Sunday May 11, 01:28 PM
UK aircraft carriers to get approval next week - report
LONDON (Thomson Financial) - The British government is set to give approval next week for the long-delayed construction of two new aircraft carriers for the Royal Navy, according to a report.
The Ministry of Defence (MoD) is expected to formally commit to the 4 billion pound programme next week and to tell the two companies that will build the carriers, BAE Systems Plc (LSE: AP16.L - news) and VT Group Plc (LSE: VTG.L - news) , that they can expect to receive a contract in mid-June, the Financial Times' weekend edition reported.
The formation by BAE (LSE: BA.L - news) and VT of a shipbuilding joint venture to build the carriers has been delayed for months by the MoD's indecision about the carriers.
There had been speculation the programme could fall victim to defence cuts, although industry sources say other, less high profile defence projects are now more likely to face the axe.
Meanwhile, the FT and The Sunday Times reported the outgoing chief executive of BAE, Mike Turner, could become the chairman of support services group Babcock International Group Plc.
Turner is in talks with Babcock and would become a non-executive director of the group before taking the chairmanship, The Sunday Times said.
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