Britain signs Saudi Eurofighter order
Britain has signed a multi-billion-pound preliminary order from Saudi Arabia for 48 Eurofighter Typhoon fighter jets, military equipment maker BAE Systems said on Friday.
The lucrative deal was unveiled on the third and final day of Saudi Crown Prince Mohammed bin Salman's visit to Britain.
BAE Systems added in a statement that the order would help Riyadh modernise its armed forces under the kingdom's 'Vision 2030' economic plan, while no financial details were given.
Eurofighter was developed by a European consortium that also comprises Italy's Finmeccanica and Franco-German civilian planemaker Airbus.
"The UK Government has signed a Memorandum of Intent with the Kingdom of Saudi Arabia to aim to finalise discussions for the purchase of 48 Typhoon Aircraft," BAE Systems said in a brief statement to the London Stock Exchange.
'This is a positive step towards agreeing a contract for our valued partner. We are committed to supporting the Kingdom as it modernises the Saudi Armed Forces and develops key industrial capabilities critical to the delivery of Vision 2030.'
The news comes after Qatar inked a deal late last year to buy 24 Typhoon jets for some $8.0 billion.
Friday's blockbuster announcement follows long-running discussions with Saudi Arabia, which already has a total of 72 Eurofighter Typhoon planes in its fleet.
The news also comes just two weeks after BAE posted sliding annual net profits -- but forecast improving defence budgets across its major markets.
Late last year, however, BAE said it planned to axe 2,000 jobs, and had partky blamed weaker demand for Hawk and Eurofighter Typhoon fighter jets.
In reaction, BAE's share price jumped 2.24 percent to 602.20 pence in late afternoon deals on London's benchmark FTSE 100 index, which traded 0.2 percent higher.
The deal confirmation followed intense speculation over the large aircraft order, which has been under discussion for many years according to media reports.
More from Defence Notes
-
What the future holds for Ukraine and NATO under a Trump administration
Although Trump’s geopolitics policy for Europe remains unclear, defence analysts from the US and Europe predict how his incoming administration would attempt to handle critical issues on the continent.
-
RUSI deputy: UK needs longer procurement plans and improved awareness of US sift to Indo-Pacific
The UK budget announced in Parliament on 30 October was the first by a Labour government in 14 years which has also launched a review into defence procurement programmes.
-
Australia outlines longer punch and brings local industry onboard
The Australian government has placed a focus on Guided Weapons and Explosive Ordnance (GWEO) which has included the purchase of additional long-range rocket systems and investments in local production of missiles.
-
UK boosts defence budget by 5.3%, but is this enough?
The UK budget announced in Parliament on 30 October is the first by a Labour government in 14 years. While it sees a boost in defence spending, this comes in the face of fiscal challenges and the effects of inflation.
-
UK makes big moves to fix “broken” defence procurement system ahead of major review
The changes are intended to meet greater need and deliver more value for money.