HALLBERGMOOS, Germany/VIENNA, Austria --- The Eurofighter consortium has reached agreement with the Government of Austria on cost reductions of the Eurofighter procurement. The consortium thus reacts towards the political development in Austria to secure the programme in the long term and at a very advanced stage.
The agreement covers:
- delivery of 15 aircraft with latest capability standard of Tranche 1;
- equipment standard strictly meeting the requirement for air surveillance;
- a price reduction on the negotiated In-service Support Contract that has not been signed yet.
Adapting the contractual contents leads to a EUR 370 million reduction of total contract value.
Aloysius Rauen, Chief Executive Officer of Eurofighter Jagdflugzeug GmbH, comments:
"The Eurofighter consortium of Alenia Aeronautica, BAE Systems, EADS CASA and EADS Deutschland has always pointed out that an agreement meeting both sides' interests can be achieved, if the partners don't insist on contrasting positions, but try to find a solution meeting the objectives of both parties. In this spirit the achieved results represent a classic mutual agreement, supported by both sides.
“With introducing the Eurofighter Typhoon the Republic of Austria will operate the World's most advanced fighter aircraft to secure and defend their national air space. Austria now belongs firmly to the Eurofighter community of five nations, benefiting from the advantages the programme delivers in operation and support."
The contents of the agreement will be integrated into the procurement contract; earlier versions will be invalid. (ends)
(EDITOR’S NOTE: The original contract, signed in 2003, covered 18 aircraft and was valued at about 2 billion euros. The Social Democratic government which took office in late 2006 wanted to cancel it outright, but on June 25 an independent legal expert appointed by the government said this would expose Austria to punishingly high costs.
The compromise detailed above is to be submitted to the Cabinet today, June 27, defense ministry spokesman Stefan Hirsch told Reuters. Total savings, including the in-service support contract, are expected to increase to about 400 million euros.)