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Airbus 'to demand €655m for cancelled jets'

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An attendee takes a photograph of a model of the Eurofighter Typhoon aircraft displayed at the Airbus SAS exhibit at the Singapore Airshow, in Singapore

An attendee takes a photograph of a model of the Eurofighter Typhoon aircraft displayed at the Airbus SAS exhibit at the Singapore Airshow, in Singapore

Bloomberg

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Air France

Airbus Group will demand around €655m compensation from Germany over plans to cancel delivery of a final shipment of Eurofighter jets, a source close to a German parliamentary committee said yesterday.

Reuters last week reported that delivery of the last 37 jets, which could cost around €2.3bn, had been cancelled.

Airbus said it would seek compensation but declined to say how much.

"The contract sets out compensation payments if Tranche 3B is not taken up," a spokesman for Airbus told Reuters.

A spokesman for the German defence ministry said the amount was in the hundreds of millions. Daily paper 'Handelsblatt' also reported a figure of €900m in a separate report yesterday.

The German government decided in 2011 that it needed only 147 Eurofighter jets instead of 180. However, it was not clear how the reduction would be achieved.

The air force had wanted to sell some older Eurofighters and still order the 37 newer aircraft, but the financial crisis made the sale difficult. (Reuters)

Irish Independent