US firm given time to buy Skyhawks

Photo / Simon Baker

The New Zealand Government will give a United States company until Christmas to come up with money to buy its Skyhawks after the company was granted extended import approval by its own authorities.

Tactical Air Services (TAS) got an import permit from the US State Department a year ago, as is needed for the purchase of such equipment. That approval was due to expire yesterday, but Defence Minister Wayne Mapp said a 12 month extension had been granted.

TAS has for several years had its sights set on buying 17 Skyhawks and 17 Aermacchi trainer jets from the Defence Force, but hasn't been able to wrap up a deal.

Dr Mapp and Prime Minister John Key this week all but wrote off any chance of a sale going through, and Dr Mapp said today while the Government was now prepared to wait until Christmas, hopes of a sale were still slim.

"They have had that permit to import for 12 months, they didn't come up with a credible contract during that period of time," he said.

After Christmas the Government would take "other options".

While there could potentially be a market for the 1980s Aermacchis, the 1965 Skyhawks would more than likely end up as museum pieces.

Mr Key even said this week Australia had shown interest in getting one to put on display and that it would be a "nice gesture" to hand one over.

The jets were decommissioned by the Labour government in 2001 but have still cost the taxpayer millions to maintain and keep in a saleable condition.

The Skyhawks were more recently wrapped in latex so they could be weather-proof and kept outdoors without too much expense, but Dr Mapp said they couldn't stay in that state for much longer.

He said TAS had been in touch this week with the Defence Force insisting it would come up with a deal. "But they've said that before."

Labour had the jets on the books at $155 million and said in 2005 a deal had been done with TAS to sell them. That deal fell through because of the time it took for the State Department to grant import approval, and the economic crisis has since made it difficult for the company to find the big investor needed.

- NZPA