Dara repairs RAF jet aircraft

The service - which employs 2,100 people at its base in St Athan, south Wales - has described winning the five-year contract as a positive sign after months of uncertainty.

The deal will see Hawk jets brought to south Wales for maintenance, although routine service work will be carried out at other bases.

In a separate announcement on Thursday, it was revealed that the firm carrying out routine work on Hawk jets at RAF Valley had lost the contract to continue at the Anglesey base.

About 650 workers are now waiting to see how many people will be employed by Babcock, which has won the work.

The deal secured by Dara is the first major contract it has bid for under open competition against all-comers - and without the cushion of automatic RAF support.

In July, BBC Wales learned 4,000 jobs were at risk because the MOD wanted to pull the plug on the high-profile Project Red Dragon to repair military jets at RAF St Athan.

Under the 'End to End' Review it had been suggested it would be more cost-effective to service jets at their home bases, with the work being carried out by staff from the RAF and the jets' manufacturers - in particular, BAe Systems.

Dara has been servicing Hawk jets under previous contracts but the T&GWU had been warning that, if the MOD's recommendations were carried through, St Athan could gradually lose such contracts.

Project Red Dragon would repair all the RAF's aircraft

The fact that this RAF contract has been renewed is being cited by Dara as an encouraging sign.

A Dara spokesman said: "This is our first test since open competion began earlier this year and we have come through.

"It shows we are a viable alternative to our competitors. It is a great boost for employees after recent uncertainty."

Welsh Assembly economic development and transport minister Andrew Davies said the contract safeguards jobs at Dara and supports the drive to develop St Athan.

"This deal underlines our belief that Wales can consolidate its position as a world-class leader in the fast-growing aerospace sector," he said.

The future of Project Red Dragon - and 3,000 Welsh jobs - finally seemed secure in February this year when Dara confirmed it would go ahead with a �77m "super hangar".

Armed Forces Minister Adam Ingram had assured workers there that the ground-breaking scheme to refurbish and maintain RAF planes had landed government approval.

But then the BBC was told by senior sources within the MoD that officials in the department intended to renege on the project.

An MoD spokesman has since said they were committed to the project.