Armed forces minister Adam Ingram told MPs in December that the on-going review of DARA indicated there was no longer a strategic need to retain the organisation within MOD and that the alternative ‘would be to place parts or all of it in the private sector.’

But at a meeting with Secretary of State Geoff Hoon in February, trade unions were told that it was not the intention to privatise DARA, although it remained the objective of the study team to decide where best to place the work. However, at the end of February the government announced that Morgan Stanley, the American investment bank, is to advise on its possible sale. The bank will conduct a three-month market test to gauge interest from potential buyers.

Prospect negotiator Jim cooper said: "Prospect is committed to retaining DARA in the public sector. The uncertainty surrounding its future is bitterly disappointing for staff because they have risen to every challenge put before them in recent years to provide a public sector benchmark for defence aviation. We are concerned that DARA will be broken up and sold off to private sector contractors. This could leave the agency at the mercy of companies like BAe systems and Rolls Royce."

Prospect says the loss of 500 jobs at St Athan last autumn, when DARA lost a contract to upgrade Harrier jets to the RAF, was typical of the bizarre approach adopted by MOD. Cooper said Prospect doubted the ability of RAF personnel to undertake the kind of long-term planned maintenance that DARA excels at. "While MOD allows a turf war to develop between a civilian agency and the RAF over work streams, the consequences could be disastrous for DARA’s future."

DARA was set up in 1999 to cut the cost of maintaining and repairing the UK’s military aircraft. DARA operates at four sites: St Athan in South Wales, Sealand in North Wales, Almondbank near Perth, Scotland and Fleetlands near Portsmouth. It employs 3,800 staff – all highly skilled aviation engineers – with more than half based at DARA headquarters in St Athan.