BAE Systems wins £446m Eurofighter

The five-year deal will see Europe’s biggest defence contractor support the 306-strong fleet of Eurofighter jets currently in use by Britain, Germany, Italy and Spain. BAE, which last year announced it would be forced to cut 3,000 jobs in the UK, said the agreement would sustain work for 600 staff at its Warton and Samlesbury sites in Lancashire. The contract win comes after BAE chief executive Ian King warned last month that “little sales growth” would be achieved in 2012 amid defence spending cuts in the UK and the US, the company's two key markets. Analysts have warned BAE will likely have to move more of its defence equipment business abroad as it seeks to offset the squeeze on defence spending. The defence giant suffered a major blow in February when French company Dassault Aviation was named the “lowest priced compliant” bidder for a fighter jet contract with India. The four-nation Eurofighter consortium, including BAE, was also battling for the $12bn (£7.5bn) contract for 126 jets. Sales at BAE last year fell 14pc to £19.2bn as vehicle orders from the US army dwindled as it withdrew from Iraq. But pre-tax profits grew 4pc to £1.47bn, helped by lower finance costs. Today’s Eurofighter contract is intended to help NATO Eurofighter and Tornado Management Agency, the organisation that oversees the weapons system for the four participating nations, cut the cost of upkeep on the planes by 30pc. Martin Taylor, BAE Systems’ combat air support director said: “This contract is great news for BAE Systems and for the Eurofighter programme as a whole. “Over a five year period the contract will deliver significant savings to the customer and will ensure that we have the skills, capabilities and funding in place to support Typhoon users across Europe.”