Bloomberg News

Eurofighter Chief Targets Cost Cuts in Drive to Win Bids Abroad

June 19, 2013

Eurofighter Jagdflugzeug GmbH’s new Chief Executive Officer Alberto Gutierrez said he’ll target spending reductions to make the group’s Typhoon combat jet more competitive at winning orders abroad.

“There will be hard facts and figures” in the review, Gutierrez told reporters at the Paris Air Show. Decision making needs to be streamlined, he said.

Eurofighter, a military-jet partnership of European Aeronautic, Defence & Space Co. (EAD), BAE Systems Plc (BA/) and Finmeccanica SpA (FNC), has lost to U.S. and European rivals in Indian, Japanese and Swiss orders in the past two years. The venture, based in the Munich suburb of Hallbergmoos, is awaiting the outcome of a 60-plane South Korean tender in which the Typhoon is competing with Lockheed Martin Corp. (LMT:US)’s F-35 and Boeing Co. (BA:US) F-15.

“We are engaged in several campaigns around the globe,” Gutierrez, a former head of operations at air-transport developer Airbus Military who was appointed to the Eurofighter post on April 22. “We are focusing particularly on the Middle East,” and “we have a lot of hope of winning some of those contracts.”

Eurofighter has ambitions to sell the twin-engine jet to the United Arab Emirates, Qatar and Kuwait. A further purchase by Saudi Arabia, already a buyer of 72 Typhoons, is possible, Gutierrez said.

To contact the reporter on this story: Robert Wall in Paris via rwall6@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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Companies Mentioned

  • LMT
    (Lockheed Martin Corp)
    • $188.62 USD
    • 3.47
    • 1.84%
  • BA
    (Boeing Co/The)
    • $126.75 USD
    • 1.69
    • 1.33%
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