BAE Systems, one of the area's major employers, has landed a £100million contract to update the Ministry of Defence's fleet of Harrier jump jets.

The Capability C2 contract is part of the Government's continuation of the £500million-plus programme to sustain and upgrade the MoD's Harrier GR9s.

It also includes work to update the existing UK GR7 fleet with updated digital systems and enhanced operational capability as well as an upgrade to the two-seater TMk10 training aircraft to TMk12, the equivalent of the GR9 standard.

BAE bosses say the integration of digital weapons will allow the RAF to hit a wider range of targets harder, at longer range and with less risk to aircrew.

It comes as the aerospace giant, which has sites in Samlesbury and Warton, near Preston, lost out on a £13billion Government contract this week to build re-fuelling tankers for the RAF's ageing fleet of VC10 and Tristar planes.

Instead, the Government awarded the work to AirTanker Limited -- comprising of Rolls Royce, EADS, Cobham and Thales -- to provide a service using the Airbus A330 aircraft.

Although the news was a blow for BAE, bosses say the snub will not cause any major dent to their workforce.

A spokesman said: "The decision is disappointing, but it will not have a significant impact of our north west sites."

The new contract builds on BAE's Harrier upgrade programme which saw the delivery of the improved engine last November.

As part of the same deal a number of systems will be integrated onto the GR9, linked by a new on-board computer. These include the precision guided bomb and infra red and television variants of the missile.

The work also includes the inclusion of the Successor Identification Friend or Foe system, which will make the aircraft less vulnerable in an operational environment.

Kevin Taylor, group managing director of Customer Solution and Support military air programmes said: "This contract underlines the continued importance of support and upgrade work for BAE Systems."