via ASDNews.
Wow.Italy cuts Eurofighter order by 25 units, citing finances
MILAN, July 20, 2010 (AFP) - Italy will slash an order for Eurofighter warplanes by 25 from a planned 121 for savings of about two billion euros (2.6 billion dollars), the defence ministry said on Tuesday.
The reduced order is part of "savings that the ministry must make under the austerity plan" adopted by the centre-right government in May, a press officer told AFP, confirming remarks by Defence Minister Ignazio La Russa at the Farnborough Airshow in Britain.
The two-year austerity package totalling 24.9 billion euros is aimed at cleaning up Italy's finances and reassuring financial markets.
The Eurofighter, a multi-purpose twin-engine fighter jet introduced in 2003, is built by a consortium made up of the European Aeronautic Defence and Space Company (EADS), Britain's BAE Systems and Alenia/Finmeccanica of Italy.
EADS' share is 46 percent, followed by BAE's 33 percent and Alenia/Finmeccanica's 21 percent.
The Eurofighter programme has been dogged by criticism over costs, notably from Italy and Britain.
Everyone was predicting that the F-35 would fall prey to the financial crisis but it seems like the production schedule will preclude that type of hit.
High tech jobs have a type of political capital that must not be underestimated.
I do wonder what this will do to the planned upgrade of the AESA radar that is being developed. Especially when it can be seen that the F-35 will be a more capable and lower cost airplane.