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UAE pulls out of Eurofighter deal | UAE pulls out of Eurofighter deal |
(about 2 hours later) | |
Aircraft manufacturer BAE Systems says the United Arab Emirates has pulled out of a deal to buy Eurofighter aircraft. | Aircraft manufacturer BAE Systems says the United Arab Emirates has pulled out of a deal to buy Eurofighter aircraft. |
The Gulf state had been in talks with the company and the UK government to buy 60 Typhoon jets. | The Gulf state had been in talks with the company and the UK government to buy 60 Typhoon jets. |
The union convenor at the firm's Warton factory in Lancashire said it was "very disappointing news to get before Christmas". | |
But a government spokesman said it was a "commercial decision" and that it was "always going to be a difficult deal". | But a government spokesman said it was a "commercial decision" and that it was "always going to be a difficult deal". |
"As BAE have said, it was an exciting prospect but not part of their business plan," they added. | "As BAE have said, it was an exciting prospect but not part of their business plan," they added. |
'Game changer' | 'Game changer' |
In a statement BAE Systems said: "The UAE have advised that they have elected not to proceed with these proposals at this time." | In a statement BAE Systems said: "The UAE have advised that they have elected not to proceed with these proposals at this time." |
A spokesman added that the collapse of the deal would not have an impact on jobs at the firm's Warton factory. | A spokesman added that the collapse of the deal would not have an impact on jobs at the firm's Warton factory. |
Phil Entwhistle, from the factory's Unite union branch, said the deal would have been a "game changer" in terms of recruitment and the long term future of the factory. | Phil Entwhistle, from the factory's Unite union branch, said the deal would have been a "game changer" in terms of recruitment and the long term future of the factory. |
"Having said that, there's no threat to jobs in the short or medium term," he added. | "Having said that, there's no threat to jobs in the short or medium term," he added. |
"This deal wasn't yet part of the company's business plan so we won't be seeing people losing their jobs, certainly for the next three years or so." | "This deal wasn't yet part of the company's business plan so we won't be seeing people losing their jobs, certainly for the next three years or so." |
Last year, BAE systems lost out on a deal to supply 126 Typhoon jets to India. | Last year, BAE systems lost out on a deal to supply 126 Typhoon jets to India. |