The result splits the £10 billion contract between the two nations' major defence contractors, giving BAE Systems overall project control and approximately two thirds of the work while Thales will provide project design. It remains to be seen how effectively the competitors can now collaborate. The last major Anglo-French consortium, which built the Channel Tunnel, did not always run smoothly.

Britain's shipyards and workers greeted the announcement with pure delight as the contract promises employment for 12,000 shipyard workers over the next twelve years, with ongoing maintenance work to 2060.

The British Ministry of Defence (MoD) expects to sign contracts early next year for the two aircraft carriers, which will be delivered in 2012 and 2015. They will be built in BAE's yards on the Clyde, Vosper Thornycroft's new facility in Portsmouth, the Swan Hunter yard on Tyneside and Babcock BES in Rosyth.

Many UK suppliers and possibly other yards will also benefit.

In terms of newspaper headlines, political fallout for the British Government would have been considerable had the contract gone to a company partially owned by the French Government but on the ground, the decision is not so clear-cut.

Thales bought into UK defence contracting three years ago with its purchase of the troubled Racal group and their clearly preferred design was developed by Bath UK based BMT Defence Services Ltd, part of the British Maritime Technology consultancy.

BMT's team of 50 naval architects and marine engineers developed the ship platform design for the carriers and will continue working with Thales and the MOD as their plans are now subjected to BAE's overall authority.

MJ Information No: 17905