Contract with Australian Defence signed

Media Release 20 September 2006

Air New Zealand engineering subsidiary signs contract with Australian Defence organisation

Air New Zealand's Queensland-based wholly owned engineering subsidiary, Tasman Aviation Enterprises (TAE), has signed an AUD90 million contract with the Australian Defence Materiel Organisation (DMO) to commercialise the F-111 Engines Business Unit (EBU) at RAAF Base Amberley, near Ipswich in South East Queensland.

The four year contract (with options to continue beyond June 2010) adds to TAE's existing Defence contract activity to provide workshops support to the wider F-111 maintenance community at Amberley.

Air New Zealand Engineering Services' General Manager Commercial & Business Development, Trevor Hughes said that being awarded the contract represents a milestone for the future of TAE in Australia.

"The scope of the new contract scope covers the fleet management, engineering, maintenance and logistics for the TF30 engine fitted to the RAAF's F-111 fleet of strike aircraft.

"TAE will be using the new contract as a launch point for expanding its military engine maintenance, repair and overhaul (MRO) capability for Australia and the region using the comprehensive capability available from the new operation to create Australia's most complete military engine MRO business," said Mr Hughes.

TAE currently employs 95 staff and will be offering the existing EBU workforce employment with the expanded company at Amberley. In addition, there is potential for future employment opportunities to be realised within the region as new business is brought to the 'commercialised' military operations. TAE anticipates employment levels of over 230 staff, plus up to 20 apprenticeships.

The complete TAE capability will include:

* Gas-turbine engine MRO
* Gas-turbine Engine fuel control and accessory MRO and testing
* Gas-turbine repair engineering and modification
* Commercial aviation repair design and modification (CAR35)
* Commercial aviation component maintenance
* Reliability, vibration and health monitoring programs
* Aerospace Manufacturing
* Electroplating
* Machining and grinding
* Aircraft welding, plasma spraying and heat treatment
* Aerospace Support Equipment design and maintenance

ENDS

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