Media Release
27 August 2008

RNZAF awards $110 million defence contract to Safe Air

New Zealand’s largest defence aerospace maintenance contract has been awarded to Safe Air Limited, a wholly owned subsidiary of Air New Zealand.

The NZ$110 million*, six-year contract covers total heavy maintenance of the Royal New Zealand Air Force’s P3 Orion, C130 Hercules, UH1 Iroquois aircraft fleets and Rolls Royce T56 turbine engines. The six-year contract with a potential five-year extension also covers the right to occupy the heavy maintenance facilities operated by Safe Air Ltd at RNZAF Woodbourne, in Blenheim.

Safe Air General Manager Jeremy Remacha says the deal renews Safe Air’s long-standing relationship with the RNZAF, with the addition of spares supply, components management and clear performance targets. He says it reinforces Safe Air’s position as the strategic maintenance provider to the RNZAF.

Deputy Chief of Air Force Air Commodore Dick Newlands says the addition of joint initiatives and performance targets in the new contract pave the way for continuous improvement and long term reduction of ownership costs.

“We want to see improved aircraft availability, improved readiness for operations, and more competitive cost of fleet ownership. We are confident Safe Air has the capability and commitment to match our focus,” says Air Commodore Newlands.

Safe Air has more than fifty years experience in civil and military aircraft engineering at Woodbourne. In addition to the air force contract, it carries out work on some Air New Zealand aircraft and for offshore civil and military customers. The 350 Safe Air staff will also fulfill two other New Zealand Ministry of Defence contracts on behalf of lead contractor L3 Communications - upgrading P3 Orion systems and a life-extension programme on the C130s.

Mr Remacha says the three contracts together demonstrate Safe Air’s world-class defence aerospace capability.
“Winning these contracts shows our international competitiveness and that the RNZAF is confident we will deliver world class maintenance service,” says Mr Remacha.

“The new contract period covers the RNZAF’s most significant fleet modernization programme in many years and we can deliver the level of maintenance leadership the air force demands.”

He says the new contract also provides a platform for future growth.
“It ensures we can retain the scale and capabilities we need to build our portfolio in the international aerospace market.

“This contract enhances our competitive edge when targeting global aerospace maintenance and manufacturing opportunities,” he says.

ENDS

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