BAE Systems has moved a step closer to concluding a deal to become prime contractor in an estimated £10 billion ($19 billion) contract to supply around 72 Eurofighter Typhoons to Saudi Arabia, although the final deal has yet to be signed.
The UK Ministry of Defence confirms: "The required commercial principles have now been agreed, which has initiated the purchase of Typhoon aircraft and the associated commitment to the industrial plan to be launched."
The agreement follows on from an understanding document, "intended to establish a greater partnership in modernising the Saudi Arabian armed forces," signed by the Saudi and UK governments last December.
UK defence minister Des Browne is understood to have inked the deal to supply the aircraft, missiles and maintenance last month and had his Saudi counterpart Prince Sultan bin Abdul-Aziz clear the agreement through the Saudi government last week. BAE has yet to confirm the deal to the London Stock Exchange.
Final aircraft numbers, weapons choice, site of final assembly and financing arrangements have yet to be worked out and a final contract is expected by the end of the year. The Eurofighter consortium also includes the European consortium EADS and Italy’s Finmeccanica.
If concluded, the Saudi deal will represent the second export success for the Typhoon, with 18 already on order for Austria. Launch nations Germany, Italy, Spain and the UK have already signed production orders for 384 of the aircraft
The UK Ministry of Defence confirms: "The required commercial principles have now been agreed, which has initiated the purchase of Typhoon aircraft and the associated commitment to the industrial plan to be launched."
The agreement follows on from an understanding document, "intended to establish a greater partnership in modernising the Saudi Arabian armed forces," signed by the Saudi and UK governments last December.
UK defence minister Des Browne is understood to have inked the deal to supply the aircraft, missiles and maintenance last month and had his Saudi counterpart Prince Sultan bin Abdul-Aziz clear the agreement through the Saudi government last week. BAE has yet to confirm the deal to the London Stock Exchange.
Final aircraft numbers, weapons choice, site of final assembly and financing arrangements have yet to be worked out and a final contract is expected by the end of the year. The Eurofighter consortium also includes the European consortium EADS and Italy’s Finmeccanica.
If concluded, the Saudi deal will represent the second export success for the Typhoon, with 18 already on order for Austria. Launch nations Germany, Italy, Spain and the UK have already signed production orders for 384 of the aircraft
Source: FlightGlobal.com
