The Arms Grapevine

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Australia Opens Tender for Destroyers

(Source: Australian Department of Defence; issued Oct. 16, 2004)

The Federal Government has today advertised for Australian shipbuilders to bid for one of Australia's largest and most complex Defence projects, the Navy's Air Warfare Destroyers (AWDs).

Defence Minister Robert Hill said a Request for Proposal (RFP) will be released and the terms of the proposal will be available from Monday, 18 October 2004.

"The proposal will be for the construction of three AWDs in Australia," Senator Hill said. "The RFP will be available to qualified shipbuilding organisations that have entered into agreements with the Commonwealth in relation to confidentiality and related matters."

Senator Hill said tender documents for the $4.5-$6 billion project have been developed by Defence in consultation with independent commercial adviser Carnegie Wylie & Company.

The tender for the construction of the AWDs will remain open for approximately nine weeks. Defence will then evaluate tender responses, with Government to receive a recommendation on the preferred shipbuilder in March 2005.

Once appointed, the preferred shipbuilder will be in a position to assist the Commonwealth select the preferred design for the AWD in mid 2005.

Senator Hill said tenders will be sought on an alliance-style contract basis, with the vessels to be built in Australia. The successful shipbuilder will be majority Australian-owned and be required to satisfy a range of price and non-price criteria, including:

--Commitment to the principles of a long-term risk sharing arrangement with the Commonwealth and other industry partners for the construction of the AWDs;

--A cost, overhead and pricing structure that will enable the cost effective delivery of the AWDs, including the ability to build designs considering 'whole of life' costs;

--A sound record of past performance in building naval vessels;

--Commercial viability and financial backing;

--Access to the skilled workforce required to produce ships to the Commonwealth's requirements;

--Willingness to provide open financial accounting data - including visibility through to the sub-contractor level - to the Commonwealth;

--Capacity to provide the Commonwealth with transparency and contractual influence over major sub-contractors; and

--Capacity to access sensitive technology required for the AWD project.

Companies bidding for the AWDs will be required to include Australian skills and training programs in their tenders, with Defence to fund companies for extra skills generation and training benefits in the programs.

The AWDs represent a quantum leap in the air warfare capabilities of the Royal Australian Navy. The vessels, which are to be introduced into service from 2013, will be equipped with the world-class AEGIS radar that is capable of detecting and defeating multiple hostile aircraft and missiles at ranges in excess of 150 kilometres.

The AWDs will also have an anti-submarine and anti-shipping capability, together with the potential for the ships' sensors to be used to detect ballistic missiles in flight. They will provide significantly increased protection from air attack for troops being transported and deployed and long-range air warfare defence for a Navy task group.

As outlined earlier this year, the Government has asked the international design houses Blohm & Voss of Germany; Gibbs & Cox of the Unites States and Izar of Spain to produce evolved concept designs based on their existing ship classes the Saschen Class F124 Frigate; the Arleigh Burke Class Guided Missile Destroyer; and the Alvaro De Bazan Class F100 Frigate respectively.

The AWD project provides a massive opportunity for Australian industry to participate at both the prime and sub-contractor level. The project will also create new Australian jobs and skills and strengthen Australia's strategic industrial base.

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RAAF Sends F-111s, F-18s to Red Flag

(Source: Australian Department of Defence; issued Oct. 18, 2004)

Hundreds of personnel, four F-111 strike aircraft and six F/A-18 Hornet fighter aircraft from the Royal Australian Air Forces Air Combat Group will deploy over the next few days to Nellis Air Force Base in Nevada, United States of America, to take part in the United States Air Force advanced air combat training exercise called Red Flag.

Exercise Red Flag will involve 250 personnel and is an excellent opportunity for the Royal Australian Air Forces F-111 and F/A-18 air and ground crews to hone their skills with the United States Air Force and other allied nations at one of the worlds best air combat training facilities.

The deployment of personnel and aircraft from RAAF Amberley in Queensland and RAAF Williamtown in New South Wales to Exercise Red Flag will be the first overseas deployment of a combined Air Combat Group force with both F-111 and F/A-18 aircraft. This year will also be the first time the Air Force has sent F/A-18 Hornet aircraft to take part in the exercise.

Group Captain Bill Henman, Officer Commanding 81 Wing from RAAF Williamtown will command the Air Combat Group deployment to Red Flag.

Participating in Red Flag is a great opportunity for Air Combat Group and will be a major milestone in the training of our air combat aviators. Red Flag also provides invaluable training for our logistics and maintenance personnel as they are able to practice deploying to another country and working together with other Air Forces Group Captain Henman said.

The large scale exercise will involve experienced aircrews from the different air forces flying Strike, Electronic Warfare, Tactical Transport, Fighter Escort, Airborne Warning and Control and Air to Air refueling aircraft against dedicated defensive fighter aircraft and an extensive range of simulated Surface to Air threats.

The F-111 aircraft and the F/A-18 Hornet aircraft will arrive at Nellis Air Force Base from Thursday 21 October. RAAF C130 Hercules aircraft will provide airlift support to Air Combat Group on their way to Nellis Air Force Base. The exercise runs for two weeks with flying beginning on Saturday 23 October.

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Australia Rejects Plea to Send More Troops to Iraq to Protect UN Staff

(Source: Voice of America; issued Oct. 18, 2004)

Australia has turned down a request by the United Nations to send more troops to Iraq to protect U.N. personnel there. Australia has agreed instead to train a contingent of Fijian soldiers for the job.

Australia was approached informally through its diplomatic missions in the United States to send more troops to help protect U.N. workers in Iraq.

Australia has around 920 military personnel in the Gulf region, and a Foreign Ministry spokesman say the government has refused to send any more.

Foreign Minister Alexander Downer says Canberra has already made a substantial commitment to Iraq, and has no intention of deploying more troops there.

There is something to be said for the argument that we could provide some support to the United Nations, but there is more to be said for us sticking with the commitment we made that we would not send ever-increasing numbers of troops there, Mr. Downer says.

Instead, the government says it will help to help train and equip troops from Fiji, which has offered a detachment of 155 soldiers to protect the U.N. mission.

Canberras decision is another headache for U.N. Secretary-General Kofi Annan as he struggles to win international backing for a security force to try to keep the U.N. staff in Iraq safe.

A lack of protection for U.N. workers has been a key concern since a suicide bomber killed 22 people, including the organizations special representative to Iraq, Sergio de Mello, in Baghdad last year.

Only a few countries, including Fiji, have answered the U.N. calls for help in Iraq. In the meantime, the U.N. mission there is relying on the increasingly hard-pressed U.S. military for protection.

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Armor Launches Ultra Light Combat Vehicle

(Source: Arotech Corp.; issued Oct. 18, 2004)

NEW YORK --- Arotech Corporation announced today that its MDT Armor vehicle-armoring subsidiary will be launching its new ultra light armored combat vehicle at the 2004 AUSA Annual Meeting and Exposition on October 25-27 in Washington, DC.

The new vehicle - the David - was designed by MDT for Special Operation units that need a small, versatile and easy to maneuver armored combat vehicle. Tailored for the urban environment of the Low Intensity Conflict, the David offers armor piercing protection for a crew of 7, wide doors for fast in/out of troops on a platform that can easily get in and out of tight urban streets and alleys. The entire cabin, including front and rear doors, was designed by MDT, and built on a Land Rover Defender platform, utilizing advanced and composite materials. The David can also be built on a Mercedes G Wagon Platform. The David has been tested by the Israeli Defense Force, which has several units already in service.

The David is a vehicle unique to MDT, said Robert S. Ehrlich, Arotech Chairman and CEO. Its a small fully armored combat vehicle, but it can carry more soldiers than an armored HMMWWV (Humvee) and into tighter spots.

MDT will be displaying in booth #4249 of the 2004 AUSA Annual Meeting and Exposition in the Washington Convention Center in Washington, DC. An armored 5-seater Land Rover Defender SUV will be on display, together with body armor and HMMWWV armor kits manufactured by Arotechs Armour of America subsidiary.

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Australia to Assist Fijian Deployment to Iraq

(Source: Australian Department of Defence; issued Oct. 19, 2004)

The Australian Defence Force will provide assistance to a Fijian military contingent preparing to deploy under United Nations (UN) auspices to Iraq.

Defence Minister Robert Hill and Foreign Affairs Minister Alexander Downer announced today that Australia will provide support with training, equipment and related logistics, following a request from the Government of Fiji.

Fiji will contribute a guard contingent and a personal protection detachment to the UN Assistance Mission to Iraq (UNAMI).

Australia strongly supports UN efforts to establish a significant presence in Iraq, involving the full range of agencies and with appropriate security protection.

Australia welcomes Fijis contribution to UNAMI and is pleased to support them through the provision of equipment and training.

We are keen to ensure the UN can deploy sufficient personnel to fulfill its mandate to advise and support the Independent Electoral Commission of Iraq on the process for holding elections.

We strongly encourage the international community to support the Iraqi people on their path to democracy.

There are currently about 920 Australian Defence Force personnel in the Middle East, as part of multinational efforts to develop a secure and stable environment in Iraq.

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Jetstar Asia Awards ST Aerospace US$47m Total Aviation Support Maintenance Programme

(Source: ST Aerospace; issued Oct. 20, 2004)

SINGAPORE --- Singapore Technologies Aerospace (ST Aerospace), the aerospace arm of Singapore Technologies Engineering (ST Engineering), today announced that its subsidiary, ST Aerospace Engineering, has been appointed by Jetstar Asia to support the new low cost carrier's fleet of up to eight A320s by 2005 on a total aviation support programme. The agreement, worth approximately US$47 million, will stretch over five years, covering line, light checks and base maintenance including engineering and technical services, as well as components management and support.

The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.

"We plan to grow our fleet significantly in the coming years to meet the projected growth of air travel demand led by the LCC market. We are pleased to work with ST Aerospace as their approach and expertise strongly supports our business model for quality, performance and cost effective fleet management whilst delivering the highest safety level to our customers," said Con Korfiatis, Chief Operating Officer, Jetstar Asia.

"We are honoured that Jetstar Asia has chosen us to support its operations. Our Total Aviation Support programme enables our customers to focus on their airlines' core business, with the assurance of the quality support they will receive. Jetstar Asia is the latest customer among our global customer base that includes an important number of low cost carriers. Our customers are our biggest assets, and we aim to ensure Jetstar will achieve the performance they expect," said Tay Kok Khiang, President, ST Aerospace.

Jetstar Asia, which is a partnership between Qantas and local investors, is expected to begin flying by the end of the year and will provide low fares with a comfortable and enjoyable travel experience to an expanding regional customer base.

Jetstar Asia is a partnership between Qantas (49%); Tony Chew (22%); FF Wong (10%) and Temasek Holdings (Private) Limited (19%). The airline is expected to create approximately 200 jobs when it commences services to a number of regional destinations within five hours of Singapore by the end of the year. Jetstar Asia will begin operations with a fleet of up to four Airbus A320 single-aisle, 180-seat aircraft; expanding to 8 aircraft by the end of 2005.

ST Aerospace is the aerospace arm of ST Engineering. It provides a full spectrum of maintenance and engineering services through its three business segments: Aircraft Maintenance & Modification (AMM), Component / Engine Repair & Overhaul (CERO), and Engineering & Materials Services (EMS). ST Aerospace has a staff strength of more than 5,000 certified engineers and administrative specialists.

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