BAESystems has confirmed plans to reduce its commitment to the Gripen fighter programme by partly disposing of its 35%stake in Saab, and will take a reduced role in marketing the aircraft, writes Craig Hoyle.
Announced last week, the move to dispose of 15%of BAE's shareholding should be completed early next year and could net the UK firm up to £140 million ($270 million). Reduced support for the Gripen International joint venture, which will remain a 50:50 concern with Saab, will save several million pounds per year, it says.
The decision to take a lesser role in promoting the Gripen was announced earlier this year, when chief executive Mike Turner described BAE's involvement in the project as "quite an expensive exercise". However, the step has also been viewed as signalling BAE's commitment to the four-nation Eurofighter Typhoon project and, longer-term, to the Lockheed Martin F-35 Joint Strike Fighter. It also reflects its strategy to focus on key business areas including its North American activities.
BAE will continue to support selected Gripen sales efforts and will meet its offset commitments to South Africa, it says.
Source: Flight International
