AEROSPACE firm BAE Systems is confident of securing key deals for its Hawk training aircraft as its first-half profits edged ahead.

The group is still waiting for lucrative orders from the Ministry of Defence and the Indian government but said it was optimistic both would come through.

Chief executive John Weston said: "I think it's a question of time."

In January, BAE announced plans to restructure its defence division after low orders for the jet, leading to redundancies in Brough, near Hull.

About 260 jobs were cut last month in Preston, where BAE makes Eurofighter and Nimrod jets, amid reports the Indian government may withdraw its order.

Mr Weston said that, despite the delays, the prospects for future sales of the Hawk aircraft remained good.

He added that business across the group had been strong in the first half, with orders up ten per cent at £45.5bn, fuelled by demand for Airbus jets.

BAE has a 20 per cent stake in Airbus and Mr Weston said that despite signs of the economic slowdown hitting the industry, deliveries were expected to rise.

Over the six months to June 30, BAE's pre-tax profit before one-off items was £482m, a four per cent jump on the same period last year.