Memorandum from SBAC (Society of British
Aerospace Companies)
INTRODUCTION
1.1 SBAC is the UK's national trade association
representing companies supplying civil air transport, aerospace
defence, security and space markets. SBAC encompasses the British
Aviation Group and UKspace. Together with its regional partners,
SBAC represents 3,000 companies across the UK supply chain.
1.2 Aerospace is one of the few successful
and globally competitive manufacturing sectors of the UK economy,
with a turnover of £19.8 billion in 2008. The aviation
sector in the same year contributed £15 billion to UK
GDP, accounting for 1.1% of the overall economy. The aviation
industry supports 700,000 jobs.
(A) The current and future size and structure
of the helicopter fleet.
2.1 The current fleet of helicopters operated
by the UK's armed forces stands at 524 aircraft (excluding
aircraft leased by the forces) and consists of Lynx, Merlin, Sea
King, Chinook, Puma, Gazelle and Apache aircraft. The Joint Helicopter
Command (JHC), formed in 1999 operates the battlefield helicopter
resources of the three military Services under a single command
with the intent to provide a flexible and potent helicopter capability.
The Royal Navy continues to retain its own maritime orientated
helicopters primarily for the protection of its surface fleet.
UK Search and Rescue also sits outside of the JHC and is co-ordinated
by the RAF from the Air Rescue Coordination Centre at RAF Kinloss.
2.2 The aerospace industry in the UK is
both the major supplier of and provider of support to helicopters
operated by the UK armed forces. AgustaWestland is the largest
rotorcraft manufacturing and support company in the UK and in
2007, EADS/Eurocopter acquired McAlpine Helicopters Limited to
form Eurocopter UK. Many UK companies are an important part of
the supply chain with companies such as Rolls-Royce, QinetiQ,
Lockheed Martin UK and Cobham playing a major role in maintaining
and upgrading helicopters.
2.3 Commanders in the Armed Forces often
claim that they do not have sufficient helicopters, industry shares
this concern and is also concerned that the existing fleet provides
the wrong sort of capability. Prior to the creation of the JHC
helicopters for the armed forces were largely procured according
to individual services requirements. They were also procured according
to the challenges presented by the Cold War. The change through
the 1990s and since 2000 in the typical operating theatre
means that increasingly machinery has to operate in very hot temperatures,
and sometimes at very high altitudes. There is also increasingly
a need for helicopters to carry large payloads over large distances.
It is highly unlikely that these demands will decrease in the
future. Flexibility should be prized in order that in future helicopters
are procured which are able to perform a multitude of tasks across
the three services.
(B) Current procurement and maintenance projects
3.1 Presently the Armed Forces operate some
ten different helicopter types. A fleet which consists of a wide
variety of aircraft is likely to incur significant costs in terms
of maintenance and support. A more standardised fleet maximises
value for money and introduces broad cost savings across all the
lines of development.
3.2 The system of Integrated Operational
Support (IOS) for helicopters has been developed jointly by AgustaWestland
and the MoD over the last five years and has has resulted in more
cost effective maintenance for the MoD as industry is incentivised
to achieve high levels of aircraft availability and fixed maintenance
costs, with more of the risk being taken on by industry. The central
role of partnering to improve the predictability of maintenance
and reduce support costs was a cornerstone of the Strategic Partnering
Arrangement signed by AgustaWestland and MoD in 2006, the SPA
itself being an outcome of MoD's Defence Industrial Strategy published
in 2005.
3.3 Maintenance contracts such as the Integrated
Merlin Operational Support (IMOS) arrangement are examples of
agreements which place the emphasis on value for money. The contract
terms are such that industry is rewarded for the number of flying
hours the helicopters in question are able to carry out. This
contributes to a better product for the forces and ensures that
wherever possible, the maximum capability is made available.
3.4 Partnering between MoD and industry
increases the potential for successful strategic planning going
forward. SBAC believes that there are also opportunities for closer
links between civil and defence R&D, which would maximise
value for money.
3.5 The competition for the Future Medium
Helicopter (FMH) is likely to represent the single largest MoD
procurement of helicopters over the next decade. This will be
an international competition for up to 70 medium class helicopters,
typically between eight and 15 tonnes in all-up weight..
3.6 As with many airborne vehicles the civil
and the military aspects should not be viewed in isolation. Many
of the distinctions between civil and military technology are
blurred, for example many helicopters in use with the military
are used as transport helicopters in the civil sector. Much of
the technology in engine, rotor blade and airframes are dual use
across both sectors.
3.7 There is also significant export potential
generated, with aircraft such as the Lynx and Merlin, now widely
recognised as some of the best of their kind and as such are successfully
exported.
(C) The role played by helicopters on current
operations
4.1 The unique capabilities of helicopters
are highly prized by armed forces across the globe. The role of
the helicopter in combat scenarios has changed little since it
was first employed, but broadly includes reconnaissance, medical
evacuation, direction of fire in support of ground troops and
are also frequently used by special forces.
4.2 This range of capabilities is an excellent
example of the value that helicopters can bring on the battlefield.
The cost of helicopters should not be taken just in terms of procurement
and maintenance costs but also the flexibility they provide for
the Armed Forces.
(D) The support structure underpinning helicopter
operations
5.1 The support that industry provides to
the armed forces is vital in relieving pressure on them and allowing
them to focus on operations. The support is not just in the form
of maintenance on the assets themselves, but also in training
on new and updated platforms.
5.2 The Joint Modification Service was set
up in 2008, To improve the planning and delivery of urgent aircraft
modifications to the front line. To date, some 490 modifications
have taken place since its launch. SBAC recommends that this activity
is given priority so that the capacity in the supply chain is
used most effectively. On the whole though this should be seen
as a positive example of MoD and industry working together to
save time and money and deliver improved capability to the front
line.
5.3 Since the first IOS contract was signed
in 2005 much more responsibility has passed to industry.
Under the terms of an IOS agreement the MoD sets a defined number
of flying hours required and industry is required to provide the
necessary number of aircraft to perform to that extent. The companies
involved in the IOS contract are paid according to flying hours
achieved and it is therefore in their best interests to maximise
flying time and minimise faults in the aircraft—this in
turn results in more consistently effective equipment for troops
on the front line.
(E) Summary
6.1 UK industry plays an important role
in keeping the helicopter fleeting operating. Helicopters offer
unparalleled assistance and versatility on the battlefield and
their contribution to operations should not be underestimated.
6.2 A reduction in the number of different
helicopter types would save money across the board. At present
there are 10 helicopter variants in service which will incur
considerable costs because of the variety of spare parts required
to sustain such a fleet.
6.3 Greater synergy between civil and military
R&D, as well as long term commitment to R&D investment
will help to drive costs down.
6.4 Close long-term partnerships between
industry and MoD have delivered cost savings and will continue
to do so in the future, as industry has an incentive to provide
airworthy helicopters for as many flying hours as the forces demand.
6.5 Industry has a vital role to play in
training the forces on new systems and upgrades to existing systems
as well as the maintenance of aircraft.
9 April 2009
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