One of the Royal Navy's new £2bn aircraft carriers could be sold off under government cost-cutting plans, the Guardian has learned.
It is understood that India has recently lodged a firm expression of interest to buy one of the two state-of-the-art 65,000 tonne carriers, which are still being built by BAE Systems in the UK.
Any sale of the long-delayed carriers would be highly controversial and would leave the Royal Navy with just one carrier. It could also force Britain to borrow from the French navy, which itself only has one carrier and is reluctant to build any more.
Last summer French president Nicolas Sarkozy proposed to Gordon Brown that the two navies co-ordinate the maintenance and retrofitting of their carriers, so that at least one of them is at sea at any time.
The government has accepted it would cost more to cancel the contract for one of the carriers than it would to carry on building. BAE Systems is also keen to increase its arms exports and would welcome the sale of such a flagship piece of hardware to a country such as India, which is keen to upgrade its military, particularly its air force.
According to senior defence sources, Whitehall officials are examining the feasibility of selling one of the carriers. It is understood they are planning to put forward the option as part of the government's strategic defence review, which will start early next year. The review will publish its conclusions after the general election. Whichever party wins the election, the review is expected to result in savage cuts to the UK's military budget.
"Selling a carrier is one very serious option," a defence source said this weekend, although the government is a long way from committing to any sale. It could take between six and 12 months to reach a decision, he added.
The £4bn aircraft carrier programme has been dogged by controversy and has become a totemic in the issue over how public spending – and in particular the military budget – should be cut. The programme has already been delayed by two years to push back spending commitments, which will end up costing the taxpayer more in the long run. Construction finally began in July on HMS Queen Elizabeth, which is due to come into service in 2016. Preparatory work on the HMS Prince of Wales, due for launch in 2018, has also started. The two carriers will replace the ageing Invincible class carrier fleet, and are three times the size.
Military chief and the companies involved in building the carriers had feared the government could scrap one of the carriers altogether to save money. But it is understood that the financial penalties the government would be required to pay to BAE Systems, the company building the ships, would be prohibitive. The company is currently drawing up a formal estimate of the cost the government would incur from cancelling the order.
About 10,000 jobs in Portsmouth, Barrow-in-Furness, Fife and Glasgow depend on the work. Now that construction of both carriers will almost certainly go ahead, the government is desperate to find other ways to cut costs.
Another option under consideration is to only equip one of the carriers with aircraft, leaving the other to only operate with helicopters, which could save more than £3bn. Alternatively, the two carriers could share one complement of planes. The original plan envisaged equipping each carrier with 75 new US-made Joint Strike Fighter planes, but the cost has soared from the original price tag of £18m each.
Asked about the plan for a sale of the one of the carriers, a spokeswoman for the Ministry of Defence said lots of options for the carriers were being considered, but stressed that no decision had been taken. "We have got the strategic defence review coming up, so all options are on the table," she said.
The debate over whether British soldiers fighting in Afghanistan have the equipment they need – most notably enough helicopters to enable them to avoid heavily mined roads – has brought the issue of military spending to the fore. Military analysts say that the navy's budget, such as that earmarked for the carriers under review, is most vulnerable to cuts, compared to that of the army and air force.
Royal Navy aircraft carrier may be sold to India | Business | guardian.co.uk