(Quwa Defence News, Qatar, 10 October 2017) As part of its letter-of-intent to acquire 24 Eurofighter Typhoon fighter aircraft, Qatar also requested six Hawk trainers from BAE. In regards to the prospective Qatari order, BAE Systems added that it is in negotiations with Doha, which – if successfully conclude – would lead to a contract to sustain Typhoon jobs. BAE Systems, also announced that it will enter a reorganization phase that will see the company trim 2,000 jobs. Most of the job reduction (1,400 roles) will occur in BAE Systems’ Military Air business over the next three years. BAE is currently fulfilling outstanding Typhoon orders from the Royal Air Force and Oman, with the latter – along with Saudi Arabia – also accounting for remaining Hawk orders. In regards to BAE’s reorganization, the company is echoing the U.K. government’s drive to boost defence exports by improving competitiveness. Controlling cost is critical, which the U.K. government is pushing as an affordable export solution. For the U.K., lower-cost goods alongside export credit/loans and economic offsets or countertrade would be areas of focus with prospective buyers in the Middle East, Central Europe and Asia. However, next to the U.S.’ dominance in these markets, the U.K. will also have to contend with Eastern solutions and homegrown initiatives. For the U.K. growing its share in the European NATO market would be the most accessible avenue for refilling its orderbook.
Date
29 October 2017
Related countries
United Kingdom
Related issues
Arms
