UK orders lifts for planned aircraft carriers

LONDON, April 3 (Reuters) - Britain's Ministry of Defence awarded a 13 million pounds ($26 million) contract for aircraft lifts for the Royal Navy's planned two aircraft carriers, saying it showed progress in plans to build the two vessels.

The government gave the go-ahead to the 4 billion pound carrier project last July, but reports earlier this year said it could be delayed or stretched out to save money.

"The aircraft lifts order ... and the other equipment and steel already contracted are a clear demonstration of the steady progress towards commencing building work at the shipyards," Minister for Defence Equipment and Support, Ann Taylor, said on Thursday.

The defence ministry said the lifts contract, awarded to Scottish engineering group MacTaggart Scott, meant orders for equipment, materials and infrastructure for the two ships, HMS Queen Elizabeth and HMS Prince of Wales, totalled more than 160 million pounds.

The contract for the two 65,000 tonne aircraft carriers has triggered a deal to merge operations at Britain's two largest shipbuilders, BAE Systems Plc (BAES.L) and VT Group Plc (VTG.L).

The Ministry of Defence is expected to sign the 4 billion carriers contract shortly after BAE and VT finalise their shipbuilding joint venture.

Signing had been expected by the end of March, but defence budget difficulties have slowed the process. The carriers are seen by analysts to be less at risk from cutbacks than other big procurement projects, although entry-into-service deadlines may slip.

The carriers, which will be the largest ships ever to sail with the Royal Navy, are due to enter service in 2014 and 2016.

Each will have two lifts that can carry 70 tonnes -- or two Joint Strike Fighters F-35s -- from hangar to flight deck in 60 seconds.

The joint venture, under which VT has an option to sell its stake to BAE, is key to VT's attempts to be entirely focused on support services. (Reporting by Dan Lalor; Editing by David Holmes)