BAE Wins £2.1Bn Typhoon Support Package

MoD Set to Save Over £500M and Sustain Hundreds of UK Jobs with New Typhoon Support Deal

The Ministry of Defence (MOD) has announced a landmark 10-year support arrangement for the RAF’s Typhoon jets that could see more than £500M saved and reinvested in the aircraft.

Announced today at Farnborough International Air Show (FIAS), the arrangement with BAE Systems is expected to be worth £2.1 billion.

The award will sustain hundreds of high value jobs at sites across the UK, including at Typhoon’s Main Operating Base at RAF Coningsby and BAE Systems’ site in Warton, Lancashire.

Minister for Defence Procurement, Philip Dunne said:

“This is an exciting, innovative support contract for our Typhoon aircraft. It will not only provide more efficient support and availability for our Typhoon fleet. But it will also help ensure Typhoon continues to meet the RAF’s future operational requirements, including from 2019 undertaking the air-to-ground roles currently performed by our Tornado jets.

“This major contract sustains hundreds of jobs while representing a substantial change in the way support is provided, optimising and driving efficiency into current ways of working.

It aims to deliver more than a third on savings on current support and maintenance costs; of which over £500M million could be reinvested to continue upgrading Typhoon’s capabilities.”

The RAF’s Typhoon jet is already a formidable, battle winning aircraft, which is enhanced by cutting edge weapon systems. These new savings, generated through the Typhoon Total Availability eNterprise (TyTAN) agreement, will enable future capability upgrades for the aircraft, ensuring it continues to provide world-class air power capability for the RAF.

The MOD remains committed to driving down support costs together with our industrial partners. TyTAN will, for the first time in the MOD, allow recycling of support funding savings into the Typhoon project to increase future capability, making the aircraft even more formidable and affordable, reducing its cost of ownership.

Chief Executive Officer at the MOD’s Defence Equipment and Support organisation, Tony Douglas, said:

“This 10-year Typhoon support arrangement is the product of close cooperation between MOD and Industry, who are both focussed on maximising efficiencies to identify savings and re-invest these in the aircraft.

“This innovative deal not only shows how committed we are to providing state-of-the-art equipment for our Armed Forces, but how we are also providing the taxpayer with value for money.”

The Typhoon force is currently operationally based at RAF Coningsby (Lincolnshire), RAF Lossiemouth (Scotland) and the Falkland Islands, where the aircraft provide Quick Reaction Alert.

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Our Company has welcomed a 10-year partnership arrangement, expected to be worth £2.1bn, with the Ministry of Defence (MOD) to support the UK Typhoon fleet.

Working in partnership with the Royal Air Force (RAF) and Leonardo-Finmeccanica, the arrangement will introduce new ways of working to further reduce the costs of operating the fleet at RAF Coningsby and RAF Lossiemouth by more than a third. The deal could see more than £500m of savings reinvested to develop new capabilities for the aircraft.

For the first time in the support of the UK Typhoon fleet, the formal Typhoon Total Availability eNnterprise (TyTAN) agreement, which is expected to be signed shortly, will combine contracts with suppliers from across Europe into a single programme. It will include a joint avionics solution with Leonardo-Finmeccanica. This builds on the former Typhoon Availability Support contract that we delivered to the RAF over the last seven years.

Minister for Defence Procurement, Philip Dunne MP, said: “This will be an exciting, innovative support arrangement for our Typhoon aircraft, and will help ensure Typhoon continues to meet the RAF’s future operational requirements, including replacing our Tornado jets from 2019.

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

Chris Boardman, Managing Director of Military Air & Information, said: “Combining support arrangements into one programme will help to increase reliability and availability of the fleet, whilst making it cheaper to support. The efficiency savings generated will enable new capabilities to be developed for the RAF Typhoon aircraft.

“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.”

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