[b]Skyhawk sale failure [/b] By TRACY WATKINS, ANDREA VANCE and MICHAEL FIELD - Stuff 21/09/2010

http://www.stuff.co.nz/national/politics/4149581/Skyhawk-sale-failure

"The failure to sell New Zealand's Skyhawk fighter jets has been a "a disaster" for the taxpayer and frustrating for the Government, Prime Minister John Key says.

Defence Minister Wayne Mapp today admitted that unless there are dramatic developments in the next 24 hours, the Skyhawks will be either junked or turned into museum pieces.

The American buyer, Tactical Air Service, has a deadline of tomorrow to come up with the money, after which American State Department approval - required for the sale - expires.

TAS's principal Larry "Hoss" Pearson said at the start of this week that the $155 million sale would go ahead, although he would not give details. He said it would happen "very soon".

The Prime Minister said that even if the Skyhawks were sold there would be been enormous costs in refurbishing them and getting them up and running again.

"It's not just as simple as handing over the keys. There will be an awful lot of work that has to be done and the reality is that time has moved on and technology has moved on. There's a limited demand for them," Mr Key said.

[b]He said one of the Skyhawks may go to Australia[/b], and some of the avionics could be sold.

"We are considering a number of other options that are available to us. There is probably more demand for the Aermacchi than the Skyhawks but we will have to see how we go from here.

"It may well be that they end up in clubs around New Zealand and maybe one going to Australia. It's obviously disappointing.

"It's historic, they'd [Australia] like to have one in their collection over there and I think it would be a nice gesture on our part. And let's face it, there's not exactly a lot of buyers who are clambering in front of them."

He added: "There's some avionics in them and we'd still have to get clearance from the State Department before we can actually sell those avionics."

He said it was "frustrating" copyright around the avionics was blocked by the US State Department. "I don't want to blame anyone. I haven't see any advice on why it's been held up but there's been a number of blockages along the way."

The 17-strong Skyhawk fleet has been in mothballs since 2001 when the then Labour government decommissioned the air combat wing and reorganised the defence force.

They were sold to TAS for $155 million but the sale was stalled by the need for State Department approval, which took four years.

But TAS is yet to hand over the money.

Mr Mapp said he would be getting an update from officials later today: "The key issue there is have they got the money or have they got an extension of the date".

Unless either happened in the next 24 hours the Government would have to look at alternatives.

"If no one wants to buy them they end up being museum pieces - at some point air craft reach the end of their life."

The other option was selling the planes off as spare parts.

The Aermacchi's were a different story - if the Skyhawk deal didn't proceed the jet trainers would be sold off separately.

However, the Aermacchis had long standing engine problems.

[b]WARBIRDS ASSOCIATION: SKYHAWKS WON'T FLY [/b]
The Ardmore based New Zealand Warbirds Association wants to pickup a Skyhawk - but only for static display.

General manager Peter Horton said he believed it would be uneconomic to fly any of the ex-RNZAF Skyhawks.

"You can fly anything if you have got enough money," he said.

"The economic thing to do, if you wanted to get a flying Skyhawk, would be to buy one in the States, where they have many stored in proper conditions in the desert."

He doubted the New Zealand Skyhawks had been properly stored and suggested their engines might be beyond repair by now.

Mr Horton added that while the airframes were very old, the New Zealand Skyhawks contained electronic weapons packages that were modern and could not be removed from the planes.

This would probably mean the US would not be keen on having them flying again.

Warbirds, who maintain a big livery of aircraft in South Auckland, would be keen to have a static Skyhawk in their hangers as a representative model of an RNZAF plane.

Mr Horton said he was sure that now the sale deal was falling through, other major New Zealand museums would want Skyhawks for static display.

[b]He knew several large Australian museums would want them as well, partly as the RNZAF Skyhawks were, for a long period, based in New South Wales.[/b]

Warbirds, and the others, would not want to buy them.

"We've been asking for years for one for free, and we'll get the letter out again and send it in," Mr Horton said.