The FSTA Contract

The Future Strategic Tanker Aircraft Contract was signed by the Ministry of Defence and AirTanker Ltd on 27 March 2008. This 27-year MOD Private Finance Initiative (PFI) Contract – with an estimated value of £10bn – will provide an essential air transport and air-to-air refuelling capability for the Royal Air Force, including all associated support services.

The Contract specifies very clear service and quality standards for the service, which will bring significant benefits to the RAF and the wider Armed Forces.

• The RAF will be flying new, reliable and efficient A330-200 aircraft, which will be specially converted to meet their requirements.
• Under the terms of the Contract, the RAF will retain full operational control over the aircraft and their deployment, with military missions flown by RAF crews.
• The RAF will be given assured aircraft availability, reliability and security of supply from a strong partner.

AirTanker has five principal shareholders: Babcock, Cobham, EADS, Rolls-Royce and Thales UK. These shareholders – all world leading aerospace/defence contractors – are also its main suppliers and sub-contractors.

AirTanker Services Ltd has been established as a dedicated service delivery company, with shareholders who are supplying the equipment needed and providing through-life support to the end of the contract. As shareholders and sub-contractors, they are highly incentivised to ensure service delivery and the arrangement provides a solid, stable, structure with which to meet the RAF’s needs until 2035. Responsibilities – and risks – are clearly delineated in contracts with AirTanker and/or AirTanker Services, which ensures complete, transparent accountability.