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Sunday, July 16, 2006

BAE to get Nimrod lift-off

One of Britain’s most controversial and delayed defence projects is expected to get the go-ahead at the Farnborough air show this week when the government approves production of 12 revamped Nimrod maritime patrol aircraft.

The Nimrod deal earned notoriety in 2001, when delays and cost overruns on the £2.4 billion contract led to a public showdown between the Ministry of Defence and BAE Systems, the defence group handling the contract. BAE was forced to issue a profit warning and eventually took a £500m hit on the contract.

BAE has since been working on three prototypes, with test flights getting under way for two years. The original contract envisioned the production of 18 planes, but this week the MoD is expected to give the green light for the production of nine, which with the prototypes will give a total fleet of only 12.

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