Lockheed Martin Signs Major Contract Amendment For Royal Air Force C-130 Fleet Support

MARIETTA, Ga., May 28, 2012 – A team of Lockheed Martin [NYSE: LMT], Marshall Aerospace and Rolls-Royce has just signed a contract amendment agreeing firm prices for the support of the United Kingdom’s fleet of C-130 aircraft through 2015. The amendment value to Lockheed Martin is $210M.

This long-term Hercules Integrated Operational Support (HIOS) contract ensures that the UK’s C-130 fleet is maintained at a high level of readiness. The C-130Ks and C-130Js are used to support and conduct special operations, deliver medical capability and ensure vital supplies are in place to support front line theaters of operation such as Iraq, Afghanistan and Libya.

“The Royal Air Force continues to demonstrate to the world the irreplaceable value that the C-130 has in airlift operations. No other aircraft can achieve the range of operational missions that the Hercules can,” says George Shultz, Lockheed Martin vice president and general manager C-130 programs. “The RAF has set the standard in many areas of C-130 operations. As the
launch customer for the C-130J, the RAF continues to push the performance envelope of Super Hercules. HIOS transforms the way the Hercules fleet is supported and will guarantee more aircraft ready to fly at all times. The ‘nose-to-tail’ deployed supply chain services that HIOS provides to RAF C-130 combat operations is just one example of Lockheed Martin’s transformational innovation for today’s C-130 operator. We are resolute in our commitment to the long term support of the C-130 and the capabilities it brings to operators around the world.”

Under HIOS, Marshall Aerospace, as prime contractor, works in a partnered relationship with Lockheed Martin and Rolls-Royce, which support the engines. Lockheed Martin is responsible for overall supply chain management, provisioning of C-130J-peculiar items and repairing parts for both aircraft types. The goal of the HIOS partnership is to keep the RAF’s C-130s available 24 hours a day, 365 days a year.