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Thursday, September 13, 2007

MoD seeks a way out of its contract to buy 88 Typhoons

The Ministry of Defence is trying to find a way out of a £5 billion contract to buy Eurofighter Typhoons from the consortium that builds the aircraft.

Britain is committed to buying 88 more of the £60 million aircraft, having already bought 144 for the RAF. The MoD is negotiating with the consortium of defence companies that builds Eurofighter, which includes BAE Systems, to reduce, delay or entirely cancel the final order.

This would be a significant blow to BAE because it could bring production of the Eurofighter to an end before further export orders can be won.

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