05 Juli 2010

Qantas Defence Services Signs $136m C130H Contract Extension

05 Juli 2010

RAAF's C-130H Hercules (photo : Craig Hall)

The FINANCIAL -- Qantas Defence Services and the Defence Materiel Organisation (DMO) have signed a three-year, $136 million extension to the maintenance and support contract for the Australian Government’s fleet of 12 Lockheed Martin C130H aircraft.

According to Qantas, the contract, initially awarded to Qantas in 1999, includes renewal options. It covers a range of maintenance, engineering and logistic support activities performed by Qantas Defence Services for the Royal Australian Air Force’s (RAAF) Air Lift System Program Office (ALSPO) based at RAAF Base Richmond.

The Head of Qantas Defence Services, Mr Glen Steed, said the extension continues the strong long-term relationship between the two organisations, which have worked successfully together to reduce the cost of ownership of the C130H for the Government.

“Qantas Defence Services regards this extension as an opportunity to continue pursuing the Strategic Reform Program goal of reducing support costs for the C130H,” Mr Steed said.

“We are proud of our 10-year relationship with DMO and the RAAF. The extension confirms that Qantas Defence Services has demonstrated real cost savings through ‘smart sustainment’ initiatives. We are committed to continuing to drive down costs while delivering the highest standard of support.”

DMO’s Head of Aerospace Systems Division, Air Vice-Marshal Col Thorne, commended Qantas Defence Services for their support of the C130H over the past 10 years.

“We look forward to a continued strong relationship that delivers real operating cost reductions over the next three years,” Air Vice-Marshal Thorne said.

A wholly owned subsidiary of Qantas Airways Limited, Qantas Defence Services has an annual turnover of over $140 million and employs approximately 500 people. It provides maintenance, supply, deeper maintenance and training support to a range of major Defence aerospace capability systems, including Special Purpose Aircraft, T56 and Adour propulsion systems and the KC-30A Multi Role Tanker Transport (both the military-derivative conversion of the A330 to the KC-30A and the weapon system Through Life Support). Approximately 200 Qantas Defence Services personnel are employed at RAAF Base Richmond providing C130H support services.

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