BAE bags Royal Saudi Air Force service contract
13 Oct 2009
BAE, one of the three major contractors involved in building the Eurofighter Typhoon, announced a deal under which it would provide a 'full availability service contract' that would include training in Britain for Saudi pilots and aircraft technicians under a three-year deal. BAE systems is Europe's biggest defence contractor.
The company did not quote a value to the deal but media reports estimate the deal to be worth an earlier contract the company won from the UK's Ministry of Defence valued at £450 million.
The UK sold 72 Eurofighter Typhoons to Saudi Arabia in 2006 and the Royal Saudi Air Force (RSAF) has begun flying operations with the delivery of the first four according to a BAE statement.
With the global fighter market hotting up under new threats and phasing out of old fleets, analysts say, after-sales service support is bound to emerge as a lucrative revenue earning niche.
According to analysts the global fighter sales market at $17 billion a year produces a market of around the same size for after-market services.
According to sources familiar with the matter, in June Britain was in talks to sell another 72 planes to Saudi Arabia. A possible deal for support was also discussed.
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