Air N.Z. set to gain U.S. service contract

Press, 10 January 1987, Page 1

Air N.Z. set to gain U.S. service contract

By

TOM BRIDGMAN,

NZPA staff correspondent

Washington Air New Zealand is on track to win an important, politically sensitive, multimillion dollar contract to service United States National Science Foundation transport aircraft that fly to the Antarctic. Detailed negotiations are expected to start soon bn a contract that would bring substantial work to the Christchurch engineering workshops of Air New Zealand, and be a boost to the local economy. The contract is being worked out against a delicate political backdrop caused by the A.N.Z.U.S. split with the United States. The National Science Foundation planes, seven LC-130S flown by United States Navy pilots, get

ground, , support from Navy personnel and are now serviced under a U.S. Department of Defence contract.

Because of that, Air New Zealand, and the Federally-funded N.S.F. which has responsibility for all U.S. Antarctic operations, and New Zealand officials are treading carefully so that no sudden obstacles hinder a conclusion of the contract. The surprise introduction this week in the U.S. Congress of a bill to strip New Zealand from preferential access to U,S. military purchases, demonstrated that A.N.Z.U.S. is still a live political topic in Washington. Passing of the New Zealand Government’s anti-nuclear legislation, which affects both ships and aircraft, would again concentrate attention on the issue.

The... N.S.F. deputy director of the division of polar ' programmes, . Mr Alfred Fowler, said it intended to enter into solesource negotiations with Air New Zealand, although because of Federal procurement regulations the option was there for others to compete for the servicing contract. He said that “across the table” negotiations with Air New Zealand had not yet started, but were not too far off. Barring any objections, these would be "sole source negotiations,” that is Air New Zealand would be the only contractor dealt with. There are three types of servicing done on aircraft — daily maintenance, intermediate level maintenance every few months, (now done for the N.S.F. planes at Christchurch by navy crews during the summer season), and major overhauls or “depot level” work. The contract which Air New Zealand and the N.S.F. hope to clinch is for the depot level work which is normally done every two years, but, because of the extreme conditions and stresses on planes flying to the Antarctic, needs to be done every year. At present the United States military contracts out overhaul work for all its hundreds of Hercules Cl 30 transport aircraft. The N.S.F. planes are included, being flown back to the United States each time.

... Mr . Fowler said. that difficulties with the present contract meant the U.S. Navy was having to do the work itself at present at a base 4n North Carolina. Having the work done at Christchurch would be logistically advantageous for the N.S.F. Air New Zealand had the expertise and had done major airframe and engine work on the planes, he said. The planes could be scheduled better for maintenance, kept on hand throughout the year for training and emergencies, and frustrating delays the N.S.F. had had to put up with through the military contracting system would be eliminated. Air New Zealand’s track record of “performance and capability” was already established and it was certified by the United States system to do maintenance on Cl 30s, he said. Mr Fowler said the N.S.F. spent “millions in U.S. dollars” for depot level maintenance on aircraft; each overhaul involving 100 workdays for gangs of people. “To have depot work at the same place as intermediate would be a magnificent, unplanned-for benefit." U.S. Navy technicians and contractors would be in Christchurch next week for a pre-contract negotiation look at the Air New Zealand engineering facilities, said Mr Fowler.