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Old 27th January 2007 | 05:26
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LFFC
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... if ever?

The Telegraph - Fri 26 Jan 07

Drayson's stand is vital in defence of high-tech industry

The customer is always right. A maxim that never seems to apply to the defence industry. Despite the Ministry of Defence spending billions a year on arms, it has always been the contractors that dictated the terms.

But things are certainly different under Lord Drayson, the defence procurement minister. His dispute with EADS, which has threatened to pull a £100m investment in its Airbus UK operation, is sending signals far beyond the offices of this Franco-German aerospace giant.

The bottom line is: withdraw investment in new wing technology at Airbus UK and EADS can kiss goodbye to some MoD defence contracts.
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But if Drayson follows through with his threat, the first casualty for EADS could be the award of a £13bn contract to supply mid-air refuelling aircraft for the Royal Air Force.
Looks like DPA is playing politics with the RAF's capability.
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