CHRISTINA MACKENZIE / ROME & JULIAN MOXON / LONDON

Talks on the second, 236-aircraft production tranche of the Euro-fighter programme remain at a "crucial" stage, as the year-end deadline for a signature between the four partner governments approaches.

Meeting at a NATO gathering in Colorado Springs last week, the UK, German, Italian and Spanish defence ministers discussed their increasing concerns about rising programme costs and were expected to tell Eurofighter industrial partners Alenia Spazio, BAE Systems and EADS (respectively holding 21%, 33% and 46%) to bring costs under control. In terms of numbers, the Eurofighter programme is supposedly protected by the 1998 memorandum of understanding between the partners, with a total of 620 aircraft due to be ordered in three production lots. The capabilities of the aircraft could, however, be severely affected by cost-cutting measures.

Talks are ongoing between the customer air forces and industry on ways of cutting costs. BAE Systems says a natural cost-reduction process will result from the production learning curve, which it says has already seen major reductions in the time - and hence cost - of producing items such as the forward fuselage. At present 112 Eurofighters are in major component form, with 48 in final assembly.

Meanwhile, Italian defence minister Antonio Martino has dismissed doubts about the third production tranche raised by Alessandro Pansa, chief financial officer of Alenia's owner Finmeccanica. Martino said Italy would not pull out of the third tranche contract "because we are both suppliers and buyers".

Source: Flight International