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Germany Suspends Eurofighter Deliveries Due to Quality Problems
By: Lars Hoffmann (/author/lars-hoffmann) October 13, 2015
GOTTINGEN, Germany The German Air Force has temporarily suspended delivery of Eurofighter Typhoon fighter jets following the discovery of quality problems involving the
connection between the vertical stabilizers and the body of the aircraft.
In a notification to the German Bundestag, the Ministry of Defence said that drillings and the removal of burr were not conducted according to specifications.
The Typhoon suffered a similar problem last year when Germany, Italy and Spain all halted deliveries of the jet after a number of drilled bolt holes in a different part of the rear fuselage were
identified as having not been de-burred satisfactorily.
The Eurofighter consortium confirmed that it had now found a new manufacturing quality problem on the aircraft.
"A manufacturing non-conformance has been identified during the assembly of the fin to the rear fuselage of the aircraft manufactured to date. The topic is related to the holes drilled for
four of the bolts that connect the fins to the rear fuselages," Eurofighter said in a statement.
Consortium member BAE Systems is responsible for the manufacture of parts involved in last year's problem, as well as the current issue.
The consortium, which involves Airbus Defence and Space, BAE Systems, and Finmeccanica, said the problem does not affect aircraft flight safety and therefore as a consequence, there will
be no operational or life-time limitations to the Typhoon.
A spokesman for the German MoD stressed that while flight safety is not affected in the short run, long-time effects were possible.
Acceptance of delivery at this point could impact warranty claims, he said.
The MoD note to the Bundestag said that it could not be ruled out that the structure of the fast jet and the bolted connections in the specified area may be damaged.
Experts of the Bundeswehr, the NATO agency NETMA and industry are analyzing the problem.
According to the MoD, all of the German Eurofighters delivered from tranche 1 through to the current 3A standard are affected.
All German Eurofighters in service are being closely monitored and no direct influence on the operations of the German fleet are not is expected to be affected, said the MoD.
The British Ministry of Defence said it was continuing to accept deliveries and operate the aircraft as normal. At this point it is not unknown whether other Eurofighter nations will follow the
German lead and halt deliveries.
Britain, Germany, Italy and Spain are the core partners in the Typhoon program. Export customers Austria and Saudi Arabia already operate the jet. Oman also has also ordered the aircraft,
and Kuwait recently said it would purchase 24 Typhoons but has not yet signed a final contract.
Andrew Chuter contributed to this report.
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Airbus denies fraud allegations over Eurofighter Typhoon deal
By: Pierre Tran (/author/pierre-tran) February 17
PARIS Airbus has denied Austria's accusation of alleged fraud on a 2003 order worth 1.96 billion (US $2.08 billion) for 15 Eurofighter Typhoon jets.
"Airbus is surprised by today's press conference by the Austrian Federal Ministry of Defence raising criminal allegations against Airbus Defence and Space GmbH, a division of Airbus, and
Eurofighter Jagdflugzeug GmbH, alleging willful deception and fraud linked to the order for Eurofighter jets back in 2003," Airbus said in a statement Thursday.
"We cannot see any foundation in particular for the allegations of bad faith and fraud," Airbus said.
The Austrian Defense Ministry had not contacted Airbus before announcing its launch of a lawsuit, and the first the company heard was through news reports, Airbus said.
The ministry had earlier issued a statement that a criminal complaint had been filed accusing Airbus and Eurofighter of "willingly and fraudulently" deceiving Austria on the "true purchase
price as well as to the true ability to deliver and true specifications of the Eurofighter interceptor planes."
A Eurofighter Typhoon comes into land at Royal Air Force Fairford in July 2016 in Fairford, England. The Eurofighter is built by BAE Systems of Britain, Italy's Leonardo, and the German
and Spanish Airbus units.
Photo Credit: Matt Cardy/Getty Images
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That lawsuit claimed damages of at least 183.4 million and could reach 1.1 billion, the ministry said.
Part of the claim is a failure of Airbus and Eurofighter to tell Austria the purchase price of 1.96 billion included almost 10 percent, or 183.4 million, for the cost of offsets on the deal.
Austria had asked for those offsets, which allocate work to local firms, to be billed separately.
"Offset deals are obviously an ideal launcher for corruption, misery and money laundering," Defense Minister Hans Peter Doskozil told a news conference in Vienna, Reuters reported.
There were also further damages based on operating costs, which could not be quantified, the ministry said. The lawsuit was based on findings of the Task Force Eurofighter formed in 2012
at the ministry's request to probe corruption allegations.
"My concern is the full and final settling of the Eurofighter purchase, which has been subject to corruption allegation for 15 years," Doskozil said in the ministry statement.
Austrian Maj. Gen. Hans Hamberger speaks to journalists during a news conference at the Ministry of Defence in Vienna on Feb. 16, 2017. The ministry said it will sue European aircraft
manufacturer Airbus over a sale of Eurofighter jets that has long been plagued by allegations of kickbacks.
Photo Credit: Joe Klamar/AFP via Getty Images
Airbus said the allegations were "a political manoeuvre," the BBC reported. Austria initially ordered 24 Eurofighters in 2002 and then cut that to 15.
The Eurofighter is built by BAE Systems of Britain, Italy's Leonardo, and the German and Spanish Airbus units.
The Austrian Defense Ministry has also set up a commission to look into the replacement of a fleet of Saab 105 OE aircraft by 2020, the minister said in an official statement. The
commission is due to report by the end of June.
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FRIDAY, FEBRUARY 17, 2017
41
Business
Softbank adds Fortress Investment to growing empire
TOKYO: The $3.3 billion acquisition by its leadership, broad-based expertise and on finance and real estate, leisure industries, praised Son as visionary. They said the com-
SoftBank Group Corp., the Japanese telecom- world-class investment platform, Son said in transport and other infrastructure. panies have much in common, and the deal
munications, internet and solar energy giant, a statement. Private equity accounts for nearly two- will benefit shareholders. We join a company
of Fortress Investment Group marks tycoon Tokyo-based Softbank has been aggressive thirds of the companys investments. with tremendous scale and resources, and a
Masayoshi Sons latest step in building an in global acquisitions and has been seeking Softbanks shares jumped 1.6 percent culture completely aligned with our focus on
investment empire. partners for its private fund for technology Wednesday in Tokyo trading. Shares in performance, service and innovation, they
Son said the deal, announced by both investments that it says may grow to $100 bil- Fortress were up 6.5 percent late Tuesday. said in a joint statement.
sides Wednesday, will immediately contribute lion. Son appears determined to deliver on his Softbank also owns the US wireless com- SoftBank, the first carrier to offer the
to his strategy for growth and complement promise to President Donald Trump to invest pany Sprint Corp and Britains ARM Holdings, iPhone in Japan, also sells the Pepper human-
his Softbank Vision Fund plan for investing in $50 billion in US startups and create 50,000 which is known as an innovator in the inter- shaped companion robot. The company,
leading technologies including artificial intel- jobs. In buying New York-based Fortress, he is net of things, and in technology used in founded in 1981, has within its investment
ligence and the internet of Things, which betting more on Fortresss wide ranging smartphones. empire financial technology and ride-booking
links devices through the Internet. expertise and heft in global investment than Fortress said its senior professionals will services. Last week, the company reported its
Fortress excellent track record speaks for on gaining any edge in the technology sector: stay to keep up its fund performance. Fortress October-December profit soared to about 40
itself, and we look forward to benefiting from the US investment house has largely focused co-chairmen Pete Briger and Wes Edens times what it was a year ago. AP
ANC attacks banks
over forex
rigging charges
JOHANNESBURG: South Africas ruling ANC party called yes-
terday for the toughest possible sanctions against more than
a dozen local and foreign banks accused of rigging the rand
currency, piling political pressure on lenders that have
become a target for public anger.
The Competition Commission said on Wednesday it had
found the banks, including US, European, Japanese and
Australian lenders, had colluded to coordinate their trading
activities when dealing in the rand and US dollar.
South Africas banking index fell 1 percent yesterday after
the Commission, which has been conducting an investigation
since April 2015, recommended heavy fines be imposed on
the lenders.
The ANC attacked the banks, which many South Africans
view as a symbol of the stark racial inequality that persists 23
years after the fall of apartheid. The African National
Congress takes an extremely dim view of the activities of the
listed banks. These acts of corruption have crudely exposed
the ethical crisis in the South African banking sector, the par-
ty said in a statement.
It is further an indication of how the markets are and can
be manipulated by dominant oligopolies to cripple its func-
tioning to suit their nefarious agendas. VIENNA: This file photo taken on July 12, 2007 shows the first Eurofighter bought by Austria landing at Zeltweg air base,
Financial regulators are clamping down worldwide, with some 150 kilometers from Vienna. AFP
dozens of traders fired and big banks fined around $10 billion
in total in separate cases for rigging the level of the Libor
interest rates and other market benchmarks. The opposition
Democratic Alliance accused the ANC of politicising the issue,
saying ministers want to do battle with the banks, regardless
Austria to sue Airbus over
of the economic fallout.
Michael Cardo, who speaks on economic development for
the right-leaning party, said President Jacob Zumas State of
alleged Eurofighter fraud
the Nation Address last week had made clear he intends
using the competition authorities as a tool of his populist and
Govt sees potential damages of up to 1.1 bn euros
destructive agenda of radical economic transformation. VIENNA: Austria filed a lawsuit yester- year. As defence minister, I consider it so-called offset deals, according to the
Last year the ANC suffered its worst ever local election per- day against Airbus and the Eurofighter my duty to report facts relevant for crim- defense ministrys findings. While offset
formance as the left-wing Economic Freedom Fighters (EFF) consortium, alleging wilful deception inal prosecution and to claim compen- deals - which involve work being given
won over many poor black South Africans with promises of and fraud linked to a 2 billion euro ($2.1 sation for the Austrian taxpayers dam- to local companies - were part of the
radical redistribution of wealth. billion) order for Eurofighter jets in age. This is what we did today, Doskozil agreement, their cost should have been
The EFF and sections of the ANC often criticise banks for 2003, the defence ministry said. The said. Austria initially ordered 18 reported separately, it said in a report.
keeping the wealth of the country in the hands of the white ministry said that following an investi- Eurofighter jets but reduced the order Airbus and Eurofighter Jagdflugzeug
elite. This has turned up the heat on the banks, where a major- gation it believed Airbus and to 15 in 2007. It then ordered a review GmbH, which coordinates the produc-
ity of executives are white despite black people making up 80 Eurofighter had misled Austria about of the purchase four years ago follow- tion of the aircraft and is headquartered
percent of the population. the purchase price, deliverability and ing bribery allegations. in Munich, also deceived Austria about
The investigation found that from at least 2007, banks had equipment of the jets. The deal was controversial from the its ability and will to deliver the agreed
an agreement to collude on prices for bids, offers and bid- Damages could amount to 1.1 billion outset and allegations surfaced almost equipment, the report said. The
offer spreads for spot trades involving the rand - whose inter- euros, Defence Minister Hans Peter immediately after its announcement in Eurofighter consortium was not imme-
national market code is ZAR - and the U.S. dollar, the Doskozil said at a news conference in 2003 that money was pocketed by diately available to comment. The min-
Commission said. Vienna. Airbus said it was unable to politicians, civil servants and others via istry said its damages estimate of up to
Its inquiry centred on an instant messaging chat room comment as it had only just learnt brokers for side deals accompanying 1.1 billion euros related to extra costs
called ZAR Domination, which the Commission said was about the action through the media. the purchase. A European defence exec- paid for the Eurofighter compared with
used to coordinate trading activities when giving quotes to We dont know any details, a utive, asking not to be identified, said a jet from another bidder and higher
customers who buy or sell currencies. Fines should amount to spokesman said. Eurofighter had won the deal with the operating expenses.
10 percent of the banks annual revenues, the Commission We can however confirm that in lowest price. Airbus, Europes largest aerospace
recommended, without saying whether this should relate to recent years we have supported the The Eurofighter is built by a consor- group, has said it is co-operating with
global revenues or just their South African business. The activities by the legal authorities, for tium comprising Britains BAE Systems a separate German probe into the
banks and brokerages named in the case were Citigroup, instance through (our) own investiga- and Italys Leonardo as well as Airbus, fighter sale to Austria, as well as three
Nomura, Standard Bank, Investec, JP Morgan, BNP Paribas, tions, he added. Austrian and German which represents the other two nations probes into suspected irregularities in
Credit Suisse Group, Commerzbank AG, Standard New York prosecutors have been investigating the in the European project: Germany and defense or security markets, including
Securities Inc, Macquarie Bank, Bank of America Merrill Lynch case for years and Munich prosecutors Spain. Airbus and the consortium ille- a UK investigation into a $3.3 billion
(BAML), ANZ Banking Group Ltd, Standard Chartered Plc and have said they expect to complete sepa- gally charged nearly 10 percent of the communications deal with Saudi
Barclays Africa (Absa) , part of the Barclays Plc. Reuters rate preliminary proceedings by mid- purchase price of 1.96 billion euros for Arabia. Reuters
FRIDAY, FEBRUARY 17, 2017
Air
(/air/)
Austria set to replace Eurofighter Typhoons
By: Sebastian Sprenger (/author/sebastian-sprenger) July 7
COLOGNE, Germany Austria is set to replace the small fleet of fighter jets to patrol its airspace following an announcement today that the collection of Eurofighter Typhoons and Saab 105
OE aircraft would be phased out.
Defense Minister Hans Peter Doskozil's decision follows the advice of an expert commission that had studied options for securing the country's skies after 2020. At that time, the subsonic
Saab planes would reach the end of their economic lives and would be retired anyway. And because the fleet of 15 Eurofighter Typhoons are of the early Tranche-1 generation, those aircraft
also are considered militarily sub par in their current configuration and economically unsustainable.
"Those who say yes to Austrian neutrality and sovereignty must also say yes to modern, high-performance supersonic aircraft capable of round-the-clock operations," Doskozil told reporters
in Vienna. "At the same time, we need to get the escalating costs of the Eurofighter under control and minimize the enormous cost risks associated with it in the interest of the taxpayer
and also in relation to the other branches of the armed forces."
Continued operation of the 15 Eurofighter Typhoon jets would cost between 4.4 billion (U.S. $5 billion) and 5.1 billion (U.S. $5.8 billion) over 30 years, according to the expert
commission. And that's without taking into account "the specific cost risks" associate with Tranche 1 or the costs for continued deployment of the Saab 105s, the panel said.
While there was no announcement on what other aircraft could fit Austria's needs, officials said they had spoken with Airbus which makes the Eurofighter Typhoon potential alternative
suppliers as well as governments. Those talks led to 19 different options for monitoring Austria's airspace.
Eventually, the decision was made to go looking for a single-type fleet of supersonic planes 15 single-seaters and three double-seaters that would begin operations in 2020.
Austrian press reports the Swedish Gripen E/F or the American F-16 as jets that could be considered by Vienna.
There is a long-standing suspicion of the Eurofighter Typhoon in Austria, as the current government believes the country was duped into the acquisition in 2003.
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PROCUREMENT
Smoke and
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Austria hits Eurofighter with
Typhoon replacement plan
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PROCUREMENT DOMINIC PERRY LONDON
Vienna bids goodnight to Eurofighter
Commission report indicates fleet switch could save 2 billion by 2049, as legal wrangling over types acquisition mounts
A ustria plans to replace its
fleet of 15 Tranche 1 Eu-
rofighter Typhoons from 2020,
amid a deepening row with the
four-nation consortium over the
cost and capability of its aircraft.
Vienna in February began legal
proceedings against Airbus De-
fence & Space and Eurofighter
over alleged fraud and deception
related to its near 2 billion
($2.28 billion) acquisition of the
Typhoons in 2003. Airbus and
the industrial consortium deny
the accusations, but the nations
proposed exit from Eurofighter
Markus Zinner/Eurofighter
operations from the end of the
decade reveals the depth of its
dissatisfaction with the Typhoon.
Vienna selected the Tranche
1-standard Typhoon in 2001 to re- Austrian government says Tranche 1 jets have limited equipment and significant cost uncertainty
place its Saab Draken interceptors.
The Austrian defence ministry de- of the Eurofighter under control the German air force, including
scribes the fighters which it re- and minimise the enormous cost
Those who say yes to six which were transferred after
ceived between 2005 and 2008 as risks associated with it in the in- Austrian sovereignty their delivery to the Luftwaffe.
possessing limited equipment terests of the taxpayer, and also in must also say yes to Its Tranche 1 examples are limit-
and significant cost uncertainty. It relation to the other branches of ed to carrying only Diehl
says retaining the 15-strong fleet the armed forces. high-performance Defence IRIS-T short-range air-
for the next 30 years would see it Austria has based its decision supersonic aircraft to-air missiles and a Mauser
incur costs of between 4.4 billion on a report generated by the spe- Hans Peter Doskozil 27mm cannon.
and 5.1 billion. cial commission it set up in Defence minister, Austria
Figures produced by a special March, headed by air force chief TRAINER FOCUS
commission appointed to examine Brig Karl Gruber. As the Saab 105s are also used for
the issue suggest the fleet switch The report concludes that the Continued operations with training missions, the report sig-
would generate potential savings air force requires a new fleet of the existing Austrian Eurofighter nals Austrias possible intention
of between 100 million and 2 supersonic fighters, able to oper- fleet would involve cost risks of replacing its fleet of Pilatus
billion in the period to 2049. ate around the clock, and that are difficult to quantify at PC-7 turboprop trainers at the
equipped with guided missiles present, says Gruber, noting the same time. If the PC-7s are
SINGLE-TYPE AMBITION and an advanced self-protection gradual replacement of Tranche phased out it will look to buy
At present, Austria conducts air- system. It says the new aircraft 1 examples by the consortiums training hours from a European
space policing missions with its should be acquired via a govern- partner nations Germany, Italy, partner in the short term, while
Typhoons, as well as an aged fleet ment-to-government deal and Spain and the UK. Consequent- in the longer term Vienna would
of 17 Saab 105s, which will re- could either be purchased or ly, it appears likely that there upgrade its simulator training
quire replacement from 2020. By leased. A separate commission will be no uniform Eurofighter and purchase a high-efficiency
aligning the out-of-service dates, has now been established to ex- Typhoon Tranche 1 system in trainer aircraft. It does not speci-
Vienna says it expects to move to amine candidate aircraft and ac- the future. fy if this would be jet- or turbo-
a one-type fleet, with 15 single- quisition methods, says the de- Eurofighter declines to com- prop-powered.
seat fighters and three twin-seat fence ministry. ment on the detail of the Austrian Austria has previously shown
trainers. Among the 19 options ana- report, although it says: This is interest in Leonardos Aermacchi
Those who say yes to Austrian lysed by the commission was up- an Austrian defence procurement M-346, including sending trainee
neutrality and sovereignty must grading the nations current Ty- discussion and it is not for us to pilots to the Italian air forces
also say yes to modern, high-per- phoon fleet and acquiring three comment. However, the Eu- Lecce air base to fly the type,
formance supersonic aircraft ca- used two-seaters. Austria had ini- rofighter works very well for all while the company is also now
pable of round-the-clock opera- tially planned to acquire a trio of other customers. seeking potential buyers for its
tions, says defence minister Hans trainers, but abandoned this in Flight Fleets Analyzer shows M-345 basic trainer.
Peter Doskozil. At the same time, favour of instead installing a sim- that nine of Austrias Eurofight- Additional reporting by Craig
we need to get the escalating costs ulator at Zeltweg air base. ers were originally ordered for Hoyle in London
16 | Flight International | 18-24 July 2017 flightglobal.com
Generated by CamScanner
[NEWS] HEADLINES
06 A pair of F-35Bs over
the North Sea during
a visit to the UK last
year. Jamie Hunter
AUSTRIAN TYPHOON UNDER THREAT
VIENNA CONSIDERS FIGHTER REPLACEMENT OPTIONS
T
Austrian Eurofighters on patrol during the World Economic Forum. HE AUSTRIAN billion to retain the Typhoons over the
Eurofighter MINISTRY of Defense next 30 years. Savings of 100 million
has announced plans to 2 billion could be accrued by 2049
to withdraw the if Austria elects to replace both the
Austrian Air Forces Typhoon and Saab 105OE jet trainer
(Luftstreitkrftes) with a common type.
fleet of 15 Tranche 1 Eurofighter The Defense Ministry favors a fleet
Typhoons from 2020. The ministry of 15 single- and three twin-seat
claims that the Tranche 1 jets provide high-performance supersonic aircraft
limited equipment and significant for national air policing missions. An
cost uncertainty. Air Force report also calls for the new
Austria previously launched legal aircraft to be equipped with medium-
proceedings against Airbus Defence range air-to-air missiles and an
and Space and Eurofighter, alleging advanced self-defense system. The Air
fraud and deception related to the Force judges that an upgrade of the
$2.28-billion Typhoon acquisition existing Typhoon fleet and acquisition
in 2003. The jets are operated by of three used two-seaters is currently
the berwachungsgeschwader too expensive. With Austrian elections
(Surveillance Wing) based at Zeltweg. this fall, there remains the possibility
According to the ministry, it would that a new defense ministry may opt
cost between $5 billion and $5.8 to retain the Typhoon.
www.combataircraft.net September 2017
6-7 Headlines C.indd 6 21/07/2017 09:56
