UK bid to offload Eurofighter jets it cannot afford
By Stephen Fidler, Sylvia Pfeifer and Alex Barker in,London
Published: August 20 2008 03:00 | Last updated: August 20 2008 03:00
The UK has held talks with other countries, including Japan, about offloading large numbers of Eurofighter Typhoons that the Ministry of Defence has ordered but can no longer afford.
The discussions, which are at an early stage, underline the size of the cash crisis facing the ministry, which has been grappling with an estimated budget deficit of £2bn ($3.7bn).
The Royal Air Force, which had ordered 144Eurofighters, is committed to buying another 88 of the aircraft as part of its membership of the four-nation Eurofighter consortium, which includes Germany, Italy and Spain.
The UK would face severe financial penalties if it decided to cancel or cut this number and has started to sound out potential buyers for all or part of its order.
Defence officials have confirmed that Japan, Saudi Arabia and India are among countries that have expressed interest in buying the aircraft.
Japan's interest will surprise many in the industry as the country has historically tended to buy from US manufacturers. India, which has traditionally bought Russian fighters, has made no secret of its ambition to expand its indigenous defence capabilities and is evaluating bids from five parties, including Eurofighter, for a multi-role combat aircraft.
India's tender would potentially be a lucrative order for the Eurofighter consortium.
For the UK to divert aircraft intended for the RAF to India would need approval from consortium partners. The transfer of sensitive military technology is likely to be a potential hurdle.
The Saudi Royal Air Force has 72 Typhoons on order from the UK government under an agreement signed last September, to be built by BAE Systems, the UK's largest arms contractor.
Separately, Riyadh had begun negotiations with the UK to buy 48-72 additional Typhoons, a source close to the Saudi government confirmed.
Any agreement on offloading the RAF Eurofighters is unlikely to be reached before next year.
The ministry said: "We would not comment on government-to-government discussions, even to confirm that such discussions are taking place."
The four nations in the Eurofighter consortium are negotiating over whether each must buy the same number of aircraft from the group as originally agreed.
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