ORAC
5th Oct 2008, 08:28
DefenseNews: Eurofighter Chief: No Reducing Tranche 3 Orders (http://www.defensenews.com/story.php?i=3755800&c=EUR&s=AIR)
3 Oct - LONDON - Eurofighter boss Aloysius Rauen says none of the four partner countries involved in negotiations to purchase the third and final tranche of Typhoon combat aircraft have raised the issue of reducing order numbers so far, but splitting the order into financially digestible chunks is a possibility.
Britain, Germany, Italy and Spain have committed to purchasing 236 Typhoons to complete a contract for covering 620 aircraft. Britain and Italy, under heavy pressure to balance their defense budgets by cutting programs, have been trying to wriggle out of their commitments.
Rauen, the chief executive at the Munich-based consortium made up of Alenia, BAE Systems and EADS, told reporters in Munich on Sept. 30 that splitting the Tranche 3 order, with some ordered now and the rest later, is acceptable as long as the numbers and the time frame of deliveries don't change.
The idea of splitting the order was first raised in the summer as a way of offsetting current budget pressures in Europe. Britain and Italy can't get out of the contract without incurring eye-watering penalty payments.
A deal with the four nations is needed by early next year to avoid a costly production gap opening up between Tranche 2 aircraft now in production and Tranche 3.
Rauen dismissed reports that the production costs presented to the nations for Tranche 3 aircraft exceeded limits agreed upon as part of the original umbrella contract.
EADS officials revealed that eight Typhoons destined for Saudi Arabia are on the final assembly line at BAE's factory in Warton, England, even though Washington has yet to approve the transfer of U.S. technology incorporated in the aircraft.
Approval is being held up by U.S. Justice Department concerns that approval would hamper its investigation into alleged corruption in an earlier deal selling aircraft to Saudi Arabia.
The first Typhoons, being diverted from a production run destined for the British Royal Air Force, would be ready for handing over to the Saudis in June.
3 Oct - LONDON - Eurofighter boss Aloysius Rauen says none of the four partner countries involved in negotiations to purchase the third and final tranche of Typhoon combat aircraft have raised the issue of reducing order numbers so far, but splitting the order into financially digestible chunks is a possibility.
Britain, Germany, Italy and Spain have committed to purchasing 236 Typhoons to complete a contract for covering 620 aircraft. Britain and Italy, under heavy pressure to balance their defense budgets by cutting programs, have been trying to wriggle out of their commitments.
Rauen, the chief executive at the Munich-based consortium made up of Alenia, BAE Systems and EADS, told reporters in Munich on Sept. 30 that splitting the Tranche 3 order, with some ordered now and the rest later, is acceptable as long as the numbers and the time frame of deliveries don't change.
The idea of splitting the order was first raised in the summer as a way of offsetting current budget pressures in Europe. Britain and Italy can't get out of the contract without incurring eye-watering penalty payments.
A deal with the four nations is needed by early next year to avoid a costly production gap opening up between Tranche 2 aircraft now in production and Tranche 3.
Rauen dismissed reports that the production costs presented to the nations for Tranche 3 aircraft exceeded limits agreed upon as part of the original umbrella contract.
EADS officials revealed that eight Typhoons destined for Saudi Arabia are on the final assembly line at BAE's factory in Warton, England, even though Washington has yet to approve the transfer of U.S. technology incorporated in the aircraft.
Approval is being held up by U.S. Justice Department concerns that approval would hamper its investigation into alleged corruption in an earlier deal selling aircraft to Saudi Arabia.
The first Typhoons, being diverted from a production run destined for the British Royal Air Force, would be ready for handing over to the Saudis in June.