Eurofighter targets £1.5bn Oman deal

Eurofighter is keeping its sights firmly fixed on the UAE as it attempts to land a lucrative deal for 60 combat jets, as one key rival seems to struggle.

Eurofighter is hoping to sell its Typhoon fighter jets to countries such as the UAE, Oman, Qatar and Kuwait.

Eurofighter, the European consortium vying to supply its Typhoon combat jets to the UAE, hopes to seal a £1.5 billion (Dh8.7bn) deal to sell the aircraft to Oman by the middle of next year.

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It is also seeking to restart discussions with Qatar next year about the sale of 36 Typhoons. Eurofighter is in competition with Boeing, Lockheed Martin and Dassault for the Qatar deal. Kuwait is also believed to be considering requesting a proposal for the Typhoon, say Kuwaiti government sources.

But the UAE is the biggest potential customer in the region as it looks to buy 60 jets for its fleet.

Eurofighter's hopes were raised on Wednesday when the terms on a rival proposal by Dassault were characterised as "uncompetitive" by Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

"People have seen what the aircraft has done in Libya and there's more interest being generated," said Wing Commander Anthony Gregory, a Eurofighter Typhoon adviser with the UK government, which is part of the Eurofighter consortium.

Gulf states are seeking to renew and expand their military firepower, creating opportunities for European and US defence manufacturers.

Eurofighter, a consortium of manufacturers in the UK, Italy, Germany and France, has steadily built its profile in the region since Saudi Arabia's air force ordered 72 Typhoons in 2006.

Oman entered talks with the UK ministry of defence in April last year about providing 12 of the aircraft. The country has been keen to replace its 24 Jaguar jets for some time. Eurofighter hopes to finalise the deal by the middle of next year, said Wg Cdr Gregory.

Both the Eurofighter Typhoon and the Dassault Rafale saw combat in Libya, with both aircraft makers pointing to their success in the campaign to disable Muammar Qaddafi's military.

But Dassault has yet to secure an international sale of the Rafale.

The French manufacturer has been in negotiations with the UAE since 2008 about a possible US$10bn (Dh36.73bn) purchase of 60 aircraft. The French had believed a deal to be close.

But a confirmed order has become less certain since Sheikh Mohammed's comments and after the UAE submitted a request to the UK government on November 9 asking for a costing for 60 Typhoons and a training package for 60 pilots to be in place by 2017. The same day, a request for proposals for the same number of jets was submitted to the US government for F-15 Eagles and F/A-18E/F Super Hornets, produced by the US plane maker Boeing.

"There is certainly a concern among those who have received the [request for proposals] that they are being used as 'stalking horses' in a radical attempt to squeeze a better price from Dassault," wrote Robert Hewson, the editor of the publication IHS Jane's Air-Launched Weapons, in a research note.

Any change in the UAE's fighter jet plans could affect a joint project between the European missile developer MBDA and Abu Dhabi's Baynuna Group.

A Rafale order was expected to lead to the establishment of a new missile system design and manufacturing base in the UAE.

"Before news of the [request for proposals], emerged the joint venture was hopeful that manufacturing work would start in 2012; this launch date had already been pushed back by earlier delays in securing a Rafale contract," wrote Mr Hewson.