BAE agrees £2bn MOD deal

BAE Systems has announced a ten-year partnership arrangement, expected to be worth £2.1bn, with the Ministry of Defence to support the UK Typhoon fleet.

The deal could see more than £500m of savings reinvested to develop new capabilities for the aircraft.

It will include a joint avionics solution with Leonardo-Finmeccanica. This builds on the former Typhoon Availability Support contract that BAE Systems delivered to the RAF over the last seven years.

“It represents a substantial change in the way support is provided, optimising and driving efficiency through improved ways of working.”

“We’ve worked with partners across our supply chain to drive improvements ensuring that we deliver the lowest possible costs to the MOD. We are extremely pleased that the agreement will extend our close working relationship with the MOD and will enable us to continue to support the Typhoon fleet until 2026 as it continues to perform its vital role in safeguarding our nation at home and overseas.” In 2104, BAE estimated that construction of the Typhoon was worth almost £10m annually to the Lancashire economy. Manufacture of the craft's major units are supplied by BAE's Samlesbury site, with final assembly and flight-testing of the jets carried out at its facility in Warton. The two sites combined employ around 11,000.