hub at DARA Fleetlands

The 34 year contract, worth almost £200m for the first five years, is expected to generate savings of some £170m over the life of the contract compared with current "in house" support arrangements.

The Chinook can perform a variety of different roles:

* Support Helicopter (SH) - the tactical movement of troops, weapons, ammunition and

support stores in the battlefield.
* Casualty Evacuation (Casevac) - removal of casualties and medical emergencies from

forward areas.
* Search and Rescue (SAR) - the location and evacuation of people in emergency

situations.

Odiham supports three operational squadrons - No 7 Squadron, No 18 Squadron and No 27 Squadron - and the Operational Conversion Flight (OCF). One aircraft is also flown by No 78 Squadron from Mount Pleasant in the Falkland Islands on support helicopter tasks.

Minister Andrew Ingram says the taxpayer will see a £170 Mn saving in 5 years. Learn More by reading Lord "Dodgy Donations" Drayson The Minister for Defence Procurement, , when addressed the Royal United Services Institute (RUSI) - 12 September 2005 Military Capabilities in the 21st Century

..."the Defence Industrial Policy is 'driven by the need to provide the Armed Forces with the equipment which they require, on time, and at best value for money for the taxpayer'"