The United Kingdom Ministry of Defence (MoD) awarded Affinity Flying Services Ltd., a joint venture between Elbit Systems Ltd. [ESLT] and Kellog, Brown and Root, Limited [KBR], a $713 million contract to support Ascent Flight Training Services Limited, the companies said Tuesday.
Ascent services are part of the U.K. Military Flight Training System (UKMFTS) program for the Ministry. The program is a partnering agreement between United Kingdom Front Line Commands, the MoD, Ascent, and other industry partners to deliver aircrew training, Elbit and KBR said.
The particular contract directs Affinity to optimize the fixed wing flying training provision for the United Kingdom and to reduce the cost of pilot training, KBR said.
Affinity plans to procure, operate, and maintain 38 aircraft and aircraft-related infrastructure through 2033. The training aircraft Affinity will use includes 23 Grob Aircraft G 120TP ‘Prefect’ for elementary flying training, 10 Beechcraft [TXT] ‘Texan’ T-6C for basic flying training, and five the Embraer [ERJ] ‘Phenom’ 100 for multi-engine pilot training, KBR said.
The contract value is estimated to be awarded over an 18-year period, the companies said.
“We are very proud to take part in such an important project for the UK MoD. This award attests to our position as a leading provider of systems and training infrastructure, as well as maintenance and logistics support services,” Bezhalel (Butzi) Machlis, president and CEO of Elbit, said in a statement.
“The award of the contract to deliver this key program for the U.K.’s armed forces is a significant recognition of our proven ability to adapt and deliver innovative global solutions to meet the specific needs of the U.K. market and customer,” Machlis added.
“We are excited to be a part of this significant project and to continue to grow and maintain a substantial presence in the United Kingdom. This win is indicative of KBR’s strategic commitment to focus on long-term services contracts with annuity streams in its Government Services segment particularly for the U.K. Government,” Stuart Bradie, KBR president and CEO, said in a separate statement.
Elbit and KBR each hold a 50 percent share in Affinity and plan to evenly support and benefit from the program contract. KBR is a former subsidiary of Halliburton [HAL].