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FSTA is the world’s largest defence PFI programme. The MoD estimates its through life programme expenditure at £13 billion.
Capital costs of over £2bn will be funded by the industrial shareholders and city lenders under the PFI agreement. Typically in a PFI the shareholders provide around 10% of the total investment.
AirTanker’s capital investments include the purchase of brand new A330-200 tanker aircraft, the construction of new facilities at Brize Norton and the establishment of the AirTanker organisation itself.
Crucially, the MoD will only pay for the service once it is available and then only for what it uses, subject to agreed minimum usage levels.
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