The UK Ministry of Defence and BAE Systems will formalise a long-term partnering agreement (LTPA) before year-end on new fixed-wing aircraft and through-life upgrade activities, following the parties' signature of a foundation contract for the pact on 1 March.

Representing a long-held business ambition of the UK's leading defence contractor and a central plank of the MoD's Defence Industrial Strategy of December 2005, the LTPA will provide more effective equipment to the UK armed forces, and ensure a sustainable and profitable future for BAE's air sector business, the company says. "We fully understand the need to further transform so that we can deliver on this," says chief executive Mike Turner.

Source: Flight International