Source · Select Committees · Defence Committee

Recommendation 105

105 Rejected

High costs and cannibalisation needs hinder mothballing retired Tranche 1 Typhoons

Conclusion
In response to our recommendation last year that the Government mothball the 30 Tranche 1 Typhoons it is proposing to retire in 2025 (with 60% of their airframe fatigue lives remaining), we were told that whilst it would be feasible to retain the aircraft in storage, the investment required to maintain them and then “address significant capability, obsolescence and regulatory needs” upon regeneration would be at least £300 million. We were also told that that it would preclude the RAF from cannibalising the airframes for components which could be used for tranche 2 & 3 Typhoons.222 We note that some of these issues are more easily solvable than others—for instance, the US military stores their retired aircraft in deserts in order to reduce the cost of maintenance as the arid air prevents significant degradation and rust.223
Government Response Summary
The government reiterates that decisions on equipment retirement lie with Front-Line Commands, citing obsolescence, maintenance costs, and lack of spares as key factors against long-term storage. It states that equipment may be cannibalised for parts for operational fleets (e.g., Hawk and Typhoon Tranche 1) or disposed of through sales or gifting to allies.
Government Response Rejected
HM Government Rejected
The decision as to what happens to equipment when it reaches its Out of Service date sits with the relevant Front-Line Commands. Invariably this is because we are replacing the capability with a modern more capable system that is more economic to support. A range of options will be fully considered for each equipment type, including storage against future contingency, sale or gifting to Allies to help with collective Defence. One of the key factors in the decision-making process is obsolescence: much of the equipment which reaches its Out of Service Date is by definition old and consequently unsupportable through a lack of spares inventory, its material condition and/or excessively priced overhaul costs. Often, long-term storage is not a viable option as not only can this be extremely costly (even with a reduced maintenance schedule) but it is highly likely that the maintenance support and spares would not be available in the future. It would also not be possible to maintain a force of suitably qualified individuals to either maintain or, more importantly, operate the equipment into the future. In all cases, the decision is considered in the round, taking a number of factors into account, including long term financial value to the taxpayer as well as short term affordability. For the disposal of all ships, Navy Command has established a formal Disposal and Exports Programme to manage the effective disposal of assets in accordance with the Defence Plan, ensuring Value for Money and the most appropriate outcome for the present day and future Defence. Aircraft are generally retired when it is no longer cost effective to maintain them, due to either significant obsolescence or regulatory compliance costs, or the amount of work which would be required to extend structural airframe life (which may indeed not be possible). Frequently, ongoing maintenance of the remaining fleet is dependent upon the ‘reduce to produce’ premise, wherein components are removed from retired aircraft to maintain the operational fleet: this is the case for both Hawk and Typhoon Tranche 1. For land vehicles of all kinds, the Department has robust fleet management policies and procedures in place, including for the management of vehicle disposals. The relevant Service will engage with the Defence Equipment Sales Authority, on the potential disposal opportunities, to determine the most appropriate course of action. Again, a range of factors are considered when decisions are made whether to dispose of vehicles, including operational implications, costs of repair and the availability of spares. A vehicle will be considered for disposal if it is surplus to defence requirements if the estimated costs of repair exceed the authorised repair limit or if the vehicle has reached its end of life.