DSA 2016: BAE Systems outlines Typhoon offset package for Malaysia

[Zarvan]

A Royal Air Force Typhoon of 3 (F) Squadron Eurofighter Typhoon over the Petronas towers in Kuala Lumpur, Malaysia, in 2013. Source: BAE Systems
BAE Systems remains committed to offering the Eurofighter Typhoon to meet the Royal Malaysian Air Force's (RMAF's) multirole combat aircraft (MRCA) requirement despite continuing delays in the programme.


John Brosnan, the managing director of BAE Systems' Asia business, told IHS Jane's on 18 April at the Defence Services Asia (DSA) exhibition in Kuala Lumpur that Typhoon is positioned to meet the RMAF's requirement to replace its ageing MiG-29 fighter aircraft and address intensifying strategic concerns in the region.

He added that he expects the MRCA programme to progress in the near future, and that BAE Systems is aiming to secure the deal through a comprehensive local industrial partnership supported, possibly, by UK finance.

"The MiG-29 will need replacing," he said. "The threats are out there, and the [RMAF] needs an aircraft. Its [Boeing] F/A-18 Hornets and [Sukhoi] Su-30s are getting older too. If you order aircraft today it takes two or three years before you get them so the decision would have to be made before too much longer, I would say."

He added, "A key element with the Typhoon is that it will be supported here in Malaysia. We will have a maintenance, repair, and overhaul facility with a local partner, probably a joint venture but certainly an industrial partnership that will support the aircraft."

Brosnan noted that while localised production would not make economic sense for the MRCA programme, which will encompass the supply of 18 aircraft, the Typhoon offer could be supported by finance extended by the UK government. "Clearly, if we can spread payment plans over three periods rather than one, that is likely to be of interest," he said.

Elaborating on the point, Alan Garwood, BAE Systems' group business development director, told IHS Jane's that UK finance deals are becoming an increasingly popular method of supporting UK defence exports to countries facing economic constraints.

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[Syed Hussain]

It's been some time now since Malaysia is in talks about the Typhoon, and since then the only matter being discussed is of finance even though the number will be no more than two squadrons. They even considered "leasing" the Typhoons once. Now honestly to me it seems like a bad joke that a country as financially strong as Malaysia having such "kanjoos" approach.

 

[Penguin]

2 squadrons will nicely replace Mig-29 and F-5. There is nothing wrong with leasing. See e.g. several Eastern European countries.