As news of UK Defence Secretary Geoff Hoon's speech to the House of Commons spread at Farnborough yesterday afternoon, executives could be seen scanning the transcript. Reading his words particularly closely were members of three companies likely to benefit - or suffer - from the decisions announced: Boeing, Eurofighter and BAE Systems.
Statement keeps Eurofighter happy
Eurofighter welcomed the Secretary of State's statement and hoped that it would allow the programme to proceed smoothly, avoiding the threatened work bottleneck and layoffs if Tranche 2 orders are not confirmed.
Programme director Brian Phillipson said: "Eurofighter welcome this statement and the encouragement it gives to the international government and industry partners of the Eurofighter programme.
"Typhoon fully satisfies the demand expressed by the Secretary of State for a flexible, deployable multirole platform at the heart of net-centric operations for the future, which deliver better target acquisition, more precise weapons, and a more rapid response than previous generation air platforms.
"Eurofighter also appreciates the minister's comments regarding the excellent performance and reliability of the EF aircraft now in service with the partner nations. Our customer and partners recognise the minister's need to negotiate to deliver a price and capability agreement that is satisfactory to the partner governments and industry."
"We are pleased to note the great progress that has been made in recent weeks."
BAE expected rebalancing of force levels
Richard Coltart, BAE Systems' head of news, greeted the announcement with cautious enthusiasm. "This was in line with our expectations," he said. "It is a well flagged-up rebalancing of future force levels, structure and equipment.
"BAE Systems welcomes the emphasis on new equipment and the continuation of the major platform programmes. There is a even greater emphasis on information superiority and network-enabled capability - which is certainly a speciality of ours.
"There will be no material change to BAE Systems' business planning assumptions: we have taken this into account. We regard this as being a good way to support our efforts to build a strong, sustainable and profitable business in the UK domestic market."
Although there were cuts in the numbers of Nimrod MRA4s and Type 45 destroyers being procured, BAE is understood to be relieved that the cuts were not more severe.
"There were fears around the bazaars that the Nimrod programme might be in danger," said Coltart. "We had an order for three MRA4s, so the anticipated nine extra aircraft are welcome! It will make a huge difference to Aerostructures, and to our suppliers."
C-17 purchase 'no surprise' to Boeing
One of the few companies likely to profit from the announcements is Boeing, which has provided four C-17 strategic transport aircraft to the RAF on a lease that runs to 2008.
The aircraft has proved extremely popular in British service, with some of the quartet racking up flying hours 200% of what was allowed for in the leasing contract.
That decision to buy the aircraft on its conclusion did not come as a surprise to the company. "That was already provided for in the contract," said Nick West, Boeing's communications director for the UK and Ireland.
With the aircraft so heavily utilised by both the UK and by European Nato nations for missions, the purchase of a fifth of the aircraft - approximate 'sticker' price $220 million - will not come as a surprise, either.
Source: Flight Daily News
