Eurofighter CEO Ays Rauen says he remains very confident that the company will get a response to its proposals for the third production tranche of Eurofighter Typhoons later this week, following what he calls “very positive feedback” from the customer.
Eurofighter was asked to deliver proposals for the 236 aircraft Tranche 3 production batch last summer, with a deadline of 14 December. Although the process usually takes 15 months, the company met the deadline, and delivered further details, as requested, on February14 and is now waiting for a response from NETMA (NATO’s Eurofighter and Tornado Management Agency) and the four partner nations (the UK, Germany, Italy and Spain).
Rauen said at ILA yesterday that he hopes to complete negotiations on pricing before the summer break, to maintain production continuity, and avoid the cost of a gap in manufacturing. He confirmed that Britain and Italy had requested ‘options’, outlining the repercussions of ordering fewer aircraft in Tranche 3. He confirmed that these included a ‘zero’ option, and a 50% buy by these two nations.
Rauen refused to talk about possible penalties, but Chief Operating Officer Brian Phillipson pointed out that the umbrella contract (for 620 aircraft across three tranches) was a contract, and that any reductions would require compensation, and some complex financial restructuring.
Eurofighter also has orders for 15 aircraft from Austria, and 72 from Saudi Arabia, and Rauen expressed his pride at being “the best seller and the market leader.”
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Source: Flight Daily News
