Saudi Arabia, BAE Systems Sign Typhoon Deal

The Saudi Arabian Air Force and British defence contractor BAE Systems have signed a contract for the supply of 48 Typhoon aircraft, Reuters News Agency has reported. The total value of the Salam deal is still unclear. In 2007, the deal worth $7.21 billion was signed by the duo to build a total of 72 aircraft with the first squadron of 24 already delivered to the Royal Saudi Air Force (RSAF). "The contract for the final assembly of 48 Typhoon aircraft in the UK has now been signed and final assembly has commenced at our Warton facility, discussions are ongoing with regard to the creation of a maintenance facility in Saudi Arabia and the formalisation of price variations," BAE was quoted as saying. "In terms of conversion to Tranche 3 and formalisation of price escalation, good progress has been made with budgets approved in December 2011 through the royal decree. Negotiations on price escalation will continue into 2012,” the company said. BAE had expected changes to the terms of the deal to be signed off in 2011, but it warned in January this year that talks over proposed adjustments to the final assembly of the last 48 of the 72 Typhoon aircraft would continue into 2012 and could hit 2011 profit, the report said.