AgustaWestland is pleased to announce that Phase II of the Sea King Integrated Operational Support (SKIOS) contract has now been launched following the signing of the contract by AgustaWestland and the UK Ministry of Defence on 29th November 2007. SKIOS Phase II introduces payment by the flying hour arrangements, emulating the successful IMOS contract for the UK MoD’s fleet of Merlin helicopters signed in early 2006. SKIOS Phase II also includes an aircraft availability output responsibility for UK military SAR aircraft that provide around the clock SAR cover for the UK and Falkland Islands. The value of the contract for the first five years is € 660 million (£470 million), with the potential of rising to €1.12 Billion (£800 Million) over 10 years. The contract is expected to run for the remaining service life of the Sea King fleet.