BAE Strikes £2.5 bn Deal With Oman

BAE Strikes £2.5bn Deal With Oman


British defence manufacturer BAE Systems strikes a £2.5bn deal with Oman, which will safeguard thousands of jobs in the UK.


8:51am UK, Friday 21 December 2012

BAE will provide Oman with 12 Eurofighter Typhoon aircrafts

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By Alistair Bunkall, Defence Correspondent

A deal worth £2.5bn has been completed between British defence manufacturer BAE Systems and Oman.

It will see BAE provide the Gulf state with 12 Eurofighter Typhoon aircraft and 8 Hawk training jets.

As well as supplying aircraft, BAE Systems will provide in-service support to the Royal Air Force of Oman’s (RAFO) operational tasks.

The deal safeguards around 6,000 jobs in the UK at BAE's two sites in Lancashire.

Work to start building the aircraft will begin in 2014, with the first jets due for delivery in 2017.

Last month, Prime Minister David Cameron visited Jordan, Saudi Arabia and the UAE on a trade mission to promote BAE and persuade the states to buy British-made defence equipment.

It is unusual for a British Prime Minister to promote defence companies so openly but the Government is seeking to build closer ties with friendly Middle Eastern states in the face of what it sees as a growing threat in the region from countries like Iran.

The move also demonstrates an attempt to forge links outside of the traditional Nato countries.
PM David Cameron visited Jordan, Saudi Arabia and the UAE last month
The deal is not only important for BAE Systems, but also for the companies that form the supply chain, many of which are based in the UK.

The deal will support BAE's assertion that it still has a strong business with a positive future after the proposed merger with EADS collapsed in October.

Cuts to defence budgets globally have resulted in a tougher and more competitive market, and BAE had hoped a merger with a company that specialises in civil aviation would lessen any effect of budget cuts.

Guy Griffiths, group managing director for BAE Systems’ International business, said: "Receiving this contract is an honour and is excellent news for both BAE Systems and the Eurofighter Typhoon consortium.

"We look forward to working in partnership with Oman’s Ministry of Defence, and the Royal Air Force of Oman, to ensure this is a highly successful programme that maximises the potential of both Hawk and Typhoon."

Oman becomes the seventh country in the world, and the second in the Middle East, to operate the Typhoon, joining the air forces of the United Kingdom, Germany, Italy, Spain, Austria and Saudi Arabia.

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This is great News for Britain and a slap in the face for Merkel who scuppered the EADS/BAE by interfering .