25 February, 2005

Second Major Defence Contract awarded to Safe Air

Another major defence contract has been awarded to Marlborough Company Safe Air.

The NZ$27million contract to support the upgrade of the P3 Orion aircraft fleet was signed today between giant U.S. firm L-3 Communications Integrated Systems and Safe Air Limited. The sub-contract for the P-3 Orion was awarded only days after Safe Air announced it had won a sub-contract with L-3 Communications Spar Aerospace to support the upgrade of the RNZAF C-130 Hercules aircraft fleet.

"The combined value of the two Safe Air contracts is close to $NZ52million which is brilliant for Safe Air and for the region" said Jeremy Remacha, General Manager Safe Air.

"We are delighted to have secured this major defence contract," Mr Remacha said today.

"Most of the modifications will be undertaken at Safe Air facilities over a period of five years. This will create some additional jobs at Safe Air throughout the various stages of the upgrades", said Mr Remacha.

The first P-3 Orion aircraft life extension upgrade will be undertaken at L3's facilities in Greenville, Texas. The other five aircraft will be upgraded at Safe Air.

The upgrade to the Orion aircraft includes a Mission Systems upgrade and a Communications and Navigation Systems upgrade. Safe Air, a wholly owned subsidiary of Air New Zealand, was named as the preferred New Zealand sub-contractor when the Government signed the contract with L-3 Communications Integrated Systems to upgrade the P-3 Orion aircraft fleet in October 2004.

The P-3 Orions undertake surveillance of New Zealand's Exclusive Economic Zone, provide surveillance assistance to Pacific Island countries, and conduct search and rescue operations. They also contribute to regional and global security and were deployed last year to the Arabian Sea in support of the international campaign against terrorism.

For media enquiries please contact:
Heather Deacon
General Manager
Safe Air Limited
+64 3 572 8416