As per topic.LONDON (Reuters) - The government may consider buying up to 150 French fighter jets worth 5 billion pounds ($8.7 billion) for two new-generation aircraft carriers, at the expense of existing U.S. contracts, The Mail on Sunday said.
The unexpected verbal offer to buy the Rafale Marine jets, built by French defence group Dassault Aviation (AVMD.PA: Quote, Profile, Research), came on January 24 when Defence Secretary John Reid met his opposite number, Michele Alliot-Marie, in London, the paper said, citing unidentified defence sources in Paris.
If the government went ahead with the deal, it would mean cancelling existing U.S. contracts to supply aircraft for the carriers, scheduled to go into service with the Royal Navy in 2010, the paper said.
Lockheed Martin (LMT.N: Quote, Profile, Research) holds the existing contracts.
A spokesman for the Ministry of Defence said the report was speculative.
The report followed well publicised difficulties between Britain and the U.S. on the Joint Strike Fighter project, which has been dogged by a row over sharing technology.
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Will cost per aircraft go up?
Will the reason for the dispute also affect RAAF in terms of maintenance and upgrades?
Will ADF become overly dependent on U.S for servicing JSF's?
If the above is true, then surely this will impact on the desirability of going with the JSF.