The Sentry is the UK's principal airborne early warning and control aircraft, which gives vital strategic support to our Armed Forces in theatres of operation around the world. Under the upcoming Sentry future support programme, the costs of supporting Sentry will be reduced and more aircraft will be ready to fly, more of the time.

Subject to final contract award, Northrop Grumman is positioned to undertake contractual maintenance and repair of the Sentry fleet, and ensure that the aircraft's operational availability is increased.

"Today's announcement is an important milestone on the road to a vital contract award. Sentry is an outstanding aircraft and improving the way it is supported and maintained in future will enable us to maximise its activity in theatre and increase its availability for operations, Lord Bach, the Minister for Defence Procurement said.

"Implementing the Sentry Future Support programme is expected to reduce the cost of supporting Sentry over the next two decades by up to 10 percent - a significant saving for the taxpayer. We look forward to negotiating and finalising the contract in the near future."

Under Northrop Grumman's bid for the contract, major aspects of the support programme would be subcontracted to British companies, BAE Systems and FR Aviation, together with AAR Corporation.

As part of the Sentry Future Support programme, the successful contractor will establish an integrated facility at RAF Waddington in Lincolnshire to conduct aircraft scheduled maintenance, spares delivery and design authority services.

Subject to final negotiations, MoD expects to award the contract in early 2005.