BAE agrees prices for Saudi jets

DEFENCE group BAE Systems said it has settled a pricing dispute with Saudi Arabia for Typhoon aircraft.

It struck a deal for the fighter jets, which are assembled in Lancashire, in 2005 which stipulated that pricing would be based on economic conditions at the time.

But BAE has been working with the UK Government and the Saudi authorities on “price escalation terms”. The group said the terms are broadly consistent with the group’s prior trading outlook for 2013.

BAE employs around 15,000 people in the North West at sites in Lancashire, Cumbria and Cheshire. Its biggest operations are at its military jet manufacturing facilities at Warton, which has around 5,500 staff, and Samlesbury, which employs 4,500.

Chief executive Ian King said: “This is an equitable outcome for all parties, I am pleased that we have been able to conclude this negotiation which builds on our long-standing relationship with this much-valued customer.”