A CONTRACT of £100 million securing hundreds of defence jobs in Lancashire has been announced.

British Aerospace has been awarded a contract to service the RAF's Tornado GR4 aircraft in a ground-breaking deal.

It is the first time private companies have been awarded a contract to service front-line aircraft which in the past has been carried out by RAF personnel or contractors working at bases.

British Aerospace is prime contractor for the contract, which will also involves GEC- Marconi and Smiths Industries.

Up to 500 jobs, the majority at BAe's Warton site, will be secured by the contract which is initially scheduled to last until 2003.

The deal involves the maintenance of specialist equipment in the new Tornado GR4 ground attack aircraft.

The contract comes as thousands of defence workers await Government announcements on £4 billion worth of MoD contracts.

The order for the £2 billion replacement for the Maritime Patrol Aircraft Fleet is widely expected to be announced before Parliament rises later this week.

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