MoD allays fears on aircraft carrier design project

The Ministry of Defence insisted today that BAE Systems was stillfavourite to design and build the Royal Navy's next generation ofaircraft carriers.

An MoD spokesman also dismissed speculation about the GBP2.9million project being delayed.

"Our in-service target dates remain 2012 and 2015 and, as primecontractor, it is down to BAE Systems to deliver on time," said thespokesman.

BAE and French defence firm Thales are working with the ministryto assess likely problems involved in constructing the two 950ft60,000-tonne carriers.

The BAE Systems and Thales team, known as the Carrier Alliance, isbased in Bristol.

BAE and the MoD cannot agree over the degree of risk the companyshould shoulder.

BAE, which employs more than 600 people at its Filton site, istrying to persuade the MoD to follow the American example forassessing the risk in major defence projects.

A BAE spokesman said today: "The issue at the moment is notdelivery dates. The industry is waiting to see what next transpiresin terms of decisions by the MoD on the way ahead."