Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
A Eurofighter Typhoon pictured during the Dubai Airshow on November 18, 2013/AFP


Britain reaches Eurofighter price deal with Saudi: BAE

A Eurofighter Typhoon pictured during the Dubai Airshow on November 18, 2013/AFP

A Eurofighter Typhoon pictured during the Dubai Airshow on November 18, 2013/AFP

LONDON, Feb 19, 2014 – Britain has reached an agreement over the rising cost of providing Saudi Arabia with Typhoon Eurofighter jets, British defence company BAE Systems said on Wednesday.

BAE, working in close co-operation with the British government, signed a £4.5 billion deal in 2007 to supply 72 Eurofighter Typhoon jets to Saudi Arabia. Even though some planes have been delivered, the contract has faced obstacles over rising costs.

“Both governments have now agreed price escalation terms relating to the Typhoon aircraft under the Salam programme,” BAE said in a statement.

BAE, which did not give any precise figures, added that cash settlement was expected to follow the new pricing agreement.

“This is an equitable outcome for all parties,” said BAE Systems chief executive Ian King.

“I am pleased that we have been able to conclude this negotiation which builds on our long standing relationship with this much valued customer.”

Shares in BAE were trading 1.78 percent higher at 445.4 pence after the announcement, while London’s benchmark FTSE 100 index was down 0.11 percent to 6,789.18 points.

The announcement is a boost for BAE after the United Arab Emirates pulled out of talks with the British government to purchase Typhoon Eurofighters last December.

BAE, hit by government cutbacks to military spending, is looking to push on after the collapse in late 2012 of a planned mega merger with European aerospace giant EADS, before it was renamed Airbus Group.

BAE builds the Typhoons in co-operation with Airbus Group and Italian defence group Finmeccanica.

Advertisement. Scroll to continue reading.
Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...