Air Force to spend $690m on jets, equipment upgrade

By VERNON SMALL deputy political editor

The Air Force is to buy two second-hand commercial jets and upgrade its five Hercules as part of an almost $700 million revamp.

Two Boeing 757-200 jets, likely to be about eight years old, will replace the two faster but fault-prone Boeing 727-100s. They could cost up to $200 million and will be modified to carry cargo and passengers.

A structural upgrade of the C130H Hercules transports will extend their life by 15 years for between $100 million and $170 million. The aircrafts' communications and navigation systems will also be upgraded.

With similar work on the Orions, the total cost of the communications and navigation equipment could reach $320 million.

Defence Minister Mark Burton said the price was commercially sensitive as the Government negotiated with competing suppliers. But both projects would "come inside the range pitched in the long-term development plan" released in June.

The reported figures are taken from that plan.

An upgrade of the six Orions P3s would be considered by the Cabinet before Christmas, which could take the total bill for new planes and upgrades to $690 million.

Mr Burton said New Zealand would not take up the option to buy new C130J aircraft as part of a contract Australia had with makers Lockheed Martin. Five new aircraft would have cost more than $1 billion, and the C130Js had "recognised operational shortfalls".

The 757 jets would be in service by the middle of next year and their modifications would be complete by the end of next year. The upgrade of the Hercules would start in 2004 and take until 2006 or 2008, depending on how many were modified at a time.

Mr Burton said there were a lot of 757s on the market worldwide "and we are shopping around".

He would not speculate on their likely cost or how much the 1970-vintage 727s would fetch.

He said the 727s were reaching the end of their useful life and upgrading would not be cost-effective.

The replacement jets would be used for peace operations, medical evacuations, disaster and humanitarian relief, military exercises, VIP transport, Antarctic supply, and search and rescue.

Previous moves to buy new jets have faced criticism that they are expensive luxuries for Prime Ministers and their entourages. But Helen Clark said she did not intend to use the 757s any more than the 727s.

"The main call the Prime Minister has on that type of plane is to take other Pacific leaders, as well as oneself and officials, up to the Pacific Island Forum."

For long-haul flights she was likely to continue to use commercial flights, which were faster.

"I think the main use of these planes, frankly, is transporting military personnel around."

Mr Burton said VIP transport was a minor role for the aircraft.

National's defence spokesman, Richard Worth, welcomed the planned upgrades, saying they came after relentless pressure from his party.

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