UK tanker overpriced!

[VulcanDriver]

Defence chiefs have been attacked by spending watchdogs for entering into an "inappropriate" 27-year, £10.5 billion PFI contract in 2008 without properly understanding the costs.

Under the agreement, 14 converted Airbus A330s - called Voyager by the RAF - are being leased to the military by the AirTanker consortium for refuelling, transport and medical flights.

The provision of training, maintenance and new purpose-built buildings at RAF Brize Norton in Oxfordshire, the RAF's air transport hub, is included in the deal.

Contract negotiations were based on a cost for each aircraft of £150 million.

But BBC Newsnight said it had seen evidence - including another buyer's contract - that the real price should be as little as £50 million.

It also based that figure on expert suggestions of both the likely discount available to someone buying 14 of the aircraft and an estimated £10 million conversion cost.

Worst still the first Voyager has not been cleared for RAF service and is hangared at Brize for "remedial" work on fuel leaks and software problems.