BAE signs deal to offer UK a Hawk replacement based on Boeing T-7 system

FARNBOROUGH, England, July 21 (Reuters) - BAE Systems, Boeing and Saab signed a deal to advance their partnership to offer Britain a new fast-jet pilot training aircraft based on Boeing's T-7 system, as it looks for a replacement for the ageing Hawk fleet.

The trio, which last November announced they would work together, said at the Farnborough Airshow on Tuesday they were committed to a new final assembly plant and other facilities in Britain.

BAE CEO Charles Woodburn said the partnership was well-positioned to support Britain's future training requirements.

"Our offer represents a modern, integrated training solution which aligns with the ambition of the Defence Investment Plan, while strengthening the UK’s sovereign industrial capability," he said in a statement.

Britain's out-of-production Hawk, part of which is recognisable through its Red Arrows display team, is due to be retired at the end of the decade, and BAE hopes a UK order could be followed by further orders from its global customers.

The market for military training aircraft is forecast to rise to $3.7 billion by 2030 from $2.8 billion, excluding spending on support and training services, according to U.S.-based consultancy AeroDynamic Advisory.

The T-7 system will incorporate flying with advanced simulation which can train pilots to fly the Typhoon, F-35s and future aircraft such as GCAP.

The partners are currently looking for a suitable location for a final assembly plant.

(Reporting by Sarah Young; Editing by Sharon Singleton)