Brits pull the plug on FRES utility vehicle

BRUSSELS, Dec. 15 (UPI) -- Brits pull the plug on FRES utility vehicle

In the face of ever tightening budget constraints, Britain's Ministry of Defense has put on hold negotiations with General Dynamics to build the utility vehicle component of the Future Rapid Effects Systems, Defense News reported last week.

Britain's negotiations with General Dynamics U.K. over a contract to build the Piranha V armored vehicle for the FRES program has hit a deadlock: General Dynamics would only agree to hand over its technology to a British company acting as integrator on the program in return for a guarantee of a steady flow of British military orders that the Britons were not willing to agree to.

As a result, the Ministry of Defense has decided to put the utility vehicle component of the FRES program on hold indefinitely. That is also bad news for BAE Systems and Lockheed Martin, corporations that had also been in competition for the contract.

The Ministry of Defense has bought a series of MRAP vehicles from the United States. This move reduced the importance of building the Piranha V, which was not due to enter service for another four to five years.

Britain's new Defense Secretary John Hutton has made it known that he'll be seeking considerably better value for money in any deal that the MoD will sign during his term of office.

On the FRES program, the tracked scout vehicle component will be given priority. Hutton also wants to upgrade the Warrior infantry fighting vehicle. For the scout vehicle, favorites include submissions from BAE Systems and General Dynamics.

Budget cuts slow Britain's major defense programs

The acquisition of the MoD's two new aircraft carriers, which, according to insiders, was on a "hopelessly optimistic" schedule anyway, was also moved back from 2015 to 2017, in a further move to sort out Britain's 10-year defense budget plan.

Ministry of Defense planners have been in disarray in responding to projected budget cuts caused by the growing global economic crisis.

-- They already have decided to urgently upgrade their all-terrain BAE Systems Viking fleet under the Urgent Operational Requirement program.

-- They are expected to give Singapore Technologies Kinetics a contract to build the Bronco, a larger version of the Viking.

-- They are considering buying two U.S.-built C-17 Globemaster heavy military transports, speeding up their purchase delivery of several A330 Airbus aircraft built by the European Aeronautic Defense and Space Co., or they may buy more U.S. Lockheed Martin C-130K Hercules military air transports. These moves are necessary because of EADS delays in building its projected A400 military air transport.

-- There will also be delays in providing new Hawk advanced jet trainers to the Royal Air Force.

-- The MoD has also awarded three new contracts to build vehicles for the British army's operations in Afghanistan -- a six-wheel-drive Cougar, an MXT-MVA and a Coyote type.

British Defense Secretary John Hutton has made it known that he'll be seeking considerably better value for money in any deal that the MoD will sign during his reign.

Airbus subcontracts Turkish firm for A350

Turkish Aerospace Industria, which is owned by the Turkish Armed Forces Foundation and is Turkey's preferred local contractor for international deals, has been awarded a competitive contract by Airbus for its A350XWB.

TAI will earn between $500 million and $1.5 billion for its involvement in supply of parts for the new plane, which is to be one of Airbus' biggest. TAI's track record includes assembly on the Lockheed Martin's F16, Cougar helicopters and the CN235 transport aircraft.

Russia renews work on Indian aircraft carrier

After a three-year dispute following a Russian drive to renegotiate a deal on converting a Soviet-era aircraft carrier, the Admiral Gorshkov, for operational use by India, construction on the ship finally has resumed, Defense News reported last week.

The Admiral Gorshkov, which was constructed in 1987 and weighs 45,000 tons, is to be renamed the Vikramaditya. It will not, however, be turned over to India until 2012.

The ship was drydocked in December 2005 but is now once again afloat. The Russian shipbuilding company Sevmash is carrying out the conversion of the carrier at its Severodvinsk shipyard in Russia's Far North.

Sevmash claimed to have incurred far more costs than originally anticipated when converting the ship from a vertical-launch, VTOL (Vertical Take-Off and Landing)-carrying carrier to a regular, horizontal-launch takeoff aircraft carrier. These difficulties precipitated the lengthy renegotiation.