KEY POINTS:
The Government has signed a $139 million contract for five new state-of-the-art helicopters which Defence Minister Phil Goff says will serve the air force for the next 30 years.
The contract will deliver five Agusta-Westland A109LUH light utility helicopters, their spares and a flight simulator.
"It's a big day for the air force," Mr Goff said when he signed the contract in the Beehive.
"The Agusta-Westland is more than just a generational change in technology from the old Sioux training helicopter it replaces.
"It fulfils all of the larger helicopter's roles and is much faster."
The new helicopters, which will enter service in 2011, will have defence and rescue roles, as well as being used to train pilots for the eight NH-90 medium utility helicopters they Government has decided to buy at a cost of $771m.
"Helicopters play a key role across all three services of the Defence Force," Mr Goff said.
"They are amongst the most useful and heavily utilised forms of equipment, having the ability for deployment, counter terrorism, command and control, search and rescue and disaster relief."
Air force chief Air Vice-Marshall Graham Lintott said the contract was another step in building New Zealand's military capability.
The air force's training capabilities would be world class with the new helicopters and the flight simulator.
The contract was signed on behalf of Agusta-Westland by the company's Australian manager, Phil Smith.
Agusta-Westland is based in Italy, and the signing was witnessed by the Italian Ambassador to New Zealand Gioacchino Carlo Trizziono.
The company is one of the biggest helicopter builders in the world and the A109LUH is already used in many countries, including Britain, the United States, Australian, South Africa and Sweden.
- NZPA