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Austria prepares to dump Eurofighter order
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http://www.guardian.co.uk/austria/ar...888906,00.html
÷ New government to examine 'senseless' deal
÷ British firm insists it is delivering on contract
Ian Traynor and Mark Milner
Friday October 6, 2006
The Guardian
Europe's ill-starred fighter aircraft project was facing a further major blow yesterday when Austria's newly elected centre-left government threatened to scrap the purchase of 18 planes. The social democrats made cancelling the ââ¬2bn (ã1.4bn) Eurofighter order a centrepiece of their campaign and signalled yesterday they would table a motion as soon as the new parliament convenes to bin the contracts.
The move would be a further blow to hopes of generating a string of orders from outside the four-nation consortium behind the aircraft - Britain, Germany, Spain and Italy. Saudi Arabia has said it wants to buy 72 aircraft but efforts to sell it to South Korea and Singapore have not been successful. Another customer, Greece, is reviewing its order for 60 aircraft on budgetary grounds.
So far 100 aircraft have been delivered to the consortium's armed forces, including 35 to the RAF. Export orders are seen as important because of their contribution to the overall profitability of the programme. Other countries tipped as possible buyers include India, Pakistan, Turkey, Norway and Denmark.
Austrian participation was pushed by the outgoing Schüssel government and has been controversial in Austria, a small country that is militarily neutral. The new Social Democrat chancellor, Alfred Gusenbauer, made cancellation of the contracts, worth ââ¬2bn but expected to cost ââ¬6bn over the next 20 years, a main campaign pledge. Austria's final decision could come quite quickly with the new parliament in Vienna meeting for the first time at the end of the month.
"A committee of inquiry should clarify the political responsibility for the senseless procurement of this unbelievably expensive war machine," Josef Cap, the Social Democrats' floor leader, told Vienna's Standard newspaper.
The first four are due to be delivered next year and are in the final stages of assembly near Munich. A further 12 are to be supplied in 2008 and the final two the following year. Mr Gusenbauer said he needed to see the contracts and to assess the likelihood of penalty payments if Austria backs out. "I want to see the contracts and they need to be examined by our best lawyers," he said this week.
"We don't need the Eurofighter. It is not an ideological, but a financial issue. I've got nothing against these planes as such. But they cost an awful lot of money. I always believed that there were much better things to be done with that money."
Eurofighter is built by three companies, BAE Systems in Britain, EADS in Germany and Spain and Alenia in Italy under a work sharing arrangement which reflects the number of aircraft being bought by the partner countries. Though final assembly of the aircraft ordered by Austria is being carried out in Germany, BAE Systems supplies a substantial amount of work on all Eurofighters and conducts final assembly for those bought by Britain as well as for export orders where it has the lead role.
Yesterday a BAE Systems spokesman said the companies building the Eurofighter were "under contract with Austria. We are delivering against that contract. The first aircraft are in production."
Work on the aircraft in Britain is centred on plants at Warton and Samlesbury in Lancashire. The four countries behind the aircraft, have said they will buy 620, though some defence analysts doubt whether the full total will be achieved.
--------------------------------------------------------------------------------
http://www.guardian.co.uk/austria/ar...888906,00.html
÷ New government to examine 'senseless' deal
÷ British firm insists it is delivering on contract
Ian Traynor and Mark Milner
Friday October 6, 2006
The Guardian
Europe's ill-starred fighter aircraft project was facing a further major blow yesterday when Austria's newly elected centre-left government threatened to scrap the purchase of 18 planes. The social democrats made cancelling the ââ¬2bn (ã1.4bn) Eurofighter order a centrepiece of their campaign and signalled yesterday they would table a motion as soon as the new parliament convenes to bin the contracts.
The move would be a further blow to hopes of generating a string of orders from outside the four-nation consortium behind the aircraft - Britain, Germany, Spain and Italy. Saudi Arabia has said it wants to buy 72 aircraft but efforts to sell it to South Korea and Singapore have not been successful. Another customer, Greece, is reviewing its order for 60 aircraft on budgetary grounds.
So far 100 aircraft have been delivered to the consortium's armed forces, including 35 to the RAF. Export orders are seen as important because of their contribution to the overall profitability of the programme. Other countries tipped as possible buyers include India, Pakistan, Turkey, Norway and Denmark.
Austrian participation was pushed by the outgoing Schüssel government and has been controversial in Austria, a small country that is militarily neutral. The new Social Democrat chancellor, Alfred Gusenbauer, made cancellation of the contracts, worth ââ¬2bn but expected to cost ââ¬6bn over the next 20 years, a main campaign pledge. Austria's final decision could come quite quickly with the new parliament in Vienna meeting for the first time at the end of the month.
"A committee of inquiry should clarify the political responsibility for the senseless procurement of this unbelievably expensive war machine," Josef Cap, the Social Democrats' floor leader, told Vienna's Standard newspaper.
The first four are due to be delivered next year and are in the final stages of assembly near Munich. A further 12 are to be supplied in 2008 and the final two the following year. Mr Gusenbauer said he needed to see the contracts and to assess the likelihood of penalty payments if Austria backs out. "I want to see the contracts and they need to be examined by our best lawyers," he said this week.
"We don't need the Eurofighter. It is not an ideological, but a financial issue. I've got nothing against these planes as such. But they cost an awful lot of money. I always believed that there were much better things to be done with that money."
Eurofighter is built by three companies, BAE Systems in Britain, EADS in Germany and Spain and Alenia in Italy under a work sharing arrangement which reflects the number of aircraft being bought by the partner countries. Though final assembly of the aircraft ordered by Austria is being carried out in Germany, BAE Systems supplies a substantial amount of work on all Eurofighters and conducts final assembly for those bought by Britain as well as for export orders where it has the lead role.
Yesterday a BAE Systems spokesman said the companies building the Eurofighter were "under contract with Austria. We are delivering against that contract. The first aircraft are in production."
Work on the aircraft in Britain is centred on plants at Warton and Samlesbury in Lancashire. The four countries behind the aircraft, have said they will buy 620, though some defence analysts doubt whether the full total will be achieved.