(NSI News Source Info) March 14, 2009: The four Eurofighter partner nations have said they could 
decide by the end of March to order 45 percent of the third tranche of the planned total order of 620 aircraft, if manufacturers cut life-cycle costs on weapon systems.
The deal to stagger the planned order of 236 third-tranche aircraft by Germany, the United Kingdom, Italy and Spain has long been in the works. But at a March 12 meeting, government officials linked that option to driving down the price.
In a statement released after the meeting, the German Defense Ministry said: "The nations agreed to adjourn negotiations to the end of March 2009. The NATO agency NETMA, responsible for execution of the program, has been instructed to negotiate with the industry up to this time, in order to bring significant reductions to the life-cycle costs of the weapon system.
"On the basis of appropriate results, it will thereafter be decided whether to proceed with a Part-Tranche 3A. This would represent approximately 45 percent of the original Tranche 3, 107 of 236 aircraft."
The U.K. Defence Ministry, which was represented by procurement minister Quentin Davis at the meeting, declined to comment on the talks.
Wolfdietrich Hoeveler, a spokesman for the Eurofighter industrial consortium, said a split in the tranche is "possible" if all four European customers agree to common terms. He argued, however, that the total four-nation order should remain fixed at 620 aircraft, and that the continuity of production should not be interrupted.
Hitherto, the Italian Air Force has suggested it would like to cut its order back.
The head of Italy's industrial partner, the Finmeccanica group, warned that if individual partners cut their order, it could mean a rearranging of the industrial workshare divided between firms.
"We are interested in maintaining our present share, as well as promoting exports," Finmeccanica CEO Pierfrancesco Guarguaglini said March 12. "In Saudi Arabia, there is a chance of increasing the order, and there is also Romania and Oman," he said. "I am sure they will find a solution while considering the companies' interests."
decide by the end of March to order 45 percent of the third tranche of the planned total order of 620 aircraft, if manufacturers cut life-cycle costs on weapon systems.
The deal to stagger the planned order of 236 third-tranche aircraft by Germany, the United Kingdom, Italy and Spain has long been in the works. But at a March 12 meeting, government officials linked that option to driving down the price.
In a statement released after the meeting, the German Defense Ministry said: "The nations agreed to adjourn negotiations to the end of March 2009. The NATO agency NETMA, responsible for execution of the program, has been instructed to negotiate with the industry up to this time, in order to bring significant reductions to the life-cycle costs of the weapon system.
"On the basis of appropriate results, it will thereafter be decided whether to proceed with a Part-Tranche 3A. This would represent approximately 45 percent of the original Tranche 3, 107 of 236 aircraft."
The U.K. Defence Ministry, which was represented by procurement minister Quentin Davis at the meeting, declined to comment on the talks.
Wolfdietrich Hoeveler, a spokesman for the Eurofighter industrial consortium, said a split in the tranche is "possible" if all four European customers agree to common terms. He argued, however, that the total four-nation order should remain fixed at 620 aircraft, and that the continuity of production should not be interrupted.
Hitherto, the Italian Air Force has suggested it would like to cut its order back.
The head of Italy's industrial partner, the Finmeccanica group, warned that if individual partners cut their order, it could mean a rearranging of the industrial workshare divided between firms.
"We are interested in maintaining our present share, as well as promoting exports," Finmeccanica CEO Pierfrancesco Guarguaglini said March 12. "In Saudi Arabia, there is a chance of increasing the order, and there is also Romania and Oman," he said. "I am sure they will find a solution while considering the companies' interests."
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