BAE Systems Amends Qatar Typhoon, Hawk Contract to Accelerate Deliveries

BAE Systems has amended its contract with Qatar to accelerate the delivery of Typhoon fighter jets and Hawk trainers.

The information was revealed as part of its 2019 half-year financial results announcement today.

Qatar entered into a £5bn deal with BAE Systems supported by the UK government for which it paid the first installment in September 2018.

Qatar will acquire 24 Eurofighter Typhoon fighter jets and nine Hawk trainer aircraft from BAE Systems. The export deal also includes a support and training package for the aircraft, in addition to training and cooperation between the UK Royal Air Force (RAF) and the Qatari Emiri Air Force (QEAF).

As per the original schedule the aircraft are expected to be delivered in 2022. The BAE Systems announcement did not elaborate if the acceleration referred to would deliver the aircraft ahead of the original schedule.

However, the contract amendment for delivery accelerations appears to have happened in the first half of 2018 that is after Qatar made an advance payment for the jets which suggests to the possibility of a new request from Qatar to speed up delivery.

As to guidance for 2019 the announcement said, “The group now expects net debt to be broadly unchanged from the net debt at 31 December 2018. This is a slight improvement from the previous guidance reflecting a net timing mix on the Qatar Typhoon programme and the M109A7 programme.”