The DIS recommended consolidation in Britain’s submarine and surface vessel sectors through its Maritime Industrial Strategy (MIS). In response, BAE Systems and the VT Group have agreed to merge their £912 million shipbuilding businesses. The two companies are now responsible for about 85 per cent of the UK’s naval shipbuilding and have seen their businesses more closely aligned on projects like the six Type 45 Daring Class destroyers due to be delivered to the Royal Navy in 2008-2014. The project is employing 3,000 people with BAE Systems Surface Fleet Solutions at Govan and Scotstoun on the Clyde, Scotland and 600 people with VT Shipbuilding at Portsmouth constructing the vessel’s bow, funnels and masts.

The two companies are also part of the Aircraft Carrier Alliance with the MoD, Babcock International, Thales UK and Kellogg Brown & Root (KBR) developing two new CVF aircraft carriers, due to enter Royal Navy service in 2014-2016. The CVFs are being developed in partnership with France’s naval vessel manufacturer DCNS, which will build a similar aircraft carrier for the French Navy. BAE Systems is the prime contractor, but the project is being managed by the UK subsidiary of the US’s KBR. BAE Systems is also leading the CVF Integration Support Team (CVFIST) to ensure that the F-35 Lightning II is fully capable of operating from the aircraft carriers. Other UK companies involved in CVF include BMT Defence Services, which worked with Thales on the principal design of the carrier.

Army Air Corps (AAC)
The AAC is composed of six regiments and seven independent flights. Other than training units, all regiments and flights are assigned to the JHC. No 1 Regt at Gütersloh additionally supports 1 (UK) Armoured Division.

Pilot training begins with 674 Sqn at Barkston Heath on the T-67M260 Firefly as part of the civilian-contracted (Babcock Defence Services) Defence Elementary Flying Training School (DEFTS), also comprising the Royal Navy’s 703 Naval Air Squadron (NAS). Rotary-wing training is undertaken with the civilian-contracted (FB Heliservices’ sister company FBS Ltd) Defence Helicopter Flying School (DHFS) at Shawbury, where the AAC provides 660 Sqn equipped with 14 Squirrel HT1s. Prior to being assigned to an operational regiment, pilots undertake further training on the Squirrel HT1 assigned to the School of Army Aviation (SAAvn) and 2 (Training) Regiment on the Squirrel HT2 at Middle Wallop.

The AAC has five frontline attack helicopter squadrons based at Wattisham, each equipped with eight Apache AH1s. Two flights each operate three Civil-Owned Military Registered (COMR) Bell 212HP AH1s for Casevac duties in Belize and Brunei. A single COMR Bell 212 is operated by SAAvn at Middle Wallop for pilot conversion prior to postings with 7 or 25 Flt. The AAC has two TA regiments: No 7 Regt (V) is equipped with 20 Gazelle AH1s and is assigned to HQ Land Command, while 6 Regt (V) at Bury St Edmunds provides Apache ground support at Wattisham.

Other AAC units