Analysis: European defense contracts

BRUSSELS, March 31 (UPI) -- RAF to lease Airbus tankers from private AirTanker consortium

AirTanker, a private industry consortium, will purchase $26 billion worth of air-refueling tankers from EADS subsidiary Airbus. The 14 aircraft will subsequently be leased out to the Royal Air Force, the Times of London reports.

The private finance initiative is the largest of its kind and follows more than four years of difficult negotiations.

The British Ministry of Defense said it will lease the planes for the duration of their 20-year life expectancy. Other reports say the deal is for 27 years.

The deal is Airbus's second blockbuster this year after winning the massive $35 billion contract to supply the Airbus air-refueling tankers to the U.S. Air Force, in conjunction with Northrop Grumman.

The AirTanker consortium comprises EADS, Rolls-Royce, Cobham, VT Group and Thales UK.

The Times reports that leasing aircrafts from the private sector is perceived as a mistake by many senior RAF officials. The primary concern appears to be inferior care of the planes. Others believe the consortium has the means to take better care of the fleet than the RAF would.

The chief advantage for the RAF of the private scheme is a gradual payment for the planes instead of an upfront bulk payment, as is customary.

French Special Forces buy Elbit UAVs

Israeli company Elbit Systems has announced it has sold 10 Skylark I unmanned air vehicle systems to France's Special Force.

Following its winning bid for the tender, Elbit signed its first ever French contract.

The Skylark I was recently used during Israel's war with Lebanon by the Israeli Defense Forces. Some are also deployed in the war on terrorism, according to Elbit Systems.

Elbit's UAV, which is said to weigh just less than 10 pounds, beat out nine other bidders for the contract. It takes just two weeks to become fully licensed and experienced enough to operate the equipment.

Elbit said though this contract, the value of which is unknown, is limited in size, it hopes it will lead to bigger contracts with France and other NATO countries.

U.K. picks CTA International gun for Warrior IFVs and FRES

Britain has decided to use a gun developed with the French to upgrade its Warrior infantry fighting vehicles and equip its armored scout vehicles whose purchase falls under the $31 billion Future Rapid Effects System program, Defense News reports.

The weapon was designed by CTA International, which is a combination of BAE and Nexter and has been in the works for more than a decade.

Other private sector bidders included BAE, Selex, General Dynamics and Lockheed Martin.

CTA International has not yet made a sale.

Venezuela contracts Belarus for Air Defense system

Following recent purchases of aircraft and small arms from the Russian Federation, Venezuelan President Hugo Chavez has convinced Belarus to dispatch 10 military advisers to his country to help build an anti-aircraft defense shield.

Belarus is hopeful that the project, which will take six years, will make it attractive to other potential Latin American purchasers.

Like Chavez, Belarusian President Alexander Lukashenko is unpopular with the West and the United States

Sweden to sell excess military equipment

In the latest chapter in a long debate over Sweden's defense budget, the Swedish Ministry of Defense has suggested selling off unused military equipment to raise money for weaponry, Defense News reports.

The Armed Forces Command, which is responsible for supplying all elements of the armed forces with adequate equipment, has a strict $5.91 billion budget this year, which is thought to be insufficient to accomplish its task.

Sweden has long envisioned making its armed forces more compact and mobile in order to be able to quickly respond to international calls for help. As such, a large number of tanks, armored troops carriers, artillery aircraft and ships will be surplus to requirement, according to Defense News.