The Air Corps will take delivery of eight new aircraft in 2004 under a €60 million deal signed yesterday by the Minister for Defence, Mr Smith.
The new contract has been signed despite cutbacks across Government departments due to budgetary constraints.
The eight aircraft are turbo-propeller Pilatus PC-9M craft. They will be manufactured by Swiss group Pilatus. They will replace the Siai Marchetti aircraft, which have been used to train Air Corps pilots.
Delivery of the craft will take place next year. The first two will be delivered in March 2004 and the remaining six will be delivered before the end of June 2004.
The Government first sought tenders for the contract last June. Four tenders were received and three were shortlisted. Negotiations with Pilatus began just before Christmas, and took less than a month.
Pilatus beat a US company,Raytheon, and a Brazilian company, Embraer, to win the Irish contract.
Mr Smith said the signing of yesterday's contract underlined the Government's commitment to the future of the Air Corps. "Training is the life-blood of the Air Corps," he said.
"[The acquisition of the new aircraft] is the Government's guarantee to the future of the Air Corps in search and rescue, air ambulance, ministerial transport, fisheries protection and other various services."
Recent defence cuts resulted in the curbing of plans to buy 40 armoured personnel carriers (APCs) for the Army, and the abandonment of plans to purchase medium-lift helicopters.
An inter-departmental working group is currently exploring alternative means to acquire medium-lift helicopters and a report on the matter is imminent. Just 25 of the planned 40 APCs have been ordered and their cost, €33.2 million, is to be spread over three years.
Mr Smith also opened a new headquarters at Casement Aerodrome, Baldonnel, yesterday. The new 1,338 sq m building will house accommodation, locker rooms, meeting rooms and other facilities for the No 3 Support Wing.