Assuming the programme continues in its current form, the winner will supply a "hoses in the sky" service for around 27 years. The project is estimated to be worth £13 million ($18.2 billion). A final decision to use a Private Finance Initiative scheme will not be taken until next year.
The competition is not to supply aircraft, but to "provide a service", essentially to guarantee that the RAF will have 10 tankers - which will be owned by the winning consortium - available every day with a surge fleet to meet operational contingencies. The new tankers will replace elderly BAC VC10s and Lockheed TriStars.
The winner will also operate RAF Brize Norton, the tankers' main operating base, as well as provide maintenance, training and some personnel, including aircrews. The MoD expects that around 75% of the air- and first line ground crew will be RAF personnel, the others "sponsored reserves" employed by the winning bidder.
Third party revenue is expected to come from ad-hoc charter, but there is potential to offer the aircraft as tankers to other air forces.
Source: Flight International