The contract to run search and rescue helicopters in the north of Scotland is to change hands.
CHC Helicopters is understood to be losing the contract to run the rescue aircraft at Sumburgh in Shetland and Stornoway on the Isle of Lewis.
Rival Bristow Helicopters is expected to take over the contract in 2013.
An official announcement on the new deal is expected to be made by the Department of Transport on Tuesday, February 7.
The new deal will only run until 2017, when the military will pull out of its involvement in search and rescue operations in Britain.
The MoD currently operates a fleet of Sea King helicopters from eight military bases countrywide which run search and rescue operations in conjunction with the Maritime and Coastguard Agency.
The retiral of the helicopter fleet will allow the Armed Forces to focus more on front-line operations.
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