Tag: BAE SYSTEMS

New Hawk aircraft order from Saudi Arabia

Some good news. The government of Saudi Arabia has ordered 22 Hawk Advanced Jet Trainers as part of a package of training equipment which includes 55 Pilatus PC21 basic training aircraft.  The Hawks will be delivered in 2016.

This will reduce the number of redundancies previously announced at the factories at Warton, near Preston, and at Brough, near Hull.  There was discussion about work being moved from Brough to Warton, whether this order will affect that isn’t known. Although the Daily Telegraph reported that the bulk of the work will take place at Warton and only 200 jobs at Brough will be saved out of 850. This seems to imply that some work will move.

The orders from the Government of Saudi Arabia have been a boon to the UK aircraft industry, the locality and the UK balance of payments since the early 1960’s when Lightning fighters were supplied. This was followed by Tornado and more recently by Typhoon.

BAE shares up

I was reading that the US defence budget has been cut and it sent BAE shares up as it’s thought their business might actually increase. At risk are some of the big US projects like the Raptor for which BAE, in the US, supplies electronics. Increases to the F35 JSF budget next year and potentially for maintenance of vehicles being kept in service longer are thought to be positive. On the downside the UK is looking at delaying its defence budget commitments possibly Typhoon Tranche 3 and the new Carriers. Although Harrier life might be extended for use on the new carriers.

So locally there might be some effect via the F35 and Typhoon and maybe the Harriers. Work for several years should get through this recession.