A long-running effort by the UK Ministry of Defence (MoD) to sell a fleet of Lockheed Martin C-130Js formerly operated by the Royal Air Force (RAF) appears to be nearing a successful conclusion, according to one firm involved in the process.
The 15 C-130Js were retired from service in 2023 as a cost-saving measure and have since been held for sale at Cambridge airport-based Hercules maintenance specialist Marshall Group.
Although rumours circulated in late 2024 that Turkey had agreed a deal with the MoD for 12 of the airframes, there has been no official update since.
But in its annual report for the year to 31 December 2024, Marshall Group says a deal with an unidentified buyer is progressing, which will also include critical wing upgrade work.
“Our aerospace business will be strengthened by the forthcoming sale of 12 of the 15 ex-RAF C-130 aircraft, providing a substantial workload for the next four years, having secured an entry-into-service contract worth more than £200 million [$268 million],” the report states.
“While seven of the 12 aircraft have already had centre wing [box] replacements, with associated monies to be received by the group in 2025, a further five aircraft will also have the centre wings replaced under this contract.”
However, the accounts – signed off on 19 June and filed at the UK’s Companies House registry on 22 September – note that a green light for the sale is still needed from the USA.
“Having now signed a four-year service contract, the risk around the sale of C-130s, whilst reduced, remains in focus as approval is sought from the US government ahead of title transfer to the new owner,” it adds.
No update on the approval process or timeline for its conclusion is provided in the report, however.
Additionally, Marshall Group says delays to the sale process “exacerbated” issues elsewhere in the business, contributing to a £55.5 million full-year loss before tax and exceptional items. The group’s aerospace division recorded a £6.1 million loss in the period.
Marshall Group says the C-130 contract is expected to start in 2025, although the accounts do not state if it has now come into force.
Should further delays to the sale be encountered, further financial pressure will be placed on the business, it states, as it waits on cash inflows from the work undertaken.
Meanwhile, the division – registered as Marshall of Cambridge Aerospace – reported broad momentum across other contracts during the year.
That includes a deal, running since 2020, with the US Marine Corps for maintenance on its KC-130J tankers, where “it continues to outperform its competitors in speed, quality and the capability of work performed”, it says.
The unit is also a fuel tank supplier to Boeing’s P-8 maritime patrol aircraft programme – delivering its 200th shipset during 2024 – and during the year gained revenue from the final 12 months of a £46 million, three-year contract with the United Arab Emirates to support a fleet of Bombardier Global 6000-based special mission aircraft.
Turnover for the period was £144 million, down from £173 million the year before.
