BAE Systems finally gets jet fighter green light
Defence contractor BAE Systems (BA.) has received initial payment from the Qatari government that means it can finally begin work on a jet fighter contract worth around £5bn.
The agreement will see the UK expert supply the Middle Eastern state with 24 Eurofighter Typhoon fighter jets and nine Hawk training jets, plus various support, maintenance and training services.
The contract was first announced in December 2017 but a series of delays and renegotiations led to significant heel dragging. Having finally received the initial payment from the Qataris it is believed the order supports Typhoon production into the early 2020s, say analysts at investment bank Berenberg.
BAE is also talking to the Saudi Arabian government over a follow-on order for an additional 48 Eurofighter Typhoon jets, although a contract has not yet been awarded. Berenberg anticipates ‘positive news in the coming months’ on this front. (SF)