A New Zealand company that unsuccessfully bid for a contract to build training aircraft for the Air Force says its plan could have completed the work cheaper than the successful bidder.
The Government has awarded the $154 million contract to Beechcraft Defense, an American company based in Kansas.
Pacific Aerospace general manager Damian Camp said the company put in a partial bid for the contract, as they were not able to produce all the planes.
He said the partnership model Pacific Aerospace suggested could have saved millions of dollars and created jobs for New Zealanders.
Defence Minister, Jonathan Coleman said the decision will bring the training of Air Force pilots into line with Australia, Britain and America the United States.