On the Record with KEITH ARCHER-JONES, MANAGING DIRECTOR, TANKER & TRANSPORT
SERVICE COMPANY
TTSC reorganizes for improved competitiveness and efficiency
Recent selection of Cambridge-based Marshall Aerospace to convert
former British Airways Rolls-Royce-powered Boeing 767-300ERs into
air-to-air refueling (AAR) tankers for the UK Defense Ministry's
$21.37 billion Future Strategic Tanker Aircraft (FSTA) program,
was the first major development from early-2002 restructuring
of Britain's TTSC group.
TTSC is competing for the 27-year FSTA contract with the AirTanker
consortium, comprising Cobham, EADS, Rolls-Royce and Thales, which
is offering tanker/transport developments of used Airbus A330s.
"In the new organization, BAE Systems, Boeing and Serco
became equal shareholders in the TTSC Private Finance Initiative
(PFI) company, without any expectation of a fixed work-share,"
says Keith Archer-Jones. "This allows TTSC the freedom to
go into open and specialist markets for competitive bids, for
which the shareholding partners were still also able to tender
if they wished.
"It's not about carving up the program at the sub-contract
level. The partners are in it for profitability from service and
support over the long haul. The decision as to who converts the
aircraft in the UK is the first example of this policy in operation,
with Marshall Aerospace working as sub-contractor to Boeing,"
he explains. "The first two development aircraft, however,
will be modified by Boeing, which is also responsible for conversion
design and aircraft certification."
As prime contractor for earlier conversions of nine ex-British
Airways TriStars into tanker/transport configuration for the RAF,
Marshall Aerospace will reinforce the TTSC team, to undertake
similar modifications to the B767s at its Cambridge facility if
the TTSC bid is successful. In addition to the RAF's TriStars,
Marshall's current involvement with tankers includes major servicing
of Netherlands air force KDC-10s.
Archer-Jones claims that TTSC is offering a low-risk, value-for-money
solution based on a tested and proven 767 tanker/transport which
has already been selected by Italy, Japan and the USA. TTSC will
effectively set up a small airline for provision of a 20-aircraft
strategic AAR fleet, plus training, maintenance and support at
RAF Brize Norton, Oxfordshire. In addition to reducing MoD operating
costs, these will deliver outstanding operational flexibility
in terms of overall capability and interoperability with allied
air forces.
TTSC will also benefit from the support of British Airways, particularly
in the transition stage, and in securing an Air Operators Certificate
to earn third-party revenue from commercial operators when aircraft
are surplus to RAF operational requirements. The B767s will bear
dual civil and military registrations.
Marshall's involvement reinforces TTSC's position, Archer-Jones
notes, as the world's most experienced tanker team whose shareholders
have collectively built or UK-converted over 95% of the world's
tanker fleet.
In March 2002, Boeing chose Smiths Aerospace to supply its new
integrated air refueling system selected by Italy and Japan for
their B767 tankers, and also for some of the USAF's preferred
AAR platforms for its recently-approved $16 billion six-year lease
of 100 Boeing KC-767A tanker/transports.
Extensive air refueling proximity trials recently concluded in
the U.S. with a very wide range of service types, from advanced
combat aircraft to the C-17 heavy-lift transport, have shown the
B767 to be a very stable AAR platform, with no wake turbulence
problems at any of the three stations.
Smiths' air refueling installation comprises a mission control
system, centerline hose-drum and wing-pods, manufactured at Hamble,
UK. The Smiths system will be fully operational with the Italian
air force B767 tankers nearly three years before planned FSTA
RAF service entry in 2008.
Delays in contract negotiations with the two contenders have deferred preferred
FSTA contractor selection, originally expected in 2002, probably
to December this year. Contract award is now scheduled for November
2004, and planned initial RAF service entry has also been delayed
by about 15 months, to January 2008.
